VZCZCXRO4085
RR RUEHGR
DE RUEHSP #0393/01 1131648
ZNR UUUUU ZZH
R 231648Z APR 07 ZDK
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 8126
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHDG/AMEMBASSY SANTO DOMINGO 2575
RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 03 PORT OF SPAIN 000393 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR ITA/MAC/OFFICE OF LATIN AMERICA & CARIBBEAN 
SANTO DOMINGO FOR REGIONAL COMMERCIAL OFFICE 
 
E.O. 12958: N/A 
TAGS: ECON EAIR EFIN EIND EINV ETRD KFLU TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - MARCH 
 
 
The following were notable economic developments in Trinidad & 
Tobago during the month of March 
 
¶1.  Tobago Land License for Foreigners 
¶2.  Far East Co-operation in Trade & Investment 
¶3.  GOTT committed to FTAA 
¶4.  Fishy concerns 
¶5.  T&T gets Water Pollution Rules 
¶6.  U.S. company to build Caustic Soda plant 
¶7.  Essar Steel plant approved 
¶8.  T&T Bird Flu ready 
¶9.  VAT removed on basic products 
¶10. Inflation falls again 
¶11. Caribbean Airlines launches POS/London Route 
¶12. Aviation security training for Caricom 
¶13. Fire delays Guyana's poultry exports to T&T 
¶14. T&T Company's Registry Online 
 
¶1. Tobago Land License for Foreigners 
------------------------------------- 
 
According to the Foreign Investment Tobago Land Acquisition Order 
2007 (FITLAO) signed on February 14, all foreign investors must now 
obtain a license before purchasing land in Tobago.  Orville London, 
Chief Secretary of the Tobago House of Assembly, said that the 
FITLAO minimizes the chances of land being purchased in Tobago 'for 
reasons other than those that were stated and approved.'  He added 
that the idea was not to ban the sale of lands, but to be able to 
manage it in an effective way.  Previously, foreigners could 
purchase up to five acres for business purposes and one acre for 
residential purposes without a license. 
 
¶2. Cooperation with Asia in Trade & Investment 
--------------------------------------------- - 
 
The February 27-March 12 GOTT "Trade and Investment Mission to the 
Far East" (Seoul, Beijing, Shanghai, Mumbai, New Delhi) produced the 
following results: The GOTT and ROKG agreed to cooperate in trade of 
liquefied natural gas from T&T and Korean inputs for T&T 
manufacturing.  The highlight of the Beijing visit was the signing 
of a Memorandum of Understanding (MOU) by Minister of Trade and 
Industry Kenneth Valley and Mr. Gu Zhaoxi, Vice Chairman of the 
China National Tourism Administration (NTA), under which China 
granted Approved Destination Status (ADS) to T&T, facilitating PRC 
nationals' travel to T&T. Also in Beijing, the Mission hosted a 
Business Forum attended by over 200 Chinese business 
representatives. 
 
In New Delhi GOTT and GOI signed a bilateral investment treaty. 
Minister Valley also presented Bank of Baroda's Chairman and 
Managing Director Dr. Anil K. Khandelwal with a letter of approval 
from the Central Bank of Trinidad and Tobago to open a T&T 
subsidiary.  The general Manager of New India Assurance, the longest 
operating Indian company in T&T, spoke at a business forum about his 
59 years of experience doing business in T&T.  Arrangements were 
finalized with a major Bollywood studio to shoot a feature film here 
in May 2007 for release in India in September 2007. 
 
The GOTT also announced plans to negotiate bilateral civair 
agreements with China and India this year. 
 
¶3. GOTT committed to FTAA 
------------------------- 
 
Speaking at a March 21 luncheon for energy executives, Prime 
Minister Manning told his audience that he had made it clear to 
Venezuela's President Hugo Chavez that T&T remains "irrevocably 
committed" to the Free Trade Area of the Americas (FTAA).  For that 
reason, Manning stated T&T could not subscribe to the Bolivarian 
Alternative for the Americas (ALBA), like Venezuela, or sign MOUs on 
ALBA, like some CARICOM neighbors.  Manning added that since 
Venezuela, through PetroCaribe, threatened to displace T&T as the 
dominant regional energy supplier, T&T could no longer accept the 
responsibility for guaranteeing energy security in CARICOM 
countries. 
 
¶4.  Fishy Concerns 
------------------ 
 
Recent statistics from the Tobago House of Assembly (THA) Department 
of Fisheries indicate depleted flying fish stocks in Tobago's 
waters. The report states that the 2004-2005 season was the worst in 
years and despite a relatively better 2005-2006 season, it failed to 
reach the average for the previous five years.  THA's Chief 
Secretary Orville London said conservation would be necessary if the 
 
SIPDIS 
present trend continues, and the Assembly is recommending a 
moratorium on fishing in Tobago waters by foreign vessels until a 
 
PORT OF SP 00000393  002 OF 003 
 
 
new assessment shows that there is no permanent depletion of fish 
stock and that the available and predictable stock can meet the 
needs of Tobagonians.  The Assembly's position has been conveyed to 
the Ministry of Foreign Affairs as discussions between T&T and 
Barbados on fishing in Tobago waters are scheduled to commence 
shortly. 
 
¶5.  TT gets Water Pollution Rules 
--------------------------------- 
 
In early March, Public Utilities and the Environment Minister 
Penelope Beckles introduced new Water Pollutions Rules, which 
require corporations and other "polluters" to register as a source 
of water pollution with the Environmental Management Agency (EMA) by 
May 4.  This represents T&T's first attempt to compile a 
comprehensive and reliable inventory of national water pollution 
sources and is intended to improve the quality of T&T's water 
resources.  Septel will report further on these rules and planned 
implementation and enforcement. 
 
¶6.  U.S. company to build Caustic Soda plant 
-------------------------------------------- 
 
U.S. company Seneca Chemicals Limited and local joint venture 
partner Guardian Energy Holdings Limited will build a US$80 million 
chemical plant at Point Lisas with an annually production capacity 
of 100,000 tones each of caustic soda and calcium chloride when the 
facility comes on stream in September 2008.  The joint venture 
company CariSal Limited, affiliated with New York company CariSal 
LLC, will process a by-product salt stream from the Desalcott 
desalination plant to make a raw feed to the plant and produce 
potable water for its own use as well as local industrial use. 
According to press reports, CariSal has secured long-term supply 
agreements for electricity and natural gas to the facility. 
Texas-base DX Terminals Limited will market the caustic soda 
internationally, while CariSal LLC will market the calcium chloride 
for oilfield, road stabilization and ice melt applications. 
According to General Manager Roger Moore, the company is committed 
to providing a safe and clean operation with no emissions. 
Miami-based Conve & AVS Inc. and local company ABT Engineers & 
Constructors Ltd. were awarded the contract for engineering and 
fabrication of the plant.  Local company TTeK Project Management 
Limited will be responsible for the construction of the facility. 
U.S. company Halliburton, a major consumer of calcium chloride for 
oilfield operations, reportedly also has an interest in the 
project. 
 
¶7.  Essar Steel plant approved 
------------------------------ 
 
Essar Steel officials announced the company has received a nod from 
the GOTT for its proposed US$1.76 billion plant in Trinidad and will 
start construction by July this year.  The plant would have an 
annual production capacity of 2.5 million tons and would be 
operational by 2010.  Essar is setting up the new plant produced 
primarily for the US market and also for the Caribbean.  This would 
be Essar's first plant in the Caribbean but the company may look for 
more such plants in the future, according to press reports. 
 
¶9.  T&T Bird Flu Ready 
---------------------- 
 
At the first interagency Avian Influenza Desktop Simulation held 
March 14, T&T Minister of Agriculture Jarrette Narine declared that 
T&T was "well prepared" in the event of AI reaching this country, 
which he says is not a matter of "if Bird Flu would strike T&T but 
rather when."  Since chicken is a vital part of the Trinbagonian 
diet, Narine is focusing on AI's possible impact on the poultry 
industry. He also reported that his Ministry has strengthened 
surveillance of the country's ports of entry and amended trade 
protocols and restrictions to address the AI threat.  Nearly 100 
representatives from the National Avian Influenza Control Committee 
(NAICC), an interagency task force formed in November 2006, and 
other industry and NGO stakeholders took part in the exercise to 
increase preparedness and coordination of key players 
 
¶9.  VAT removed on basic products 
--------------------------------- 
 
On March 14, advertisements from the Board of Inland Revenue 
appeared in local newspapers advising that the 15 per cent Value 
Added Tax (VAT) had been removed on a number of items effective 
January 31, although many stakeholders said that they were unaware 
of this change until the publishing of the ads.  Among the items on 
which VAT was removed are mineral and ordinary water, tomato 
ketchup, prepared mustard, aerated beverages, corn flakes, soya 
bean, corn and sesame oils, chicken sausages, canned salami 
 
PORT OF SP 00000393  003 OF 003 
 
 
sausages, unsweetened grapefruit juice for infant use and 
concentrated, orange drink, soy sauce, vinegar, dishwashing liquid 
and detergents, both liquid and solid forms. 
 
¶10.  Inflation falls again 
-------------------------- 
 
In its March release, the Central Bank of Trinidad and Tobago 
announced that headline inflation dropped to 8.4 percent in 
February, down from 8.6 percent in January.  According to the Bank, 
while the outlook for prices over the next three months remains 
uncertain, the full impact of the reduction of VAT could reduce the 
prices of some consumer goods.  Core inflation was up to 4.5 percent 
from 4.4 percent in January and occurred mainly in the sub-indices 
of housing and alcoholic beverages, the latter being attributed to 
the carnival season. 
 
¶11.  Caribbean Airlines launches POS/London Route 
--------------------------------------------- ---- 
 
Caribbean Airlines (CA) launched its new and enhanced flight service 
between Port of Spain and London on March 25.  The new service is 
part of a code share agreement signed between CA and British Airways 
(BA).  Under this agreement BA operate direct flight service between 
POS and London, three times weekly.  On the other days, CA will fly 
from POS to Bridgetown connecting with BA's Boeing 777 to London. 
 
¶12.  Aviation Security Training for CARICOM 
------------------------------------------- 
 
As part of CARICOM measures to enhance border and venue security 
ahead of the Cricket World Cup, the newly established Advanced Air 
Transportation Technologies-Airports Council International 
(AATT-ACI) Global Training Hub at the Aviation Training Centre in 
Piarco International Airport recently graduated 33 participants from 
its inaugural training program. Instructors from ACI focused on 
passenger profiling, managing airport and stadium security during 
the World Cup and how to manage and maintain seamless security. 
Officials from the U.S. Department of Homeland Security and the U 
.S. Transportation Security Administration attended parts of the 
seminar.  The next training program is scheduled for May 29-31 and 
will focus on "Generating Non-Aeronautical Revenue." 
 
¶13.  Fire delays Guyana's poultry exports to T&T 
--------------------------------------------- --- 
 
T&T technical team's visit to conduct final inspection on possible 
poultry suppliers to T&T was postponed to the end of April due to a 
fire at one of the poultry farms.  However, in its continued efforts 
to seek lower prices of chicken and other products, the GOTT also 
approached Mexico and Colombia and expressed interest in importing 
agricultural produce and poultry in particular.  Also being explored 
is the possibility of importing beef, fruits and vegetables from 
Costa Rica and Guyana, taking into account sanitation and health 
risks.  Agriculture Minister Jarrette Narine said that government 
was exploring all options in an effort to reduce food prices. 
 
¶14.  T&T Company's Registry Online 
---------------------------------- 
 
To improve Trinidad and Tobago's "investor ready atmosphere" the 
Companies Registry of the Registrar General's Department will soon 
be available online.  The Minister of Legal Affairs Christine 
Kangaloo said the initiative would be a subscription service with a 
minimum subscription fee of TT$2,000 (US$317).  Upon advance payment 
to the Registrar General's Department, a user name and password 
would be assigned and a TT$20 (US$3.70) fee deducted from the 
subscription amount for each search.  The facility has information 
on 54,000 business names and 30,000 companies on record. 
 
SWEENEY