VZCZCXRO8247
RR RUEHGR
DE RUEHSP #1206/01 3551805
ZNR UUUUU ZZH
R 211805Z DEC 07
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 8884
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHDG/AMEMBASSY SANTO DOMINGO 2602
RUCNCOM/EC CARICOM COLLECTIVE
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHNR/AMEMBASSY NAIROBI 0011

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 001206 
 
SIPDIS 
 
SIPDIS 
 
SANTO DOMINGO FOR REGIONAL COMMERCIAL OFFICE 
BRIDGETOWN ALSO FOR CDC REGIONAL OFFICE 
NAIROBI FOR US MISSION UNEP 
 
E.O. 12958: N/A 
TAGS: ECON EFIN KGHG EIND ETRD EWWT ECPS KHIV
SOCI, UNEP, TD 
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS - 
NOVEMBER 2007 
 
The following were notable economic issues in Trinidad 
& Tobago in November. 
 
¶1.  Prime Minister on Climate Change 
¶2.  Central Bank Governor on inflation, currency value 
¶3.  Rising food prices 
¶4.  Laqtel fined by TATT 
¶5.  Increasing tourism traffic on Tobago 
¶6.  Trinidadian appointed UNEP Assistant SecGen 
 
¶1.  Prime Minister on Climate Change 
------------------------------------ 
Speaking from the Commonwealth Heads of Government 
Conference in Uganda, Prime Minister Patrick Manning 
stated that T&T must develop a strategy to address 
greenhouse gas (GHG) emissions in order to be in a 
position to comply with the Action Plan of the 
Commonwealth on Climate Change and the Kyoto Protocol. 
The Prime Minister has asked his new Minister of 
Planning, Housing, and the Environment, Emily Dick- 
Forde, to develop a plan of action for the Cabinet's 
review.  On returning from Uganda, Manning elaborated 
to media that he has no intention of reversing T&T's 
industrialization drive but that the GOTT would 
explore the use of carbon scrubbing technology in GHG- 
emitting industrial projects. 
 
¶2.  Central Bank Governor on inflation, currency value 
--------------------------------------------- --------- 
At the launch of the October 2007 Monetary Policy 
Report, Central Bank Governor Ewart Williams remarked 
that the price of oil coupled with the depreciation of 
the US dollar was placing upward pressure on prices in 
T&T.  He also cited rising worldwide food prices, the 
result of global supply constraints and strong 
worldwide demand, as contributing to inflation. 
Headline inflation was 7.3 percent in October, down 
from 10 percent in the same period last year, but 
above the GOTT's goal of 7 percent by year-end.  In 
2008, the GOTT's target inflation rate is 5 percent. 
 
Although Williams noted that the weak TT dollar was 
raising the cost of imports from the UK and Europe, 
which represent 10 to 15 percent of total T&T imports, 
Williams said he would not advise T&T adjusting the 
value of its currency against the US dollar to contain 
inflation.  Given the country's key economic objective 
of diversification, Williams pointed out that a 
revaluation of the T&T dollar would work at cross 
purposes with this goal, reducing the competitiveness 
of non-energy exports. 
 
¶3.  Rising food prices 
---------------------- 
Rising food prices continue to be a critical issue in 
Trinidad and Tobago.  As of the end of September, food 
prices had risen 27 percent for the year.  In 
November, the country's largest poultry company 
announced a price increase of more than TT$1 (US$0.16) 
per kilogram for whole chicken.  The price of flour 
also rose by close to 15 percent in November, the 
third increase in nine months.  Some local economists 
have suggested that the GOTT introduce subsidies to 
reduce the burden on consumers.  The Central Bank 
Governor, however, has underscored the need to 
increase local agricultural production in order to 
contain rising food prices. While the GOTT proposes 
creating large scale farms to stimulate production, 
one of which is a joint venture between T&T and Cuba 
slated to begin development in March, the first 
harvests from these planned farms would not reach the 
market before 2009. 
 
¶4.  Laqtel fined by TATT 
------------------------ 
The Telecommunications Authority of Trinidad and 
Tobago (TATT) fined Laqtel, Ltd. TT$150,000 
(US$24,000) for failing to post a TT$4 million 
(US$635,000) performance bond in connection with the 
operation of a mobile telecommunications network and 
related services.  The bond, overdue since January 
 
PORT OF SP 00001206  002 OF 002 
 
 
2006, was designed to ensure that Laqtel followed 
through on the obligations associated with the 
concessions granted it by TATT in 2005.  Laqtel has 
yet to launch mobile service in T&T. 
 
¶5.  Increasing tourism traffic on Tobago 
---------------------------------------- 
The completion of a $27 million upgrade to the 
Scarborough Jetty on Tobago is expected to increase 
cruise ship visits to the island.  Tobago House of 
Assembly Tourism Secretary Neil Wilson said that 
although the three-year delay in the project's 
completion reduced cruise ship visits and had a 
negative impact on the local economy, the project's 
completion is already having a positive impact. 
Princess Line is planning 22 visits to Tobago in the 
next two seasons, and Ocean Village Line will make 13 
visits during the 2008/2009 season.  In addition, a 
record number of people used the fast ferry to travel 
between Trinidad and Tobago this year. Passenger 
traffic via the air and sea bridges between the two 
islands is expected to reach 1.5 million by year end, 
a 50 percent increase over 2006 according to Wilson. 
 
¶6.  Trinidadian appointed UNEP Assistant SecGen 
--------------------------------------------- -- 
Former T&T Independent Senator Angela Cropper was 
named the Assistant Secretary General and Deputy 
Executive Director of the United Nations Environment 
Programme (UNEP).  Cropper previously served at UNEP 
as the first Executive Secretary of the Convention on 
Biodiversity from 1993 to 1995.  Well-regarded in T&T, 
Cropper is president of the Cropper Foundation, a non- 
profit organization focused on sustainable 
development.  She is expected to assume her new duties 
at UNEP in early 2008. 
 
 
AUSTIN