A critical examination of Trinidad and Tobago’s pharmaceutical sector reveals systemic challenges in market competition, with the Fair Trading Commission (FTC) facing intense scrutiny for its perceived inactivity. Despite receiving $11.4 million in taxpayer funding over five years, the regulatory body has demonstrated remarkable reluctance to address market concentration concerns, as revealed during recent parliamentary committee disclosures.
The core issue stems from fundamental market distortions created by state-subsidized healthcare systems, which have systematically shifted consumer behavior from local pharmacies toward large chains offering significantly lower prices. This transition has created an environment where a handful of major distributors dominate the market, particularly those securing lucrative government contracts for supplying public healthcare facilities.
Recent developments highlight the FTC’s operational paralysis. In 2024, the Private Pharmacy Retail Business Association filed a formal complaint alleging monopolistic practices within the drug sector. Rather than initiating investigation procedures, the FTC dismissed the submission on technical grounds, requesting additional documentation instead of addressing the substantive concerns. Compounding this regulatory inertia, FTC executive director Bevan Narinesingh revealed the commission’s hesitation to pursue matters without a fully constituted board—an explanation that raises questions about the organization’s operational capacity.
The political dimension has further complicated the situation. Prime Minister Kamla Persad-Bissessar has drawn parallels between pharmaceutical market concerns and previous allegations about foreign exchange cartels, accusing previous administrations of enabling monopolistic practices that benefit privileged interests. However, market analysis suggests the situation involves more complex structural factors rather than simple monopolistic exploitation.
Contrary to conventional economic theory suggesting monopolies inherently drive prices upward, some major distributors actually offer common medications like Panadol at reduced prices. This apparent paradox underscores the market’s unique dynamics, where state procurement practices create economies of scale for selected distributors while simultaneously delaying payments to suppliers—creating a contradictory environment of both advantage and financial strain.
The fundamental concern remains the FTC’s failure to provide transparent market data and timely regulatory intervention. Without authoritative analysis from the designated regulatory body, the pharmaceutical market continues operating amid uncertainty regarding competition, pricing structures, and market fairness—leaving both consumers and smaller market participants without clear guidance or protection.