分类： business

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.

In a landmark development for Caribbean energy markets, ExxonMobil has finalized a comprehensive production sharing contract for Trinidad and Tobago’s Ultra Deep 1 block (UD1), marking the largest multinational oil company’s strategic expansion beyond its Guyana successes. The agreement, signed just three months after Prime Minister Kamla Persad-Bissessar’s administration took office, covers 7,765 square kilometers of unexplored maritime territory—an area larger than Trinidad itself—positioned at the nation’s eastern maritime boundary near Barbados and Guyana.

The contractual framework mandates accelerated exploration timelines, with 3D seismic acquisition scheduled for 2026 and initial drilling by 2028—exceptionally rapid deployment for deepwater operations. This urgency reflects Exxon’s regional operational advantages and the block’s strategic significance amid ongoing Venezuela-Guyana territorial disputes that create complex geopolitical dimensions for the project.

Critical to the agreement’s implementation are robust local content provisions detailed in Article 39 of the production sharing contract, requiring preferential treatment for Trinidadian companies across supply chains, workforce development, and technology transfer. The contract stipulates that all tenders must be advertised, evaluated, and awarded within Trinidad, with mandatory high weighting for local value addition in evaluation criteria. Exxon must further ensure technology transfer in seven strategic areas including fabrication, seismic processing, maritime services, and business support functions.

However, enforcement mechanisms remain problematic through the under-resourced Permanent Local Content Committee (PLCC), which lacks sufficient staffing, authority, and governmental support despite its mandate to monitor compliance. Industry analysts emphasize that strengthening the PLCC represents the most urgent reform priority, requiring no new legislation but rather political will and administrative reinforcement.

The discovery of commercially viable reserves could prove transformational for Trinidad’s declining hydrocarbon sector, where oil production has dwindled below 50,000 barrels daily. Successful development might mirror Guyana’s spectacular output growth from zero to 900,000 barrels daily since 2019, potentially establishing a new Caribbean energy corridor alongside Suriname’s emerging developments.

The Trinidad and Tobago Ministry of Agriculture and Fisheries has initiated a comprehensive strategy to resurrect the nation’s declining coconut sector, targeting US$1 billion in agricultural exports. Minister Ravi Ratiram unveiled the ambitious plan during a ceremonial distribution of Brazilian dwarf coconut seedlings at the Central Experiment Station in Centeno on December 1.

Minister Ratiram revealed alarming statistics showing agriculture’s contribution to GDP has plummeted by $1.4 billion to just $650 million over the past decade, representing a more than 50% deterioration. The ministry’s intervention focuses on developing a complete coconut value chain rather than simply increasing raw nut production. This integrated approach encompasses farming, processing, manufacturing, distribution, and export operations.

The Brazilian green dwarf coconut variety was specifically selected for its superior genetics, pest resistance, and exceptional water-producing capacity of over 600ml per nut. Each participating farmer received ten seedlings as part of the initial phase, with over 150 growers already expressing interest in the revitalization program.

The Caribbean Agricultural Research and Development Institute (CARDI) plays a crucial role in this initiative, providing expertise in genetic improvement, pest management, and technical training. Executive Director Ansari Hosein outlined parallel efforts including establishing seed gardens across nine EU countries, with projected annual production of 45,000 nuts within two years.

Global market projections indicate substantial opportunity, with the coconut water market expected to surpass US$11 billion by 2060 and the overall coconut market anticipated to exceed US$58 billion by 2030. The ministry recognizes challenges including aging tree populations, lethal yellowing disease, South American palm weevils, and decades of underinvestment.

Chief Technical Officer Ian Mohammed emphasized that the seedling distribution symbolizes both literal and figurative investment in transforming agriculture into a driver of food security, rural development, and economic diversification. The program represents a strategic partnership between government, research institutions, and farmers to restore Trinidad and Tobago’s position in the global coconut market.

Trinidad-based spirits producer Angostura has achieved remarkable recognition in the international spirits industry, securing an impressive total of 20 awards across multiple prestigious competitions in 2025. The distillery’s exceptional performance spans three major international events: the World Spirits Awards, International Wine and Spirit Competition (IWSC), and Spirits Business Rum and Cachaça and Liqueur Masters.

At the World Spirits Awards in Germany, Angostura’s premium rum collection earned seven medals, with three products—Founders Reserve 1824, Tamboo Spiced rum, and Grand Reserve 1919—achieving gold medal status. This outstanding performance contributed to the distillery being classified as ‘world-class’ following a comprehensive assessment of 13 international distilleries.

The International Wine and Spirit Competition recognized Angostura with six awards after rigorous blind taste-testing evaluations conducted by approximately 200 expert judges. Meanwhile, the Spirits Business awards honored the company with three gold and two silver medals for excellence in rum production. Additionally, Amaro di Angostura secured a gold medal at the Liqueur Masters 2025 competition.

Financially, Angostura demonstrated strong performance with $757 million in revenue and $145 million profit before tax for the nine-month period ending September 30, 2025. The company’s profit after tax showed significant growth, increasing by 10% from the previous year to reach $104 million.

CEO Ian Forbes attributed this success to the company’s longstanding heritage, stating in a December 3 media release: ‘These international accolades among distinguished competition evidence Angostura’s over 200 years of craftsmanship, innovation and dedication to excellence. The recognition reinforces our global appeal and the growing prestige of our brands’ iconic heritage, highlighting our ability to compete among the world’s finest rum producers.’

Celebrating its centennial anniversary, Caribbean conglomerate Agostini Ltd. has announced robust financial results for fiscal year 2025, demonstrating significant growth amid strategic expansion. The Trinidad-based group reported a 6.9% increase in revenue, reaching $5.44 billion compared to $5.09 billion in the previous year.

Chairman Christian Mouttet characterized the period as one of ‘strategic transformation,’ noting the company achieved ‘another year of record revenue and earnings.’ The performance was primarily driven by two major acquisitions—Pharmacy Holdings Ltd (PHL) and Massy Distribution (Trinidad) Ltd—which substantially expanded Agostini’s presence in pharmaceutical and consumer distribution markets.

Financial metrics showed substantial improvement across key indicators: Profit attributable to shareholders climbed to $230.3 million from $209.7 million, while earnings per share increased from $3.03 to $3.33. Operating profit rose 5.4% to $511.2 million, and pretax profit reached $435.6 million. After accounting for $123.3 million in taxes, net profit settled at $312.3 million, marking a 7.6% year-over-year improvement.

The group’s comprehensive income, incorporating foreign exchange gains and pension adjustments, totaled $328.2 million, with $247.8 million attributable to shareholders and $80.4 million to non-controlling interests. Total assets grew to $4.89 billion, while shareholder equity increased to $2.48 billion.

Despite these gains, the company acknowledged challenges including persistent inflation, supply chain disruptions, and foreign exchange constraints that continue to pressure margins. Finance costs increased to $75.6 million, though these were partially offset by foreign exchange gains of $15.57 million.

Agostini’s expansion strategy has attracted regulatory attention. Recent parliamentary hearings examined market concentration in pharmaceutical distribution, with industry representatives noting that Agostini’s Aventa division reportedly imports approximately 74% of privately supplied medicines. While no formal investigation has been announced, the Prime Minister has signaled intentions to address drug pricing and market dominance concerns.

The conglomerate continues to pursue growth through acquisition, currently proposing a share-swap merger with Prestige Holdings Ltd. that would exchange one AGL share for every 4.8 PHL shares. This transaction remains subject to regulatory approval from the Trinidad and Tobago Fair Trade Commission.

A recent study tour to Manizales, Colombia has provided Trinidad and Tobago with a strategic blueprint for developing a robust national innovation ecosystem. Led by Vashti Guyadeen of the Trinidad and Tobago Chamber of Industry and Commerce, the delegation examined Colombia’s successful Triple Helix model that integrates academia, industry, and government collaboration to accelerate entrepreneurship and economic growth.

The research identified five foundational pillars essential for innovation ecosystem development: coordinated national governance to align ministerial initiatives, integrated programming across accelerator programs and university initiatives, accessible infrastructure including prototyping labs and research facilities, capacity development through entrepreneurship training, and data-driven decision making using systematic innovation metrics.

Educational alignment emerged as a critical success factor, with recommendations for cross-disciplinary entrepreneurship education, enhanced research commercialization pathways through innovation vouchers and matching grants, strengthened internship programs, and shared infrastructure agreements among tertiary institutions modeled after Colombia’s SUMA alliance.

The proposed institutional architecture calls for a National Innovation Partnership comprising senior leaders from public, private, academic, financial, and civil society sectors to set strategic priorities and oversee funding allocations. This co-ownership model reduces government dependency while increasing sustainability.

Priority sectors identified for diversification include technology (fintech, cybersecurity, energy tech), advanced manufacturing utilizing Industry 4.0 technologies, agriculture technology with climate-smart farming approaches, and creative industries leveraging global demand for music and digital content.

Strategic infrastructure requirements encompass enhanced accessibility to Cariri’s existing facilities, purpose-built innovation hubs, structured national mentorship networks, and continuously coordinated accelerator programs. Financing mechanisms should include a National Innovation Fund, private sector venture arms, diaspora engagement for investment and technical capacity, and risk mitigation instruments like credit guarantee schemes.

Accountability measures propose transparent tracking through key indicators: new firm creation, SME scale-up performance, research commercialization outputs, non-energy job creation, venture capital investment levels, and Global Innovation Index performance, with annual Innovation Report Cards to monitor national progress.

The Manizales case study demonstrates that formalized governance, integrated programming, and shared accountability create successful innovation ecosystems, offering Trinidad and Tobago a proven framework for economic diversification and resilience building.