分类： business

In a strategic move signaling a shift in economic priorities, Trinidad and Tobago (TT) Prime Minister Kamla Persad-Bissessar has announced a “significant realignment” in the nation’s foreign partnerships. Speaking on October 29, Persad-Bissessar emphasized the need to strengthen ties and foster cooperation with countries outside the Caribbean region. This announcement comes amidst a backdrop of geopolitical tensions, including disagreements within Caricom over the region’s designation as a “zone of peace” and strained relations with Venezuela due to TT’s support for the United States’ military presence in the area. These developments have led to Venezuela suspending energy deals with TT and labeling Persad-Bissessar as “persona non grata.” While some view this pivot as a potential risk to TT’s economic stability, Dr. Mahindra Ramesh Ramdeen, CEO of the Trinidad and Tobago Manufacturers Association (TTMA), sees it as a positive step. Ramdeen highlighted that the Prime Minister’s statement does not imply a cessation of trade with Caricom but rather a call to diversify and expand into new markets. He noted that the Caricom market, while significant, is saturated, and TT’s manufacturing sector must look beyond regional borders to sustain growth. Ramdeen also pointed to the impact of climate change, such as Hurricane Melissa’s devastation in Jamaica, as a reminder of the need for risk mitigation through market diversification. Despite geopolitical challenges, Ramdeen assured that private sector trade would remain resilient, emphasizing the importance of innovation and expansion. TT’s business community has already begun exploring opportunities outside Caricom, with conglomerates like Ansa McAL, Agostini, and Massy making inroads into markets such as the United States, India, and Europe. These moves, coupled with increased exports of products like Angostura rum, underscore the potential for TT to carve out a stronger global presence. Ramdeen concluded that this strategic shift is a natural trajectory for growth, essential for fostering the next generation of successful TT businesses.

The temporary docking of the USS Gravely, a United States Navy guided-missile destroyer, at the Port of Spain from October 26 to October 30 has caused significant disruptions to commercial operations and reignited discussions about Trinidad and Tobago’s (TT) delicate geopolitical position between the US and Venezuela. The vessel’s presence for joint training exercises with the TT Coast Guard led to the redirection of several cargo ships to the Port of Point Lisas, a move coordinated by the Port Authority of TT, the Port of Spain, and the Point Lisas Industrial Port Development Corporation (Plipdeco). While this mitigated extensive logistical delays, it incurred additional costs and raised concerns among business chambers about future risks. The TT Chamber of Industry and Commerce reported moderate delays in cargo clearance and increased operational costs, urging the government to implement temporary relief measures such as waiving demurrage charges and expediting time-sensitive cargo clearance. The chamber emphasized the need for improved port infrastructure and contingency planning to address vulnerabilities. Meanwhile, the Greater Tunapuna Chamber of Industry and Commerce highlighted logistical challenges and higher transport costs, warning that such disruptions could impact the Christmas season’s economic activity. The situation is further complicated by new fiscal measures set to double customs and clearance fees in January, adding to importers’ burdens. Geopolitical tensions between the US and Venezuela have also escalated, with Venezuela suspending energy agreements with TT and declaring Prime Minister Kamla Persad-Bissessar persona non grata. The Energy Chamber of TT has called for a renewed focus on domestic gas production to ensure energy security, emphasizing the need for reliable gas supplies for petrochemical plants and LNG facilities. The business community has expressed caution, warning that port disruptions, fee increases, and suspended energy deals could weaken investor confidence and challenge TT’s role as a regional energy hub.

Since his inauguration in January, US President Donald Trump has stirred global economic uncertainty with his aggressive tariff policies. Trump’s administration believes these tariffs will generate revenue, reduce the US deficit, protect American industries, and safeguard national security by restricting imports of strategic materials. The goal is to encourage domestic production, create jobs, and stimulate economic growth, while addressing the $1.78 trillion deficit of the world’s largest economy.

In stark contrast, Trinidad and Tobago’s UNC government, which assumed office in May, inherited a $7 billion deficit from the previous PNM administration. Finance Minister Davendranath Tancoo’s recent budget presentation revealed a markedly different approach. Despite low oil and gas production and reduced revenue, the government has not focused on cutting the deficit by reducing imports. Instead, it has encouraged the importation of foreign-used vehicles and reduced super gas prices by $1 per litre. Critics argue that this $500 million expenditure could have been better allocated to repairing the nation’s deteriorating road network, which would enhance productivity and reduce vehicle wear and tear.

While the US aims to bolster local industries, Trinidad and Tobago’s policies seem to undermine domestic competitiveness. The government has increased electricity and NIS costs for local industries, while imposing heavy taxes on the alcoholic beverage sector, one of the country’s most internationally competitive industries. This move risks business closures, layoffs, and reduced foreign exchange earnings. The recent closure of the Nutrien Pt Lisas facility further exacerbates future revenue concerns.

Observers lament the decline of Trinidad and Tobago’s once-thriving manufacturing sector and urge the government to reconsider its policies before resorting to IMF intervention. The contrasting economic strategies of the US and Trinidad and Tobago highlight the complexities of managing national economies in a globalized world.

In a landmark ruling, the Privy Council has dismissed an appeal by NH International (Caribbean) Ltd, affirming that Gordon Winter Company Ltd is entitled to payment for piling work completed at the Ministry of Education building site in 2006. The dispute, which has spanned over a decade, centered on unpaid work performed by Gordon Winter, a subcontractor hired for the ten-story project. The case highlights the complexities of construction contracts and the legal principles governing payment disputes. The piling work, which proved more challenging than anticipated due to adverse soil conditions, required variations from the original specifications. While Gordon Winter was compensated for some of its work, payments ceased after April 2006, prompting the company to halt operations in June of that year. Gordon Winter sought payment on a contractual quantum meruit basis, arguing that NH International had been unjustly enriched by its work. NH International, however, counterclaimed that Gordon Winter had breached the contract by abandoning the project. The Privy Council, led by Lord Burrows, rejected NH’s arguments, emphasizing that Gordon Winter’s claim for payment was valid under the contract. The ruling upheld the Court of Appeal’s decision, which had reduced NH’s damages for delay to $350,000 and referred Gordon Winter’s claims for additional costs to a master in chambers for assessment. The Privy Council’s decision underscores the importance of honoring contractual obligations and ensuring fair compensation for work performed, even in cases where procedural complexities arise. The judgment also reaffirms the principle that parties cannot be denied payment for work clearly executed under contract, regardless of technical legal arguments.

First Citizens Group has officially named Jason Julien as its new Group CEO, effective October 22, as disclosed in a legal notice published on the Trinidad and Tobago Stock Exchange’s website on October 29. Julien, a seasoned banking and finance professional with over 25 years of experience, succeeds Karen Darbasie, who retired on October 21. Julien holds an MBA from Edinburgh Business School, Heriot-Watt University, and a bachelor’s degree in management studies from the University of the West Indies. He is also a Chartered Financial Analyst and holds a Certificate of Financial Advisors from the Institute of Business and Finance. Sana Ragbir, the General Manager for Retail and Commercial Banking, will continue to serve as Group Deputy CEO of Business Generation. Darbasie’s retirement followed her approved vacation leave starting August 21, during which Julien acted as interim Group CEO. The transition occurred amidst broader organizational changes, including the resignation of the entire board of directors on October 7, just before a special general meeting to elect a new board and CEO. Finance Minister Davendranath Tancoo had earlier expressed concerns about the bank’s operations and appointed a new board to First Citizens Holdings, the majority shareholder of First Citizens Group.

Furness Shipping & Marketing Ltd, a subsidiary of the Furness Group, has broadened its seafood product line by introducing premium salted smoked split herring under its Atlantic Pearl brand. Known for its boneless salted fish in vacuum-sealed packaging, the brand has now ventured into smoked herring, a staple in Trinidad and Tobago’s culinary scene. At a recent launch event attended by chefs and retailers, Patrick A Ferreira, the company’s executive chairman, emphasized the popularity of smoked herring and detailed the process of importing fresh split herring, commonly referred to as kippers. Ferreira noted that kippers are favored over alternatives like bloaters or boneless versions, which can lose flavor during processing. Additionally, he revealed plans to diversify the seafood range further, including blue shark, fresh salmon, white fish, and red snapper. Leveraging its extensive expertise in cold storage, Furness ensures efficient preservation of chilled and frozen seafood products.