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Speaker:The Honourable Basdeo Panday, Prime Minister of the Republic of Trinidad and Tobago
Date: March 17, 2000
Occasion: Address at the Prime Minister's Export Awards 2000 at the Trinidad Hilton Conference Center, Port-of-Spain, Trinidad.
My Dear Friends:
Mr. Chairman;
Honourable Speaker of the House of Representatives;
Cabinet Colleagues;
Your Excellencies of the Diplomatic Corps;
Chairman and Members of the Board of the Tourism and Industrial Development
Company of Trinidad and Tobago Limited;
President and Members of Staff of TIDCO;
Mr. Peter July;
Chairman and Chief Executive Officer of the Royal Bank of Trinidad and Tobago;
Manufacturers and Exporters of Trinidad and Tobago;
Distinguished Ladies and gentlemen:
My Dear Friends:
It is again a special pleasure for me to join our country's export leaders for the
Prime Minister's Exporter of the Year Awards. This is the fifth Exporter of the Year
Awards which has been conducted under my patronage.
I continue to be impressed by the number, diversity, innovativeness and enterprise
of Trinidad and Tobago's exporters. The entrepreneurial spirit and drive of the
people of the Republic of Trinidad and Tobago is demonstrated in the continuous
expansion and reach of our export sector.
I doubt that many countries of comparative size and population can boast the
number and diversity of export enterprises that we've got in Trinidad and Tobago.
I am also impressed by the number of new entrants to the export market every
year. The Award for the best performance by a new exporter very eloquently
proclaims the dynamism of our business community.
In related vein, I am also impressed by the extent of Trinidad and Tobago's
penetration of export markets. Brazil, Russia, Kazakhstan, South Africa, you are
removing all the boundaries. I wonder if there are any countries in the world in
which you will not find a Made in Trinidad and Tobago product, or person.
Our exporters consistently provide compelling proof that the world is indeed
Trinidad and Tobago's oyster. We must now set out to prepare ourselves for
product extensions in all of these markets. I am not speaking here of the extension
of product lines by individual exporters.That is a given, in your business. Rather, I
speak of the introduction of other offerings from Trinidad and Tobago. Services
and Intellectual Property, including Music and Fashion, come to mind. Think of
what our music, our design flair and our unique gift for theatre in all its forms
would do for the enhancement of the brand aura of your products. However, my
friends, even as we intensify our export thrusts, we must prepare for increasing
challenges in the international arena. As you know, the Government continues to
focus on expanded market access and on market expansion for our manufacturers.
We are doing this in a significantly changing and increasingly challenging
environment. Developing countries, Trinidad and Tobago included, are now
required to compete with developed nations, "Mano-a-Mano" in the international
arena.
The new Rules of international trade will not provide concessions for small
economies. The traditional measures favouring developing nations must now be
considered a highly perishable proposition. Trade is now conducted on World Trade
Organization Rules. These Rules offer no benevolence to small economies, or to
developing nations. What increases the challenge we face is that the new trade
rules are a work in progress. With each passing day, and with each new rule, there
is diminishing discretionary treatment for developing countries.
Not only do we now have to cope with new rules for existing areas of trade; we
also have to deal with rules for areas that were never even considered part of the
international trade process. These rules are being codified and embodied in
multilateral and bilateral agreements in the global system over which the
increasingly powerful World Trade Organization presides. The country that is not
equipped to engage in this process is not going to function in international trade.
As you will all agree, Trinidad and Tobago has been relatively successful in
positioning itself to benefit from the changes that are taking place in the evolving
trade order. You will also agree that the Government of Trinidad and Tobago has
made good on its commitment to create a regulatory and fiscal environment which
conduces to competitiveness in international trade. In this context, the
liberalisation of our economy is basic to the most productive interaction with our
regional and international trading partners. We have this achieved with marked
success.
Our task is now to be a key player in every negotiating forum where discussions
will lead to decisions that may impact our trading performance. We've got to deal
with the challenge of promoting our national interests even as we harmonise our
interests with those of our CARICOM neighbours, where necessary. At the turn of
the Century, it is important that we intensify our focus on areas of potential new
opportunities. Related to this, the World Trade Organization estimates that
approximately 60 percent of all foreign investment flows in the world economy are
now directed to the service sector. The growth and importance of the trade in
services led to the General Agreement and Trade on Services, GATS, which came
into force in 5 years ago with the arrangements for the then newly created World
Trade Organization. The broad framework of rules on which the General Agreement
on Trade and Services is based includes schedules of specific commitments by all
members in the treatment of foreign service providers.
In this context, Trinidad and Tobago has made commitments on tourism, business,
educational, health-related, recreational, research and development, cultural, and
sporting, transport and financial services. We have amended various areas of
legislation to ensure compliance with our World Trade Organization obligations. I
invite our exporters to pay particular attention to the fact that services, and the
growth in the trade of services, do not face the plethora of border taxes and
tariffs that apply to commodities. This, in my view, opens up new opportunities,
virtually unlimited new opportunities, for Trinidad and Tobago "Go-Getters", so
many of whom are in this room.
Telecommunications is a key service sector, impacting the production of virtually
all goods and services. This sector is currently receiving particular attention from
Government. Negotiations aimed at opening up the telecom sector to competition
are taking place. The outcome will be a telecom sector characterised by increased
competition internally, and a telecommunications sector that will be competitive
internationally. The signal that the Government is moving in this direction has
already resulted in reduced rates to users of TSTT's international services. We are
also witnessing a new focus on customer satisfaction in TSTT's operations. It
follows that competition in the telecom sector will definitely impact the
competitiveness of our export sector. Given all of this, ladies and gentlemen, it is
really a contradiction that those who represent the interests of the worker class
should choose to ignore the benefits that the mere thought of competition has
already brought to every telephone subscriber in this country. Once the national
interest is considered, there is no reliable agreement for maintaining a monopoly in
the telecommunications sector.
In the face of all of this, however, we've got some great news. It has been
decided that the Lom� Trading Arrangements will roll over to the year 2008. With
this extension of the Lom� Agreements, we also have a 30 month grace period
before the start of negotiations in 2002 for the alternative trading arrangements
which will come into effect after 2008. I invite you to also take note of the
European Union's acknowledgment of the importance of tourism to ACP countries.
It is generally accepted that the Caribbean is the most desired brand name in
global tourism.
I challenge you now to do what other destinations have done to seize market
leadership in their competitive set. Trinidad and Tobago is better positioned than
any other Caribbean destination to synergise tourism with the manufacturing
sector, the agriculture sector, and with other service sectors. All analyses
conclude that we have more options for tourism linkages with the local economy
than any other Caribbean Island. It has been said that it's easier to make a buck
in tourism in Trinidad and Tobago than in any country in the Caribbean area.
Now, TIDCO'S tourism promotion has begun to put bodies in our hotel beds, to fill
seats in taxis and restaurants, and to ring up sales for our handicraft producers
and fashion designers. All the signs are that the time has come for the tourism
multiplier to really "kick-in" for the business entrepreneur and for everyone else in
Trinidad and Tobago. There's still more good news for our exporters. Bi-lateral talks
between Cuba and Trinidad and Tobago are to be stepped up. Following Cuba's
proposal of a Free trade Agreement, Bi-lateral negotiations between CARICOM and
Cuba are underway. Both parties have expressed the desire that the Agreement
be concluded for signature by the CARICOM Heads of Government at the July
CARICOM Summit. Trinidad and Tobago has already established trade-financing
arrangements with Cuba. This is the basis for the proposed seminar in Trade
Financing, here in Port of Spain, month after next. CARICOM has proposed a
number of services sectors as areas for mutual co-operation with Cuba. These
areas include such professional services as Accounting, Health, Advertising and
Marketing, Banking, Insurance, Entertainment, Informatics, Software Development
and Construction Services. Proposals for joint tourism marketing and promotion are
also on the table in the Cuba-CARICOM Free Trade negotiations. The development
of linkages for the supply tourism related goods and services are also under
discussion. Pertinent to this, Cuba has proposed the commissioning of a
100-container vessel that will call at 18 Caribbean ports. CARICOM has also
introduced the inclusion of Intellectual Property Rights in the proposed Free Trade
Agreement with Cuba. There is the strong likelihood, ladies and gentlemen, that a
Free Trade Agreement between CARICOM and Cuba will shortly be operative. So I
submit that Trinidad and Tobago should be gearing up for maximizing the potential
for the Cuban market of 12 million people.
Now is the time, my dear friends. Next month, I will be at the South Summit in
Cuba. This Summit has significant implications for trade and investment. Ladies and
gentlemen, the Government continues to seek new options for our exporters in
visible goods and in services. In every area, we have to compete in a changing
environment, and in a less benevolent environment that had traditionally been the
case.
Ladies and gentlemen:
As you are aware, the deliberations in the World Trade Organization ran into
significant turbulence in Seattle, Washington. The World Trade Organization could not
even agree on an acceptable Ministerial Communique to end the Conference. We have
learned to take all of these development in stride. The Government is working on all
conceivable fronts to create access and opportunity for Trinidad and Tobago's
exporters. Through our mission in Geneva, and through the efforts of the Ministry of
Trade and Industry and Consumer Affairs, and through the Ministry of Foreign Affairs,
and through TIDCO, the TTMA and stakeholders, continue to monitor these
developments in order to be in a position to protect their interests. On another
matter, I support the call for an institutional review of the World Trade Organization
practices and processes as a means of to facilitating the participation of members
and in order to make the organization more responsive to the needs of developing
countries.
Ladies and gentlemen:
The World Trade Organization issues are running parallel to those in the proposed
Free Trade Area of the Americas, for which negotiations are scheduled to be
completed by the year 2005. Small countries like ours must be vigilant in protecting
our interests if we are to profit from the creation of the Free Trade Area of the
Americas. Trinidad and Tobago has been given a tremendous responsibility and
recognition in being asked to Chair the Negotiating Group on Investment within the
Free Trade of the Americas process. This underlines the esteem in which Trinidad and
Tobago is held by our partners in the Americas. Mr. Winston Dookeran, Governor of
the Central Bank, has agreed to chair the Negotiating Group. The Central Bank
Governor joins Mr. Vishnu Ramlogan, President of TIDCO, who has been operating as
CARICOM's lead spokesperson in the Group. This Negotiating Group is charged with
the responsibility of defining an Investment Chapter for the proposed Free Trade Area
of the Americas, and I am sure that they will be seeking your inputs. As a member
CARICOM State, Trinidad and Tobago is also engaged in the negotiation of a CARICOM
Dominican Republic Free Trade Agreement. When complete, this agreement, will
facilitate easy interaction between the two business communities. Trinidad and
Tobago exports to the Dominican Republic in 1998 stood at 365 million dollars and this
should increase significantly as a result of the agreement. Discussions have also
started on a 'Caribbean Preferential Tariff' within the Association of Caribbean States.
At the same time, Trinidad and Tobago continues Bi-lateral discussions with Costa
Rica, Panama and Mexico Trade Agreements.
Ladies and gentlemen:
The new international trade order calls for constant research and for increased
sophistication in the negotiating skills of our representatives. The Ministry of Trade
and TIDCO have set about the task of upgrading the skills levels of its negotiators,
and I call on you to help in whatever way you can to assist the officers of the
Ministry who are working on your behalf. The Technical Coordinating Committee,
which is chaired by the Ministry of Trade and Industry and which advises the Minister
on various issues on the negotiating table, will also need your inputs. I have no doubt
that your views, your support, your involvement, will be freely forthcoming.
I thank you in advance for that.
My Dear Friends:
Against my assignment to deal tonight with the realities of trade liberalization and the
impact of Trade Agreements, I came here fully recognizing that Trinidad and Tobago's
non-oil export growth has been driven by very savvy entrepreneurs who never feared
competition, and who carved out a viable presence in their target markets on the
basis of their own business acumen and top quality products.I have simply sought to
bring you up to date on some relevant current developments. With the new
effectiveness of the Ministry of Trade and Industry and Consumer Affairs, with the
tremendous depth and experience in the Ministry of Foreign Affairs, and with the
unprecedented sensitivity and the pro-active strategies of the Ministry of Finance,
we continue to provide the necessary support to our exporters.
Ladies and gentlemen:
Tonight's heroes are admirable examples of the entrepreneurs who will ensure that
Trinidad and Tobago will continue to be a winner, even when we go up against quite
formidable global competition. I salute this years' winners in every category.
I have the greatest confidence that you will continue your winning ways in
competition with the rest of the world. I pledge my continuing support in every
practicable manner. I depend on your successes to create the jobs, to create the
growth that will grow the national cake. When that cake grows bigger, every one will
get a bigger piece. That is as much the responsibility of business as it is of the
Government. The welfare of every individual in this nation is the business of every
one of you, every one of us.
If perchance we had run the risk of forgetting this, the passing of Archbishop Anthony
Pantin, and the revelation of the essential meaning of his life, must surely serve to
remind us of just how important it is that the strong among us recognize our
responsibility to the weak.
Tonight we celebrate your success, and as I applaud and thank you all, I take great
satisfaction in the knowledge that your success is, by direct consequence, everybody
else's success.
I thank TIDCO for the valuable work that they are doing, and this very pleasant event
this evening.
I congratulate the Chairman, the President, and the entire TIDCO team for whatever
contribution they have made to your successes.
Thank you.
May God Bless you all.