The manufacturing sector, a proven generator of foreign exchange for the country, is being challenged to step up and play a role in T&T's economic recovery.
T&T Manufacturers' Association (TTMA) president Dr Rolph Balgobin said with the decline of energy in value and volume, the sector "must see it as our national duty to encourage real engagement and deep commitment."
"It is about seeking to capitalise on the opportunities that will lead our economy into a strong recovery and a return to significant growth in the future," he said yesterday at the media launch of the Trade and Investment Convention (TIC) 2017 at the House of Angostura, Laventille.
Balgobin said manufacturing accounts for between 8-12 per cent of gross domestic product (GDP) and employs more than 50,000 people–approximately ten per cent of the workforce.He added: "After oil and gas, it is the most significant and proven earner and defender of foreign exchange on our economic landscape today."
Balgobin said TIC was being launched earlier to allow the business community to make space for the event in their fiscal plans. He said over the past 17 year TIC has facilitated more than $600 million in trade and fostered lucrative business connections.
In comments on behalf of sponsors First Citizens, Deputy CEO, Business Generation, Jason Julien said local banks are ready for the Foreign Account Tax Compliance Act (FATCA).
"We put all our systems and processes in place to comply with the FATCA requirements. Of course we are reliant on the legislative requirements to be put in place and the Board of Inland Revenue (BIR) to receive the information," he said.
Julien spoke about negative consequences if T&T does not become FATCA compliant soon, noting that the repercussions are more complex that simply not being to be able goods online in the United States.
"It is about all cross border transactions. When someone does a wire transfer or trade or US dollar investments and you have a US bond in an account somewhere, it is those kinds of flows that will be affected," he explained.
However, he said he is optimistic T&T will not reach the stage where it will be penalized.
"I think all the stakeholders involved are aligned and pushing so that we do not reach any scenario that will cause the country to suffer consequences," he said.
Balgobin expressed his displeasure at the slow pace of passing legislation to be FATCA compliant.