With the trade missions and trade shows conducted in several countries in 2023 and 2024 thus far, 90 companies from sectors such as food and beverage, construction, energy, logistics, and cosmetics established beneficial business relationships, which can lead to increased exports.
That’s according to Minister of Trade and Industry Paula Gopee-Scoon as she gave an overview of the ministry’s performance with the mid-year review expected to be delivered early next month.
She said since the beginning of 2023 in collaboration with exporTT, the Trinidad and Tobago Manufacturers’ Association (TTMA), and the Trinidad & Tobago Chamber of Industry and Commerce (TTCIC), 16 Trade Missions have been held.
The minister outlined that her ministry supported private sector participation in seven trade shows including the China International Import Expo (November 2023); Havana International Fair in Cuba (November 2023); Expocomer Trade Show in Panama (March 2023 and March 2024); Suriname Energy Oil and Gas Summit and Exhibition (June 2023); Japan Expo (September 2023); and Americas Food and Beverage Show (September 2023).
Gopee-Scoon noted that four new trade missions will also take place over the next two months: Guyana later this month, Curacao in May, Suriname in May and Jamaica in June.
On why the Special Economic Zone legislation has taken so long and when it is expected, Gopee-Scoon said the new Special Economic Zones (SEZ) regime, which will replace the existing Free Zones regime, is a comprehensive investment framework that encompasses a new policy, legislation, regulations, and the newly minted T&T Special Economic Zones Authority.
She highlighted that given the scope and nature of the new regime, its impact on the operations of existing investors in T&T, and the need to ensure compliance with international best practices and developments, it was necessary that the full proclamation of the SEZ Act, 2022, was done with all the necessary measures in place.
Gopee-Scoon said the full proclamation of the SEZ Act, 2022, which will result in the replacement of the Free Zones Act, and the full operationalisation of the SEZ regime, is expected on June 01, 2024.
During the sod-turning ceremony for the Brydens Group’s regional distribution centre along Factory Road, Chaguanas, in January, the minister said the SEZ regime will bring into place a more modernised architecture of incentives, which the Government expects to attract many investors both local and foreign.
Asked by reporters what kind of incentives can investors expect to benefit from, she said” I don’t want to let the cat out of the bag fully yet. But it certainly is...very attractive. Benefits in terms of corporation tax and other types of taxes and so on. But I will leave the details of that for another day.”
When pressed further she commented: “Reduced taxes. Let me just say, reduced taxes for now”.
The House of Representatives unanimously passed the Special Economic Zone (SEZ) Bill, 2021, in Parliament in January 2022.
Possible collaboration between Ghana’s FZA and T&T’s SEZ
In March, the minister led a delegation from the private sector to Ghana, and during the visit, the potential for collaboration between Ghana Free Zones Authority (GFZA) and T&T’s Special Economic Zone (SEZ) was discussed.
The GFZA is focused on creating attractive and competitive free zone incentives in Ghana to promote economic development.
Gopee-Scoon met with GFZA officials and discussed the operations of Ghana’s Free Zone regime, and opportunities for working closely with T&T’s SEZ regime.
As it relates to the performance of the manufacturing sector since the last 2023/2024 budget, Gopee-Scoon indicated that the non-energy manufacturing sector has remained a significant earner of foreign revenue through exports as well as a substantial contributor to Trinidad and Tobago’s Gross Domestic Product (GDP).
The main drivers in the non-energy manufacturing sector were:
1. ↓The food and beverage sector is valued at approximately $1.6 billion (October 2023 – March 2024). Specific increases were shown in the exports of: other cereals $9.8 million or five per cent
2. ↓Aerated beverages increased by $6.2 million or four per cent.
3. ↓Mineral waters increased by $4.4 million or five per cent.
4. ↓Sweet biscuits increased by $4.6 million or six per cent.
5. ↓Beer increased by $8.3 million or 122 per cent.
Secondly, she said the scrap iron subsector was valued at approximately $97.2 million for the period (October 2023 – March 2024) and the products accounting for this value were the export of steel scrap, aluminium scrap, mixed ferrous scrap as well as stainless steel scrap.
Further, Gopee-Scoon noted that the subsector of the manufacture of non-metallic mineral products was valued at approximately $68.1 million for the period (October 2023 – March 2024), and contributing to this was the export of premium plus cement, cement blocks, pavers, and concrete slabs.
Also, she said the paper and paper-related products subsector was valued at approximately $324 million for the period (October 2023 – March 2024), and contributing to this value were the exports of (corrugated cases) boxes, printed labels, paper along with various types of tissues and each of these items generated over $10 million in export value under the review period.
In its audited financial statements, for the financial year ended December 31, 2023, the Export-Import Bank of T&T’s (Eximbank), said for the period January 2022 – December 2023, its clients exported over $5.6 billion (US$800 million) based on the manufacturing forex facility.
Eximbank’s chairman John Tang Nian said the bank served 165 manufacturers, with 87 per cent of all companies in the small and medium-sized enterprises (SMEs) category.
Tang Nian said Eximbank delivered US$527 million to the manufacturing sector and stated that US dollars repatriated to the country exceeded forex sold by at least US$100 million every year.
Phoenix Park Industrial Estate update
Asked how many tenants the Phoenix Park Industrial Estate in Couva has now, and if the ministry is satisfied with the impact of the estate, the minister said there are 20 investors (14 local, 6 international) at the PPIE, with projects at various stages of development.
The total investment value of these projects she said is approximately $489.57 million, and, when fully operational, the estate is expected to generate employment for over 900 people. These investments include operations spanning several non-energy sectors, namely manufacturing, logistics, and distribution.
“Currently, Summit (TT) Luggage, which manufactures high-quality luggage for major international brands, is fully operational at the PPIE,” she detailed.
Asked how much money has been spent on the estate thus far, she said the total contract sum for the development of the PPIE is approximately $688 million and to date approximately $641.33 million has been disbursed to the contractor.
“The remaining sum is largely of retention money, for, among other things, the securing of ten investors by the contractor to operate at the PPIE,” Gopee-Scoon added. The industrial estate’s contractor is the Beijing Construction Engineering Group (BCEG).