French ambassador to T&T, Didier Chabert, is hopeful that a solution to the foreign exchange crisis would be found in the interest of the country’s economy.
In an interview with the Sunday Business Guardian, Chabert said foreign exchange is the main difficulty when it comes to improving the business and investment environment, especially for small and medium-sized enterprises (SMEs).
He said one of the elements in resolving the forex crisis is the ability of the Trinidadian economy to export more to countries with hard currency, namely the United States, Canada, and the European Union. This concerns in particular industrial products related to the transformation of gas, for example, ammonia and LNG.
Chabert said it is obvious that the investments made by Perenco to develop national gas production and the Hydrogène de France project are both crucial to ease the forex constraint by allowing the country to receive more US dollars in return for its exports.
“We are proud to note that the economic commitment of France in T&T focuses on sectors of strategic importance for the long-term development of the country and its ecological transition. It is a mutually beneficial partnership.”
On the topic of improving the business and investment environment in T&T, Chabert said the country’s economy suffers from the rigidity of the labour market, particularly in terms of residence permits for foreigners coming to work in T&T.
“Foreign investments create qualified jobs for Trinidadians, but foreign companies also need, at least initially, expatriate executives. We have the case of a French high-tech company, present for years in T&T, which had to leave the country because the renewal of its director-general’s residence card was refused,” he disclosed.
Furthermore, the ambassador indicated that the commitments made in 2008 under the Economic Partnership Agreement (EPA) between Caricom and the European Union have made it possible to open the European market to Trinidadian products without any restriction.
The only economic zone without customs duties for T&T, he said, is the European Union, adding that no other continent allows such ease and such an open spirit for the Caribbean countries.
But, in the other direction, Chabert outlined the planned opening of the T&T market to European products, envisaged by the EPA, did not take place.
“For example, French agricultural products are obliged to transit through Miami to obtain US health licences, which is paradoxical since these are less demanding than the European certifications in terms of health protection.
“Also, it is not normal for a cheese from France to be taxed at 15 per cent in Trinidad and Tobago, while the same type of cheese from New Zealand is taxed at only five per cent and a Trinidadian product is not taxed upon its arrival in France,” the ambassador stressed.
He pointed out that the first loser in this situation is the Trinidadian consumer since the effect is to increase costs (transport, certification) and reduce competition, which explains the high costs of imported food products on the local market.
On the crime front, Chabert said it is a worrying problem that affects all Trinidadians, and it is also an obstacle to economic development and foreign investment.
“We must not turn a blind eye, as many companies are hesitant to invest in countries where the safety of their employees does not seem guaranteed and where they may fear being subjected to violence,” he mentioned.
He stressed that the country may have great potential in developing public-private partnerships, which requires the adoption and implementation of appropriate legislation.
Connectivity
Caribbean Airlines has recently re-opened the air route between T&T and the French West Indies and the ambassador said the re-establishment of air routes between this country, Martinique and Guadeloupe is of crucial importance to reconnect Caribbean islands that have a common history and culture.
“It was necessary to restore this connectivity between peoples who have as much in common and as much to share. I would like to thank once again Caribbean Airlines for taking this initiative. It is a decision that also offers extraordinary economic opportunities for each of the parties. Thus, during my last trip to Guadeloupe, I was happy to be able to taste on the terrace of the local cafes the Carib beer, coming from Trinidad.”
“I would be very glad if I could help to organise a Trinidadian trade mission to visit the French West Indies to establish contacts with local companies. For comparison, the overall GDP of the five French territories in the Americas is at the level of the GDP of Trinidad and Tobago. These are markets governed by European rules, therefore open to Trinidadian products without national taxes,” Chabert highlighted.
As his mission comes to an end in T&T in the next few months, the ambassador said the resounding success of energy company Perenco is the single achievement that is closest to his heart, of all the French investment projects that have been undertaken since his arrival in 2022. The diplomat lauded the significant investments Perenco has made to develop its natural gas production. On Friday, Perenco announced that it was acquiring Woodside Energy’s Greater Angostura oil and gas producing assets, which was hinted at by te French ambassador in the interview.
Perenco Chabert said in the coming days formalise the takeover of Woodside’s assets and thus become the third gas and oil operator in the country.
Secondly, he outlined the ‘Hydrogène de France’ project which is a major project for the economic development of Trinidad and Tobago, supported by the French government and by the European Union.
“First of all, by the amount of the planned investment since, with nearly US$300 million, it is the main foreign investment in the country over the last five years. The technical and financial part of this project has been completed with all the authorities concerned, and the project now requires final political agreement from the Trinidadian government.”
“It is an investment that will permit the supply of green energy to the industrial facilities of Point Lisas, and in particular for the production of ammonia. It is also a project that could highlight the effort of the Trinidadian authorities to combat climate change. The production of green hydrogen will also facilitate the export of ammonia to the European Union, which is the second largest client of the Trinidadian economy after the United States,” the ambassador stated.
Asked what has been his biggest surprise or discovery during his time as Ambassador of France to this country, he said
“My most beautiful discovery was the quality and diversity of human relationships. There is a Trinidadian culture, varied according to the different communities, but a common way of life that is unique. The pleasure of being with friends while listening to music or chatting, simple but delicious gastronomy, whether it is doubles, rotis or the bake and shark.”
“By leaving I would miss the wild beauty of nature, the captivating and enchanting rhythm of Caribbean music, but above all that I would regret most when leaving, it is the Trinidadians and Tobagonians themselves,” Chabert concluded.