Trade and Investment Mission to
Trinidad & Tobago
FIEO joined Trade and Investment Mission that visited Trinidad & Tobago from 2 to 7 June. More than 40 Indian businessmen joined this Mission organized by the High Commission of Trinidad & Tobago in Delhi. FIEO delegation comprised of 15 businessmen and was led by its Director General Mr. Ajay Sahai.
While welcoming the Mission in T&T, Trade and Industry Minister Dr Lenny Saith told the visiting delegates that his country was moving quickly to position itself as the business, financial and commercial hub of the region. The volume of trade between South East Asia and T&T had increased manifold over the years and currently stood at US$ 573 million, he said.
Dr Saith informed the delegates that his country was expanding its natural gas sector and setting up plastic industry complexes for the production of ethylene, polyethylene and polypropylene. T&T is also setting up facilities for the production of melamine, urea, ammonium nitrate, maleic anhydride, acetic acid, aluminium and steel and these new initiatives would generate a host of new downstream manufacturing industries, he added.
Tourism Minister Mr. Joseph Ross, who was present on the occasion, said that his Government was diversifying its tourism industry and encouraging investment not just in hotels but also in a variety of accommodation facilities such as eco-lodges.
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Indian delegates with T&T dignitaries at a business meeting in Tobago |
The delegates met Indian High Commissioner Mr. Jagjit Singh Sapra who advised them to respect agreements made with T&T importers and export products resembling approved samples. Meanwhile, he backed the Bilateral Investment Promotion and Protection Agreement signed between the countries in March 2007 saying it would provide confidence to businessmen of the two countries for mutual investments.
FIEO delegates discussed a proposal of establishing an India Trade Centre or Indian Caricom Centre in T&T with Mr. Sapra who welcomed the idea but suggested them to begin with a rented setup and assess the situation before constructing a full fledged centre.
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T&T is rich in plantation of mango, cocoa, coffee, apple and some vegetables. Besides, the country imports a number of products and Indians, who constitute over 40% to the total population of T&T, have clear preference for Indian products. Given these facts, said Mr. Sapra, any move to organize a show of Indian products here would generate good result. He revealed that there was a good demand of quality textile, leather items and pharmaceutical products in the country. In services sector, he said, there was good scope for tourism not only in Port of Spain but also in many areas of Tobago. On June 4, 2008, a reception of the delegates was hosted by the Indian High Commissioner at his residence, which was attended by large number of guests from T&T including High Commissioner of T&T in New Delhi. Both the High Commissioners shared their viewpoints on enhancing bilateral trade between the two sides and both of them agreed that T& T could be used as a gateway to Caricom and neighbouring countries. Select delegates, comprising of Mr. Subhash Goyal, Convenor, FIEO Committee on Services, Mr. Ajay Sahai, Pundit Maniedeo Persad, High Commissioner of T & T in India and some representatives from Bangladesh and Singapore met Chief Secretary of Tobago House of Assembly (THA), Mr. Orville D London. Mr. London told them that Tobago attracted tourists from all over the world, especially from Europe, US and neighboring Caribbean and Latin American countries but hotels currently available on tourist spots were insufficient. He welcomed foreign investment in hotel industry in Tobago and offered all assistance in clearing investment proposals. As per the programme, Tobago Authorities organized a Seminar. Addressing the Seminar, Dr Anselm London, Secretary of Finance and Enterprise Development, Trinidad & Tobago, informed that ESSAR Steel had earmarked USD 1.6 billion worth of investments and Bank of Baroda had started operation in Tobago. Meanwhile, he exhorted Indian software personnel |
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Director General, FIEO, Mr Ajay Sahai greeting Mr Kennith Wali, Former Minister of Trade, T & T and Chairman of Cove Investment Opportunities, KCV Consulting Services while High Commissioner of T & T Mr. Pundit Maniedeo Persad looks on. |
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DG, FIEO, Mr Ajay Sahai (3rd from left) and Mr. Peter Kanhai, President, Greater Tunapuna Chamber of Industry and Commerce exchanging the MOU document. Indian High Commissioner in T&T, Mr. Jagjit Singh Sapra (extreme right) |
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Right to Left: Mr Ajay Sahai, Pundit Maniedeo Persad, High Commissioner of T&T in India; Singaporian Delegate and Mr Subhash Goyal, Chairman, Stic Travels |
to make Tobago another Silicon Valley. Ms Pulwatee, Beepath, Father Phil Issac; Dr Anselm London, Secretary of Finance & Enterprise Development; Pundit Maniedeo Persad, High Commissioner of T & T; Mr. Kenneth Wali, Cove Investment Opportunities, KCV Consulting Services and Hon Neil Wilson, Secretary of Tourism and Transportation, Trinidad & Tobago were also present in the Seminar.
After the Seminar, Pundit Manideao Persad hosted a matchmaking session for the delegates, which was joined by the Minister of Foreign Affairs Ms Paula Gopee-Scoon. Addressing the session, she informed that T&T was endeavoring to develop its non-oil sector. T&T has successfully created a globally competitive petrochemical sector, and now its focus is to achieve sustainable development of non-energy sector, she added.
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Addressing the session, Mr. Persad said: "T&T has seen major investments coming from India in recent years. Essar has set up a US$12 million steel complex. Bank of Baroda has set up an overseas branch. A yet to be released Bollywood movie has been shot at various locations in T&T." According to him, Bank of Baroda, which set up its operations in October last year, claims to have received deposits worth US$ 150 million and disbursed credits worth US$ 1 billion. While making a presentation on trade potential between the two countries at a Seminar organized by Greater Tunapuna Chamber of Commerce in the Auditorium of T&T Bureau of Standards, Mr. Ajay Sahai introduced the participants to FIEO as a Federation having 11,000 direct members and about 1000 local and international chambers and associations as indirect members. FIEO has 10 offices in India spread in various cities and two India Trade Centres - one in Bucharest, Romania and the other in Sharjah, UAE, he added. Commenting on the role of FIEO, Mr. Sahai said: "The Federation provides strategic inputs to Indian Government for formulating multilateral and bilateral trade policies. As a nodal agency of various services, it arranges participation of its members in international trade shows and buyer seller meets. It has signed MoUs with over 65 Chambers across the globe so far, including an MoU with T&T Chamber of Commerce and E-Tech." At some stage in the Seminar, a Memorandum of Understanding to promote bilateral trade between the two countries was signed between FIEO and Greater Tunapuna Chamber of Industry and Commerce, Macoya Industrial Estate, Macoya. The MoU was inked by Mr. Ajay Sahai and Mr. Peter Kanhai, President of GTCIC. Later, Indian delegates met Trinidad & Tobago Coalition of Service Industries, a national umbrella organsation bringing together all services sector organizations and associations. It |
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From left: H E Pundit Maniedeo Persad, High Commissioner of T & T in India, Mrs Maniedeo Parsad and Commerce Secretary, Govt. of T & T |
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From left: Mr Rajiv Arora, Vats Enterprises; DG FIEO Mr Ajay Sahai and H E Pundit Maniedeo Persad, High Commissioner of T & T in discussion with each other on T & T Trade Mission |
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Mr Christopher James, Chairman, Tobago Division in the Trinidad and Tobago Chamber of Commerce (left) discussing with Mr Pawan Kumar Jain of M/s Tribal Craft |
functions as a focal point to lobby, channel and address trade and services development issues. FIEO delegates representing service sector claim to have a fruitful meeting with them.
As part of the schedule, FIEO organized a Buyer Seller Meet that was attended by more than 60 companies from T&T. The Meet was graced by Indian High Commissioner who advised FIEO Members to maintain quality standards required by the buyers of T&T.
FIEO delegates comprised of leading companies namely Ritu Arts dealing in home furnishing decoration & food craft, Vats Enterprises dealing in herbal products, Radicura Pharmaceuticals dealing in pharmaceutical products, Reliable Associates dealing in hospital & healthcare items, Imperial Impex dealing in automotive spare parts, Modern Suppliers India dealing in pain brushes & accessories, ABN Textile & Bricks dealing in commercial tiles & bricks, Allied Resin & Chemicals dealing in powder resins, Ebek Enterprises dealing in steel, paper etc, Handloom Only dealing textile & made ups, Tribal Krafts dealing in handicrafts, and SiMr.an Exports dealing in carpet, rice, cereals.
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Trinidad & Tobago: An Overview Trinidad & Tobago is a country on the move. Between 2007 and 2010, its Government intends to spend TT$ 108 billion on a dazzling Capital Program that seeks quantum improvements in every aspect of life in Trinidad and Tobago. According to its ambitious Capital Program contained in its Vision 2020 Operational Plan for 2007-2010, the Government will spend, on average, TT$ 27 billion annually to implement these projects. The largest chunk of this, 54%, will be spent on initiatives, which include, establishing six science and technology parks across the country, creating large farms to secure food supplies and building a vibrant agri-business sector, supporting cluster development to take non-energy sector to a new platform of development, increasing public funding on industry-led and in-company research and innovation, and setting up a world-class research institution. Over the past seven years, Foreign Direct Investment (FDI) in T & T has averaged USD 600 million (net) per annum and is projected to reach USD 1.33 billion at the end of 2007. Buoyed in part by FDI, Trinidad and Tobago’s economy has continued to grow, albeit more robustly in the energy sector. In the calendar year 2007, the economy recorded its 14th consecutive year of economic expansion, with GDP increasing by just under 6%. A number of factors have contributed to make Trinidad and Tobago a favourable environment for business to flourish and for the economy to expand. However, it is the impact of the country’s tax system on that growth, and its role in the future development of the economy, that is the primary focus of this article. |
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DG FIEO Mr Ajay Sahai addressing the gathering at Trinidad & Tobago Standard Bureau |
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Mr Subhash Goyal, Chairman, Stic Travels and Convenor, FIEO Committee on Services discussing with the Trinidad Travel Company about promotion of tourism in that region |
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DG FIEO Mr Ajay Sahai explaining about FIEO’s role in India’s Trade Promotion to the visiting Trinidad & Tobago Chamber’s Official |
BUSINESS ENVIRONMENT
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Friendly operating environment
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Minimal ‘red tape’
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Simple registration system
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No exchange control
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Simplified low tax fiscal environment
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Work permit required for expatriate workers
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GORTT local content policy to consider
T&T TAX SYSTEM
Alongwith T&T’s continued economic growth and increased FDI in recent years, there has been a consistent reduction in the basic rates of corporation tax and income tax.
Individual residents and non-resident persons, corporations, branches are taxable on net income arising in T&T or income remitted into T&T. Individuals are taxed @ 25% and corporations are taxed @ 25%/ 35%.
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The following types of taxes are levied on corporations:
T&T has Significant Pro-Business Provision and Tax Incentives. In addition to declining rates of taxation, examples of tax provisions that have contributed to |
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Mr Subhash Goyal greeting the wife of High Commissioner of T & T in India at the Reception organized by Bank of Baroda |
make Trinidad and Tobago’s highly competitive business environment include:
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Losses may be carried forward and set off against the first available future profits (excluding short-term capital gains) indefinitely.
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Group loss relief is allowed among companies that are 100% subsidiaries of the same parent, or in a 100% subsidiary parent relationship. The claimant company may not reduce its chargeable profits by more than 25% and may not utilize any of the other surrendering company’s profits that arise from that company’s capital allowance claims.
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Dividends received from a resident company, other than preference dividends on shares issued before January 31, 1966, are exempt from corporation tax.
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Long term capital gains are generally not subject to tax.
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Capital intensive manufacturers of approved products, especially in the energy downstream sector, were able to benefit from extensive tax incentives under Fiscal Incentives Act, which is currently being phased out in line with the developed status of this sector.
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Approved Free Zones Company status allows for tax exemptions over as indefinite period for international trade, manufacturing and service projects that are dedicated to export.
Trinidad and Tobago has tax treaties with India, Denmark, Sweden, China, France, Norway, USA, Canada, Luxembourg, UK, Italy, Venezuela, Caricom, Germany and Switzerland.
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Delegates said
"A morning B2B & evening B2C fair should be organized in Trinidad & Suriname at an appropriate time in near future" M/s Ritu Arts
"Before going for a trade mission, FIEO should arrange a meeting of its participants with the officials of the other country to clinch better results"
M/s Vats Enterprises
"The BSM arranged by FIEO and the High Commission was excellent. A B2B followed by B2C could be a good idea. Further, tie-ups with agencies like E-TEC could be a bit more organized, transparent, competitive and efficient."
M/s Reliable Associates
"The BSM should be advertised on business TV channels and in local newspapers for better result." M/s Handloom Only |
POTENTIAL SECTORS FOR INDIAN INVESTORS
INDUSTRIES
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Metal Processing
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Petrochemicals
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Polypropylene Products
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Polyethylene Products
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Food & beverage
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Printing & packaging
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Fish & fish processing
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Merchant marine
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Leisure marine
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Film/broadcasting
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Music/entertainment
INDIA’S TRADE WITH TRINIDAD & TOBAGO India’s main exports to Trinidad include iron and steel, pharmaceutical products, organic chemicals, articles of apparel & clothing etc and India’s import items include mineral fuels & Oils, bituminous substances, mineral waxes, plastic & articles, wood pulp etc. Value in US$ million 2003 2004 2005 2006 2007 Jan-Nov. India’s Exports to T& T 23.23 28.38 37.90 52.36 44.86 T&T’s Exports to India 3.68 17.21 2.07 0.57 79.92 |
INFORMATION & COMM-UNICATION TECHNOLOGIES
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Knowledge Based Businesses
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Software Based BusinessesProduct Development
TOURSIM
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Business Hotels
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Resort Hotels
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Eco-Lodge
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Dive Lodges
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Mixed- Use Development - Hotel with villas, condominiums, golf course etc.
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Marinas
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Charter Boats
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Dive Operations
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Tour Operations
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Theme Parks
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Cultural Centres.
