USELESS T&T-CANADA TALKS?

IF the success of the recent Caricom-Canada talks is to be judged by trade benefits, then there is not much benefit for Trinidad and Tobago.

T&T exports just under TT $1 billion a year to the North American country and imports more than double that value.

Chemicals, fertilisers, oils, and some miscellaneous food and drink items are T&T’s main exports to Canada.

The declining petrochemical sector – because of reduced natural gas supplies – is likely to adversely trade in associated commodities.

Canada has always enjoyed a favourable balance of trade.

The vast country supplies wheat, pharmaceutical products, meats, machinery, and various other goods.

At the recent Caricom-Canada Summit, Justin Trudeau, Prime Minister of the North American country, said: “We want to grow trade and create good jobs…”

Trudeau announced expanded duty-free access for textile and apparel and other benefits, such as support to build a green economy.

He also promised a new labour programme to assist Caribbean people who are seeking to work in Canada’s flourishing seasonal agricultural and fish processing industries.

While Caricom countries and Canada have historically enjoyed good relations, there have been limited goods flowing up north, despite trade agreements and protocols.

The seasonal agricultural worker programmes has provided jobs for tens of thousands over the years.

The ties between Caricom and Canada have been bolstered by the number of migrants in various parts of that country.

It is estimated that there are around 100,000 Trinidadians and Tobagonians domiciled in Canada.

With a population of around 40 million people and a prosperous economy, Canada is a bountiful market.

The country has been carrying out World Trade Organisation (WTO) policies and is supportive of multilateralism.

But Caricom’s small scale of production and relatively high operating costs have not made the region competitive in a sizable market that is easily accessible to the world.

T&T’s falling gas feedstock availability, increased electricity rates and higher minimum wage are expected to impact the cost of production.

There are already humbugs such as low productivity, port inefficiency and the slow pace of the public service.

The Manufacturers Association has been appealing for an enabling environment in order to boost production and international market access.

In particular, manufacturers want to enhance non-energy exports.

The association’s strategic intent is to “significantly improve” its export capacity through several initiatives.

The manufacturing sector grew to 17.2 per cent of gross domestic product in 2022, from 14.5 per cent in 2015.

But the major anticipated leap has not taken place.

Experts anticipate only incremental expansion.

Trudeau told the conference: “Now is the time to really dig in and further concretise and expand with more ambition.”

But the 50-year-old Caricom struggled for years to negotiate a single market and economy.

There are occasional intra-regional trade tiffs, while the transportation system is inefficient and costly.

Regional political leadership has historically not been driven to expand production and become more export competitive.

Caricom, currently led by Dominica’s Prime Minister Roosevelt Skerritt, has not announced any plans to work collaboratively to maximise the potential of the Canadian market.

Despite Canada’s good intentions, the recent summit could, therefore, be a useless exercise.