Trinidad and Tobago Country Brief - January 2008
Overview
Australia established a High Commission in Port of Spain in July 2004. Australia’s High Commissioner also has non-resident accreditation for 13 other countries in the Caribbean. There is a small Caribbean community in Australia, including 1,126 individuals born in Trinidad and Tobago (2006 census).
Political Overview
Background
Trinidad was colonised by Spain around 1600. Initially a defensive Spanish outpost, Trinidad soon saw significant non-Spanish settlement, particularly from the French colonies. In 1797, Trinidad was seized by Britain. Tobago was fought over by the French, Dutch and British colonial forces, changing hands 22 times before being ceded to Britain in 1814. It was an island of immense wealth until its sugar industry collapsed in the 1880s. Tobago was attached to Trinidad in 1889.
After slavery was abolished in 1838, East Indians were brought to the islands as cheap indentured labourers. Migration from Madeira, Sierra Leone, Europe, India and China soon followed. Trinidad and Tobago achieved full independence from the United Kingdom in 1962 and subsequently joined the British Commonwealth and the United Nations. In 1967, Trinidad and Tobago became the first Commonwealth country to join the Organization of American States. In 1976, a republican constitution was adopted, replacing the Queen as Head of State with a president elected by the parliament.
Political System
Trinidad and Tobago is a republic with a bicameral national parliament modelled on the British system. The President is the Head of State and Commander-in-Chief of the armed forces, and is elected by the members of the Senate and the House of Representatives. The Senate consists of 31 members, 22 appointed by the President on the advice of the Prime Minister and the Leader of the Opposition, and nine independent senators appointed by the President.
The House of Representatives consists of 36 members sitting in single-member constituencies (34 for Trinidad and 2 for Tobago), and a Speaker who can be elected from within or outside the House of Representatives. The judiciary is independent. The highest appellate court remains the British Privy Council. Although the Caribbean Court of Justice (CCJ) was inaugurated in April 2005 to replace the Privy Council as the highest court of appeal in the CARICOM region, legislation has not yet been passed for the CCJ to act in its appellate jurisdiction.
At the regional level, Tobago has a unicameral House of Assembly comprising 12 elected members, and an additional six members appointed by the majority party and one by the minority party. The Tobago House of Assembly, established in 1980, has limited regional autonomy including some powers over the island’s finances and other delegated policy, planning and administrative responsibilities.
Since its independence from Britain in 1962, Trinidad and Tobago has played an increasingly important role as a political and economic leader in the Caribbean. With a population of approximately 1.3 million people and abundant natural resources, Trinidad and Tobago is one of the larger Caribbean countries and currently benefits from a thriving energy sector. As a consequence of its size and wealth, Trinidad and Tobago plays a lead role in the region’s major political grouping, the Caribbean Community (CARICOM). Trinidad’s capital, Port of Spain, is also host to the Secretariat of the sub-hemispheric Association of Caribbean States and a member of the pan-hemispheric Organization of American States.
In Trinidad and Tobago, political allegiance tends to follow ethnic lines. Afro-Trinidadians (40 per cent of the population) largely support the People's National Movement (PNM), while Indo-Trinidadians (also 40 per cent of the population) generally support the United National Congress (UNC). After the incumbent UNC and the opposition PNM won equal numbers of parliamentary seats (18) in the 36 member House of Representatives in the 2001 election, then President and Head of State A.N.R. Robinson, exercising discretionary powers, appointed Patrick Manning, head of the PNM, as Head of Government. Conflict between the UNC and the PNM followed, leading to a second round of general elections in 2002. In the 2002 election, the PNM won 20 seats in the House of Representatives and was able to form government. In March 2003, George Maxwell Richards succeeded Robinson as the new President and Head of State. In September 2007 Prime Minister Manning called for new elections to be held in November 2007. PNM won enough seats in the election to control the newly expanded 41-seat parliament. President Richards swore Manning into office in November 2007 for another term as Prime Minister.
Political Outlook
A key priority for the PNM Government is the 'Vision 2020' program under which Trinidad and Tobago aims to achieve developed country status by the year 2020. The Government’s development strategy allocates energy sector revenue towards upgrading and modernising economic infrastructure, and expanding and diversifying the non-energy economy. The Government is investing in technology parks with a view to establishing high tech industries in areas such as telecommunications and software development. Despite its booming economy, Trinidad and Tobago faces serious social problems including high murder rates, drug trafficking and ethnic tension between the two major cultural groups.
Economic Overview
Over the six years since the commencement of its current energy boom, the Trinidad and Tobago economy has experienced sharp growth, with per capita GDP rising from US$7,062 in 2002 to US$15,908 in 2007. Although economic growth has remained strong, income distribution is uneven. GDP growth dropped from 12.5 per cent in 2006 to 6 per cent in 2007. Foreign direct investment has grown to support expanded capacity in the energy sector.
Trinidad produces 150,000 barrels of oil and 4.2 billion cubic feet of natural gas per day. Most exploration and production is conducted offshore. It is currently the world's largest exporter of ammonia and methanol, and provides over 70 per cent of all Liquefied Natural Gas (LNG) and methanol imports to the United States. The Atlantic LNG Train IV opened in December 2005 and became the largest LNG production train in the world (trains are gas liquefaction units that convert natural gas to a liquid form for transport). Trinidad is also home to the world’s largest methanol production plant.
Consistent with its 'Vision 2020' plan, the Trinidad and Tobago Government has placed a strong emphasis on economic diversification (particularly into technology-based industry), value-adding in the energy sector, and on building tighter linkages between the energy and non-energy economies. As a result, Trinidad has one of the most diversified and advanced production structures in the Caribbean region – a heavy industrial sector (eg. machinery and steel) and a light manufacturing sector (eg. food and furniture). Planning is currently underway for the construction of two aluminium smelters in Trinidad, with the view to developing job-creating industries such as car parts manufacturing. More than 160 countries produce for export, and Tobago makes an important contribution to the country’s tourism sector.
Trinidad and Tobago, as the largest CARICOM economy, plays a leading role in the Caribbean region and is also a driving force behind regional market integration. In January 2006, the Caribbean Single Market (CSM) came into effect. The CSM allows for the free trade of goods and services between CARICOM countries (except the Bahamas, which has not joined the CSM) and the free movement of certain categories of labour. The Caribbean Court of Justice, sitting in its original jurisdiction, acts as a CSM disputes mechanism. A Caribbean Single Economy is scheduled to come into effect in 2008 which, among other things, is likely to consider a common Caribbean currency.
Bilateral Relationship
The Australia-Trinidad and Tobago bilateral relationship is underpinned by our sporting links, joint membership of the Commonwealth and growing commercial ties.
Cricket remains one of the most resilient links between Australia and Trinidad and Tobago, and the wider English-speaking Caribbean. Trinidad and Tobago was one of nine Caribbean countries that co-hosted the 2007 Cricket World Cup.
Australia’s then Foreign Minister, Alexander Downer, visited Trinidad and Tobago in December 2006 and formally opened the Australian High Commission.
Bilateral Economic and Trade Relationship
Two-way merchandise trade between Australia and Trinidad and Tobago was approximately A$29 million in 2006-07, with the balance of trade in Australia’s favour. Australia’s exports to Trinidad and Tobago included non-bovine meat, cheese and curd, and milk and cream, totaling approximately A$23.8 million. Australia’s imports from Trinidad and Tobago included essential oils and electrical circuits equipment valued at approximately A$5.2 million. In August 2006, the Trinidad Government purchased two Australian-made fast passenger ferries worth around $90 million.
Australia and Trinidad and Tobago have a shared interest in ensuring well functioning energy markets. Both our economies have benefited from strong world demand for energy and high energy prices. BHP Billiton is a major oil producer in Trinidad and Tobago. The Angostura joint venture, which is operated by BHP Billiton with partners Total and Talisman Energy, began crude oil production in January 2005. The project involved total investment of close to A$1 billion, and BHP Billiton’s stake in the Angostura field is 45 per cent. In the first year of production the project produced 15 million barrels of crude oil.