TRINIDAD AND TOBAGO

Republic of Trinidad and Tobago

CAPITAL: Port-of-Spain

FLAG: On a red field, a black diagonal stripe with a narrow white border on either side extends from top left to bottom right.

ANTHEM: Begins, "Forged from the love of liberty, in the fires of hope and prayer."

MONETARY UNIT: The Trinidad and Tobago dollar (tt$) is a paper currency of 100 cents. There are coins of 1, 5, 10, 25, and 50 cents, and 1 dollar, and notes of 1, 5, 10, 20, and 100 dollars. tt$1 = us$0.15949 (us$1 = tt$6.27) as of 2005.

WEIGHTS AND MEASURES: The metric system is official, but some imperial weights and measures are still used.

HOLIDAYS: New Year's Day, 1 January; Carnival, 14–15 February; Emancipation Day, 1st Monday in August; Independence Day, 31 August; Republic Day, 24 September; Christmas, 25 December; Boxing Day, 26 December. Movable holidays include Carnival, Good Friday, Easter Monday, Whitmonday, Corpus Christi, 'Id al-Fitr, and Dewali.

TIME: 8 am = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated off the northeast coast of South America at the extreme southern end of the Lesser Antilles, the islands of Trinidad and Tobago cover an area of 5,128 sq km (1,981 sq mi). Comparatively, the area occupied by Trinidad and Tobago is slightly smaller than the state of Delaware. Trinidad, the main island, rectangular in shape, has an area of 4,828 sq km (1,863 sq mi), extending 143 km (89 mi) n–s and 61 km (38 mi) e–w. Cigar-shaped Tobago, 31 km (19 mi) northeast of Trinidad, has an area of 300 sq km (116 sq mi), a length of 42 km (26 mi) ne–sw, and an average width of 12 km (7.5 mi) nw–se. Sixteen small islands are found off the coasts. The Atlantic Ocean is to the e and the Caribbean Sea to the w. Venezuela lies only 11 km (7 mi) sw across the shallow Gulf of Paria.

Trinidad and Tobago have a coastline length of 362 km (225 mi). The capital city of Trinidad and Tobago, Port-of-Spain, is located on Trinidad's Gulf of Paria coast.

TOPOGRAPHY

Trinidad is geologically part of South America and its topography is similar to that of the adjoining Orinoco section of Venezuela. Three hill ranges, trending east–west, cross the island roughly through the northern, central, and southern parts, respectively. The Northern Range, a continuation of the mountains of the Paria Peninsula of Venezuela, is the most extensive and rugged of the three and has peaks rising above 900 m (3,000 ft). The highest peaks on Trinidad are El Cerro del Aripo (940 m/3,084 ft) and El Tucuche (936 m/3,071 ft). Hills in the Central Range rise just over 300 m (1,000 ft). Those in the Southern Range are somewhat lower. In between these hill ranges is level or gently rolling flatland, dissected by small streams flowing from the hills. Extensive swamp areas, some of them mangrove, are found along the east, south, and west coasts. Trinidad has the world's largest natural asphalt bog, the 46-hectare (114-acre) Pitch Lake, on the southwestern coast.

Tobago is geologically part of the Lesser Antilles, and its topography, generally more irregular and rugged than Trinidad's, resembles that of Grenada, St. Vincent, and other volcanic islands to the north. A central volcanic hill core rising to over 550 m (1,800 ft) fills most of the island and reaches the sea in many places. Patches of a narrow coastal plain are scattered here and there; much of the island's limited level land is concentrated in its southwestern tip.

CLIMATE

There is little variation in temperature conditions through the year. The mean annual temperature for the entire nation is 21°c (70°f). In Port-of-Spain the annual average is 25°c (77°f), with an average minimum of 20°c (68°f) and an average maximum of 30°c (86°f) in January; the July range is 23–31°c (73–88°f). Increasing elevation in Trinidad's Northern Range causes a corresponding decrease in temperature. Nights are generally cool.

In the northern and central hill areas and on Tobago, annual rainfall exceeds 250 cm (98.4 in) and probably exceeds 380 cm (150 in) in specific areas. Most hilly sections receive 200 cm (80 in) or more, while in the lowlands the average drops below 165 cm (65 in) and in certain sections below 125 cm (50 in). There is a relatively dry season from about January to May and a wet season from June to December. The dry period is not, however, a season of drought, for rain still falls every few days in most areas.

FLORA AND FAUNA

The plant and animal life of Trinidad, like the geology of the island, resembles that of neighboring Venezuela. Tobago, by contrast, shows in its flora and fauna its connection with the volcanic Lesser Antillean arc. There are distinct altitudinal variations in indigenous plant life on both islands. The natural vegetation includes wild flowers, many flowering shrubs and trees, palms, giant aroids, and large broad-leaved varieties. Natural animal life includes a few species of mammals, monkeys among them, and many reptiles and birds. As of 2002, there were at least 100 species of mammals, 131 species of birds, and over 2,250 species of plants throughout the country.

ENVIRONMENT

Among environmental problems, pollution from oil spills is the most serious. Water pollution is also caused by mining by-products, pesticides, fertilizers, sewage, and saltwater. Soil erosion has occurred, in part, because of the clearing of land for farming. Environmental responsibility is vested in the Ministry of Energy and Natural Resources. In 1989, the Ministry of the Environment and National Service was formed to regulate the nation's treatment of its natural environment.

On the west coast of Trinidad is the Caroni Bird Sanctuary, famed for its marshland and mangroves, where flocks of scarlet ibis roost. Little Tobago is reputed to be the only place aside from New Guinea where the bird of paradise lives in the wild. The nation has three Ramsar wetland sites. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 1 type of mammal, 2 species of birds, 5 types of reptiles, 9 species of amphibians, 15 species of fish, and 1 species of plant. Endangered species on Trinidad include the Trinidad piping guan, tundra peregrine falcon, loggerhead turtle, and red siskin.

POPULATION

The population of Trinidad and Tobago in 2005 was estimated by the United Nations (UN) at 1,305,000, which placed it at number 148 in population among the 193 nations of the world. In 2005, approximately 7% of the population was over 65 years of age, with another 21% of the population under 15 years of age. There were 97 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.7%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 1,343,000. The overall population density was 254 per sq km (659 per sq mi), but the majority of the population resides on the island of Trinidad.

An almost continuous urban area extends from Port-of-Spain eastward to Tunapuna, westward, and northward into the Northern Range. About one-third of the population lives in Port-of-Spain or its suburbs or within 16 km (10 mi) of them. The UN estimated that 74% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.77%. The capital city, Port-of-Spain, had a population of 55,000 in that year. The second most important town is San Fernando, with a population of 55,419. The remainder of Trinidad and virtually all of Tobago are sparsely settled. Scarborough, the main town of Tobago, has a population of approximately 4,500.

MIGRATION

Lack of opportunity has encouraged the migration of numbers of people to the United Kingdom, the United States, and occasionally to other places abroad. In 1990 there were 119,000 people in the United States who had been born in Trinidad and Tobago, up from 66,000 in 1980. This movement, however, has been counter-balanced by immigration from other islands in the Lesser Antilles, mainly from Grenada and St. Vincent, where lack of opportunity is far more critical. Some of this immigration has been legal, some not. Migration from Tobago to Trinidad is common. The number of migrants in 2000 was 41,000. Worker remittances in 2001 were $40.9 million.

As of 2004 Trinidad and Tobago did not host any refugees or asylum seekers. However, the lack of a national refugee law is a cause for concern as Trinidad and Tobago are likely to experience increased numbers of asylum seekers due to increased extra-regional migration and migrant trafficking through the Caribbean. In 2005, the net migration rate was estimated as -10.87 migrants per 1,000 population.

ETHNIC GROUPS

The population is mainly comprised of Afro Trinidadians (the descendants of former black slaves), Indo Trinidadians (East Indians originally brought to the island as contract laborers from northern India), whites, and Chinese, many of whom are racially and culturally intermixed. The total population according to the 2000 census is about 40% Indo Trinidadian, 37.5% Afro Trinidadian, 20.5% mixed, 1.2% other, and about 0.8% unspecified.

While African and East Indians on Trinidad are economically interdependent, each community retains its cultural individuality: this is a life that has been called coexistence without assimilation. Intermarriage is rare, and facial and other bodily characteristics still separate the two groups, as do occupation, diet, religion, residence, agricultural landscape, sometimes dress, and often politics. Africans are dominant in the urban areas, in the oil fields, in the poorer agricultural areas of the north, east, and southeast, and on Tobago. East Indians are dominant in the best agricultural regions. Although outnumbered in Port-of-Spain and San Fernando, urban East Indians are apt to be economically better off than the urban Africans and tend to be highly involved in commerce, industry, and the professions.

LANGUAGES

English is the official language; an English patois, characterized by numerous foreign words and the special pronunciations of the islands, is understood everywhere. Here and there, a French patois and Spanish are used. In rural village areas, notably in the southern part of Trinidad, East Indians, especially of the older generation, use Hindi and, less frequently, Urdu, Tamil, and Telegu.

RELIGIONS

Christian churches are found on both islands; Hindu temples and Muslim mosques in the recognizable architectural styles of southern Asia are found on Trinidad. According to official statistics last taken in 2000, the population was roughly 26% Roman Catholic, 24.6% Protestant, 22.5% Hindu, and 5.8% Muslim. Primary Protestant denominations include Anglican, Pentecostal, Seventh-Day Adventist, Presbyterian, Baptist, and Methodist. Other Christian groups, such as Jehovah's Witnesses and Mormons, are also represented. A small number of people are believed to practice traditional Caribbean religions in conjunction with other faiths, including the Shouter Baptists and the Orisha. About 1.9% of the population were atheists. There are small groups who practice other faiths, including Baha'is, Rastafarians, Buddhists, and Jews.

Complete freedom and equality are enjoyed by all religious groups. Certain Christian, Hindu, and Muslim holidays are celebrated as national holidays. The Inter-Religious Organization is a nongovernmental group that promotes interfaith dialogue and understanding and sponsors activities of public outreach. The government maintains a good relationship with this organization and supports many of its activities.

TRANSPORTATION

In 2002, there were 8,320 km (5,170 mi) of roads, of which 4,252 km (2,642 mi) were paved. The more densely settled sections of both islands are served by reasonably adequate roads, but large sections of Tobago either have no motorable roads or are connected by narrow, tortuous, and poorly surfaced ones. In 2003, registered motor vehicles included 297,020 passenger cars and 38,275 commercial vehicles. The Public Service Transport Corp. is responsible for road transport. Trinidad's lone remaining railway, from Port-of-Spain to San Juan, was closed down in 1968.

The largest port installation for passengers and cargo is at Port-of-Spain. Brighton is an important port for oil and asphalt loading, and there are also oil terminals at Chaguaramas, Pointe-à-Pierre, and Point Fortin. A deep-water port at Point Lisas accommodates energy-based industries at the Point Lisas industrial estate. Numerous steamship lines regularly schedule freight and passenger services from Europe and the Americas. Regularly scheduled coastal vessels connect Port-of-Spain with Scarborough. The main shipping line is the West Indies Shipping Service. In 2005, Trinidad and Tobago had six merchant ships of 1,000 GRT or more, with a total of 7,178 GRT.

Air facilities are concentrated at Piarco International Airport, about 26 km (16 mi) southeast of Port-of-Spain. There is a secondary main airport at Crown Point, on the western tip of Tobago. In 2004, there were six airports and airfields, three of which had paved runways as of 2005. Trinidad and Tobago Airways—owned by the government and formed by the merger of British West Indian Airways (BWIA) International and Trinidad and Tobago Air Services in 1980—operates domestic, regional, and international services. In 2003, about 1.084 million passengers were carried on scheduled domestic and international airline flights.

HISTORY

Arawak Indians inhabited what they knew as the "Land of the Hummingbird" before the arrival on 31 July 1498 of Christopher Columbus, who called the island La Trinidad, or "The Trinity." The Spanish took little interest in the island and did not appoint a governor until 1532. Thereafter, Spanish colonists gradually came, but skirmishes with local Amerindians and raids by other Europeans, including Sir Walter Raleigh, made it difficult for the Spanish to obtain a foothold there. During the early European period, the island acted as a supply and transshipment center for Spanish traders and fortune seekers in South America. In time, colonists established plantations and imported slave labor from West Africa.

In 1797, a British expedition from Martinique captured Trinidad, which Spain ceded formally to Great Britain in 1802 by the Treaty of Amiens, and Trinidad became a crown colony. During the late Spanish period and through most of the 19th century, sugar dominated as the island's main agricultural product. The emancipation of slaves in 1834 brought severe labor shortages, and between 1845 and 1917, the colonial government brought in more than 150,000 contract workers, mostly Hindus and some Muslims from India, to replace the slaves. With added labor supplies and new techniques, the cocoa industry thrived, and by the late 19th century cocoa had joined sugar as a major export crop. The discovery of petroleum in south Trinidad in 1910 led to its addition as an important export, and since then it has assumed central economic importance, complemented beginning in the late 1990s by increasing natural gas exports.

Columbus also discovered Tobago in 1498 and it too received little attention from Europeans for many years. British from Barbados first colonized the island in 1616, but the local Carib Indians soon drove this group out. Other colonists followed shortly, however, and during the next 200 years the island changed hands many times among the Dutch, French, and British. Finally, in 1814, the British crown gained possession, which it maintained for a century and a half. The British first ruled Tobago as a separate colony, but during much of the 19th century administered the island from the Windward Islands government. It became a crown colony in 1877 and in 1888 was amalgamated with Trinidad under the name of Trinidad and Tobago.

In 1958, Jamaica, Barbados, and the British Windward and Leeward Islands formed the Federation of the West Indies. Arguments over distributive issues soon undermined the federal idea: Jamaica withdrew in 1961, followed closely by Trinidad and Tobago. On 31 August 1962, Trinidad and Tobago became independent but retained membership in the (British) Commonwealth. Eric Williams, the founder of the People's National Movement (PNM), became prime minister in 1961 and was regularly reelected until his death in 1981. Williams survived an attempted coup by "Black Power" elements as well as army supporters in 1970. In 1976, Trinidad and Tobago declared itself a republic, and a president replaced the British monarch as chief of state. In 1980, Tobago attained a degree of self-government when it was granted its own House of Assembly.

Trinidad and Tobago's politics has been marked by intense competition between the main ethnic groups—African and East Indian. Each group represents about 40% of the population (persons of mixed, European, Chinese, and Syrian-Lebanese origin comprise the other 20 percent). The PNM held on to power after the death of Eric Williams, but was ousted in 1986 by an alliance of African, Indian, and mixed groups melded into the National Alliance for Reconstruction (NAR). A.N.R. Robinson, leader of the NAR, became prime minister. However, the alliance soon fell apart, and the Indian faction went on to form the United National Congress (UNC). As the economy entered into a difficult period of structural adjustment, dissatisfaction with the government grew. In July 1990, a black Muslim group, the Jamaat-al-Muslimeen, laid siege to the parliament in a failed coup that killed 25 and destroyed a large swath of the capital Port-of-Spain. In 1991, a reconstructed PNM returned to power under younger leadership. In 1995 Prime Minister Patrick Manning called early elections, hoping to increase his parliamentary majority. Instead, the PNM was replaced by the country's first Indian government led by Basdeo Panday. In turn, this government's tenure was plagued by rising corruption and crime. Although the UNC was reelected in 2000, intraparty divisions reduced its parliamentary majority and led to the calling of fresh elections in 2001. That election resulted in a stalemate. The president then selected the PNM's Manning as prime minister. Elections held in 2002 confirmed the PNM's majority.

Economically, the country emerged from structural adjustment in the 1990s and both the UNC and PNM governments moved firmly ahead in courting foreign investment, dismantling trade barriers, and privatizing the economy. Highly industrialized Trinidad ranks in the top 50 countries in terms of oil reserves and the top third in terms of proven natural gas reserves. The country's external linkages are broad, but focused particularly on the United States and the regional Caribbean Community, as well as deepening linkages with Latin America.

GOVERNMENT

Historically, active participation in government by the nonwhite (black and East Indian) population began in 1925, when for the first time elected representatives were included in the otherwise appointed Legislative Council that ruled the colony. Over the years the proportion of elected members increased and a fully electoral self-government came in December 1961. In 1976, Trinidad and Tobago amended its 1961 constitution. The 1976 draft preserved the bicameral legislature but replaced the crown-appointed governor-general with a ceremonial president chosen by parliament. In 1976 as well, suffrage was lowered to the age of 18.

The House of Representatives is the more important of the two houses. Its 36 members are elected for five-year terms, but new elections can be called by the prime minister or by the House itself in a vote of "no confidence" in the cabinet. The party with a majority of seats in the House forms the government. The Senate consists of 31 members, all appointed by the president, 16 on the advice of the prime minister, 6 on the advice of the leader of the opposition, and 9 discretionary, based on consultation with various religious, economic, and social groups.

The head of the government is the prime minister, who is leader of the majority party. Cabinet ministers are appointed primarily from the House of Representatives by the president, acting on the prime minister's recommendations. George Maxwell Richards was elected president in 2003 with 43% of the votes and Patrick Manning was appointed prime minister in 2001. The next presidential elections were to be held in 2008.

Calls for constitutional reform have intensified over the years. One of the issues that calls out for attention was the authoritarian control exercised by prime ministers under the current system, which is based on Britain's Westminster model. Moreover, the winner-take-all system does not allow for representation of groups that may be large in number but concentrated geographically. Finally, with a few exceptions, minor parties have been unable to play an effective role.

POLITICAL PARTIES

The People's National Movement (PNM), formed in 1956 by Eric Williams, brought order to an individual-based political system that had hitherto operated in Trinidad and Tobago. Given the party's strong support among the black masses, the opposition coalesced around an Indian-based party, the Democratic Labor Party (DLP). However, the DLP had no success in elections. In fact, as a result of a split in both the ruling and opposition parties and the ensuing boycott by the opposition of the elections, the PNM won all 36 seats in the House of Representatives in an election in 1970. Two members of the PNM who defected in 1972 eventually formed a token opposition.

In the 1976 elections, the PNM won with 24 seats. However, the DLP's successor, the United Labour Front (ULF), a trade union-based party with an East Indian base in the sugar belt, won 10 seats, enough to become an effective opposition. The Democratic Action Congress (DAC), formed by the Tobago-based breakaway PNM faction, won the remaining two seats representing Tobago.

In the election of 1981, despite the loss of its leader, the PNM continued its dominance with 26 seats. The opposition ULF, the DAC, and the small Tapia House Movement formed a coalition party, the Trinidad and Tobago National Alliance (TTNA), and won 10 seats. A separate party, the Organization for National Reconstruction (ONR), founded in 1980, drew enough support from the business elite and Creole groups to win 22.3% of the vote but no seats. This election was also contested, albeit unsuccessfully, by the National Joint Action Committee (NJAC), a Black Power group entering conventional politics for the first time.

In 1986, the opposition ONR-TTNA unified to form the National Alliance for Reconstruction (NAR). The NAR swept to power with 33 seats to the PNM's three. Two years later, factionalization and racial antagonisms led to the dismissal of the leader of the ULF and two of his supporters. These went on to form the United National Congress (UNC). In 1991, the PNM returned to office, winning 21 of 36 seats. The NAR received 2 (Tobago) seats, and the UNC 13. In 1995, the UNC and PNM won 17 seats each, allowing the UNC to come to power in a coalition with the NAR which had again won its 2 Tobago seats. A new era in the country's electoral politics had clearly arrived, with no ethnic group expected to gain strong majorities. Basdeo Panday then appointed former prime minister and NAR leader A.N.R. Robinson to the presidency. During this time, the UNC also benefited from the defection of two PNM members. The party went on to win 19 seats in 2000 (and the PNM 16, NAR 1), but not long after, tensions increased between the prime minister and his formerly close ally the attorney general. The latter and two UNC members left the government, forcing fresh elections in 2001. As many had predicted, a stalemate resulted when the UNC and PNM each won 18 seats. In this case, however, in a controversial move, the president selected the PNM's Manning as prime minister. A year later, in 2002, the PNM consolidated its power by winning 20 seats to the UNC's 16 seats. The next legislative elections were to be held October 2007.

A large number of small parties have been established over the years, but none has been successful in gaining power. The NAR began life as a broader unit but became a small party that held no seats in parliament as of 2005. The Tobago-based DAC whose support was crucial for the NAR, left its partner in 2004. The DAC continued to have a fairly strong support base in Tobago. Overall the fate of third parties is linked to the outcome of the debate on constitutional reform that was ongoing as of 2006.

LOCAL GOVERNMENT

Elections are held every four years (usually about two years after a general election) for representatives to nine regional corporations, two city corporations (the main cities of Port-of-Spain and San Fernando), and three boroughs. The city and boroughs elect a mayor and city council. In addition, elections are held every four years for the House of Assembly in Tobago, which was established in 1980. Contention has historically existed between Tobago and Trinidad on issues such as the division of financial responsibilities, taxes and spending. The unpopularity of the central government's policies were reflected in the strong showing of the Tobago-based DAC party in elections to the House of Assembly between 1980 and 2004. The DAC and its successor the NAR went from controlling 8 out of 12 seats in the Assembly in 1980 to winning 11 in every other until 1996. (The PNM won the remaining seat(s) but an independent also won a seat in 1996.) It was only in 2004, with the PNM solidly back in control in Trinidad and a popular Tobagonian leading the party's efforts in the Assembly election, that the PNM won 8 seats to the NAR's 4. The new PNM hold was consolidated in 2005 when it gained 11 out of the 12 seats, with the re-formed DAC confined to only one. Governmental relations between the two islands have improved.

JUDICIAL SYSTEM

The judicial system follows common law and is modeled after the United Kingdom, with some local variations. The Supreme Court of Judicature consists of the High Court of Justice and the Court of Appeal. The former includes a chief justice and 10 puisne judges. Its jurisdiction and its practices and procedures follow closely those of the High Court of Justice in England. Civil actions and proceedings are usually heard by only one High Court judge but may be tried by a jury of nine members. A High Court judge with a jury of 9–12 members tries criminal offences. The Court of Appeal consists of the chief justice and three other justices. Minor offenses are handled by district courts, including traffic courts. The judicial system also includes the Industrial Court and Tax Appeal Board, and a system of magistrate courts. All criminal cases are first sent to a magistrate's court. Appeals may be made to the Court of Appeal and until recently, up to the Judicial Committee of the Privy Council in the United Kingdom. Since 1970, however, the Caribbean countries had been considering the establishment of a regional court that would replace the Privy Council. In 2003, this Court of Justice (CCJ) was officially ratified, and in April 2005, the court was finally launched in Trinidad and Tobago where it is headquartered. Trinidad and Tobago was still completing arrangements to allow recourse to the court. The court will have both appeal jurisdiction and original jurisdiction (in which it will apply international law).

The judiciary is independent of the other branches and free from outside interference. Criminal defendants are presumed innocent and are afforded the right to representation by counsel. In practice, the civil and criminal dockets are badly backlogged due to inadequate resources and inefficiency.

In an ongoing dispute about using the death penalty, the government of Trinidad and Tobago withdrew as a party to the American Convention on Human Rights but remained obligated until May 1999 to the Organization of American States to afford all of the rights set out within the American Declaration. In June 1999 the government carried out nine executions, the first to take place in the country in five years. Trinidad and Tobago also withdrew from the UN Optional Protocol of the International Convention on Civil and Political Rights, tried to rejoin with an appropriate reservation in place concerning the death penalty, but was forced after widespread criticism to withdraw again in 2000.

ARMED FORCES

The Trinidad and Tobago Defense Force numbered an estimated 2,700 in 2005. The Army, which numbered 2,000 members, consisted of two infantry battalions, one special forces unit and one support battalion. The coast guard of 700 operated 12 patrol and coastal combatants, and had an air wing of 50 personnel. Under lend-lease agreements with the United Kingdom signed early in 1941, the United States acquired several Caribbean bases, including one on Trinidad, on a 99-year lease. After local agitation over a number of years, Trinidad reclaimed the last remaining foreign base in June 1967. The defense budget in 2005 totaled $32 million.

INTERNATIONAL COOPERATION

Trinidad and Tobago became a member of the United Nations on 18 September 1962; it belongs to ECLAC and several nonregional specialized agencies, such as the FAO, UNESCO, UNIDO, the World Bank, ILO, and the WHO. The country is also a member of the ACP Group, the Commonwealth of Nations, CARICOM, the Caribbean Development Bank, G-24, G-77, the Inter-American Development Bank, the Latin American Economic System (LAES), the WTO, the Alliance of Small Island States (AOSIS), the Association of Caribbean States (ACS), and the OAS. Trinidad and Tobago is part of the Nonaligned Movement and serves as part of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL).

In the area of environmental protection and cooperation, Trinidad and Tobago is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Trinidad and Tobago is a twin island state with an economy oriented toward trade and tourism. The larger island, Trinidad, is more heavily industrialized and is dominated by the oil and gas sector, although agriculture, tourism, manufacturing and construction also make significant contributions. Tobago is dominated by tourism and agriculture. The country cannot feed itself and must look abroad not only for its food staples, but also for the bulk of the manufactured goods. Import payments are met by the export of petroleum and products, invisible exports, tourism, and the transshipment trade. Specialized tropical crops are produced for export, but exploitation of petroleum reserves and refining of local and imported oils and their subsequent export are the dominant factors of the country's economy.

Although by far the most prosperous of Caribbean nations, the country's high degree of dependence on oil revenues has made it exceedingly vulnerable to falling oil prices. Over the past three decades, its economic fortunes have followed the world price of oil closely. Oil revenue windfall after 1973 brought unprecedented prosperity. However, this prosperity was not sustained when oil prices began to fall in 1982. Only after a further steep decline in the price of oil in 1986 did the government face the challenge of a fundamental adjustment in economic policy and initiate a program supported by the World Bank and the IMF. The country began the difficult transition from an oil dependent, public sector dominated economy, to a more diversified, market-oriented, private sector-led one.

After a decade of almost uninterrupted economic decline, growth returned in 1995, when real GDP increased 2.4%. Growth accelerated from 3–5% in the middle of the decade to an average of 5.17% by 1998 to 2000. Trinidad and Tobago continues to experience real GDP growth as a result of economic reforms, tight monetary policy, fiscal responsibility, and high oil prices. In 2003 the country experienced a real GDP growth rate of 13.2%, followed by 6.2% growth in 2004. The economy's performance is attributable to energy-related investments, growth in the nonenergy sector (manufactured exports, domestic construction, offshore financial services) and sound macroeconomic policies. The government's stabilization policies yielded results with a fall in the annual inflation rate from double digits—13.3% in 1993—to a range of between 3.5% and 5.6% by 1996 to 2002. A surge in imports related to a boom in the hydrocarbons sector helped raise the current account deficit to an average of 10.25% of GDP in 1997 and 1998, but by 2000, this had been transformed into a current account surplus equal to almost 5% of GDP.

The global slowdown in 2001 and the world-wide declines in tourism and foreign investment after the 11 September 2001 terrorist attacks in the United States did not seriously impact economic growth in Trinidad and Tobago, as it did in the rest of the English-speaking Caribbean nations.

Long-term growth looks promising as Trinidad and Tobago further develops its oil and gas resources and the industries dependent on natural gas, including petrochemicals, fertilizers, iron/steel, and aluminum. Additional growth potential also exists in financial services, telecommunications, and transport. Strong growth in Trinidad and Tobago over the past few years has led to trade surpluses, even with high import levels due to industrial expansion and increased consumer demand. Unemployment, which was 12.1% in 2001, had fallen to 8.4% by 2004. Inflation, however, has begun to worsen with prices rising at an annualized rate of 7.34% in March 2005, as opposed to 5.6% in December 2004.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Trinidad and Tobago's gross domestic product (GDP) was estimated at $13.8 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $12,700. The annual growth rate of GDP was estimated at 6.5%. The average inflation rate in 2005 was 6.8%. It was estimated that agriculture accounted for 0.7% of GDP, industry 57%, and services 42.3%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $79 million or about $60 per capita and accounted for approximately 0.8% of GDP. Foreign aid receipts amounted to -$2 million or about -$2 per capita and accounted for approximately 0.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Trinidad and Tobago totaled $6.49 billion or about $4,945 per capita based on a GDP of $10.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.9%. In 2001 it was estimated that approximately 20% of household consumption was spent on food, 23% on fuel, 5% on health care, and 13% on education. It was estimated that in 1992 about 21% of the population had incomes below the poverty line.

LABOR

In 2005, Trinidad and Tobago's workforce was estimated at 620,00 persons. As of 2002 (the latest year for which data was available), agriculture accounted for 6.9% of the nation's labor force, with 64.4% engaged in services, 28.4% in industry, and 0.2% in undefined occupations. Unemployment in 2005 was estimated at 8%.

The principal national labor federation is the Trinidad and Tobago Labor Congress. Of nonaffiliated unions, the largest is the National Union of Government and Federated Workers. As of 2002, an estimated 25–30% of the workforce was organized into 19 labor unions. The right to strike is provided by law with the exception of those employed in essential services. There is little protective labor legislation; work rules are subject to labor-management negotiation.

A minimum wage of us$1.10 per hour was established in 1998, but it is considered insufficient to support a family. Children between the ages of 12 and 14 may work in family businesses. The normal workday is eight to nine hours, five days a week. Vacation periods vary from two to five weeks a year, depending on length of service. There is no organized exploitation of children, but they do occasionally serve in the informal economy such as working as street vendors.

AGRICULTURE

About 24% of the total land area was arable in 2003, most of it on Trinidad. There are two distinct types of agricultural operations—the large estate or plantation that is managed by a specialist and employs large numbers of laborers, and the small farm cultivated by the owner (or tenant) and family. The small farms grow mainly for the home market. Crops include corn, rice, peas, beans, potatoes, other vegetables, and a wide variety of fruits. Lowland rice is grown almost entirely by Indian farmers. The large estates are interested mainly in commercial export crops, although the small farmers also grow some export crops. Agriculture accounted for only 1% of GDP in 2003. During the 1970s and early 1980s, agriculture's traditional labor force was lured away by the booming energy sector, with foreign exchange plentiful enough to import food. By the late 1980s, however, this trend was being reversed.

The value of crops grown for the domestic market is believed to be considerably greater than that of the export crops. Sugar, the main commercial crop, is grown on a few large company-owned estates and by thousands of small farmers; modern methods allow the estates to produce about two-thirds of the sugar crop. Normally, 80% or more of the islands' production is exported. In 2004, sugarcane production was 680,000 tons. The second major export crop, cocoa, is cultivated in the hill sections of both Trinidad and Tobago. Estates produce considerably more cocoa than smallholdings, owing to better agricultural practices and to the fact that small farmers intercrop bananas, coffee, and other crops with cocoa. Cocoa production has been in decline since 1970; the output in 2004 was 1,300 tons. Coffee is grown in much the same hill areas as cocoa, and there is about the same proportion of estate-grown to small-farmer-grown coffee. Both cocoa and coffee have been described as sick industries because of inefficiency, crop disease, and uncertain world market conditions. In 2004, coffee production was 540 tons, down from 2,361 tons in 1985.

Some 90 acres (36 hectares) of ornamental flowers are also cultivated for export. Rice, citrus, corn, cassava, peanuts, and pigeon peas are now being grown to diversify agricultural output.

ANIMAL HUSBANDRY

Livestock plays only an incidental role in the agricultural pattern. The water buffalo, adept at turning heavy, water-laden soils, has been brought from India by Indian farmers and is the major draft animal in rice cultivation and probably the most productive animal in the country. Cattle are kept by some small farmers, but the best stock is that on estates and government farms or in large dairies. Poor animals and poor breeding and feeding methods keep meat and milk quantity and quality low and prices high. Trinidad and Tobago relies heavily on dairy imports from Europe to satisfy domestic demand.

In 2005, the livestock population included an estimated 28,200,000 poultry, 29,000 head of cattle, 59,300 goats, 43,000 hogs, 3,400 sheep, and 5,700 water buffalo. Animals slaughtered at abattoirs run by the government and by municipalities yielded an estimated 57,600 tons of poultry meat, and 2,900 tons of pork in 2005.

FISHING

The fishing industry has great potential, but current production does not begin to meet local demands, and large quantities of fish must be imported. Shrimp and mackerel make up one-third of the total annual catch, with shrimp the leading fisheries export. In 2003, Trinidad and Tobago exported $10 million in fish and fish products, up from $2.4 million in 1990. In 1986, the Archipelagic Waters and Exclusive Economic Zone Act defined the sovereign fishing jurisdiction around the nation, which has created new opportunities for marine fishing off the east coast of Trinidad. The harvest in 2003 was about 9,747 tons, up from 3,730 tons in 1986.

FORESTRY

Approximately 50.5%, or 259,000 hectares (640,000 acres), of the land was forested in 2000. Roughly four-fifths of the forestland is government owned or administered; however, much of the state forestland is in hill areas, inaccessible for exploitation. Several dozen small sawmills are in operation. Roundwood production in 2004 was about 94,800 cu m (3.3 million cu ft), 36% used for fuel.

MINING

Trinidad and Tobago had the largest supply of natural asphalt, and became the second-largest exporter of ammonia, behind Russia. The island's famous Pitch Lake, a 46-hectare deposit of oozing black asphalt, has been mined commercially since the 19th century. The annual yield has declined, from an average of 200,000 metric tons in the 1960s, to 18,100 metric tons in 1996 and 9,900 metric tons in 2000. Since 2001, natural asphalt output has hovered around 16,200 metric tons. In 2003, natural asphalt output was estimated at 16,200 metric tons. In 2003, the country produced 3.529 million metric tons of anhydrous ammonia, up from 3,258,619 metric tons in 2002. Iron ore deposits of commercial value were reported to have been discovered in Trinidad's Northern Range. Quarrying operations on the islands in 2003 produced 850,000 tons of limestone, down from 851,000 tons in 2002, and 765,000 metric tons of hydraulic cement, up from 743,700 metric tons in 2002.

ENERGY AND POWER

Trinidad and Tobago is among only three countries in the Caribbean region (Cuba and the Barbados are the others) to have significant oil and natural gas reserves, with Trinidad and Tobago accounting for the bulk.

According to the Oil and Gas Journal, these three countries had combined proven crude oil reserves of 1.74 billion barrels and 28.4 trillion cu ft of natural gas in 2005. Of the three, Trinidad and Tobago had proven crude oil and natural gas reserves of 990 million barrels and 25,887 million cu ft, respectively. Total oil production in 2004 for Trinidad and Tobago averaged 165,000 barrels per day, of which 131,000 barrels per day consisted of crude oil. In 2002, total oil product output averaged 137,480 barrels per day, with demand averaging 28,320 barrels per day. Although output exceeded demand, Trinidad and Tobago averaged imports of 95,180 barrels per day, with crude oil imports accounting for an average of 91,280 barrels per day. Much of these imports that year were re-exported. Exports in that year averaged 204,410 barrels per day. Refined oil output in 2002 averaged 147,540 barrels per day.

In 2003, Trinidad and Tobago produced an estimated 25 billion cu m of natural gas. Domestic demand that year came to an estimated 13.76 billion cu m, with exports totaling an estimated 11.79 billion cu m. All the natural gas produced is used domestically. Trinidad and Tobago is the largest supplier of liquefied natural gas (LNG) to the United States, and one of the world's largest exporters of LNG in the world.

Electric power generating capacity in 2002 for Trinidad and Tobago totaled 1.417 million kW, all of it dedicated to conventional thermal fuels. In that same year, electric power output totaled 5.747 billion kWh, with 99.5% generated by fossil fuel burning plants. The remainder comes from other alternative sources. A submarine cable provides Tobago with electricity from Trinidad.

INDUSTRY

The industrial sector of the economy is dominated by the capital-intensive petroleum industry. Industry accounted for approximately 57% of the GDP, agriculture 0.7%, and services for 42.3% in 2004. Trinidad and Tobago had essentially an agricultural economy up to the beginning of the twentieth century when sugar production played a dominant role and the cultivation of cocoa, coconuts, and coffee played lesser parts. The socioeconomic characteristics of Caribbean agriculture are well defined and include an aging farming population, excessive dependence on export markets, absence of marketing and processing capability, and both tariff and nontariff barriers. These influence the incomes generated by agriculture and hence the investment in agricultural development. Long-established industries are those processing raw materials of the farm, forest and sea; foremost are sugar, molasses, and rum, followed by fish, lumber, fats and oils, and stock feed. Manufacturing products include matches, angostura bitters, soap, confectionery, and clay products. Newer industries include petroleum refining, petrochemicals, concrete products, canned citrus, bottled drinks, glass, drugs, chemicals, clothing, building materials, and metal goods.

The most important industrial center is found at the port at Point Lisas. Many new industrial plants have been established under the benefits of the country's New Companies Act (1997). The manufacturing sector has contributed a substantial share of the GDP since the 1970s. After the establishment of the free zone program in 1993, manufacturing investment soared. Caroni Inc., the government-owned sugar company and the largest employer on Trinidad, undertook a major revitalization project in 1998.

The petroleum sector, which more than doubled its growth rate to 1.8% in 1996, fell to 1.1% in 1997 due to a continuation of declining oil production. Rising prices in the early 2000s caused the petroleum sector to remain stable, however. Diversification of the petrochemicals industry and investments in other heavy industry and manufacturing may broaden the export base; but hydrocarbons will continue to provide at least 25% of foreign exchange earnings. Trinidad and Tobago's sole oil refinery had a production capacity of 160,000 barrels per day in 2002. As of 2002, the natural gas sector was expanding, with huge discoveries adding to the country's 80 trillion cubic feet (Tcf) gas base. The Atlantic LNG plant was due to expand over a four-year period, creating the largest single and sustained increment in growth in the country. The LNG plant began operations in the 1990s as the government attempted to increase oil exploration and production by giving contracts to US companies. It was one of the most ambitious projects, with British Gas (26% ownership) and Spain's Repsol (10%) joining two US companies—Amoco, with the largest stake (34%) and Cabot (10%).

Trinidad and Tobago has made a transition from an oil-based economy to one based on natural gas. In 2004, natural gas production averaged 2.9 trillion cubic feet per day (tcf/d), an increase of 12.9% from 2003. The petrochemical sector, including plants producing methanol, ammonia, urea, and natural gas liquids, has continued to grow in line with natural gas production, which continues to expand and should meet the needs of new industrial plants coming on line in the next few years.

The nonenergy sector grew at a slower pace in 2004. Output in this sector increased by a modest 3.8% in 2003 and 2.9% in 2004 with the impetus coming from the manufacturing and services sectors. The rate of growth in the manufacturing sector was 6.6% in 2004, thanks to the food, beverages and tobacco, and assembly-type industries. The service sector grew by 2.9%, led by construction. The construction sector growth was due mainly to government investment in housing and infrastructure, and ongoing projects in the energy sector. Performance in the agriculture sector has been weak and declined by 20.2% in 2004. The decline in output resulted largely from the shrinking and restructuring of the sugar industry.

SCIENCE AND TECHNOLOGY

Among the research centers and learned societies of Trinidad and Tobago are the Commonwealth Institute of Biological Control, the Agricultural Society of Trinidad and Tobago, the Tobago District Agricultural Society, the Pharmaceutical Society of Trinidad and Tobago, and the Sugar Manufacture Association of Trinidad and Tobago. The University of the West Indies has a campus in St. Augustine (founded in 1948) with faculties of agriculture, engineering, medical sciences, and natural sciences. In 1987–97, science and engineering students accounted for 58% of college and university enrollments. Research and development (R&D) expenditures in 2001 totaled $11.806 million, or 0.10% of GDP. In 1997 (the latest year for which the following data was available), government sources accounted for the largest portion of R&D spending at 48.2%, followed by business at 34.5%, and higher education at 17.3%. In that year total R&D spending came to $12.549 million, or 0.14% of GDP. In 2001, there were 393 researchers engaged in research and development per million people. High technology exports in 2002 were valued at $75 million, or 3% of the country's manufactured exports.

DOMESTIC TRADE

Trinidad and Tobago's wholesale trade is highly organized and highly competitive; much of it is controlled by a few managing agencies located in Port-of-Spain. These agencies are direct importers in bulk and have exclusive wholesale rights for sales in the islands, and often in other Caribbean nations and territories. Imports are of extreme importance, for example, the food service companies in Trinidad and Tobago buy 80% of their food and beverage products from local importers and only 15% from local manufacturers; they import the remaining 5% directly from US suppliers.

In small communities, rural areas, on Tobago, and in less developed parts of Port-of-Spain and San Fernando, a general retail store carries a wide variety of commodities. Many of these stores are family enterprises and most are small. Local and foreign franchises are fairly common, particularly in the fast-food industry. Price controls have been placed on sugar, schoolbooks, and pharmaceuticals. A value-added tax of 15% applies to most goods and services.

FOREIGN TRADE

Trinidad and Tobago is highly import-dependent, with the United States supplying about 50% of total imports since 1997. The foreign trade of Trinidad and Tobago is very large for a country of its size, a fact attributable mainly to its petroleum processing industry. The economy's prosperity is thus tied closely to trade, which,

in turn, is closely linked to the price and demand structure of the world petroleum market.

Trinidad and Tobago is the fifth-largest exporter of liquefied natural gas in the world. Trinidad and Tobago's main sources of commodity export income are refined petroleum products (39%), crude petroleum (27%), and natural and manufactured gas (26%). Other exports include ammonia (8.4%) and iron and steel (5.7%).

Up to 1992, the government prohibited the importation of some manufactured products without a license. The government replaced this list with supplemental tariffs, which coupled with the CARICOM Common External Tariff (CET), reached nearly 100%. These supplemental tariffs were reduced to CET levels by 1995, alleviating high prices on foreign goods. By 1996, quantitative restrictions were eliminated, as were surcharges and stamp duties on nonagricultural goods. As the most industrialized and second-largest country in the English-speaking Caribbean, Trinidad and Tobago has taken a leading role in the Caribbean Community and Common Market (CARICOM), and strongly supports CARICOM economic integration efforts. CARICOM members are working to establish a Single Market and Economy (CSME). Trinidad and Tobago and two other CARICOM members have made strides with the scheduled launching of the first phases of CSME by 2006.

The Free Zones Act of 1988 (last amended in 1997) established the Trinidad & Tobago Free Zones Company to promote export development and foreign investment projects in a bureaucracy-free, duty-free, and tax-free environment. One multiple user and ten single user zones are currently in operation. Free Zone enterprises may be established in any part of the country. Free Zone activities that qualify for approval include manufacturing for export, international trading in products, services for export and development, and management of free zones.

BALANCE OF PAYMENTS

The debt service ratio, 15.4% in 1997, fell to as low as 3.7% in 2001 and was a moderate 4.7% in 2004. Between 1974 and 1981, largely because of the huge increase in the value of petroleum exports, Trinidad and Tobago's payments balance was favorable. With the weakening of the market for the country's petroleum and oil refinery products in 1982, however, a deficit was recorded for the first time since the early 1970s. Foreign exchange reserves, which had reached $3.3 billion in 1981, were depleted rapidly through the 1980s, as expenditures reduced revenues (caused by lower oil prices). By 1988, foreign exchange reserves had plummeted to - $5.7 million, forcing the government to reschedule its commercial and official debt. During the 1990s, Trinidad ran a balance of payments surplus from 1992 until 1997 due to a rise in foreign direct investment, but ran a deficit after 1997 because of low oil prices, and high industrial imports. The country's balance of payments subsequently improved, in part spurred by increases in world oil prices. Trinidad's balance of payments surplus stood at $441 million in 2000.

In the second quarter of 1998, Trinidad and Tobago completed repayment of a us$335 million International Monetary Fund loan and enjoys excellent relations with the international financial institutions. Its major lender is the Inter-American Development Bank (IDB). Since 1997, Trinidad's external debt has declined each year as has its debt service ratio. There has, however, been

a slight increase in domestic debt as the government has increasingly looked internally for financing. Public sector debt declined by about 4%, to 56% of GDP as of the end of 2003; and the public sector external debt declined by 3%, to about 15% of GDP at the end of 2003; most of the external debt was long-term and from commercial creditors. The lower total debt burden has allowed the government more flexibility in lowering import duties and trade barriers, benefiting especially US exports.

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Trinidad and Tobago's exports was $4.1 billion, while imports totaled $3.5 billion, resulting in a trade surplus of $600 million. In 2004, World Bank data showed a positive balance of payments of approximately $1 billion.

BANKING AND SECURITIES

The Central Bank of Trinidad and Tobago (established 1964) is the central regulatory institution and the sole bank of issue. The commercial banking business is well established and is operated chiefly by Canadian, British, and American interests. Monetary and fiscal developments have been closely linked with the fortunes of the oil industry.

There are six commercial banks operating in Trinidad and Tobago, with assets of over $25 billion. In 1997, bank CEOs formed a Banking Association. The largest is Republic Bank, formerly Barclays. Other commercial banks include the Bank of Nova Scotia, Citibank, First Citizens Bank, Intercommercial Bank, and Royal Bank of Trinidad and Tobago. The Bank of Baroda, India's second-largest bank, and the Bank of India, the third-largest, have both expressed interest in entering the Trinidadian market. Offshore banking services were begun in the late 1990s by Republic Bank.

Workers and farmers make use of the Government Savings Bank offices. There are numerous agricultural credit societies, most of which are financed by the government's Agricultural Credit Bank. Credit unions are also common. The Trinidad and Tobago Development Finance Co., jointly owned by the government and the private sector, offers medium- and long-term financing to industry. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $1.1 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $4.0 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 13%.

Since about 1948, limited liability companies with publicly issued share capital have become increasingly important. The West Indies Stock Exchange (succeeded by West Indies Stock Brokers, Ltd.) opened a branch in Port-of-Spain in 1964. The brokerage organization became a member of the Jamaica Stock Exchange in December 1970. The Trinidad and Tobago Stock Exchange began operating in 1981. In 2001, it listed 31 companies, had a trading value of $174 million, and a total market capitalization of $5 billion. As of 2004, a total of 37 companies were listed on the Trinidad and Tobago Stock Exchange, which had a market capitalization of $17.051 billion. In that same year, the TTSE Index rose 54.8% from the previous year to 1,074.6.

INSURANCE

Insurance firms include branches of UK and US companies and a few local companies. Their operations are highly competitive. A government-owned reinsurance company has been in operation since 1979. The Colonial Life Insurance Co. is the largest life insurance company in Trinidad, with gross written life insurance premiums of $469.9 million in 2003. In that same year, CHIC was the largest nonlife insurer, with gross written nonlife premiums of $42 million. The value of all direct insurance premiums written in 2003 totaled $510 million, of which life insurance premiums accounted for $548 million. The National Insurance Board of Trinidad, which operates like Social Security, was established in 1972 by the government.

PUBLIC FINANCE

The budget deficit were first registered in the early 1980, and continued until 1990. In 1988, the government began an adjustment program, which included currency devaluation, debt reschedulings, and the adoption of an austere budget that included public service wage reductions and decreased transfers to state enterprises. These reforms resulted in an improved budget by 1994 which lasted until 1998, when expanded infrastructure and industrial projects drained revenues.

The US Central Intelligence Agency (CIA) estimated that in 2005 Trinidad and Tobago's central government took in revenues of approximately $4.5 billion and had expenditures of $4 billion. Revenues minus expenditures totaled approximately $440 million. Public debt in 2005 amounted to 41.4% of GDP. Total external debt was $2.986 billion.

TAXATION

Important sources of taxation are income taxes, a motor vehicle tax (25–30%), license duties, property and building taxes, customs and excise duties (including purchase taxes), and petroleum royalties and concessions.

The individual income tax is calculated on net chargeable income, from 28% up to $50,000; and 35% thereafter. A value-added tax (VAT), with a standard rate of 15% in 2005, is levied on most goods and services. Services performed outside Trinidad and Tobago are zero-rated, and medicines are exempted for VAT.

The basic corporate tax rate is 30%. This rate is increased to 35% for petroleum companies, with a supplemental petroleum tax. Capital gains derived from assets held for more than 12 months are generally not taxed. However, gains derived from the sale of assets held less than 12 months are subject to the corporate tax rate. Dividends paid to nonresident companies and individuals are subject to a 15% withholding tax. However, a lower 10% rate is applied if the distributing company is 50% or more held by a resident corporation. Dividends paid by a resident company to another resident company are exempt from the tax. Interest and royalty payments are each subject to a 20% withholding tax.

CUSTOMS AND DUTIES

Customs and duties are a significant source of government revenue. Most imported articles are subject to import duties, as well as a stamp tax, an import surcharge, a 15% VAT, and excise taxes on petroleum products, tobacco, and alcoholic beverages that are sold locally. Trinidad and Tobago applies the CARICOM common external tariff to most goods. The rates are 0–20%. Banned items include animals that have died in transit, used or second-hand animal blankets, saddle cloths, felting or pads, firearms, explosives, and seditious publications.

Free trade zones (FTZs) were authorized by law in 1988; the first FTZ was established in the Point Lisas Industrial Estate. Trinidad and Tobago is a member of CARICOM, a signatory to the Lomè Convention, and has special trade agreements with Venezuela, the United Kingdom, Ireland, France, and the United States. The country benefits from the Caribbean Basin Initiative (CBI), which allows duty-free entry of many products into the United States.

FOREIGN INVESTMENT

The Government of Trinidad and Tobago (GOTT) actively encourages foreign direct investment in almost all sectors. In 2004, the US-based Heritage Foundation's economic freedom index rated Trinidad and Tobago fifth in Latin America and the Caribbean and 36th out of 155 countries. Foreign investment in Trinidad and Tobago, particularly from British, Canadian, US, and Dutch sources, has played a major role in the development of all major manufacturing and processing industries, as well as most large agricultural enterprises. Several private banking institutions have provided development loans through the Industrial Development Corporation, established by the government in 1959 to act as a liaison between investors and various government departments.

Starting in 1970, the government required foreign investment in Trinidad and Tobago to be conducted in a joint venture basis, with majority domestic participation most often in a 60:40 ratio. In the 1980s the economy became mired in stagflation. The government launched a campaign of reforms emphasizing fiscal and monetary discipline, export-led growth, and encouragement of private sector and foreign investment. Under the current investment regime there are for the most part no restrictions or disincentives to investment. The Free Zones (FTZs) Act of 1988, as amended in 1997, established the framework of duty-free, tax-free, and bureaucracy-free investment environments. In 2002, there were three multiple-user and eleven single-user FTZs in operation or under construction. In May 2001, the government passed new telecommunications legislation establishing a new telecommunications authority, opening the way for liberalization of the sector. As of 2003, however, the telecommunications sector remained the only one closed to new foreign investment in key areas.

Oil and gas exploration continues to attract inflows of foreign capital, boosting economic growth and strengthening public finances. The United States is the major investor, followed by the United Kingdom, Canada, Germany, India, and Norway. Inflows of almost $4 billion in foreign investment between 1997 and 2000 strengthened the balance of payments and permitted the relaxation of policies. US investments have been mainly in hydrocarbons and petrochemicals, while Canada has investments in ammonia/urea, Germany in methanol and iron, India in iron and steel, and Norway in ammonia. A boom in natural gas investment, including pipelines for the delivery of liquefied natural gas (LNG), was under way in 2002 and 2003.

The investment climate is good. Since 1992, almost all investment barriers have been eliminated. Investment is screened only for eligibility for government incentives and assessment of its environmental impact. Both tax and nontax incentives may be negotiated. The government has a double taxation agreement, a bilateral investment treaty, and an intellectual property rights agreement with the United States. (The bilateral investment treaty granted national treatment and other benefits to US investors; it came into force on 26 December 1996.) US investment in Trinidad and Tobago exceeds $1 billion. Total foreign direct investment has averaged $700 million annually over the last decade. Among recent and ongoing investment projects are several involving US firms, like ISG and ALCOA, and resorts built by Marriott and Hyatt.

ECONOMIC DEVELOPMENT

To diversify the economy and raise the national standard of living, foreign capital and technical assistance are actively solicited. Major incentives are duty-free imports of equipment and raw materials, income tax holidays, accelerated depreciation allowances, unlimited carryover of losses, and repatriation of capital and profits. To encourage diversification toward non-oil/gas sectors, the government has undertaken comprehensive reforms in the trade and exchange rate regimes, and the investment environment. A major downsizing and refocusing of the public sector with an extensive program of divestment and reduction of public employment has occurred.

Nonetheless, the country remains largely an oil economy even though oil reserves are being depleted. While the natural gas sector will benefit the economy in the future, it will not solve the country's most crucial economic problems. Only by diversifying into more labor intensive export industries and services will Trinidad and Tobago generate employment and growth and minimize its external vulnerability. The key ingredients for development are a buildup of reserves consistent with the maintenance of a competitive exchange rate; the use of monetary policy to contain inflation and sterilize reserve accumulation; and the strengthening of fiscal balances to reduce government debt and lower interest rates.

Trinidad and Tobago experienced strong growth in the early 2000s, after eight years of economic decline in the 1990s. The debt service ratio fell, as did unemployment. The government invested heavily in public sector physical and educational infrastructure projects in the early 2000s. Improvements in water and electricity supply were being undertaken.

Recognizing the role that energy plays in the economic life of Trinidad and Tobago, where it was the source of 37% of governmental revenues in 2004, the government is seeking to diversify the economy to reduce dependence on the energy sector and to achieve self-sustaining growth. The diversification strategy focuses on six main sectors: traditional manufacturing; new technology-based industrial sector; tourism; financial services; agriculture; and small business. Corruption has traditionally appeared to be moderate, and has not seriously undermined government or business operations.

SOCIAL DEVELOPMENT

All employees aged 16 through 64 are required to become members of the National Insurance System. Employers contribute 5.6% of payroll, according to 12 wage classes, and employees normally contribute 2.8% of earnings. The program covers employed persons, including agricultural and domestic workers. In addition, a social insurance scheme is funded by the government and extends benefits to those with limited means. The system provides old age, retirement, and disability pensions; maternity, sickness, and survivors' benefits; and funeral grants. Retirement is between the ages of 60 and 65. Maternity benefits are at 60% of average earnings for a maximum of 13 weeks, and there is also a maternity grant. A compulsory system of workers' compensation for injury is also in place.

The constitution mandates human rights and freedoms to all citizens regardless of sex. Women are active in the labor force, but few rise to senior management positions. There is no law that mandates equal pay for equal work. The law does not address sexual harassment and it remains a problem. Violence against women and domestic abuse continue to be major issues for women although the government and media are addressing the problem. The law has been strengthened to protect women and assist victims of abuse.

Human rights organizations operate freely. Poor prison conditions and lengthy pretrial detention remain a problem.

HEALTH

Government health facilities include general hospitals in Port-of-Spain and San Fernando, small district hospitals, several major health centers, dental service centers, a mental hospital, and a nurses' training school. As of 2004, there were an estimated 79 physicians, 287 nurses, and 8 dentists per 100,000 people.

The general health of the population has been improving; substantial decreases have been recorded in the death rates for malaria, tuberculosis, typhoid, and syphilis. Immunization rates for children up to one year old were diphtheria, pertussis, and tetanus, 90%; polio, 81%; and measles, 88%. Improvements in sanitation have reaped impressive health benefits. Approximately 86% of the population had access to safe drinking water and 88% had adequate sanitation. As a result, reported cases of dysentery and hookworm have declined dramatically.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 13.7 and 8.8 per 1,000 people. Average life expectancy was 66.73 years in 2005 and infant mortality was 25.81 per 1,000 live births. Maternal mortality was 75 per 1,000 live births.

As of 2004, there were approximately 29,000 people living with HIV/AIDS in the country. There were an estimated 19,000 deaths from AIDS in 2003. The HIV/AIDS prevalence was 3.20 per 100 adults in 2003.

HOUSING

A typical rural home for a large family consists of one to three rooms plus an outside kitchen. Slums and tenements are typical of urban life since there is an acute shortage of adequate housing. At the 2000 census, the housing stock was counted at 300,844. About 77.5% of all dwellings were single-family detached homes, 13% were flats or apartments, and 3% were two-family detached homes. About 76% of all housing was owner occupied. At least 18,200 dwellings were listed as squatter homes. A little over 60% of all households had access to indoor piped water; another 8.8% had access to piped water within a yard.

The Ministry of Housing and Settlements has developed a five-year plan for 2001–06 to promote housing construction, land development, and the upgrade of squatter sites. One goal of the plan is to build 30,000 new housing units within the five years. The Ministry also hopes to upgrade 2,000 squatter dwellings per year.

EDUCATION

Many schools are run jointly by the state and religious bodies. Education is free at primary and secondary levels and compulsory for six years. Elementary education lasts for seven years, followed by five years of secondary education. There are two types of secondary school systems. The traditional system offers a general five-year secondary program followed by two years of preparatory studies (sixth form). The new system offers a program that consists of three years of junior high, two years of senior high, and two years of sixth form, with more diverse course options available to students. Technical and vocational programs are also available at the secondary level. The academic year runs from August to May.

In 2001, about 63% of children between the ages of three and four were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 91% of age-eligible students. The same year, secondary school enrollment was about 72% of age-eligible students. It is estimated that about 91% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 19:1 in 2003; the ratio for secondary school was also about 19:1. In 2003, private schools accounted for about 28.5% of primary school enrollment and 28% of secondary enrollment.

At the postsecondary level, government technical vocational schools and teachers colleges are free for qualified students. There are four small, government-run technical colleges, five teachers colleges, and two polytechnic institutes. The University of the West Indies has a faculty of engineering, arts, and agriculture at its Trinidad campus. John F. Kennedy College, a liberal arts school outside Port-of-Spain built with a us$30-million grant from the Agency for International Development (AID), has teaching facilities for about 600 students. The Trinidad and Tobago Hotel School offers courses for the hotel, catering, and travel industries. The Eastern Caribbean Institute of Agriculture and Forestry is located in St. Augustine. In 2003, it was estimated that about 9% of the tertiary age population were enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 98.5%.

As of 2003, public expenditure on education was estimated at 4.3% of GDP, or 13.4% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library, opened in 2003 in Port-of-Spain, houses 442,000 volumes, with special sections for young adults and children. The National Library and Information System Authority is also responsible for the management of the nation's public libraries, with 21 locations on Trinidad and 3 locations on Tobago. There are mobile services on each island. The Port-of-Spain Public Library has 70,000 volumes. In San Fernando, the Carnegie Free Library functions as regional headquarters for rural library services to the south. The University of the West Indies main library in St. Augustine has more than 395,000 volumes. There are over 600 school libraries that are supported by the national system.

The National Museum and Art Gallery is located in Port-of-Spain, as is the Royal Victoria Institute Museum (1892), a general museum featuring local flora and fauna, crafts of the indigenous people, and a sampling of moon dust. The Trinidad childhood home of Nobel-winning author V.S. Naipaul was scheduled to become a museum.

MEDIA

Postal and internal telegraph services throughout the islands are operated by the government. In 2003, there were an estimated 250 mainline telephones for every 1,000 people. The same year, there were approximately 278 mobile phones in use for every 1,000 people. Commercial cable communication and radiotelephone services are maintained between Trinidad and all major countries of the world.

There were 4 AM and 18 FM radio stations, and 4 television stations in 2004. The public National Broadcasting Service closed in 2005, ending service of two television stations and four radio stations. There were, however, plans to launch a new public broadcaster in the form of the state-owned Caribbean News Media Network. In 2003, there were an estimated 534 radios and 345 television sets for every 1,000 people. The same year, there were 79.5 personal computers for every 1,000 people and 106 of every 1,000 people had access to the Internet. There were 15 secure Internet servers in the country in 2004.

There were four daily newspapers in 2002. The Trinidad Guardian, a morning and Sunday paper, had an average daily circulation of 46,760. The Trinidad Express, published daily and Sunday, had a daily circulation of 51,000. Newsday, also published daily and Sunday, had a daily circulation of 25,000. Trinidad Evening News, published daily, had a circulation of 33,770.

Freedom of the press is both constitutionally guaranteed and respected in practice.

ORGANIZATIONS

Producers of agricultural crops for export are organized into associations for solving common problems, as well as for social purposes. Among these are the Cocoa Planters Association, Cooperative Citrus Growers Association, and Sugar Manufacturers Association. Professional and trade associations are many and varied and include the Law Society, Medical Board, Petroleum Association, Shipping Association, and Trinidad Chamber of Commerce. The multinational Caribbean Association of Industry and Commerce and the Caribbean Employers Confederation are located in Trinidad and Tobago. The Caribbean office of the International Labour Organization is located in Port-of-Spain, as is the base office of the Association of Caribbean States.

Cultural and educational organizations include the Festival Center for the Creative Arts and the Caribbean Academy of Sciences. Scouting and YMCA/YWCA programs are available for youth. Sports associations are popular for amateur athletes of all ages; several sports clubs are associated with the national Olympic Committee.

Social action groups include the Network of NGOs of Trinidad and Tobago for the Advancement of Women and the Caribbean Women's Association. There are national chapters of the Red Cross Society and the Society of St. Vincent de Paul.

TOURISM, TRAVEL, AND RECREATION

Outstanding tourist attractions include the mountainous areas, beaches, and reefs on both islands. Entertainment includes calypso and steel band music, both of which originated in Trinidad. Festive events include Carnival, held annually on the two days before Ash Wednesday; the Muslim festival of Hosay, which begins 10 days after the new moon in the month of Muharram; and the Hindu festival of lights, Divali, which occurs in October or November. Cricket and football (soccer) are the most popular sports.

The government offers fiscal and other incentives for the development of hotels and other tourist facilities. In 2003, there were 409,069 visitors who arrived in Trinidad and Tobago, of whom 80% came from the Americas. Hotel rooms numbered 5,378, and tourism expenditure receipts totaled $402 million in 2002. Passports are required, and must be valid for at least six months after leaving Trinidad and Tobago. All nationals must have an entry visa except those of the Commonwealth Countries, the European Economic Community countries (EEC), the United States, Finland, Iceland, Venezuela, Norway, Sweden, and holders of Organization of American States (OAS) passports.

In 2005, the US Department of State estimated the daily cost of staying in Port-of-Spain at us$215; in Tobago daily costs were seasonal and averaged between us$440 from April through December to us$215 the rest of the year.

FAMOUS TRINIDADIANS AND TOBAGONIANS

Eric Eustace Williams (1911–81), the main political figure of his time and the leader of Trinidad and Tobago's major political party, was instrumental in his country's achievement of independence in 1962; he was prime minister from 1961 until his death. His successor was George Michael Chambers (1928–1997). A.N.R. Robinson (b.1926) served as prime minister from 1986–1991, and as president from 1997–2003. Patrick Manning (b.1946) served as prime minister between 1991 and 1995 and since 2001. George Maxwell Richards (b.1931) became president in 2003. Notable writers include Samuel Selvon (1923–1994) and V.S. (Vidiadhar Surajprasad) Naipaul (b.1932).

DEPENDENCIES

Trinidad and Tobago has no territories or colonies.

BIBLIOGRAPHY

Buckman, Robert T. Latin America, 2005. 39th ed. Harpers Ferry, W.Va.: Stryker-Post, 2005.

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

Foster, Dean Allen. Global Etiquette Guide to Mexico and Latin America. New York: J. Wiley, 2002.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Stuempfle, Stephen. The Steelband Movement: The Forging of a National Art in Trinidad and Tobago. Philadelphia, Pa.: University of Pennsylvania Press, 1995.

Winer, Lise. Trinidad and Tobago. Philadelphia, Pa.: J. Benjamins, 1993.

Yelvington, Kevin A. (ed.). Trinidad Ethnicity. Knoxville: University of Tennessee Press, 1993.