Trinidad and Tobago too rich for aid says US President

By Claudia Liburd
Trinidad Reporter SKNVibes.com


President of the United States, George Bush

PORT-OF-SPAIN, Trinidad- IN a recent letter from United States President George Bush to the Speaker of the U.S. House of Representatives Bush classified Trinidad and Tobago as a high income country thus ending its access to preferential trade.

Under the Generalised System of Preferences (GSP) developing countries are granted access to preferential trade through exemption from the formalized rules of the World Trade Organization (WTO).

In the letter dated June 30, President Bush noted that Trinidad and Tobago has become too rich to qualify for duty free access for exports.

Section 502(e) of the 1974 Act, provides that the President shall terminate the designation of a country as a beneficiary developing country for purposes of the GSP if the President determines that such country has become a high income country as defined by the official statistics of the International Bank for Reconstruction and Development.

Termination is effective on January 1 of the second year following the year in which such determination is made.

I have determined that Trinidad and Tobago has become a high income country, and I am terminating the designation of that country as a beneficiary developing country for purposes of the GSP, effective January 1, 2010, said Bush.



However, according to local Trade and Industry Minister Dr. Lenny Saith the termination will not drastically affect the nations export sector and will only influence approximately 2 per cent of local exports.

Local economists say that once a country has moved up from low income status it no longer becomes eligible for certain preferential aids from the International Monetary Fund (IMF) and the World Bank.

With respect to Trinidad, Jwala Rambarran Managing Director of CAP-M Research and local economist has noted there is now more focus on differing forms of financing such as investment in the energy sector rather than dependence on foreign aid