Trinidad and Tobago is a twin-island state which lies off the coast of Venezuela and covers an area of 5,128 km². Trinidad, the larger island (4,820 km²) is home to 95% of the total population of 1.3 million. Trinidad is heavily industrialised, whereas Tobago depends more on tourism and agriculture. GDP per capita (PPP) in 2006 was estimated at around US $16.000, thus classifying Trinidad and Tobago as a middle income country. O il and gas account for more than 40% of the GDP.

Trinidad and Tobago is a multiparty parliamentary democracy. General elections (last held in November 2007) are held every 5 years. The Executive Branch of the Government, headed by Prime Minister Mr P. Manning, is made up of the Cabinet Ministers who serve as the political heads of the Ministries. The island of Tobago enjoys a certain degree of autonomy, which recognises its separate history, culture, and identity.

The government is committed to T&T reaching ‘developed country’ status by 2020 as illustrated with the ‘Vision 2020’ development plan which acts as a framework for economic policy making. The core aims include a continued rise in public investment, as the government uses energy revenue to fund spending on road projects, education, housing, social programmes and security. These are seen as essential for the long term development of the economy and as a means of stimulating construction and other non-energy sectors.

Key issues in EU-Trinidad and Tobago

Oil and petrochemicals dominate T&T exports to the EU by value (over 60%) but the EU also sources 14% of its imports of direct-reduction steel products from T&T. EU exports are overwhelmingly capital goods linked to the energy and chemical sectors (EU enterprises dominate FDI in these sectors), although transport and the yachting and boatbuilding sectors are also important markets for EU companies.

For the 10^th EDF, T&T has been allocated an indicative amount of € 25.5 M of programmable resources. The response strategy is designed to be consistent with, and supportive of, T&T’s ‘Vision 2020’ National Strategic Plan to use its large but finite energy resources to achieve ‘status of developed country’ and a diversified economic base within 20 years. There is a single focal area ‘support to economic transition’, accounting for 64% of available funds under the 10^th EDF bilateral budgetary envelope for T&T, plus one non-focal area, ‘good and effective governance’.
Trinidad and Tobago will also have access to other EU resources, notably through global EC programmes, EIB funds, CDE/Proinvest, and its participation in regional Caribbean programmes.

Trinidad and Tobago also benefit substantially from EC funds to reform their sugar industry. For the period 2070-2010 € 41.6 million has been allocated.

The EU will assist the Government in the area of good and effective governance with a sector budget support programme funded from the 10^th EDF. With a murder rate as high as 30.38 per 100,000 in 2007, violence and crime remain alarmingly serious. The programme will, among others, aim to assist in the improvement of the criminal justice system, improved efficiency and effectiveness of the police and judicial institutions.