Energy Chamber Trinidad
Caribbean Sustainable Energy Conference on June 2 to 4, 2025.

SEOGS TECHNICAL CONFERENCE WHERE INNOVATION MEETS EXPERTISE
Join technical energy professionals from across the globe

Building on the momentum of its past four editions, SEOGS 2025 embraces the theme “A New Dawn” as Suriname enters a pivotal chapter in its energy journey. With the Final Investment Decision now announced for the GranMorgu project in Block 85 offshore, the event sets the stage for technical excellence, innovation and collaboration aiming to help Suriname maintain a competitive edge, attract further investment, and capitalize on its resources wealth while integrating oil & gas into its long-term economic development.

Join engineers, technical leaders, and digital disruptors for three days of deep dive into the latest advancements in oil, gas, and energy. The SEOGS Technical Conference is the region’s go-to platform for staying technically relevant, digitally competitive, and business resilient. Explore cutting-edge solutions, share best practices, and connect with peers driving the future of energy innovation.

In Paramaribo – Suriname from 17-20 June 2025, SEOGS will bring together over 1,000 delegates, 200 speakers and 12,000 visitors from 40 countries to shape the future of energy in Suriname and the region.

SEOGS is delighted to announce the full program and presenters for the technical conference from 18-20 June, 2025

Be part of Suriname’s leading industry energy summit & exhibition

The technical conference delegate pass offers you access to:

• • • • 3-day technical conference (18-20 June)
      • Access to the exhibition
      • Lunches and coffee breaks 3 days (18-20 June)
      • Networking functions and receptions (18-20 June)
      • Full access to the event app, B2B matching service and on-demand content
      • NeC raising funds to cover its share of costs for TotalEnergies-led $12.2B oil project off Suriname

 

 

Neck-and-neck elections in Suriname to pick new president to steer oil riches

Ruling party and top opposition rival won almost the same number of parliamentary seats

Fabio Palmigiani
South America Correspondent,

Rio de JaneiroPublished 26 May 2025, 14:14

Surinamese went to the polls on Sunday to elect a new parliament that will be responsible for choosing the next president of the smallest nation in South America.

Elections take place as the tiny former Dutch colony of 600,000 inhabitants, which is battling with high debt, rampant inflation and poverty, hopes that big offshore oil discoveries will put the country in a growing path as seen in neighbouring Guyana.

According to Reuters, with nearly all votes counted, Suriname’s ruling party and its top opposition rival won almost the same number of parliamentary seats, paving the way for complex coalition negotiations to determine who becomes the next president.

Results showed the opposition National Democratic Party (NDP) secured 18 seats, with 79,544 votes, while the ruling Progressive Reform Party (VHP) of current President Chan Santokhi won 17 seats, with 75,983 votes.   Smaller parties, which will now play a pivotal role in selecting the country’s next president and vice-president, obtained the remaining 16 of 51 seats.

Negotiations between parties are expected to take weeks, as a two-thirds majority in parliament is required to elect the president.    Whoever is elected president will govern Suriname until 2030 and will reap the rewards of the $12.2 billion GranMorgu development in Block 58.

French supermajor TotalEnergies operates GranMorgu, located about 150 kilometres from the coast, and estimated to hold recoverable reserves at more than 750 million barrels.    First oil is earmarked for 2028 via a large floating production, storage and offloading vessel, to be supplied by SBM Offshore, capable of processing 220,000 barrels per day of oil and 550 million cubic metres per day of natural gas.

 

PetroChina to shoot 3D seismic survey offshore Suriname

Fabio Palmigiani, South America Correspondent
19 May 2025,

Company plans to investigate subsurface structures and assess hydrocarbon potential of the area.  PRC state-owned oil company PetroChina plans to carry out a 3D seismic survey offshore ahead of potential drilling operations in Suriname.

Last September, PetroChina in partnership with Suriname state-controlled company and market regulator Staatsolie acquired production sharing contracts for shallow-water blocks 14 and 15 .The two blocks are located in water depths ranging from 50 to 150 metres in the eastern part of the Guyana-Suriname basin and adjacent to Block 52, where Malaysia’s Petronas is developing a trio of natural gas discoveries.

 

 

 

SBM Offshore FPSO for TotalEnergies $12.2B Suriname project taking shape

May 12, 2025, by Melisa Cavcic

France’s energy giant TotalEnergies is making strides in the development of the first-ever offshore oil field in Suriname. Progress has also been achieved in the construction of a floating production, storage, and offloading (FPSO) vessel destined for this project.

Following a final investment decision (FID) for the 12.2-billion GranMorgu offshore oil field in Block 58, located around 150 kilometers off Suriname’s coast, operated by TotalEnergies (50%) with APA Corporation (50%) as its partner, inroads have been made in bringing this project to life, with the offshore oil field development now at approximately 13%.

According to Suriname’s national oil company (NOC), Staatsolie Maatschappij Suriname (Staatsolie), which embarked on a mission to get the money required to cover its part of the development costs and join the project earlier this year, the FPSO vessel for GranMorgu is under construction, with progress currently at 27%.

With the first oil expected in 2028, the company explains that production and injection wells will be drilled, subsea installations and pipelines will be laid, and modules will be installed on the FPSO in the coming years.

 

 

 

 

IMF hails ECCU economic progress

WASHINGTON
2025, 05/09

The executive board of the International Monetary Fund (IMF) says the member countries of the Eastern Caribbean Currency Union (ECCU) achieved a strong rebound from successive adverse shocks.

The ECCU groups the islands of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines.

The ECCU has provided a strong anchor for macroeconomic stability and in 2024, strong tourism performance and continued infrastructure investments supported robust growth of 3.9 per cent and inflation moderated to below two per cent in tune with global trends.

In a statement following its Article IV consultation with member countries on common policies, the IMF executive board said that strong tourism performance and continued infrastructure investments supported robust post-pandemic growth, while inflation has moderated in tune with global trends.

This facilitated a moderate reduction in the currency union’s fiscal and external imbalances, although public debt levels and current account deficits remain high in several members.

“The ECCU external position is assessed as weaker than implied by fundamentals and desirable policies, but the current account deficits remain fully financed and the stability of the ECCB reserves underpin a strong currency backing ratio,” the IMF directors said, adding that the financial system remained stable, albeit exhibiting continued asset quality and credit condition weaknesses.

Growth momentum is nonetheless projected to wane and risks to the outlook remain mostly on the downside.

“Increasing constraints to tourism capacity and completion of major infrastructure projects are set to slow growth to around 2.5 per cent over the medium term. This modest growth potential reflects weak productivity and local investment, headwinds from ageing populations, a shrinking labour force and constrained fiscal space for public investment in most union members.

“Downside risks to the outlook are significant amid a highly uncertain external environment, where increased trade and geopolitical tensions could give rise to renewed inflationary pressures and disruptions to tourism and FDI inflows.”

The IMF directors said high public debt, persistent current account deficits and weaknesses in the local financial system amplify vulnerability to recurrent natural disaster (ND) shocks alongside the uncertain outlook for future Citizenship-by-Investment (CBI) inflows. Achieving more robust, resilient, and inclusive long-term growth would support the currency union’s fiscal and external sustainability and raise living standards.

“To support this objective, common regional policies should be anchored in building economic, fiscal, and financial resilience and addressing supply bottlenecks that underpin the recent decades’ downward trend in the region’s growth potential.”

A key policy priority is alleviating the region’s structural growth impediments, which calls for a coordinated, multipronged approach. Addressing frictions to employment and skills development requires a renewed effort to attune human capital to economic needs and development priorities through vocational training and modernised education systems, complemented by active labour market policies and improved access to child and elderly care.

“Common policies can also enhance the scale, resilience and efficiency of the region’s capital stock by helping to accelerate energy transition to local renewables, optimise the CBI funding model and increase ND preparedness.

“Substantial productivity gains may also be achieved through cooperative efforts to address bottlenecks to innovation and allocative efficiency, including by digitalising key services, streamlining licensing and administrative processes, and strengthening financial intermediation.”

Fiscal policies should remain closely focused on rebuilding buffers, reducing public debt consistent with the regional debt anchor and improving resilience to shocks.

“Region-wide adoption of strong medium-term fiscal frameworks (MTFFs) embedded with well-designed fiscal rules and credible policy plans would support sustainability objectives and create policy space for growth-enhancing social and resilience investment.

“Comprehensive fiscal resilience strategies, including adequate disaster-financing frameworks, can help alleviate periodic ND disruptions to debt sustainability and support the region’s growth resilience.”

The IMF directors said strengthening the fiscal management of uncertain CBI revenues can similarly alleviate risks and facilitate fiscal planning. These efforts can be supported by more institutionalised regional oversight and continued strengthening of national fiscal institutions.

Enhancing financial system resilience and reducing persistent credit frictions can support a more conducive environment for growth-supporting local investment.

Regional policy priorities include reducing vulnerabilities from legacy bank balance sheet weaknesses, mitigating risks from rapid credit union expansion, building readiness to manage risks from high dependency on global reinsurance, and strengthening national AML/CFT frameworks.

The IMF said common minimum NBFI regulatory standards under the planned Eastern Caribbean Financial Stability Board (ECFSB) will be an important step toward their more unified oversight, although a more centralised supervisory structure would better facilitate management of regional stability risks.

“Coordinated efforts to reduce institutional frictions in local credit markets and support small ECCU businesses’ bankability can help address structural challenges in financial intermediation, revive local credit and investment, and foster development of a more vibrant private sector.”

Strengthening economic data could significantly improve regional policy design and risk management.

“Priorities include addressing shortcomings in coverage, quality, and timeliness of key national and external accounts and reducing significant blind spots in areas such as the regional labour markets and CBI flows,” the IMF directors said, noting that greater leveraging of synergies in regional data compilation and processing could help address persistent resource and capacity gaps.

 

 

 

Moonilal plans energy talks with US next week

Jesse Ramdeo,  2025, 05/23

Energy Minister Dr Roodal Moonilal will lead a small, high-level delegation to Washington DC from May 28-30 for strategic meetings aimed at deepening energy ties with the United States. At the post-Cabinet briefing, Moonilal told media the talks will include engagements with the US Department of Energy, the Department of State and others. Minister Moonilal said discussions will also focus on strengthening bilateral cooperation, exploring investment opportunities and advancing T&T’s role as a key energy player in the hemisphere.
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“The meetings we propose to attend will share our views and engage in serious dialogue with significant officials in the United States in Washington DC. …we will also engage with senior officials apart from the state treasury and energy, from Shell Global, the Americas Council and the Inter-American dialogue. We will meet those organisations to discuss mutually beneficial interests in security: it comes as everyone knows we inherited an energy sector in significant decline., both in the production of gas and oil and with consequences in the petrochemical sector. This is a very important mission in keeping with our strategic focus as outlined by our Prime Minister to ensure that Trinidad and Tobago re-emerges as the energy hub of the Caribbean.”

It is also expected that talks will cover ongoing joint ventures and the potential for expanded upstream and downstream collaboration.

The Washington visit will mark the first official US trip by Minister Moonilal in his current portfolio. Yesterday, Prime Minister Kamla Persad-Bissessar met officials from the US Embassy in Port-of-Spain led by Chargé d’Affaires Dr Jenifer Neidhart de Ortiz.

In March US Secretary of State Marco Rubio expressed commitment to help TT ensure its energy security, despite concerns over Venezuela a day before then acting Prime Minister Stuart Young met Rubio in Jamiaca for bilateral discussions.   At the time the TT government, the private sector and the Venezuelan government were engaged in talks on the Dragon gas deal, to aggregate natural gas from Venezuelan waters. TT had licences from the Office of Foreign Assets Control (OFAC) for exploration and exploitation of natural gas resources from the Dragon gas field and the Manakin/Cocuina cross-border field.

In April the US Government said it would no longer support the region’s dependence on oil and gas from Venezuela. Young, on April 8, announced that the US government revoked the OFAC licences for both fields.

Moonilal said the Energy Ministry reached out to several Caricom countries for discussions on energy security.The Guyana government agreed to partner and collaborate with TT counterparts “in a very meaningful way” , to revive a joint working group focused on energy cooperation.

“The very first thing they raised was to resuscitate a working group, established several years ago and allowed to collapse and reach a state of inaction where nothing happened. It will involve collaboration in real time on significant partnerships on energy matters with Guyana.”

He expressed plans to revive the project and visit Guyana to engage in further energy talks.
The move signals renewed regional efforts to foster strategic energy partnerships.

Moonilal said informal discussions have been held with energy officials from Grenada and a trip is planned to further talks. He lamented what he noted was a lack of dialogue with regional stakeholders to advance energy-related matters.

“Until today, believe it or not, Trinidad and Tobago government played no role in the energy sector in those territories now becoming global players. What happened is that the private sector, of their own work, own volition, by virtue of their own networking skills and professional conduct, got involved in those sectors with no help from the government, so the government never had a footprint and that is what we are working on .”

He revealed concerns over the relationship the TT Government had with Guyana, where the TT government did not have a footprint. In one project, the National Energy Corporation had a good chance to win a contract to establish gas infrastructure onshore but the last government instructed the company to withdraw.

“Today I can say that another company, Phoenix Park Gas is in another bid for work and to establish a presence there which will help TT in so many ways and we have indicated that they should pursue that and get a footprint in Guyana and other places so that we could again become a significant player in energy in TT.”

On May 14 Vice-President Bharat Jagdeo said Guyana already had plans for its gas for power generation and a fertiliser plant. Guyana was considering options such as the production of liquefied natural gas (LNG) for export, supplying electricity to Brazil and developing domestic industries. Exporting gas to TT would only be considered if it proved to be feasible or lucrative for Guyana.

On May 22 Moonilal said he planned to discuss with Guyana officials concerns and challenges where TT could help.

Former energy minister Stuart Young said: “For those who may have missed this. Representing Trinidad and Tobago and commencing the discussions and building of a very good relationship with the Government of Suriname in 2022.. strengthened over the last three years with an emphasis on the energy sector. ”

 

 

 

Young on Caricom energy deals

6 May

Former prime minister Stuart Young warned about plans to seek new gas-supply sources from Grenada, Guyana and Suriname . At the swearing-in of the new government on May 3 , Prime Minister Kamla Persad-Bissessar proposed the three countries as alternatives to the Dragon gas field for which the US Government withdrew its OFAC licence to TT to exploit, as part of a wider US embargo against the Venezuelan government over human rights concerns.

Young told media gas from Grenada to TT, if feasible, could take 10-15 years. He doubted Persad-Bissessar’s claim that Grenada had more gas than the Dragon field. Much work was needed to explore such gas reserves, (whereby “possible” reserves become “probable” and then “proven.”) In 2012 TT signed an MoU for gas exploration in Grenada and in 2018 NGC and Russia-based GPG agreed to commercial terms, but it was then “abandoned ” in 2018. “However the facts are that this one well was drilled in a field called Nutmeg. Right now there are no ‘proven’ reserves.” Any gas was “very far away from commercialisation.  More wells must be drilled and their contents analysed, hence a lot of work and analysis.”

Grenada’s gas fields lack infrastructure (to convey the gas to market.) “So to commercialise and to bring reserves to market is simply, not at this stage, a feasible concept. Nutmeg is nowhere close to market.”

Young warned about alternatives to pipelines conveying gas to TT, such as floating LNG platforms to collect gas to take elsewhere, saying   “this is very far from being feasible.”

As former energy minister he met the Grenada leader and he knew GPG had run into difficulties.

“ You have to find companies that are going to spend significant sums of money to do the exploration, proving and then to go through the commercial concepts. The minimum amount of time this can take – if you find significant reserves that make it commercial – would be between 10-15 years. TT has to look at the short-term and the medium-term, which was being done.”

Russian companies were now banned by US sanctions. After TT signed an MoU in 2015, Woodside/BHP Billiton seismically explored Barbados for gas but had since exited, believing gas did not exist in commercial amounts. In 2018 TT and Guyana signed an MoU, while he and former prime minister Dr Keith Rowley addressed energy conferences in Guyana. In 2023, TT signed an energy MoU with Suriname, which had agreements with Heritage and National Energy.

“If there are sufficient gas reserves in Guyana and Suriname – which I hope there are – there then comes the feasibility concept, something we started working at.”

Gas reserves in Guyana and Suriname must also be proved up, as those were undetermined. “But again this is many years off.”

Young recalled his efforts to persuade Exxon and the Guyana government to commercialise gas to TT, to boost the LNG and petrochemical sectors. He reiterated TT also had an energy MoU with Suriname. However, a feasibility study must be done for any pipeline from Guyana or Suriname to TT which would inevitably pass through Venezuelan waters.

“So Venezuela remains in the equation.”

He rejected the claim that the Dragon deal was dead, drawing succour from his recent meeting with US Secretary of State Marco Rubio. Young understood the Dragon deal was still open for negotiation.

“The door was far from closed. It is very frightening. Quite frankly it is irresponsible. The truth is we have a 30-year exploration, production and exportation of gas licence with Venezuela.”

The main shareholder in that deal is Shell, a large firm, which with BP, was a part owner of Atlantic LNG. It was wrong to decry the Dragon deal as dead, without seeing documents and ignoring the hard work done towards it.

He urged “less haste, less politics” in matters such as deciding on the Dragon deal.

Young recalled Rubio vowing US policy would not harm TT. Saying his only concern was TT’s interests, he asked why the deal was condemned before relevant documentation was examined.

“We were on track to work with the US with respect to energy security. This is the sting in the tail: Dragon gas has proven gas reserves. All it requires is 18 kilometres of pipeline.”

As bpTT last week announced a decision on the medium-term Ginger field, he hit those who falsely claimed that Tobago had a gas field named Cocrico.

Moonilal: No Caricom energy talks with last regime

ENERGY Minister Dr Roodal Moonilal is “shocked” that the former government made no effort to collaborate with countries within Caricom on energy cooperation. In the coming days, he intends to make official communication with the government of Grenada regarding mutual collaboration in gas exploration.

Moonilal and Minister in the Ministry of Energy, La Brea MP Ernesto Kesar yesterday officially began their first day at work at the Energy Ministry.

Contacted for a response to comments by former prime minister Stuart Young at a news conference, he said,

“I have taken note of the comments of the former energy minister. I have today met the permanent secretary and senior officials of the ministry in a long and comprehensive session to update myself on the work of the ministry and some of the outstanding and ongoing matters.”

As an Opposition MP, Moonilal had filed Freedom of Information requests to the Energy Ministry seeking details on Young’s trips to Venezuela and the Dragon gas deal. He said he did not receive the information he had requested.

Now as Energy Minister, Moonilal has made that request to the permanent secretary.

“As you know, that has been a major secret of the former administration. It has been a very risky business and we have to ascertain what the facts are now. The facts in the public domain are that it has been shelved because of the new developments in the United States.

But today I asked for greater information—a complete and comprehensive file, including costs incurred by the Government of Trinidad and Tobago through the Ministry of Energy and/or any of its affiliates. I’ve asked for that information among several other pieces of information I requested.”

“I have also ascertained, notwithstanding all the talk and all the travels and all the conferences and all the trips of both Mr (Keith) Rowley and Mr Stuart Young, we have absolutely no collaboration with the governments in the Caricom area which are involved in the energy sector. There is absolutely no collaboration with governments in Guyana, Suriname, or Grenada.”

Moonilal was surprised, as both Rowley and Young were flying around the world while ignoring opportunities close to home.

“ That was a shocking piece of information for me because I thought that Trinidad and Tobago was participating in some regional initiatives to develop the energy sector and in particular, Trinidad and Tobago. It is something I take note of, and I intend to act on that because we cannot exist by ourselves . Our vision is to be the energy sector capital of the Caribbean, and you cannot do that standing alone.”

“On the Grenada matter, I understand that the Government of Trinidad and Tobago under Stuart Young had absolutely no relationship, no arrangement, no discussion, no negotiations—nothing—with the government of Grenada for over seven years now. That was a shocking thing. We intend to change that. We intend to open the doors, so to speak, to collaboration. Clearly, we can help the Grenadian government and people in the energy sector and in the development of their gas field and so on, and it’s something we are eager to do. In fact, I spent part of my day on this as well, speaking about this matter, and I intend in the coming days to have a proper and formal outreach to the authorities in Grenada.”

 

 

Penny to be appointed Opposition Leader today

From crabs to calculations
…Professor proposes strategies for economic recovery

13 May

Sharing his insights on economic trends, Prof. Roger Hosein delivered his Professorial Inaugural Lecture titled “Fostering Economic Growth in the Bust Phase of the Boom-Bust Cycle”. The lecture was hosted by The University of the West Indies St Augustine on April 24.

His personal success story was an unconventional path from dropping out of high school and selling crabs and eggs at the market then graduating with first class honours from The UWI and earning a PhD in Economics from Cambridge University in 2000.

In 2024, he was named The UWI’s Best Researcher, in recognition of his continued academic excellence and impactful scholarship.

Adressing a diverse audience of policymakers, academics, business leaders and students, Prof. Hosein, economist and co-ordinator of The UWI’s Trade and Economic Development Unit (TEDU), examined Trinidad and Tobago’s economic vulnerabilities and proposed bold, research-driven strategies for diversification and sustainable development.

His lecture framed the economic challenges within a global context and urged a shift from reactive fiscal policies to long-term planning and innovation in non-energy sectors of agriculture, food exports and tourism.

“The challenge in the economy is really the structure of production, and if we take an approach that expands manufacturing, agriculture, services, those are areas that help to open up employment opportunities. Employment in the petroleum sector is about 8,100 compared to about 23,000 around 2013. In other words, the employment in the petroleum sector has fallen considerably…Whatever we are doing must generate an opportunity for more fiscal revenue; must lower the non-energy fiscal balance.”

He emphasised the need for port and customs modernisation and at least a 50% reduction in crime for the economy, and by extension, the nation, to prosper. On tourism, Trinidad and Tobago currently hosts fewer than 400,000 visitors annually and visitor exports in 2023 were US$0.6 billion, according to the Central Statistical Office. Massive forex gains are possible with improved safety, airlift, marketing and product diversification.

“In order to reach 50% of revenues from the energy sector…into the medium term maintaining the average expenditure that CSO says we had in 2023, we need to reach 2.6 million tourists by 2040. If we could get a timeline so we could get all the other infrastructure in place, we have a fighting chance in terms of tourism revenue.”

Prof. Hosein presented data-driven analyses on trade performance, productivity trends, and the role of regional integration in economic resilience. He emphasised the importance of evidence-based policymaking and greater collaboration between academia and Government in shaping the economic agenda. A former captain of the Faculty of Social Science cricket team, Prof Hosein used creative sports comparisons, including the West Indies cricket team and the Argentine football team, to illustrate various stages of economic growth and recovery, instilling hope for a stronger economic future .

Dean of the Faculty of Social Sciences Dr Acolla Lewis-Cameron lauded Prof Hosein’s contributions to academia, policymaking, and regional development.

“Prof Hosein has not only exemplified academic excellence, winning over 20 scholarships and awards but has also shaped the future of Caribbean economics by supervising the highest number of PhD students in the Department of Economics. His work has directly influenced national policy, regional development initiatives and the strengthening of institutions. His career embodies leadership, service, and a deep commitment to the Caribbean’s advancement.”

Prof. Hosein’s career spans leadership in academia, regional trade policy and economic development. He currently serves as a Caricom Commissioner and represented The UWI at the Council for Trade and Economic Development since 2010. He played a key role in developing initiatives such as the Government Assistance for Tuition Expenses programme and compensation mechanisms for fishermen affected by seismic surveys. He was instrumental in founding two key regional microfinance institutions, the Mayaro Initiative for Private Enterprise Development and the Loan for Enterprise and Network Development and served as a director on the board of the Central Bank of Trinidad and Tobago.

Prof Derek Chadee, deputy principal, congratulated Prof Hosein on his elevation to the rank of professor and praised his impact on national dialogue:

“He has been an integral member of the Department of Economics, contributing significantly to teaching, research, outreach and advocacy. The rank of professorship is not simply a title; it symbolises scholarly authority, leadership in one’s field and significant influence of one’s contribution at the national, regional and international level.”

Dr Indera Sagewan-Alli, fellow economist and researcher, joined other attendees in congratulating Prof Hosein and expressed her admiration for his inspiring journey to success.

The event reflected The UWI’s ongoing commitment to academic excellence and public engagement.

Through its Professorial Inaugural Lectures, the university offers newly appointed professors a platform to share the relevance and impact of their work with the wider community. Chair of the Open Lectures Committee Prof Shirin Haque underscored this mission, noting,

“These lectures are vital platforms to showcase academic excellence, engage the national community, and influence regional policy-making.”

• The full recording of Prof. Hosein’s lecture is available on The UWI St Augustine YouTube channel: https://www.youtube.com/watch?v=qvm8qb7hjxE&t=2674s

 

 

 

 

T&T Economist challenges dogma:-Development should not be based on cheap imports

2025, 05/10

In his latest paper titled, “Comparative advantage, cheap consumption, and poor development outcomes in the Caribbean,” regional economist Dr Justin Ram argued that T&T’s economic model must change to create a society where human welfare is maximised.

The paper focussed on cheap consumption, prioritisation of the domestic market for cheap imports.

“And that means you have this oversized focus on foreign exchange reserves to import those cheap imports. In addition to that, you then have a backward linkage whereby government must try to earn as much income as possible to subsidise people because they don’t have good jobs because we have prioritised the economy for cheap imports.

“…the economic model has to change to focus on the human condition. which I’m measuring as the value of human capital, measured as the maximisation of your income over your lifetime. That means that having local production is really important to give people good jobs, allow them to earn as much as possible.”

That, in turn, means that a government does not have to constantly find money to subsidise consumptions because now, people would have good jobs.

Examining performance of the T&T economy and many regional economies, most economic observers using their typical macroeconomic lenses would say that these economies have performed reasonably well from the time of Independence until about the first decade of the new millennium. The relatively recent stagnation of the regional economies is thought to be due to a lack of competitiveness, poor business environment and bloated state sectors.

International financial institutions and international agencies that seek to assist focus on reforms that attempt to mitigate these problems. Rents earned from exploiting natural resources, oil, gas bauxite, cocoa, and beaches masked the fundamental problem.

“I believe that there is a more fundamental problem; the root cause of the problem has not been identified, or economists are unwilling to even consider it since the theory that underpins much of the global economic order and, indeed, globalisation could be the problem.

“Since the 1980s, the economic doctrine has measured economic progress by consumption efficiency. However, what we have followed is not economically efficient since this would imply that all other factors and the economy are operating efficiently.

“We have, instead, followed the notion that the availability of cheap consumption measures economic well-being. This implies that countries should seek to open their markets so that residents can consume products made the most efficiently wherever they might be. Well-being is, therefore, measured by how residents can spend their incomes on the cheapest goods available globally to help their incomes stretch further. How much an individual can consume with their earnings rather than what they can produce is the predominant measure of development”.

This theory of comparative advantage underpins the global economic order.

Beyond this, the theory of cheap consumption means that small states should open their domestic markets to all foreign products so that domestic consumers can benefit from goods and services that can be produced more cheaply by much larger and more competitive economies who benefit from internal economies of scale that small markets could never emulate.

This is particularly true of advanced manufactured products like appliances, electronics and motor vehicles.

“In small places, the theory of comparative advantage means that these economies are left to produce low value added goods and services or add minimal value to natural resources like oil and gas, petrochemicals and tourism. In addition, manufactured goods related to the value-added of agricultural products, such as agro-processing and food products, occur only because of the Caricom Common External Tariff (CET), often with significant foreign intermediaries. This means that 70 per cent of what is consumed in the domestic market is imported, with most labour directed to distributing imports, installing imports, providing service and maintenance for imports, and selling and retailing imports.

“This means the economy never becomes truly innovative, or there is no need for deep technological know-how or innovation, when all global innovation is only one shipping container or a click away.”

Exploiting and selling raw natural resources
Inspecting the logic behind the current economic model TT has followed, Ram said the recent policy direction of the Government has been to exploit its relatively abundant natural gas reserves, which, up until 1999 and the then utilisation ratio, would have lasted until about 2070. However, the decision was made to monetise a sizeable proportion of the natural gas reserves as liquefied natural gas (LNG) or raw gas and sell it to foreign markets to earn foreign exchange (FX).

“ FX is required to finance the consumption of cheap goods and services from abroad because the domestic market is prioritised for this cheap global consumption. FX is also needed to subsidise the consumption of these goods and services via government transfers since local workers do not earn enough to facilitate the independent consumption of their households.”

This decision means that in the 2020s, T&T experienced a natural gas shortage and now needs to find new gas reserves to finance the consumption of imports and subsidise household consumption. It is a policy that leads to an economic treadmill, with the constant need to finance a high proportion of consumption of imports (70 per cent) and government expenditure to support household consumption.

Minimum wage, labour laws and comparative advantage
As a result of following the current economic model, this economy has low labour force participation rates.

“It only has space in the labour market for a relatively small percentage of skilled people who earn a decent wage. Most people have jobs that do not pay well and many people could be classified as working poor, except for the large transfers and subsidies paid out by governments to households in one form or another, such as fuel and water subsidies with additional negative feedback loops.

“We cannot have fair global free trade without the free movement of people and similar labour standards across the board. Free movement of labour and identical labour standards across the globe are not on the horizon; therefore, it is crucial that we prioritise our domestic market for domestic production to give our labour force, which already has a minimum wage and better labour standards in place, a fair shot at a better labour force participation rate.”

Banking, credit, and comparative advantage
The economic model incentivises credit and finance for consumption of final imports. Excluding real estate-associated credit, about 25 per cent of loans are for motor vehicles, 17 per cent are for credit card debt and 36 per cent are for refinancing and debt consolidation.

Given the overall composition of consumption, most consumer credit is for purchasing imports.

Of credit extended to businesses, 12 per cent went to manufacturing, 5 per cent to construction and 6 per cent to agriculture, petrol, and leasing. So, a minimal amount of business credit is going towards production.

Comparative advantage, a theory developed by David Ricardo, a British economist who died in 1823, still has a significant hold on economic doctrine because human well being is measured by consumption efficiency or cheap consumption. Globalisation is grounded in this theory and its proponents claim it has raised numerous people out of poverty, measured by those living on less than US$2 per day.

 

 

 

Investment

 Value of stocks traded jumps 144.38%

2025. 05/11  Sulaiman, Alimah

For the week, some 1,833,464 shares traded on the First Tier Market, an increase of 106.62 per cent on last week’s total of 887,370 shares crossing the floor. The value of shares traded was up 144.38 per cent to $14,415,056.14 from the previous week’s value of $5,898,547.72.

Massy Holdings (MASSY) was the volume leader for the week with 63.40 per cent of the market activity or 1,162,438 shares traded, followed by Trinidad and Tobago NGL (NGL) with 11.05 per cent of the market activity or 202,603 shares traded. In third place was JMMB Group Ltd (JMMBGL) with 8.76 per cent or 160,687 shares traded. These shares accounted for 83.22 per cent of the shares traded for the week.

For the week there were eight shares advancing and 11 shares declining, while one share was at its 52-week high, and one share was at its 52-week low.

The Indices ended the week in mixed territory.

1. • ↓The Composite Index decreased by 0.84 per cent or 8.80 points to close at 1,035.92.
2. • ↓The All Trinidad and Tobago Index ended at 1,511.10, down 1.18 per cent or 18 points.
3. • ↓The Cross Listed Index closed at 73.83, an increase of 0.22 per cent or 0.16 points.
4. • ↓The Small and Medium Enterprise Index closed at 91.85, unchanged from last week.

The major advance for the week was One Caribbean Media (OCM) up 14.94 per cent or $0.39 to close at $3. In second place was JMMBGL with an increase of 10 per cent or $0.11 to close at $1.21. In third place was Trinidad Cement Ltd (TCL) up 6.44 per cent or $0.13 to close at $2.15.

Scotiabank Trinidad & Tobago (SBTT) was the major decline for the week, down 5.52 per cent or $2.92 to close at $50. ANSA McAL (AMCL) followed with a decrease of 3.75 per cent to close at $48, its 52-week low. In third place was West Indian Tobacco Company (WCO) down 3.70 per cent or $0.20 to close at $5.21.

There was no activity on the Second Tier Market.

On the TTD Mutual Fund Market, 47 Calypso Macro Index Fund (CALYP) units traded for the week with a value of $1,164.75. CALYP’s unit price closed at $24.95 unchanged from the previous week.

On the Small and Medium Enterprise Market, no CinemaOne (CINE1) shares traded for the week. Twenty-two Eric Solis Marketing (SOLIS) shares traded with a value of $92.40 and 166 Endeavour Holdings Ltd (EHL) shares traded for the week with a value of $2,988. SOLIS’s share price closed at $4, CINE1’s share price closed at $5.50 and EHL share price closed at $18 all unchanged from the previous week.

On the USD Equity Market, no MPC Caribbean Clean Energy (MPCCEL) shares traded for the week. MPCCEL shares closed the week at US$0.98, unchanged from the previous week.

 

 

 

UWI Trinidad-Penal campus

May 19

UWI Trinidad- St Augustine announced the launch of UWI Penal campus , following a comprehensive review of operations,. during the last two years, re-calibrating and systematically implementing its focus and key goals. However, the decision created a flashpoint as Prime Minister Kamla Persad-Bissessar told media that The University of the West Indies Penal will house what the Government says it will house and the university’s administration will have no say in that.

“ If I have to do it and if we have to do it, I’ll take that campus back and put it under Government control to make sure we complete it!”

Warning UWI administration, Persad-Bissessar,said the campus project is close to her heart. and one of the goals of that campus was to ease the burden of parents forced to pay high rents and costs for food for their children to spend years at St Augustine.

She cited crime and traffic congestion to reach St Augustine and the fact that spaces are limited.

“It was also to help us earn money. As we created spaces, students from outside would have to pay to come to the university, to rent a house, buy food – so we’d have created some Forex coming into T&T as well.

I am from south. Some of you know the highway … in those days, all these years it had no highway. To get in up here you’re spending hours! And you can’t even want to do it on a daily basis; you had to rent somewhere and if your parents couldn’t afford it, you can’t come to St Augustine or get an education.

That is not fair. That cannot ever be fair to all the people of T&T.”

Biggest betrayal
She said when her last Government left office, the campus was almost complete.

“That campus – we pledged to you – and we will make sure that campus is opened. But it won’t happen tomorrow morning. It will not happen in August. I don’t know who came up with ‘it’s going to happen in August’ because when the ministers visited the place, it’s a total horror story! The place is a dump!

That place is about seven to 10 minutes from my home, so I have to pass there every day and see that wonderful state-of-the-art campus we left covered in bush and rust! Isn’t that a shame – a betrayal!’

“I think the biggest betrayal was the role of officials at the University of the West Indies in the 10 – year closure of this campus. Now, people running out there and want to open campus in August! Ten years shut down, not a word! That campus was sidelined! Abandoned! There’s no effort seriously by UWI administrators to operationalise that campus.

“That campus will house what the Government says it will house. The (UWI) administration will have no say in that. They cannot dictate to us what they want to put there … I don’t know where they come up with this global medical school.’

Don’t we have the Couva Medical Hospital? We did the San Fernando Teaching Hospital also. So, where you get that from? So, I think the biggest betrayal was by the administrators, those in charge at UWI.”

Persad-Bissessar said what will be housed at the campus, “…will be our decision to make. UWI had 10 years to step up. Today, it’s time for them to step aside and let’s get on with the business of getting this campus open …So those with the racist agendas say ‘that campus opening. Nothing for you.’ But that campus was for the people from all around the peninsula coming right up … What kind of spite and malice, that you’d deprive children of an opportunity?”

She wasn’t going to allow UWI “… to sabotage our plans or take over our plans. We’re very clear what we want to do. We were clear then and we’re clearer now and 10 years later we can do so much more.”

The UNC-led People’s Partnership government built the Penal campus during its 2010-15 term at a cost of over $500 million as the new Faculty of Law.

In 2017, Faculty staff and students protested the move and UWI subsequently decided not to relocate the faculty . The last Government deployed it as a step-down medical facility during the COVID pandemic.

In 2021, the University Council, the highest governing body of the UWI regional system, approved a decision to use the facility for a new Global School of Medicine (GSM).
Following a recent tour of the facility, Energy Minister Dr Roodal Moonilal described its state as “horrific”..

UWI said despite very tight financial resources, it had prioritised and proceeded with critical repair work and security enhancements to prepare the campus in anticipation of phased reopening, beginning in August.

The campus was largely underutilised for several years and experienced natural deterioration in certain areas. UWI said the campus is also intended to support delivery of selected programmes across multiple faculties and, despite protests regarding relocation of the Law Faculty, the administration is open to discussions with Government on its inclusion in planned programmes.

“The campus will be the home of the newly launched Global School of Medicine (GSM) leveraging the world-ranked reputation of the UWI and especially the UWI’s Faculty of Medicine (FMS), to serve primarily international students pursuing the Doctor of Medicine (MD) programme. This will bring in much needed foreign exchange to the country. Currently, applications are open for this new, competitive programme.”

The campus will also host several other traditional programmes from other faculties (such as Food & Agriculture, Humanities and Education) and the FMS “in blended formats.”

UWI said the campus has a full, sophisticated information technology network, complete with state of the art “smart” classrooms. One hall of residence has been completed at the campus.

“The GSM, together with the Couva Training Facility linked to the Couva Hospital forms part of an exciting initiative to develop a South/ Central–North medical artery of services, creating a specialised hub of excellence in medicine, innovation and medical research.”

UWI recalled the role the south campus played as part of the parallel health care system during the covid pandemic to help patients recover from the virus.

Campus principal and Pro Vice Chancellor Professor Rose-Marie Belle Antoine said the campus is excited to work with government as a key developmental partner in its shared goals of strengthening the education, skills-base and research imperatives of Trinidad and Tobago.

“Maximising the capacity of the campus to ensure that the country’s productive resources are put to optimum use is an important facet of these laudable goals.”

Built under the UNC-led People’s Partnership coalition government 2010-2015 , the campus was was never opened.

Last November, then education minister Dr Nyan Gadsby-Dolly outlined plans for the GSM at the south campus.

“The UWI’s proposal involves the university raising financing for the project via a public bond of $335 million and financing from the government for recurrent expenditure until the proposed offshore medical school becomes profitable and generates positive cash flow.”

Government was awaiting further information from UWI on what was needed for the $335 million bond financing and whether the bond had received all internal approvals to proceed. She could not give a time frame for the project’s completion until she received this information.