The 15% tariffs imposed by U.S. President Donald Trump should serve as a wake-up call for the government to reform local trade and export policies.
That's the view of economist Professor Roger Hosein, who believes the move should motivate both the government and local businesses to explore alternative markets.
00:00Economist Professor Roger Hosang says the shifting global economy demands a new approach from Trinidad and Tobago.
00:08He believes the U.S. tariff hike should drive policymakers and small and medium businesses to reduce reliance on the American market and strengthen ties with regional partners.
00:19Professor Hosang says small exporters in particular should start redirecting some of their trade toward high-income Caribbean territories.
00:27I think people underestimate the Caribbean market. The Caribbean market is not the same as it was in 1970 or 1980.
00:37Per capita GDP has grown considerably and they are now able to make purchases in a deeper way than they did before.
00:47I think our small exporters could try to divert some exports away from the U.S. market towards the Caribbean market.
00:55Also, Aruba, Kurosawa and St. Martin. These countries are very, very high per capita GDP.
01:02Close to 40,000 U.S. per annum in the case of St. Martin.
01:07And these are lucrative markets that our small exporters can target with or without the support of the TTMA.
01:14But I recommend that they go the route of working with the TTMA.
01:17He also believes it's time to reassess the performance of specialized economic zones like E-Tech Park.
01:24E-Tech Park to me has been one of the areas where some degree of failure can be recorded
01:33because it is a beautiful vehicle for export-oriented growth.
01:39It should not be housing, in any significant way, import for distribution firms that are foreign exchange guzzlers.
01:48And maybe this increase in tariff from 10% to 15% would guess the new Minister of Trade cracking
01:56on changing up the e-tech legislation and changing up the rental facilities in these e-tech parks
02:05to more fuller and meaningfully, in a more fuller and meaningful way to accommodate more export-oriented firms
02:12and less import for distribution firms.
02:15The professor does not see the increased tariffs as a setback, but rather a challenge the country must overcome
02:22as it works to transform from an import-driven to export-driven economy.
02:27He also issued this call to financial institutions.
02:30I urge the financial institutions in Trinidad and Tobago to support this greater export orientation
02:39given the current skewed pattern of production and skewed lending habits
02:45from my understanding of the data of the commercial banking fraternity.
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