By Clint Chan Tack Thursday, July 3 2008

THE TRINIDAD and Tobago Manufacturers Association (TTMA) and Downtown Owners Merchant Association (DOMA) yesterday expressed concern over US President George W Bush’s announcement on Monday that Trinidad and Tobago would no longer be classified as a beneficiary developing country under the Generalised System of Preferences (GSP) effective January 1, 2010.

In a statement, the TTMA said although less than one percent of local exports enter the US under GSP, it was concerned about the long-term impact the Bush administration’s decision could have if Trinidad and Tobago (TT) does not move quickly to establish a free trade agreement with the US or extend its privileges under the Caribbean Basin Initiative.

The TTMA said the majority of exports that are subject to duty enter the US market under the Caribbean Basin Initiative and the waiver under this programme would expire in September 2010.

It said if new arrangements are not put in place to extend the waiver or sign a free trade agreement then the absence of the GPS would place exporters in a “dire position”.

This country’s goods will enter the US market facing the same duties other more developed and developing countries adhere to and this would make local goods uncompetitive.

The TTMA said it was important that TT move speedily ahead to initiate talks with the US government “to have a relatively secured environment to trade in beyond 2009.”