Guidance

Overseas business risk: Trinidad & Tobago

Updated 6 June 2023

Information on key security and political risks which UK businesses may face when operating in Trinidad & Tobago.

1. Political

Trinidad and Tobago is a unitary state, with a parliamentary democracy modelled on the UK system. Historically, the country has enjoyed political stability since independence in 1962, with no serious cases of political violence or instability since 1990, when an Islamist group stormed parliament and attempted to take over the government.

General elections are held every 5 years. The last election was held on 10 August 2020 when the People’s National Movement (PNM) party was voted for a second consecutive term into office. The next General Elections are constitutionally due in 2025.

More information on political risk, including political demonstrations, is available in the FCDO travel advice.

2. Economic overview

Trinidad and Tobago is the most industrialised nation in the English-speaking Caribbean and the second wealthiest Commonwealth Caribbean nation in terms of GDP and GDP per capita. This is because of its significant oil and gas reserves and an active petrochemical sector.

It has an open, market-driven economy, which promotes trade liberalisation, foreign investment and public sector reform. It is currently the eleventh largest exporter of liquid natural gas (LNG) in the world, the second largest exporter of ammonia. The key productive sectors in the economy are petroleum, manufacturing and services sectors.

Following years of energy revenue windfalls and strong economic performance, the economic outlook has been more cautious in recent times due to challenges in the global and local energy landscape and more recently, the economic slowdown brought on by the COVID-19 pandemic. Growth is projected at 3.2% for 2023 and is centred on strong performance in the energy sector. GDP per capita is at US$19,718. Inflation is expected to average 5.6% in 2023 and unemployment is at 5.4%.

In response to the COVID-19 pandemic the government launched a Roadmap to Recovery Document. The Roadmap document seeks to put T&T back on the road to growth and prosperity post COVID-19 and focuses on:

• addressing and mitigating the hardship inflicted by COVID-19
• restarting the economy
• laying the foundation for sustained economic recovery

The key areas identified to bolster economic recovery include the agriculture sector, digitisation of government services and the provision of social services. There are also opportunities for UK companies in the security and defence, healthcare and education sectors.

The World Bank Group 2020 Ease of Doing Business Report (PDF, 2 MB) ranked Trinidad and Tobago 105 out of 190 countries in ease of doing business – down 9 places since 2016. This report sees the top 4 challenges for businesses in Trinidad and Tobago as:

• low productivity in the national labour force
• corruption
• government bureaucracy
• foreign exchange controls

Crime and security is also a factor. Progress has been made in areas such as the implementation of an online government platform TTBizLink which gives businesses and individuals 24/7 access to applications for government trade and business services.

In the 2023 Index of Economic Freedom, Trinidad and Tobago ranked 88th out of the 176 countries and territories for economic freedom.

3. Business and human rights

Trinidad and Tobago is a diverse, open and free society. Basic human rights – such as freedom of speech, the press, internet freedom, peaceful assembly, association, religion, and movement – are protected by the constitution. Under the recently established Cyber Security Agency, the government has started taking action on Internet users making online comments deemed to be defamatory.

There is a strong trade union movement in Trinidad and Tobago, with close to 30 active labour unions and approximately 20% of the workforce represented by a labour union. The Industrial Relations Act (IRA) is the main piece of legislation governing labour relations. It provides for dispute resolution through an industrial court in instances where the issue cannot be resolved at the collective bargaining table or through conciliation efforts by the Ministry of Labour.

Additional legislation affecting the labour force includes the Minimum Wage Act, the Occupational Health and Safety Act, the Workmen’s Compensation Act, and the Maternity Protection Act. T&T has also ratified most key international conventions concerning child labour.

The main human rights concerns in Trinidad and Tobago are the prevalence of gender-based violence, particularly domestic violence and abuse and access to justice. The court system is overwhelmed and there is a backlog of cases, which leads to long periods of remand and prison overcrowding. Prison conditions are harsh and may impact on inmates’ health, though generally, prison conditions for women are better than for male prisoners. The death penalty remains on the statute but has not been implemented since 1999.

In 2018, the Trinidad and Tobago High Court made a ruling on Sections 13 and 16 of the Sexual Offences Act. The ruling effectively indicated that criminalising private, consensual adult sexual behaviour was unconstitutional. Though the government of Trinidad and Tobago has lodged an appeal in the Privy Council, there is currently no criminalisation of same-sex relationships. However, there is also no formal protection against discrimination on the grounds of sexual orientation and attitudes remain conservative. Immigration laws technically prohibit LGBT+ people, who are not citizens, from entering the country. Though this legislation is not known to have ever been enforced.

4. Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership to bribe anywhere in the world. In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere. View the Bribery Act 2010.

Bribery is illegal in Trinidad and Tobago under the Prevention of Corruption Act (PDF, 74 KB). However, allegations of bribery, corruption and lack of transparency in procurement processes are widespread, especially in the public sector. In Tobago, there have been a few cases of property fraud.

In 2023, Trinidad and Tobago ranked 77 out of 180 countries in the World Transparency International Corruption index. The government has publicly committed to eradicating corruption in the public service and has taken some concrete steps such as high-level prosecutions, full proclamation of public procurement legislation and passing new legislation on unexplained wealth.

Visit the Business Anti-Corruption portal page providing advice and guidance about corruption in overseas markets.

5. Terrorism

Terrorist attacks in Trinidad and Tobago cannot be ruled out. Attacks could be indiscriminate, including in places visited by foreigners. Read the information provided on the terrorism page of FCDO Travel Advice.

6. Protective security/organised crime

There is a high level of drugs and gang-related violent crime in Trinidad. Like other Caribbean nations, Trinidad and Tobago is a transhipment point for illegal drugs and guns and a hub for money-laundering and organised crime. The murder rate is the second highest in the Caribbean (after Jamaica) and one of the highest per capita murder rates in the world. Incidents are concentrated in the inner city neighbourhoods east of Port of Spain’s city centre, but can occur in other areas.

The 2022 Trafficking in Persons Report lists Trinidad and Tobago under a Tier 2 Watch List citing that the Government of Trinidad and Tobago does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so. These efforts included increasing investigations and prosecutions, identifying more victims, and expanding training to a broader range of stakeholders.

Organised crime activity in Trinidad and Tobago does not generally pose a threat to foreign business interests. Most visits are trouble free, but tourists (including British nationals) have been robbed. The inability of the authorities to catch and prosecute offenders remains a concern. Incidents of violent crime in Tobago are rare. Read the information provided on our Organised crime and our Protective security advice pages.

The Centre for the Protection of National Infrastructure also provides protective security advice to businesses.

7. Intellectual property

Laws on Intellectual Property (IP) have been the subject of reform in order to bring existing legislation in line with international developments and to improve the conditions for trade and investment. Trinidad and Tobago is now a party to several international conventions on intellectual property and is also a member of the International Union for the protection of Intellectual Property and is a participating member of the World Trade Organisation (WTO).

Read the information on our intellectual property page.

IP rights are territorial, that is they only give protection in the countries where they are granted or registered. If you are thinking about trading internationally, you should consider registering your IP rights in your export markets.

8. Contact us

For businesses wishing to follow up on enquiries in the Trinidad and Tobago market, email: ExportSupport.LATAC@fcdo.gov.uk

9. Useful links

• DBT guidance on doing business with Trinidad and Tobago
• Exporting guide to Trinidad and Tobago