TT Chamber calls for radical reforms to boost productivity

TRINIDAD and Tobago can learn a lesson or two from Panama – the most productive country in the region – where data drives decisions impacting the economy.

So said Vashti Guyadeen, CEO of the TT Chamber of Industry and Commerce, who called for radical reforms to boost productivity at the chamber’s annual post-budget discussion, held at Hyatt Regency, Port of Spain, on October 1.

Guyadeen identified two key areas for economic transformation: increasing productivity and the strategic use of data.

She highlighted Panama’s success as a model for productivity, noting that the country generates US$45 per hour worked, according to UNECLAC's 2024 report.

Guyadeen attributed this to Panama’s use of Special Economic Zones (SEZs), which have helped the country attract foreign investment and promote industrial diversification.

"Here in TT, (the chamber) fully supports the implementation of SEZs, recognising their potential to spur economic growth, boost productivity, and create a multiplier effect across various sectors."

She noted that while TT lags with only 18 per cent productivity growth, implementing SEZs could have a similar positive impact locally.

However, she warned that productivity alone isn't enough.

"We must complement productivity with broader economic reforms to attract global investors."

Guyadeen stressed that TT must adopt a culture of data-driven decision-making across all sectors, saying data was "the new currency."

Finance Minister Colm Imbert highlighted the July 2024 implementation of the SEZ Act as a major step toward boosting TT's attractiveness as a business destination.

SEZs will benefit from a reduced corporation tax rate of 15 per cent, exemptions on customs duties and VAT, and streamlined regulatory approvals to enhance ease of business.

He noted government’s approval of eight sites as SEZs, in accordance with the act, including the Phoenix Park Industrial Estate; Dow Village Industrial Estate; Factory Road Industrial Park; Debe Industrial Park; Point Fortin Industrial Park; Tobago Cove Eco-Industrial and Business Park.

At the post-budget discussion, Guyadeen praised the government’s work with the International Trade Centre to develop a National Trade Strategy, but called for further efforts to integrate data analytics in both the public and private sectors.

Guyadeen highlighted Namdevco's National Agricultural Market Information System, as an initiative that could revolutionise decision-making in agriculture.

She said the chamber, through its Food Security, Agriculture and Fisheries Standing Committee, is prepared to collaborate with Namdevco to ensure the private sector uses this data.

Guyadeen suggested TT could emulate the Netherlands, which transformed its agricultural sector into a global leader by fostering innovation among small and medium enterprises (SMEs).

Export development can also be greatly enhanced. She noted that a data-driven approach would allow for more effective targeting of resources to ensure firms are better positioned to compete in international markets.

She called for data to become a central component of national budget processes, enabling more informed decisions to enhance productivity and drive sustainable growth.

"The future belongs to those who can turn data into actionable insights," she said, urging members and the government to collectively focus on innovation and competitiveness to secure TT's economic future.