Trade Ministry moves to keep food, medicine prices down

THE Trade, Investment and Tourism Ministry says Cabinet has approved the continued suspension and variation of the Common External Tariff (CET) on a range of basic food items, public health supplies and additional products for a further two-year period, from January 1, 2026 to December 31, 2027.

The ministry made this announcement in a statement on January 9.

The ministry also said Cabinet approved the continuation of an increased rate of duty on imported pasta to support local manufacturing.

"The measure is aimed at maintaining affordable prices for consumers, particularly vulnerable households, while supporting domestic manufacturers by reducing the cost of imported raw materials and essential inputs."

The ministry said, "The CET suspensions underscores the government’s commitment to food security and affordability, improvements to public health and driving economic diversification."

The ministry added, "The CET will remain suspended, allowing a zero per cent rate of duty, on a list of basic food items, including infant formula and various canned fish and meat products"

These items, the ministry continued previously attracted duties of up to 20 per cent.

"The suspensions, which have been in effect since 2009, continues to mitigate the impact of rising food prices and prevent cost increases for consumers." The Council for Trade and Economic Development was in government in 2009.

The ministry said Cabinet also approved the continuation of the suspension and variation of the CET on a list of additional products, including refined sugar, edible oils, frozen French fries, powdered milk, sulphonic acid, personal protective equipment (PPE), and wires and angles of non-alloy steel.

"These measures support the competitiveness of locally manufactured products, promote the use of safety products, reduce the cost of construction materials and support the creative industry."

The ministry said the CET will also remain suspended on a list of public health supplies, allowing a zero per cent rate of duty on items used in the prevention and control of mosquito-borne diseases such as malaria, dengue, yellow fever, chikungunya and zika, as well as in critical medical procedures.

This action is in place to safeguard the public’s health and is fully supported by the Health Ministry.

The ministry said Cabinet approved the continuation of the 60 per cent rate of duty on pasta, first introduced in 2020 to support the local manufacturing industry.

The PNM was in government in 2020.

Since its implementation, the ministry continued, imports have declined by 49 per cent, while domestic production and exports have increased by 42 per cent with no evidence of price gouging.

"This measure results in foreign exchange savings."

The ministry said these decisions were taken after consultations with key stakeholders such as the TT Manufacturers Association (TTMA) and the TT Chamber of Industry and Commerce (TTCIC).

The ministry added, "Where required, approval will be sought from the Council for Trade and Economic Development (COTED) in accordance with Caricom rules."