Tariffs suspended on baby food, staple foods

SALTED pollock, baby food and cheddar cheese are some common food items on the receiving end of the continued suspension of the Caricom common external tariff (CET), after the 57th meeting of the Council for Trade and Economic Development (COTED), in Georgetown, Guyana, last month.

COTED, the Caricom body responsible for promoting trade in goods and services, and sustainable economic development, hosted the meeting on November 27-28.

The Ministry of Trade and Industries (MTI), led by MTI acting permanent secretary Randall Karim, led TT's delegation, which also included representatives of several ministries, agencies and the private sector.

At COTED, TT's proposals for the suspension of the CET on various products for a year, January 1-December 31, 2024, were approved.

The CET was removed on other basic food items such as black tea, corned beef, pasta, canned fish and active yeast.

The MTI issued a media release on the delegation's return, saying, "The suspension of the CET on these items is intended inter alia to maintain lower prices for consumers during these inflationary times."

The MTI said the average annual revenue foregone, resulting from the suspension of the CET on these items, from 2020-2022 is estimated at $27.3 million.

It said approval was also granted to suspend the CET on a list of public health supplies, such as gas masks and waterproof boots, "which are intended to promote industrial safety."

Suspension of the CET was also approved to increase the rate of duty on cement to 20 per cent, to protect the domestic cement and construction industries.

The request, it said, was informed by consultations by the MTI, with the TT Chamber of Industry and Commerce, the TT Manufacturers’ Association (TTMA) and the TT Contractors Association (TTCA).

"Notably, the TTCA indicated its support for the continued suspension of the CET on Cement at 20 per cent, citing that cement is a critical input material in the construction sector and contributes to employment and foreign exchange generation, and as such there is a need for continued local manufacturing of high-quality cement," MTI wrote.

"Regional trade ministers also deliberated on a number of matters pertaining to the promotion of the Caricom Single Market and Economy; trade in goods; and external economic and trade relations.

"Among these issues is the mergers and acquisitions policy which would seek to prevent market dominance by firms in the CSME and ensure that consumers are not negatively impacted by monopolistic prices," MTI said, adding that the development of a Caricom regional industrial policy was also discussed. The aim is to promote international competitiveness and the sustainable production of goods and services for the improvement of the region's economic and social development.