GEISHA KKOWLESSAR-ALONZO
Trade between T&T and the UK continues to flourish as total trade in goods and services (exports plus imports) was £691 million in the four quarters to the end of Q2 2022, an increase of 65.3 per cent or £273 million from the four quarters to the end of Q2 2021.
This according to the Trade and Investment Fact sheets which provides the latest statistics on trade and investment between the UK and T&T and was released November 18, 2022.
In giving a breakdown, the document further explained of this £691 million total UK exports to this country amounted to £191 million in the four quarters to the end of Q2 2022 (a decrease of 32.7 per cent or £93 million compared to the four quarters to the end of Q2 2021).
However, total UK imports from this country amounted to £500 million in the four quarters to the end of Q2 2022 (an increase of 273.1 per cent or £366 million compared to the four quarters to the end of Q2 2021).
The report further noted of all UK imports from T&T and in the four quarters to the end of Q2 2022, £339 million (67.8 per cent) were goods and £161 million (32.2 per cent) were services.
In the same period, UK imports of goods from this country increased by 189.7 per cent or £222 million compared to the four quarters to the end of Q2 2021 while UK imports of services from T&T increased by 847.1 per cent or £144 million compared to the four quarters to the end of Q2 2021.
Top services traded with the world not solely the UK, by T&T included travel, transport, insurance and pension services, other business services and charges for the use of intellectual property.
Meanwhile, CEO of the T&T Coalition of Services Industries (TTCSI) Vashti Guyadeen has welcomed the report, noting the significant potential for trade in services between both countries.
“It illustrates a demand for services in the UK. We now need to drill deeper to identify what sub sectors within services are in high demand and then develop the relevant strategic plans to grow these firms.
“TTCSI has been working assiduously over the past four years to develop a cadre of services exporters,” Guyadeen explained.
She said while the fact sheet did not provide information on the sub sectors, TTCSI’s research indicated certain areas are in demand including animation, business and professional services, cultural and creatives as well as travel and tourism services.
Regarding animation Guyadeen noted that in September 2022, the TTCSI held this country’s first inaugural services roundtable where Jason Lindsay of Full Circle Animation had said with a global market value projected reach of US$391 million for 2022 – five per cent increase from the year prior-the digital animation industry presents a significant global service export opportunity and increased employment for people between 18 to 35 in T&T.
However, the potential foreign exchange earnings and economic diversity from this industry may be lost if it is not institutionally supported and further developed locally. Guyadeen further explained the animation industry is technology-driven, encompassing borderless trade and is youth-driven, ideally suited for a small island economy.
“It therefore, presents perhaps one of the best opportunities for T&T to navigate challenging economic times ahead and build a future-forward digital industry locally.
“However, for this industry to accelerate it is critical to activate the cultural provisions of the EU-CARIFORUM Economic Partnership agreement (EPA). T&T has similar arrangements with the UK,” Guyadeen added.
She also advised that activation of these provisions in the trade agreement can open local animation to preferential access to a massive audiovisual market in the EU.
This, she said, will generate additional foreign exchange locally and attract more private sector investment into the industry.
The Business Guardian also reached out to the Trade Ministry which agreed that the UK is a significant trading partner to this country.
In a emailed response the ministry said the signature of the CARIFORUM- UK Economic Partnership Agreement in 2019 further strengthened the trading relationship as it not only maintained and preserved the preferential access for local goods and services but also provided significant opportunities for manufacturers and service suppliers to grow.
“The increase in trade between the two countries is evident through the data,” the ministry added.
It said while the increase in exports to the UK is mainly attributable to the increased export of methanol and ammonia, T&T has also experienced increased levels of non-energy exports from $86.9 million in 2019 to
$91.5 million TT in 2021.
According to the ministry the top non-energy products exported were aromatic bitters, pipe fittings, cereals, soft drinks and rum.
The Ministry of Trade added that it remains committed to maintaining a favourable trading relationship between T&T and the UK.
Sidebar
Trade in goods by commodity
The top five goods exported from the UK to T&T in the four quarters to the end of Q2 2022 were:
Refined oil (£48.5 million or 32.1 per cent of all UK goods exported to T&T)
Other chemicals (£10.6 million or 7.0 per cent)
General industrial machinery (intermediate) (£7.0 million or 4.6 per cent)
Miscellaneous metal manufactures (£6.1 million or 4.0 per cent)
Cars (£4.7 million or 3.1 per cent)
The top five goods imported to the UK from T&T in the four quarters to the end of Q2 2022 were:
Gas (£208.6 million or 61.5 per cent of all UK goods imported from T&T)
Crude oil (£72.2 million or 21.3 per cent)
Organic chemicals (£34.6 million or 10.2 per cent)
Processed fertilisers (£15.1 million or 4.5 per cent)
Miscellaneous foods (£3.0 million or 0.9 per cent)
BOX
In the four quarters to the end of Q2 2022, T&T was the UK’s:
• 94th largest trading partner (accounting for less than 0.1 per cent of total UK trade).
– 81st largest goods trading partner (0.1 per cent of UK goods trade).
– 106th largest services trading partner (less than 0.1 per cent of UK services trade).
• 105th largest export market (accounting for less than 0.1 per cent of total UK exports).
– 89th largest goods export market (less than 0.1 per cent of UK goods exports).
– Joint 130th largest services export market (less than 0.1 per cent of UK services exports).
• 86th largest import market (accounting for 0.1 per cent of total UK imports).
– 73rd largest goods import market (0.1 per cent of UK goods imports).
– Joint 86th largest services import market (0.1 per cent of UK services imports).