Economist Vaalmikki Arjoon believes that Prime Minister Kamla Persad-Bissessar should use her meeting with US President Donald Trump on March 7 to discuss areas like energy and foreign direct investment (FDI).
Persad-Bissessar was invited by the US President to attend the Shield of the Americas summit in Doral, Florida, signalling deepening engagement between Port-of-Spain and Washington.
News of the invitation emerged after her private meeting with US Secretary of State Marco Rubio on the sidelines of the 50th Caricom Heads of Government meeting in Basseterre, St Kitts last week.
She said the topics that will be discussed include security, trade and prosperity.
In an interview with the Business Guardian, Arjoon said the US is not only T&T’s largest trading partner, but also a key source of FDI and the country’s principal correspondent banking link, making the relationship central to the country’s economic stability.
“As Washington recalibrates its energy partnerships, supply chains and regional security, high-level engagement of this nature carries real strategic weight. The Prime Minister deserves credit for securing this meeting and is likely to advance an agenda spanning energy, investment and security cooperation, which can firmly position T&T as a valued and reliable partner within Washington’s Caribbean strategy.”
He said this meeting is a pivotal opportunity to position T&T not only as a reliable strategic energy partner for the US, but as a country whose gas development strategy is aligned with the broader regional energy security framework of the US.
“This can be realised in several ways. For instance, encouraging greater participation by US energy firms in our bid rounds, particularly in deepwater acreage where capital, technology and risk appetite are critical,” said Arjoon.
To support this, he said it is important for T&T to enhance the competitiveness of T&T’s fiscal framework by offering targeted upstream incentives like accelerated capital allowances, performance-based royalty structures, investment tax credits for marginal fields, and streamlined cost-recovery mechanisms that improve project economics without eroding long-term state value.
“At the same time, US diplomatic influence and financial support can potentially help crowd-in credible operators and investors for the refinery and its associated infrastructure, restoring downstream capacity in a commercially viable way. Indeed, the refinery could evolve into a strategic regional asset, anchored by a secure crude supply arrangement from Venezuela, and firm product offtake agreements that ensure stable and predictable revenues.”
He added that there is also scope for structured US backing in securing not only cross-border natural gas fields, but also stranded oil fields in Venezuelan territory within the Gulf of Paria, that already have some infrastructure.
“While they may not be viable for larger operators, they could be developed by T&T entities such as Heritage. Bringing these barrels into production would also support refinery throughput when it re-opens and help enhance energy security for the region,” said Arjoon.
He said central to this, however, is regulatory certainty: multi-year special Office of Foreign Assets Control (OFAC) licences for cross-border engagement, clear compliance parameters, comfort letters where appropriate, and a predictable approvals framework that reduces uncertainty. With this in place, US capital can flow more confidently into T&T’s upstream and downstream sectors.
He also spoke about possible opportunities to discuss ways of solving T&T’s foreign currency shortage crisis.
“This meeting may also present an opportunity to explore securing a foreign exchange boost through a liquidity swap line or currency swap. Under such an arrangement, the Central Bank would temporarily exchange TT dollars for US dollars with the Federal Reserve or another US facility, with an agreement to reverse the transaction at a future date.”
He gave more details on how it could be done.
“For example, if T&T secured a US$1 billion swap line, T&T’s Central Bank could draw on some of those US dollars during periods of heightened FX pressure to supply the market and ease delays in accessing foreign currency. While this would not solve the structural foreign exchange imbalance, it would provide a stabilising buffer and help reduce uncertainty.”
Manufacturing should be another area that T&T and the United States should focus on, the economist said.
“Another strategic area the Prime Minister can advance is nearshoring and manufacturing integration. As the US reduces its dependence on Asian supply chains and seeks closer, more reliable production partners, we can position ourselves to benefit from this shift. For instance, light assembly products such as electrical components or small machinery parts could be partially assembled in T&T before being shipped to the US market. If we combine targeted tax incentives with efficient customs procedures, faster approvals, and stronger digital infrastructure, US firms would see T&T not as a small domestic market, but as a stable and convenient platform serving the wider Caribbean and parts of the Americas.”
Former trade minister Vasant Bharath told the Business Guardian when Persad-Bissessar meets President Trump on March 7, the value of that encounter to T&T will not be measured in photo-ops or diplomatic pleasantries. It should be measured in jobs, foreign exchange, export growth and investment flows for T&T.
He added that if this meeting is to matter economically, he expects the following issues to be addressed.
“Firstly energy. Whether we like it or not, T&T is still an energy economy. Our LNG, methanol and ammonia exports depend heavily on US markets and US-linked financing systems. The Prime Minister should press for long-term offtake stability and policy clarity regarding US licensing frameworks that affect cross-border Venezuelan gas projects.”
He said regulatory uncertainty in Washington leads directly to revenue uncertainty in Port-of-Spain and that clear signals from the White House can unlock stalled investments and stabilise foreign exchange inflows.
“At the same time, the discussion should not be limited to upstream gas. US capital and technology can help rebuild downstream capacity, deepen value-added petrochemicals and expand energy services. If we are serious about earning more from every molecule we produce, this is the moment to align policy with partnership.”
On the topic of the Caribbean Basin framework, he said it has long provided preferential access to the US market.
“But preference without modernisation is stagnation. T&T needs updated trade facilitation measures — faster customs processing, mutual recognition of standards, and reduced non-tariff barriers eg phytosanitary certification especially for manufactured and agro-processed goods. Energy alone cannot carry long-term growth.”
He also said if Washington is serious about near shoring and supply-chain resilience, then T&T is strategically positioned.
“We are English speaking, energy-secure, geographically close and industrially experienced. T&T can offer special economic zones, logistics capacity and an educated workforce. But investors require certainty—in taxation, regulation and foreign exchange access. The Prime Minister should make the case that T&T is not merely a beneficiary of US trade policy but a reliable production partner within it.”
Thirdly, he said T&T’s food import bill remains a significant vulnerability.
“Collaboration with the United States in agri-technology, climate-resilient farming and export certification systems could raise rural incomes while reducing import dependence. Preferential or zero-tariff treatment on key agricultural exports should be secured and expanded. Diversification cannot be rhetorical, it must be commercial.”
Fourthly, he said businesses in T&T continue to struggle with limited access to US dollars.
“While no US president can solve our structural imbalances, closer financial cooperation — including trade financing support, credit guarantees and fintech collaboration can ease liquidity pressures and lower transaction costs for exporters. In an economy constrained by foreign exchange shortages, even marginal improvements have multiplier effects.”
Beyond bilateral gains, Bharath this meeting is also about positioning T&T as a credible regional economic leader within Caricom.
“If Port-of-Spain can serve as a bridge between Washington and the wider Caribbean on energy security, infrastructure and digital development, the benefits extend well beyond our shores.”
