Trinidad & Tobago: A General Business Law Overview
Trinidad and Tobago (“T&T”) underwent a change of government (“GORTT”) following an early general election held on 28 April 2025 and since then there have been several notable shifts in policy from that of the prior regime. Most significantly, the Minister of Energy has reportedly placed the restart of the Pointe-à-Pierre oil refinery (which has been shut down for more than seven years) at the centre of GORTT’s international energy strategy, with discussions underway with various Indian energy companies.
Recent analysis by the International Monetary Fund (IMF) suggests that modest growth is projected in the near future, with real GDP expected to expand by around 0.7% in 2026. This follows a slow rebound in 2025, when the economy grew by approximately 0.8%, driven largely by non-energy sectors. Despite this gradual uptick, inflation is projected to remain low and stable, averaging near 2%. The current account balance is also expected to stay positive, though foreign exchange shortages and fiscal pressures continue to test macroeconomic resilience and familiar structural challenges persist in the economy, especially in the energy sector.
The energy sector which has historically been the backbone of T&T’s economy is at a critical juncture. Oil prices assumed in the 2026 national budget are notably lower than in previous years, reflecting persistent volatility in global energy markets. Though the sector’s contribution experienced a gradual reduction as upstream production dynamics shift and global prices fluctuate, the sector still accounts for a substantial share of export revenues and GORTT receipts. Natural gas output remains central with natural gas production achieving a moderate increase in 2025 over 2024 due to new offshore gas projects coming online. The announced decommissioning of Atlantic LNG’s Train 1 in January 2026 is, however, demonstrative of the need for a more aggressive ramping up of natural gas production and supply. A recent significant natural gas price increase for domestic light industrial and commercial users (about 1.2% of the overall domestic natural gas customer base) has also caused concern in T&T’s manufacturing sector.
On the positive side, several new projects and partnerships offer long-term promise. Deepwater offshore blocks were opened for bidding in 2025 and attracted bids on four blocks from new foreign investors, and collaborative ventures with regional neighbours including Guyana, Venezuela, Suriname and Grenada are gaining momentum. In August 2025, ExxonMobil was granted a production sharing contract for the Ultra Deep 1 (“TTUD-1”) offshore block, a consolidated ultra-deepwater area covering more than 7,100 square kilometres. This award marked ExxonMobil’s return to T&T’s upstream sector after more than two decades and was followed by ExxonMobil rapidly progressing to the seismic exploration stage in Q1 2026. The recent issuance of OFAC General Licences 49 and 50 by the US government provides optimism surrounding the resumption of cross-border gas projects with Venezuela, including the Dragon Gas project by Shell/NGC, Shell’s Manatee project and bpTT’s Cocuina field, potentially unlocking new gas supplies for LNG and petrochemical exports. Other major upstream projects such as bpTT’s Cypre and Ginger projects, EOG/bpTT’s Mento and Coconut projects and Woodside Energy/bpTT’s Calypso project are also being progressed. Perenco’s recent acquisition of mature assets from bpTT and Woodside Energy is also expected to increase output. These additional supplies of gas will be welcomed as T&T strives to maintain its position as a critical supplier of LNG to global markets. How T&T balances investment in traditional hydrocarbons with diversification and structural reform will be central to its economic trajectory in the years ahead.
As T&T moves toward the global energy transition, the reduction of greenhouse gas emissions and adoption of low carbon technologies continue to play an important role and GORTT remains committed to renewable energy projects with a goal of reducing emissions by 15% by 2030. GORTT has unveiled plans to finalise a Renewable Energy Policy and solar, wind and green hydrogen initiatives remain on the energy transition agenda. Additionally, efforts are being made to improve energy efficiency in industrial sectors and residential areas, supported by initiatives for adopting renewable technologies.
Expenditure on infrastructure and social priorities continues to occupy a large share of the national budget. Efforts to diversify the economic base through expanding services, improving the business environment, and stimulating non-energy exports are underway but are likely to yield more medium-term gains than immediate transformation.
The most notable plan for diversification is perhaps GORTT’s launch of the Revitalisation Blueprint in November 2025, which is aimed at transforming the nation into a global logistical hub and reducing dependence on the energy sector. The blueprint seeks to achieve economic diversification over a ten-year period, focusing on infrastructure development, tourism, innovation and support for small and medium-sized entities. It involved some 129 projects across 12 development nodes, including a major redevelopment of the Port of Spain and San Fernando waterfronts, the construction of luxury resorts to increase tourism, industrial and manufacturing hubs, transport and logistical infrastructure expansion and the development of a national security complex as a command centre for the Police Service, Defence Force, Coast Guard, Fire Service, and Immigration Division. As at February, 2026 the Revitalisation Blueprint is reported to have attracted 965 expressions of interest from local and international investors, including companies from the USA, the UK, France, China, the Netherlands, India, Peru, South Africa and Belgium.
Fiscal balances remain tight and GORTT deficits in recent fiscal years have been significant, with public debt ratios rising and foreign exchange pressures weighing on policy flexibility.
In an effort to increase revenue, GORTT has introduced several measures including an asset levy of 0.25% effective 1 January 2026, charged against the assets of commercial banks and insurance companies operating in T&T except those operating under the provisions of the Special Economic Zones Act.
GORTT has also introduced a landlord business surcharge charged on actual rental income at the rate of 2.5% of the gross annual rental income of TTD20,000.00 or less and at the rate of 3.5% of the gross annual rental income exceeding TTD20,000.00.
There have also been significant increases in customs duties for rum, spirits, beer and tobacco products. These measures have already been reported to have caused a decline in T&T’s alcohol and beverage sector performance.
Notably, GORTT has repealed the Trinidad and Tobago Revenue Authority Act (the “TTRA Act”) enacted by the previous administration establishing the Trinidad and Tobago Revenue Authority (“TTRA”) which was intended to replace the Board of Inland Revenue and other governmental tax departments such as the Customs and Excise Division with responsibility for the administration and enforcement of revenue laws including the assessment and collection of taxes. GORTT has instead signalled its intention to strengthen and equip the existing institutions in order to broaden the tax base and enhance revenue collection.
In February 2026, T&T was officially removed from the European Union’s list of non-cooperative jurisdictions for tax purposes. The EU’s decision comes after years of sustained reforms by T&T to strengthen transparency, align domestic laws with internationally agreed tax standards, and improve mechanisms for exchanging tax information with other jurisdictions. The move marks a significant boost to the country’s international reputation, potentially enhancing investor confidence, reducing compliance risks for local businesses engaging with European partners, and improving access to global financial markets. It reflects both GORTT’s commitment to fair tax practices and broader efforts to integrate T&T more fully into the global economic system.