II. Leading trade prospects for US Business The following industry sectors have been identified as best prospects for US exports: Industry: Oil and gas extraction and processing equipment Computers and peripherals Most automotive parts and accessories US-made, right-hand drive cars Air conditioners and refrigerators Processed foods Security and safety equipment Drugs and pharmaceuticals Agricultural chemicals Agriculture: Wheat Rice Soybeans Corn Beef Hatchling chicks Details on each of the above identified best prospects are provided below: Industry 1. Oil and gas extraction, pipeline and processing equipment US exports are competitive in the oil and gas equipment sector. The petroleum industry represents 26 percent of the domestic economy, and demand for equipment will remain high due to continued exploration and discovery of new gas fields and the planned construction of a liquified natural gas plant. 2. Computers and peripherals Computerization of services, such as banking and record-keeping, in both the public and private sectors is increasing, thus creating a growing market for computer hardware and software. Competition from the UK and Asia is increasing. 3. Automotive parts and accessories Because of proximity to the US, distributors prefer US sources. 4. US-made, right-hand drive cars Japanese automobiles dominate the vehicle market in Trinidad and Tobago. A large market is believed to exist for US-made right-hand drive automobiles and parts, should they become available. In 1991 (the most recent year for which statistics are available), over 272,000 vehicles were licensed and registered in T&T. 5. Air conditioners and refrigerators US-made products are very competitive, but face strong competition from Asia, Mexico and a prominent local manufacturer. 6. Processed foods T&T has an active and successful food processing industry, but US processed foods will become more affordable for a larger percentage of the population when tariffs are further reduced on January 1, 1995. Most small markets and supermarkets display US food products along side those from the UK and Canada. 7. Security and safety equipment Sales of security equipment, in the form of fences, burglar and car alarms, and hardware for grillwork will increase because of increasing crime. 8. Drugs and pharmaceuticals Brand-name awareness and proximity to the US favor many US-made products. 9. Agricultural chemicals Agricultural chemical use is heavy throughout T&T. Caroni Ltd., the GOTT's sugar cultivating and processing company, has diversified into other agricultural products and is a large consumer of agricultural chemicals. Agriculture 1. Wheat The GOTT-owned National Flour Mills (NFM) imports US wheat under the USDA's Commodity Corporation's Export Credit Guarantee Program (GSM). In addition, the GOTT removed wheat flour from the negative list in may 1994. A license to import wheat flour is no longer required. 2. Rice T&T produces about 25 - 30 percent of the rice needed for domestic consumption and imports the rest from the US and Guyana. 3. Soybeans Soybeans imported from the US are crushed to produce soybean meal for animal feed and edible vegetable oil, which competes with locally-made coconut oil. 4. Corn Feed corn is imported for use by T&T's poultry industry. 5. Beef T&T is not competitive in beef production and has only a fledgling industry. There is a good market for high-quality US beef for restaurants and families that can afford to pay the premium price for beef. 6. Hatchling chicks T&T is nearly self-sufficient in poultry production and is an important importer of US baby chicks. Producers prefer US chicks because they are stronger and more resistant to disease than locally produced chicks. Also, producers find that mixing breeders improves the overall health of their stock.