IV.  Political environment

The United States enjoys excellent relations with the republic of Trinidad
and Tobago.  Political issues affecting the business climate include trade
union opposition to the GOTT's program of structural adjustment and
divestment, an increase in crime, an economic growth imperative for the
government in order for it to win parliamentary elections due in 1996, and
the strains of continued economic reform.

Trade unions, which have influenced the political game throughout
Trinidad's history, have consistently opposed the lay-offs and
retrenchments which inevitably came with divestment of national
companies.  Radical opposition to GOTT's policies is not widely supported,
however, due to a general realization that economic reform is necessary and
state-supported entities are no longer viable.

Crime, which has increased threefold since 1990, is a serious problem for
the Manning government.  Part of the problem may lay in T&T's more active
role as a narcotics transshipment point between South and North America
and in unemployment.  The GOTT is acutely aware of its need to make
measurable progress against crime, and in 1994 developed a broadly-
structured program for combatting it.  In general, the incidence of crime
in Trinidad and Tobago is lower than that found in most large US cities.

Political system and major parties:

Trinidad and Tobago has a democratic, parliamentary form of government,
with an active opposition, based on the Westminister model.  The country
was granted independence from the United Kingdom on August 31, 1962.  On
September 24, 1976, Trinidad and Tobago adopted a new constitution
establishing it as a republic within the British Commonwealth.  The queen
was replaced as head of state by a president elected by parliament for a
five-year term.

Major governmental institutions, based on the British model, remain
essentially the same as set out in the 1962 constitution.  They include:  a
cabinet (currently 19 ministers) appointed and headed by a prime minister;
a bicameral parliament, which has a maximum five-year term, consisting of
a 36-member elected house of representatives and a 31-member senate
appointed by the president; and a judicial system with a court of appeals
as its highest level.  Final appeals within the judicial system may be made
to the judicial committee of the British Privy Council in London.

With the exception of the period from 1986 through 1991, Trinidad has been
governed since 1962 by the People's National Movement (PNM).  From 1986
through 1991, the government was controlled by the National Alliance for
Reconstruction (NAR), a coalition of traditional opposition parties.  In the
current legislature, the PNM controls 21 of the 36 seats in the House of
Representatives.  The United National Congress, which controls 13 seats,
leads the opposition.