Legislation being drafted against price-gouging

Officials from the Ministry of Trade, Investment and Tourism and the Ministry of Agriculture and Fisheries at the Joint Select Committee meeting on December 5. - Photo courtesy OTP

THE Consumer Affairs Division currently has no power to penalise businesses for price-gouging, but the Ministry of Trade, Investment and Tourism says legislation to change that is in the works.

The issue surfaced during a meeting of the Joint Select Committee (JSC) on Finance and Legal Affairs, which examined how trade policy could strengthen Trinidad and Tobago’s food security and reduce the country’s rising food import bill.

Committee chair Dr Marlene Attzs and members Brian Manning and Vishnu Dhanpaul pressed ministry officials on escalating grocery prices, a persistent concern for consumers.

Asked whether the removal of taxes and duties on imported food translated into lower retail prices, Director of Trade Facilitation Neville Alexander said the ministry tracks pre and post measure prices but can offer only guidance – not enforcement.

“It does and it should,” he said of the expected price reductions.

“We monitor the prices before the measure and after the measure. What we do is inform the population, ‘Listen, the prices should have been affected by the measures government has taken, so you should see some savings.’

“So if you’re not seeing those price savings, save elsewhere. Do not shop with these guys. This is the approach we have at the moment at our disposal.” Attzs noted the absence of legal penalties leaves consumers wanting.

Legal Unit director Candice Hicks said the ministry is “working on consumer protection legislation,” which is still at the bill stage. “It is anticipated this may have a penalty system and framework which would address these issues raised,” she said.

“We’ve placed it at the top of our legislative agenda, which has been submitted for consideration. Of course, we don’t have the parliamentary clout to say when it would be tabled.”

Hicks said the ministry hopes to complete its part of the process by the first quarter of 2026, so the bill is ready when Parliament calls for it.

Attzs said consumers are likely to welcome legislation that finally gives the division enforcement powers. Permanent Secretary Abigail Bynoe added that the law would require additional staffing and possibly a restructuring of the division to handle investigations and enforcement.

The committee also examined why consumers often see little relief at the supermarket after taxes and duties are removed. Acting Chief Technical Officer at the Ministry of Agriculture and Fisheries, Dr Ian Mohammed, said importers frequently cite external shocks to justify high prices.

“We don’t know if that’s an excuse being used by the people who import the items, but that drives the cost,” he said. “So, where you might take away (taxes and duties) or hope it reduces prices, there are other costs that are maintained that will still keep the goods high.”

Bynoe referenced a Food and Agriculture Organisation report estimating the annual cost of a healthy diet in TT at US$2.78 billion. She said TT’s food import bill stands at US$1.08 billion, while exports total about US$500 million. But she stressed that many imports are raw materials essential for local production.

“These inputs support higher value-added manufacturing and contribute to increased foreign exchange earnings through exports,” she said. “For example, in the poultry industry, imports such as hatching eggs and feed, although listed on the food import bill, enable a sector that not only satisfies the local market but also exports a significant value.”

She said the ministry aims to increase revenue from non-energy exports by an annual average of US$1 billion over the next five years.

Acting Permanent Secretary at the Ministry of Agriculture and Fisheries, Michelle Ann Thomas, said the government is targeting a $2 billion reduction in the food import bill while increasing exports by $1 billion. Achieving those goals, she said, will require modernising farming practices, investing in infrastructure and water management, improving farmer security and reducing agricultural crime, as well as reviving strategic agricultural industries and expanding value-added production.