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Office of Trade Negotiations
for
TRADE Matters…
                                 OTN Barbados Office
                                 1st floor, “Speedbird House”
                                 Independence Square
                                 Bridgetown BB1121
                                 BARBADOS

                                 barbados.office@crnm.org
                                 T (246) 430 1670
                                 F (246) 228 9528




                                 OTN Jamaica Office
                                 2nd floor, PCJ Building
                                 36 Trafalgar Road
                                 Kingston 10
                                 JAMAICA

                                 jamaica.office@crnm.org
                                 T (876) 908 4242/3922
                                 F (876) 754 2998




                  www.crnm.org
Trade and Everyday Life
                                                        Simply put, international trade happens when goods and services are sold
                                                        across international borders.

                                                        At the basic level, trade is necessary because it allows people within
                                                        countries to access resources, goods and services that are not produced
                                                        locally. Trade also helps people to acquire resources, goods and services
                                                        that are produced more cheaply by foreign producers than by local
                                                        producers

                                                        Beyond this, because international trade improves the circulation of global
                                                        resources, it also facilitates the generation of employment and business
                                                        opportunities, and helps reduce poverty and propel development.

                                                        International Trade matters. It affects our daily lives. The prices of the
                                                        goods and services we buy, the quality and quantity of employment
                                                        opportunities for present and future generations, the prospects for
                                                        attracting investment to our Region and the capacity of Caribbean countries
                                                        to improve wealth creation are all dependent on our trading relationships
                                                        with the rest of the world.

                                                        However, international trade is complex and can be affected by
                                                        international politics and the balance of world power among the trading
                                                        parties. It is therefore important to ensure that smaller, less developed and
                                                        more vulnerable countries derive practical and concrete benefit from their
                                                        trading relationship.

                                                        Individuals across the Region need to be aware of the importance of trade in
                                                        achieving improved standards of living, new opportunities for business and
                                                        employment and an overall improved quality of life.




The Caribbean Community
                                                                                                          The CARICOM Secretariat

                                                                                                          The CARICOM Secretariat is the principal

(CARICOM)                                                                                                 administrative organ of the Community and
                                                                                                          is headed by a Secretary General who is the
                                                                                                          Chief Executive Officer of the Community.


The Community
                                                        coordinating      economic     policies    and    Mission Statement:
The Caribbean Community (CARICOM), is                   development       planning;   devising     and
an organization of 15 Caribbean nations and             instituting special projects for the less-        To provide dynamic leadership and service
dependencies. CARICOM's main purposes are               developed countries within its jurisdiction;      in partnership with Community Institutions
to     promote        economic      integration   and   operating as a regional single market for         and groups, toward the attainment of a
cooperation among its members, to ensure                many of its members (Caricom Single               viable,   internationally   competitive   and
that    the         benefits   of   integration   are   Market);    and   handling    regional    trade   sustainable    Community,    with   improved
equitably shared, and to coordinate foreign             disputes. The secretariat headquarters is         quality of life for all.
policy.       Its      major     activities   involve   based in Georgetown, Guyana.

                                                                   www.crnm.org
The New Trade Environment
Rapid advancements in technology and communications
have helped the global community to become more
interconnected culturally, economically and politically.                     Trade liberalization and
The benefit has been that the world, more than ever
before, has the capacity to quickly exchange information,                 trade preference erosion
goods and services, innovation, labour resources and
capital across international borders. This process of
                                                                        have resulted in increased
exchange has also created a growing independence of                      competition to Caribbean
nation states.
                                                                                     exports in the
In   spite    of   this   interdependence,       the    outcome   of
participating in the international economic system has                        International market.
varied significantly for nations because of differences in
power, wealth, and capacity to use resources to realize
and sustain development. Relatively small population and



market size, limited financial resources and susceptibility            Cultivating external trading relationships is essential for
to natural disasters challenge the Caribbean’s ability to              the Caribbean to adjust to the challenges presented by
sustain economic development within the global economic                the external trade environment and to take advantages of
system.                                                                the opportunities. Through the development of external
                                                                       trade relationships, the Region will be best able to
There are current trends in international trade that                   negotiate the pace and intensity of trade liberalization.
present      challenges    to    development      for    developing    Furthermore, the Caribbean may better secure the
countries, such as those of the Caribbean. International               flexibility needed to attract and use technological
trade is currently characterized by acceleration of the                innovation,    labour   resources,     and    investment,   to
removal of barriers to trade (trade liberalization), such as           transform the capacity, efficiency, productivity and
taxes on imports upon entry into a country (tariffs), and              competitiveness of productive sectors.
limits on the quantity of goods that can be imported (quota
restrictions).     Another      characteristic   associated   with     External trade negotiations are therefore an indispensible
international trade is the erosion of privileges in the form           part of the      Regional Strategy to reposition their
of non-reciprocal trade preferences that facilitate duty               economies in the global economic system.
free or reduced duty access of some products from
developing countries, such as the Caribbean, to developed              The Office of Trade Negotiations (OTN) is charged with
country markets such as the United States and Europe.                  the    responsibility   of   helping    the    Caribbean    to
                                                                       competitively position itself in the global market place, in
Trade liberalization and trade preferences erosion have                order to maximize trade and development opportunities
resulted in increased competition to Caribbean exports on              for the long term benefit of the Caribbean people.
the international market. This has been the case, for
example, in the banana and sugar sectors. Caribbean
producers are therefore compelled to adjust, so that they
can continue to compete at global standards of efficiency,
productivity and quality.




                                                                             www.crnm.org
What is the OTN?
In the mid 1980s it became clear to the leaders of Caribbean governments
that external trade negotiations were going to be extremely important in
helping the Region adjust to the challenges of the changing international
environment. It was also apparent that these negotiations were essential to
enabling the Caribbean to advantage of development opportunities in areas
where the Caribbean may have potential competitive edge.
Given the Region’s limited human and financial resources, external negotiations had to be
approached in a coordinated, managed and systematic way to avoid use of these resources in an
inefficient an ineffective manner. It was considered necessary to create an organization whose
dedicated task would be to manage the negotiation process under direction of the Regional
Governments.


In recognition of these challenges, the Conference of the Heads of Government of the
Caribbean Community (CARICOM), formally established the Caribbean Regional Negotiating
Machinery (CRNM) in April 1997 to develop, coordinate and execute an overall negotiating
strategy for various external negotiations in which the Region was involved. At the behest of
the CARICOM Member States, who principally constituted CRNM’s membership, the CRNM also
represented the trade interests of the Dominican Republic and Cuba in specific negotiating
arenas.


The CRNM underwent restructuring in order to streamline the logistics of its core function with
                                                                                                         Director-General of the OTN,
operational and administrative systems of other related Community Organs, instruments and           H. E. Ambassador Gail S. Mathurin, CD
organizations.


Following a decision taken in March 12-13 2009 in Belize during the Twentieth Inter- Sessional
Meeting of the Conference of the Heads, the CRNM was incorporated into the Caribbean
Community (CARICOM) Secretariat as a Specialized Department. Subsequently, another decision
was taken by the Heads of Government during the 30th Meeting of the Conference of Heads of
Government of the Caribbean Community (CARICOM) held 2-4 July 2009 in Guyana, to rename
the CRNM as the Office of Trade Negotiations (OTN).


The CRNM, as the Office of Trade Negotiations of the CARICOM Secretariat, now has extended
responsibility for the coordination, development, and execution of negotiating strategies for all
Community external trade negotiations. The OTN is led by the Director General, Ambassador
Gail Mathurin, whose appointment was confirmed in July 2009.




                                                             www.crnm.org
The Mandate
The OTN is responsible for developing and maintaining a                 •       Facilitating the generation of national positions
cohesive and effective framework for the coordination and               •       Coordinating the formulation of a cohesive
                                                                                negotiating strategy
management of CARICOM’s external trade negotiation
                                                                        •       Leading negotiations where appropriate
resources and expertise. Our mission is to help Member
                                                                        •       Providing sound advice when required
States maximize the benefits of participating in global
trade negotiations by:




The Negotiations in Focus
The OTN engages in negotiations on four general levels:                          negotiations of the Free Trade Area of the
                                                                                 Americas. (FTAA). NB. These negotiations have

     •    Multilateral Level – This includes negotiations                        been dormant since 2003;

          within the World Trade Organization (WTO);                        •    Bilateral Level – This includes the negotiation of

     •    Inter-regional        Level   –   This   included   the                agreements    between     CARICOM    and    other

          negotiations     of     the   Economic     Partnership                 countries such as: Canada, Costa Rica, and the

          Agreement (EPA) with the European Union;                               Dominican Republic.

     •    The Hemispheric Level – This includes the




Structure and Functioning of the OTN
At all levels of negotiations, Trade and Foreign Ministers, their professional staff in Member State capitals, and their Representatives in
centres such as Brussels and Geneva, have played, and continue to play essential roles in the negotiating process. The OTN is involved
intimately in integrating these efforts in order to arrive at common regional negotiating positions.


The OTN management team is currently comprised of the Director-General, a Senior Director with overarching responsibility for technical
work of the organization, a Director of Technical Cooperation, Partnerships and Information responsible for relations with the donor
community and overall management of grant agreements.


The technical team consists of CARICOM nationals who are experts in various issues which are the subject of the negotiations. During a
negotiation, the mechanism designed to ensure coherence across the negotiating positions in several negotiating disciplines is a College of
Negotiators. A College comprises Lead and Alternate Lead Negotiators for each of the negotiating arenas who actually undertake the
negotiations under the overall coordination of the Dean of the College. Colleges meet periodically, and independently of a negotiation, to
review developments in the respective negotiating arenas, and to discuss future strategies. Some of the OTN’s technical staff members serve
alongside regional experts either as Lead Negotiators, or as Alternate Lead Negotiators within a College.


The governance structure established by the Heads of Government requires the OTN, as a Department of the CARICOM Secretariat, to report
to the CARICOM Council for Trade and Economic Development (COTED) which provides guidance the OTN, and defines its negotiating
mandate. The Director-General is also directly responsible to the Secretary-General of the CARICOM Secretariat.




                                                                    www.crnm.org
Heads of Government have approved the use of a broad consultation process in development and design of regional negotiating positions.
                                                      This process includes the following:




   Financing
   The OTN receives its financing from two (2) principal sources:

             •   Member State contribution which are considered as core financing;

             •   Donor contributions from international development partners (IDPs), which fund programme activities and
                 some staff.

   The OTN currently enjoys financial support from the following IDPs)

        i.       CIDA (Canadian International Development Agency)
       ii.       Commonwealth Secretariat (COMSEC)
     iii.        CDB (Caribbean Development Bank)
      iv.        DFID (United Kingdom (UK) Department for International Development)
       v.        The European Commission (EC) – Trade.COM and the European Development Fund (EDF)
      vi.        FES (Friedrich-Ebert-Stiftung)
     vii.        GTZ (Deutsche Gesellschaft fϋr Technische Zusammernarbeit)
    viii.        IDB (Inter-American Development Bank)
      ix.        Organization of American States (OAS)
       x.        USAID (United States Agency for International Development)
      xi.        Ad hoc bilateral support




    Challenges
    Representing the region’s external trade negotiating interests is important but challenging work.
    The OTN’s responsibility is confronted by institutional and negotiating challenges. These include:

             •   Responding in a timely manner to the technical requirements of negotiations, as this tends to require highly
                 specialized knowledge.

             •   Absence of relevant technical and statistical data in many countries

             •   Deploying limited regional human and financial resources to execute the mandate

             •   Ensuring that the particular problems which face the small regional economies are accommodated in new
                 trading arrangements.

    The OTN is assisted in endeavours to overcome these challenges through the contributions of regional member states,
    and through partnerships with a number of regional and international agents from several countries including Canada,
    Europe and the United States.
                                                              www.crnm.org
Achievements
 Notwithstanding these challenges there have been a number of achievements accomplished over the years. The OTN
 has

         •   Helped forge trans-regional alliances with Latin American and African countries in external trade negotiating
             arenas.

         •   Attained considerable success in advancing bilateral negotiations within its mandate

         •   Become more user-friendly, consultative and responsive to a variety of stakeholders in order to better
             facilitate member countries in the process of strategic global repositioning.




Mattering more to the Community
OTN is proud of the progress made since inception. Through OTN’s Communications Outreach Program stakeholders
across the region have not only been sensitized to the regional challenges of development but have also been educated
about the opportunities and potential for regional development in the international trading environment. In particular,
the Private Sector Outreach programme has been instrumental in helping to improve the knowledge of the private
sector about trade negotiation issues. The program has helped to build the private sector’s confidence to participate
more actively in the shaping of external trade policy.


Additionally, the OTN through training internships has contributed to the development of a cadre of professionals over
the years. Through improving human capital, the OTN is continuing to assist the region in overcoming its limitations to
secure the future of regional development.




Member States
The OTN represents the following member states of the Caribbean Community (CARICOM) and the Republic of Cuba.


Antigua and Barbuda                               The Barbados                            Barbados
Belize                                            Commonwealth of Dominica                Grenada
Cooperative Republic of Guyana                    Republic of Haiti                       Jamaica
Fed. Of St. Christopher (Kitts) and Nevis         St. Lucia                               St. Vincent and the Grenadines
Republic of Suriname                              Republic of Trinidad and Tobago




                                                         www.crnm.org

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A Glimpse at the OTN [2011-01-18]

  • 1. Office of Trade Negotiations for TRADE Matters… OTN Barbados Office 1st floor, “Speedbird House” Independence Square Bridgetown BB1121 BARBADOS barbados.office@crnm.org T (246) 430 1670 F (246) 228 9528 OTN Jamaica Office 2nd floor, PCJ Building 36 Trafalgar Road Kingston 10 JAMAICA jamaica.office@crnm.org T (876) 908 4242/3922 F (876) 754 2998 www.crnm.org
  • 2. Trade and Everyday Life Simply put, international trade happens when goods and services are sold across international borders. At the basic level, trade is necessary because it allows people within countries to access resources, goods and services that are not produced locally. Trade also helps people to acquire resources, goods and services that are produced more cheaply by foreign producers than by local producers Beyond this, because international trade improves the circulation of global resources, it also facilitates the generation of employment and business opportunities, and helps reduce poverty and propel development. International Trade matters. It affects our daily lives. The prices of the goods and services we buy, the quality and quantity of employment opportunities for present and future generations, the prospects for attracting investment to our Region and the capacity of Caribbean countries to improve wealth creation are all dependent on our trading relationships with the rest of the world. However, international trade is complex and can be affected by international politics and the balance of world power among the trading parties. It is therefore important to ensure that smaller, less developed and more vulnerable countries derive practical and concrete benefit from their trading relationship. Individuals across the Region need to be aware of the importance of trade in achieving improved standards of living, new opportunities for business and employment and an overall improved quality of life. The Caribbean Community The CARICOM Secretariat The CARICOM Secretariat is the principal (CARICOM) administrative organ of the Community and is headed by a Secretary General who is the Chief Executive Officer of the Community. The Community coordinating economic policies and Mission Statement: The Caribbean Community (CARICOM), is development planning; devising and an organization of 15 Caribbean nations and instituting special projects for the less- To provide dynamic leadership and service dependencies. CARICOM's main purposes are developed countries within its jurisdiction; in partnership with Community Institutions to promote economic integration and operating as a regional single market for and groups, toward the attainment of a cooperation among its members, to ensure many of its members (Caricom Single viable, internationally competitive and that the benefits of integration are Market); and handling regional trade sustainable Community, with improved equitably shared, and to coordinate foreign disputes. The secretariat headquarters is quality of life for all. policy. Its major activities involve based in Georgetown, Guyana. www.crnm.org
  • 3. The New Trade Environment Rapid advancements in technology and communications have helped the global community to become more interconnected culturally, economically and politically. Trade liberalization and The benefit has been that the world, more than ever before, has the capacity to quickly exchange information, trade preference erosion goods and services, innovation, labour resources and capital across international borders. This process of have resulted in increased exchange has also created a growing independence of competition to Caribbean nation states. exports in the In spite of this interdependence, the outcome of participating in the international economic system has International market. varied significantly for nations because of differences in power, wealth, and capacity to use resources to realize and sustain development. Relatively small population and market size, limited financial resources and susceptibility Cultivating external trading relationships is essential for to natural disasters challenge the Caribbean’s ability to the Caribbean to adjust to the challenges presented by sustain economic development within the global economic the external trade environment and to take advantages of system. the opportunities. Through the development of external trade relationships, the Region will be best able to There are current trends in international trade that negotiate the pace and intensity of trade liberalization. present challenges to development for developing Furthermore, the Caribbean may better secure the countries, such as those of the Caribbean. International flexibility needed to attract and use technological trade is currently characterized by acceleration of the innovation, labour resources, and investment, to removal of barriers to trade (trade liberalization), such as transform the capacity, efficiency, productivity and taxes on imports upon entry into a country (tariffs), and competitiveness of productive sectors. limits on the quantity of goods that can be imported (quota restrictions). Another characteristic associated with External trade negotiations are therefore an indispensible international trade is the erosion of privileges in the form part of the Regional Strategy to reposition their of non-reciprocal trade preferences that facilitate duty economies in the global economic system. free or reduced duty access of some products from developing countries, such as the Caribbean, to developed The Office of Trade Negotiations (OTN) is charged with country markets such as the United States and Europe. the responsibility of helping the Caribbean to competitively position itself in the global market place, in Trade liberalization and trade preferences erosion have order to maximize trade and development opportunities resulted in increased competition to Caribbean exports on for the long term benefit of the Caribbean people. the international market. This has been the case, for example, in the banana and sugar sectors. Caribbean producers are therefore compelled to adjust, so that they can continue to compete at global standards of efficiency, productivity and quality. www.crnm.org
  • 4. What is the OTN? In the mid 1980s it became clear to the leaders of Caribbean governments that external trade negotiations were going to be extremely important in helping the Region adjust to the challenges of the changing international environment. It was also apparent that these negotiations were essential to enabling the Caribbean to advantage of development opportunities in areas where the Caribbean may have potential competitive edge. Given the Region’s limited human and financial resources, external negotiations had to be approached in a coordinated, managed and systematic way to avoid use of these resources in an inefficient an ineffective manner. It was considered necessary to create an organization whose dedicated task would be to manage the negotiation process under direction of the Regional Governments. In recognition of these challenges, the Conference of the Heads of Government of the Caribbean Community (CARICOM), formally established the Caribbean Regional Negotiating Machinery (CRNM) in April 1997 to develop, coordinate and execute an overall negotiating strategy for various external negotiations in which the Region was involved. At the behest of the CARICOM Member States, who principally constituted CRNM’s membership, the CRNM also represented the trade interests of the Dominican Republic and Cuba in specific negotiating arenas. The CRNM underwent restructuring in order to streamline the logistics of its core function with Director-General of the OTN, operational and administrative systems of other related Community Organs, instruments and H. E. Ambassador Gail S. Mathurin, CD organizations. Following a decision taken in March 12-13 2009 in Belize during the Twentieth Inter- Sessional Meeting of the Conference of the Heads, the CRNM was incorporated into the Caribbean Community (CARICOM) Secretariat as a Specialized Department. Subsequently, another decision was taken by the Heads of Government during the 30th Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) held 2-4 July 2009 in Guyana, to rename the CRNM as the Office of Trade Negotiations (OTN). The CRNM, as the Office of Trade Negotiations of the CARICOM Secretariat, now has extended responsibility for the coordination, development, and execution of negotiating strategies for all Community external trade negotiations. The OTN is led by the Director General, Ambassador Gail Mathurin, whose appointment was confirmed in July 2009. www.crnm.org
  • 5. The Mandate The OTN is responsible for developing and maintaining a • Facilitating the generation of national positions cohesive and effective framework for the coordination and • Coordinating the formulation of a cohesive negotiating strategy management of CARICOM’s external trade negotiation • Leading negotiations where appropriate resources and expertise. Our mission is to help Member • Providing sound advice when required States maximize the benefits of participating in global trade negotiations by: The Negotiations in Focus The OTN engages in negotiations on four general levels: negotiations of the Free Trade Area of the Americas. (FTAA). NB. These negotiations have • Multilateral Level – This includes negotiations been dormant since 2003; within the World Trade Organization (WTO); • Bilateral Level – This includes the negotiation of • Inter-regional Level – This included the agreements between CARICOM and other negotiations of the Economic Partnership countries such as: Canada, Costa Rica, and the Agreement (EPA) with the European Union; Dominican Republic. • The Hemispheric Level – This includes the Structure and Functioning of the OTN At all levels of negotiations, Trade and Foreign Ministers, their professional staff in Member State capitals, and their Representatives in centres such as Brussels and Geneva, have played, and continue to play essential roles in the negotiating process. The OTN is involved intimately in integrating these efforts in order to arrive at common regional negotiating positions. The OTN management team is currently comprised of the Director-General, a Senior Director with overarching responsibility for technical work of the organization, a Director of Technical Cooperation, Partnerships and Information responsible for relations with the donor community and overall management of grant agreements. The technical team consists of CARICOM nationals who are experts in various issues which are the subject of the negotiations. During a negotiation, the mechanism designed to ensure coherence across the negotiating positions in several negotiating disciplines is a College of Negotiators. A College comprises Lead and Alternate Lead Negotiators for each of the negotiating arenas who actually undertake the negotiations under the overall coordination of the Dean of the College. Colleges meet periodically, and independently of a negotiation, to review developments in the respective negotiating arenas, and to discuss future strategies. Some of the OTN’s technical staff members serve alongside regional experts either as Lead Negotiators, or as Alternate Lead Negotiators within a College. The governance structure established by the Heads of Government requires the OTN, as a Department of the CARICOM Secretariat, to report to the CARICOM Council for Trade and Economic Development (COTED) which provides guidance the OTN, and defines its negotiating mandate. The Director-General is also directly responsible to the Secretary-General of the CARICOM Secretariat. www.crnm.org
  • 6. Heads of Government have approved the use of a broad consultation process in development and design of regional negotiating positions. This process includes the following: Financing The OTN receives its financing from two (2) principal sources: • Member State contribution which are considered as core financing; • Donor contributions from international development partners (IDPs), which fund programme activities and some staff. The OTN currently enjoys financial support from the following IDPs) i. CIDA (Canadian International Development Agency) ii. Commonwealth Secretariat (COMSEC) iii. CDB (Caribbean Development Bank) iv. DFID (United Kingdom (UK) Department for International Development) v. The European Commission (EC) – Trade.COM and the European Development Fund (EDF) vi. FES (Friedrich-Ebert-Stiftung) vii. GTZ (Deutsche Gesellschaft fϋr Technische Zusammernarbeit) viii. IDB (Inter-American Development Bank) ix. Organization of American States (OAS) x. USAID (United States Agency for International Development) xi. Ad hoc bilateral support Challenges Representing the region’s external trade negotiating interests is important but challenging work. The OTN’s responsibility is confronted by institutional and negotiating challenges. These include: • Responding in a timely manner to the technical requirements of negotiations, as this tends to require highly specialized knowledge. • Absence of relevant technical and statistical data in many countries • Deploying limited regional human and financial resources to execute the mandate • Ensuring that the particular problems which face the small regional economies are accommodated in new trading arrangements. The OTN is assisted in endeavours to overcome these challenges through the contributions of regional member states, and through partnerships with a number of regional and international agents from several countries including Canada, Europe and the United States. www.crnm.org
  • 7. Achievements Notwithstanding these challenges there have been a number of achievements accomplished over the years. The OTN has • Helped forge trans-regional alliances with Latin American and African countries in external trade negotiating arenas. • Attained considerable success in advancing bilateral negotiations within its mandate • Become more user-friendly, consultative and responsive to a variety of stakeholders in order to better facilitate member countries in the process of strategic global repositioning. Mattering more to the Community OTN is proud of the progress made since inception. Through OTN’s Communications Outreach Program stakeholders across the region have not only been sensitized to the regional challenges of development but have also been educated about the opportunities and potential for regional development in the international trading environment. In particular, the Private Sector Outreach programme has been instrumental in helping to improve the knowledge of the private sector about trade negotiation issues. The program has helped to build the private sector’s confidence to participate more actively in the shaping of external trade policy. Additionally, the OTN through training internships has contributed to the development of a cadre of professionals over the years. Through improving human capital, the OTN is continuing to assist the region in overcoming its limitations to secure the future of regional development. Member States The OTN represents the following member states of the Caribbean Community (CARICOM) and the Republic of Cuba. Antigua and Barbuda The Barbados Barbados Belize Commonwealth of Dominica Grenada Cooperative Republic of Guyana Republic of Haiti Jamaica Fed. Of St. Christopher (Kitts) and Nevis St. Lucia St. Vincent and the Grenadines Republic of Suriname Republic of Trinidad and Tobago www.crnm.org