The EU´s top trade official said Thursday that decades of preferential access have not boosted Caribbean exports to Europe, and urged countries to end their economic dependence on single agricultural crops. EU Trade Commissioner Peter Mandelson said preferential EU (European Union) trade policies had not improved competitiveness of Caribbean agriculture and may have actually discouraged economic diversification.

Venezuela´s state oil firm PDVSA will start building a $100 million natural gas pipeline in June 2006 to provide a long-term solution to Nueva Esparta state´s electricity woes, Jose del Carmen Millan, president of the state´s electricity and gas service regulator Megane, said this week. The gas would come from onshore and offshore oil and gas fields in eastern Venezuela including the onshore Yucal Placer field operated by the Ypergas joint venture in northern Guarico state, Millan said.

The World Economic Forum rated Finland as the most competitive economy in the World, followed by United States. In Latin America and the Caribbean, Chile leads the pack with a distant Uruguay as runner-up, Mexico, El Salvador and Colombia behind, according to the latest release from the organization. Mercosur´s two main economies had a disappointing performance: Argentina managed to advance to place 72 and Brazil dropped from 57 to 65.

Foreign investment in Latin America and the Caribbean increased a whopping 44 percent in 2004, with Brazil and Mexico leading the pack, according to the latest release from the United Nations Conference on Trade and Development, UNCTAD. “Foreign direct investments are crucial to address poverty and create economic opportunities, particularly jobs”, said George Kell, CEO of the UN Global Compact Program.

EU Trade Commissioner Peter Mandelson was in St. Lucia last week to launch the third phase of an Economic Partnership Agreement (EPA) negotiations between the European Union and the Caribbean region. The crucial third phase will launch negotiations on the text of a final agreement, encompassing the continued integration of the Caribbean regional economy and access to the European goods and services market. He will also exchange views with his Caribbean partners on the WTO Doha trade talks.

Trinidad and Tobago´s Prime Minister Patrick Manning presented a record $5.5 billion budget which included sweeping tax breaks for middle income earners and a series of public sector projects that raised eyebrows among economists about potential inflation risks. The new budget included a 5 percent reduction in corporate taxes for larger corporations, higher taxes on the energy sector and a five year tax holiday for small businesses.