- NEWSDAY.CO.TT - A la Une - 20/Aug 06:46

Balancing imports with forex realities

THE EDITOR: As we continue to grapple with declining foreign exchange (forex) reserves, we must begin to reassess our import patterns and consumption choices. The issue is not about restricting choice, but about striking a balance between what we want and what our economy can sustainably support. One area that requires such attention is food imports. Supermarkets and roadside vegetable vendors today carry a wide range of luxury fruits – apples, grapes, pears, plums, and others – that, while desirable, are not essential to our diet. Encouraging greater reliance on local fruits and produce could help reduce the foreign exchange burden while supporting our farmers and strengthening food security. The importation of vehicles also calls for attention. At present, financial institutions often extend loans over seven or eight years with little or no down payment. While this increases access to vehicles, it also exposes consumers to long-term debt and increases pressure on foreign exchange. Policymakers could consider measures such as minimum down-payment requirements and tighter lending standards as was practised in the past. Equally pressing is the issue of used tyres and second-hand cars. Their importation not only consumes foreign exchange but also raises environmental and safety concerns, contributing to waste and creating long-term disposal challenges. A phased reduction in such imports, coupled with stronger regulations and investment in recycling could protect both our economy and our environment. None of these recommendations require drastic measures, but they do require forward thinking and political will (most probably the biggest hurdle). By prioritising essential imports and gradually reducing our dependence on luxury or low-value items, we can better manage our foreign exchange, support local industries, and build a more resilient economy. A modest proposal – but one worth considering as we look ahead. R TRESTRAIL via e-mail The post Balancing imports with forex realities appeared first on Trinidad and Tobago Newsday.