A report on the country's investment climate prepared by a special bureau in the United States' State Department's says "a change in government after the May 2010 parliamentary elections resulted in a slowdown in the execution of pending and new government contracts".

The report, however, also says "corruption has traditionally appeared to be moderate and has not seriously undermined government or business operations."

The State Department's Bureau of Economic and Business Affairs made these declarations in its 2012 Investment Climate Statement for Trinidad and Tobago which was released last month.

It says the Government of Trinidad and Tobago actively encourages foreign direct investment in almost all sectors and "generally speaking, there are no restrictions or disincentives to investment".

Yet, the Bureau draws a link between some present-day issues for US investors and the results of the last general elections in Trinidad and Tobago.

 "A change in government after the May 2010 parliamentary elections resulted in a slow-down in the execution of pending and new government contracts, several involving US-based and foreign firms, as oversight boards and commissions were reconstituted slowly over several months," the Bureau of Economic and Business Affairs report states.

It further says: "Progress on some complicated tenders and contract renewals or negotiations remain stalled, to the frustration of a number of foreign investors and joint-venture partners."

The Bureau did not identify which government contracts have been delayed or which US-based or other foreign-based investors have been affected.

It notes The Heritage Foundation Index of Economic Freedom for 2011 ranked Trinidad and Tobago 13th in the Western Hemisphere and 63rd out of 179 countries worldwide, "citing overdependence on the petrochemical industry and an opaque regulatory system as the key negative factors".

In addition, the Bureau says Trinidad and Tobago ranks 81st out of 139 countries evaluated by the World Economic Forum's Global Competitiveness Index "which identified crime, government bureaucracy, a poor work ethic, and corruption as the four key issues that factored into the score".  

The Bureau also took note of this country's judicial system in relation to doing business in Trinidad and Tobago.

"The T&T judicial system upholds the sanctity of contracts and generally provides a level playing field for foreign investors involved in court matters. However, due to the backlog of cases, there can be major delays in the process" and "as a result, it is imperative that those investing here sign enforceable contracts and use local attorneys," the Bureau says in its report.

The Bureau also says "Trinidad and Tobago has a number of laws, regulations and penalties designed to combat corruption and fraud and the local press actively reports on allegations of waste, fraud or abuse of public resources."