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EU Announces Gradual Reduction of Direct Aid to Trinidad and Tobago

Event Summary

On 3 August 2025, the European Union announced that it will gradually phase down its operations and direct development funding in Trinidad and Tobago. According to the EU Delegation, the decision follows a review of engagement strategies in the Caribbean and reflects Trinidad and Tobago’s classification as a ‘high-income country with improved macroeconomic indicators.’ The EU stated that future cooperation will focus on political dialogue and targeted collaboration in areas such as climate change, security, and regional integration, rather than large-scale development aid. The announcement did not outline a detailed transition plan or replacement funding mechanisms. This change will affect the availability of EU-administered resources previously accessible to local institutions and organisations.

The EU’s decision comes against a backdrop of both economic recovery and persistent social challenges in Trinidad and Tobago. While the country’s GDP per capita classifies it as high-income, structural inequalities, rising crime, and gaps in social protection remain pressing concerns. Many civil society organisations rely on international funding due to limited and conditional state subventions, as documented in the Enabling Environment Baseline Snapshot. Evidence from other Caribbean countries shows the risks of donor withdrawal: research on Barbados and Grenada found that reductions in international donor support contributed to financial strain, operational downsizing, and weakened advocacy among civil society organisations. Barbados, like Trinidad and Tobago, is classified as a high-income country, which makes the study especially useful for showing how similar funding challenges could play out in Trinidad and Tobago. In this case, there is no clear transition plan to replace EU funding streams, heightening concerns over the long-term resilience of the CSO sector. Further, the EU’s departure is significant given its role in supporting systemic governance and rights-based initiatives. Without adequate mitigation, this could lead to reduced civic space and weakened advocacy, particularly for marginalised groups.

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