Local Content and CARICOM

Sep 09, 2021 Letters

Dear Editor,

In May of this year, Vice President Bharrat Jagdeo, stated that when it comes to local content for the oil subsectors there will be areas carved out only for Guyanese companies including “transportation, logistics, cleaning services, food supplies, rentals, landscaping,” among others. “This runs into tens of billions of dollars of carve-out for locals and in other cases, they will have to get a percentage of projects in practical terms…”
Additionally, President Ali recently spoke about a local content policy exclusive to Guyana and Suriname enterprises. Both leaders must be aware that under the revised Treaty of Chaguaramas, Member States are required to ensure that nationals of one Member State “have on a non-discriminatory basis, access to land, buildings and other property situated in the territory of another Member State for purposes directly related to the provision of services…”
There is nothing to stop a Trinidadian from buying land here, building apartments and renting to oil and gas workers. Nor can transportation companies from the same country be restricted from offering logistical services to the oil sector, as is the case for three entities already here.
Any local content legislation or even policy position must comply with the CSME. This would preclude such proposals as the requirement that Caribbean companies engage in joint ventures with Guyanese to conduct activities in the oil and gas sector.
While the government may be suffering from oil fever and want the most for its private sector, it should remember Guyana is still a member of CARICOM and must comply with its treaties.

Yours sincerely,
Lynn Nicholas

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