Local content gone regional

Mar 04, 2022 Features / Columnists, Peeping Tom

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Kaieteur News – During her address to the recently concluded International Energy Conference, hosted in Guyana, the Prime Minister of Barbados touched on what many believed to be Guyana’s local content laws. She drew wild applause when she stated that “The day that we do not provide opportunities for our citizens who participate in active citizenship of being able to benefit from the patrimony of our country is the day we sow the seeds of destruction for our nation and invite destruction.”
Having heard that statement, the local private sector must have felt vindicated by the position it adopted following suggestions by the Caribbean Private Sector Organization (CPSO) that parts of Guyana’s local content laws may be in contravention of the Revised Treaty of Chaguramas. One organisation went as far as suggesting that if indeed this was the case, then Guyana needed to withdraw from the Revised Treaty of Chaguaramas (RTC).
The Private Sector Commission went for the jugular. It reiterated its support for Guyana’s Local Content Act, and urged foreign investors to respect Guyana’s laws and sovereign space.
An organisation calling itself the Energy Chamber of Guyana went as far as asking the Secretary General of the Caribbean Community to derecognise the CPSO. It must have been rebuffed when it made this cantankerous proposal.
The words of Mia Mottley, at the International Energy Conference, must have warmed the hearts of the local private sector, which had refused to entertain any notion that the Local Content Laws were in violation of the Caricom treaty.
The Prime Minister of Barbados went on to note that while there will be regional and local conflicts and agreements, it is the duty of the member states to ensure that they do not leave their citizens to become tenants in their own land. She then urged regional leaders to have those difficult conversations with their citizens.
Last Wednesday, Guyanese learnt, to their utmost shock, that the conversation about Guyana’s local content laws has now reached the highest levels of the Caribbean Community. The matter was ventilated at the 33rd Inter-sessional Meeting of the Heads of Government where a decision was taken to have a review of local content framework.
Local content, which the PSC implied was part of Guyana’s sovereign jurisdiction, is now being subject to review by the regional integration movement. This represents a slap in the face for those who were touting that Guyana’s local content laws were part of its sovereign jurisdiction.
What would be most interesting to learn – and it is hoped that the local media do not become shy in asking – is how it is that this matter ended before the Heads of Government. Who tabled this matter? Was it Barbados or was it Trinidad?
And did Guyana object to this matter being raised formally? While the decision is about examining the broader framework for local content, this issue cannot be decoupled from the controversy, which was evoked by the passage of Guyana’s local content law, which allows local companies 100 percent participation in fields such as insurance and accounting.
Has Guyana agreed to this review and in so doing accepted that its local content law is in violation of the non-discrimination article in the Revised Treaty of Chaguaramas (RTC)? The President must indicate Guyana’s position.
Has Guyana agreed to the proposal for the review? As is now being reported, the review will lead to recommendations to be considered by the Heads so that no one can be deemed to be in breach of the RTC.
If the recommendation pares down Guyana’s local content requirements, will Guyana accede to those recommendations? The President must state Guyana’s position on this point.
If the recommendations are accepted, they will still have to be made compliant with the RTC. This would entail derogation, in specific circumstances, from Article 7 of the RTC. Article 7 states, “Within the scope of application of this Treaty and without prejudice to any special provisions contained therein, any discrimination on grounds of nationality only shall be prohibited.”
Even more interesting is that this review is taking place when we have learning that there has been an amendment to the long-standing unanimity rule. It is now being reported that two-thirds of the Heads present can now effect a binding decision, rather than all of the Heads having to agree. What this means is that if the Heads agree to pare down the local content requirements, Guyana will be obligated to comply even if it is not in agreement.
The President of Guyana has some explaining to do when he returns. The agreements arrived at in Belize have far-reaching implications for Guyana.
(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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