Jagdeo should avoid speaking about fair trade

May 30, 2024 Features / Columnists, Peeping Tom

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Kaieteur News – Vice President Bharrat Jagdeo has recently spoken on the issue of trade between Guyana and Trinidad, following a decision of the latter to restrict entry for a consignment of milk products exported from Guyana. Commenting on the dispute, Jagdeo said, “All we want is for our goods to be treated fairly in their market as their goods are being treated here.”

It would have been advisable if he had left the issue there. But, as is typical of him, he had to put his foot in his mouth, by saying that while he did not wish for a tit-for-tat that Guyana would insist in reciprocity going forward. He insisted that, “The way our [Guyana’s] goods and our exports are treated across the Region – but in this particular case in Trinidad and Tobago – the same way their goods entering the Guyanese market will be treated. [There will be] full reciprocity on all of the issues, because if they can insist on a phytosanitary test that we don’t implement on their goods, but that they want to conduct on our goods before they enter into their market, then we will have to deal in the same manner as they’re doing.” It is hard to see the difference between reciprocity and tit-for-tat.

Jagdeo, of course, is the least person who should be speaking about fairness in trade practices. During the PPPC administrations, in which he served at high levels, some of the most egregious violations of the Revised Treaty of Chaguaramas took place, undermining his and his government’s moral authority to speak on this issue. One of the most notable infractions under the PPPC was the imposition of an environmental tax on all imported non-returnable beverage containers. This tax, was instituted shortly before Jagdeo was appointed as the Senior Minister of Finance but while he was a Junior Minister in the country’s Ministry of Finance. The tax, applied selectively to imports and not to locally produced goods, blatantly contravened CARICOM trade rules, which prohibit discriminatory measures that favour domestic products over those imported from other CARICOM member states.

The discriminatory nature of this tax was eventually challenged by a Surinamese company at the Caribbean Court of Justice (CCJ). The CCJ ruled that Guyana had breached Article 87(1) of the RTC by imposing an environmental tax on imported non-returnable beverage containers which qualify for Community treatment. Jagdeo is now contending that the amount levied was never a tax but a processing fee that was refundable once the containers were exported. The relevant legislation however explicitly describes the measure was a tax. The measure was announced in the National Assembly in 1995 as an environmental tax that would take effect from 1st March of that year. In 2010, Jagdeo’s Minister of Finance described the measure as a tax when he stated, “The Environmental tax is one source of revenue for the budget… This tax goes into the Consolidated Fund.” (Kaieteur News 20th April, 2010.” But regardless of whether it was a tax, a levy or a processing fee, it was in violation of regional trade rules.

Another glaring example of Jagdeo’s administration flouting regional trade rules involves the case of Trinidad Cement Limited (TCL). In this instance, Guyana unilaterally waived the Common External Tariff (CET) on extra-regional cement without the requisite approval from the CARICOM Council for Trade and Economic Development (COTED). This unilateral action prompted TCL to seek redress from the CCJ, which ruled in favour of TCL, declaring that Guyana had indeed violated its treaty obligations.

By waiving the CET without proper authorisation, the PPPC administration breached the treaty. Despite the CCJ’s ruling, Guyana failed to take corrective actions. As such, an application was made to hold Guyana in contempt. In 2010, in a decision on the application to hold Guyana in contempt, the CCJ Court found ample evidence that Guyana did not comply promptly with its Order to reinstate the CET and that Guyana’s application for an extension of time for compliance was an admission that it had not complied. As such, the Court made a declaration that Guyana was in breach of Article 215 of the RTC, which mandates compliance with orders of the Court.

These incidents underscore a pattern of behaviour under the PPPC that was inconsistent with the principles of fair trade. This history of treaty violations raises serious questions about whether the PPPC or Jagdeo has the moral authority to now champion the cause of fair trade. The Revised Treaty of Chaguaramas is more than a legal document; it represents a commitment by CARICOM member states to work together towards economic integration and mutual benefit. When one member state disregards these commitments, it undermines the foundation of the entire regional integration project.

Jagdeo’s current rhetoric on fair trade, therefore, appears disingenuous given his government’s past actions. It is difficult to reconcile his current advocacy with his administration’s record of treaty violations and protectionist measures. Jagdeo should be careful with his rhetoric about reciprocity. This columnist has argued that the Local Content Act is in violation of the Revised Treaty of Chaguaramas (RTC) and Guyana is fortunate that the Trinidadians have not yet challenged it at the CCJ.

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• Bharrat Jagdeo, Guyana, restrict, Trinidad, Vice President

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