Does Guyana really want a trade war with Trinidad and Tobago?

Dec 09, 2024 Features / Columnists, Peeping Tom

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Peeping tom…

Kaieteur News- There has been a long-standing controversy over Trinidad and Tobago’s use of sanitary and phytosanitary measures as trade barriers to restrict the entry of Guyanese exports, such as peppers, pineapples, poultry meat, and honey, into its markets. This practice has been criticized by Guyanese business groups, which argue it violates the principles of the Revised Treaty of Chaguaramas, meant to ensure free movement of goods within CARICOM.

Speaking at the Guyana Manufacturing and Services Association (GMSA) Presentation Awards Ceremony 2024, Vice President Bharrat Jagdeo suggested that Guyana may need to adopt reciprocal measures against Trinidad if these trade barriers persist. He emphasized the need for fairness, warning, “If you don’t take our stuff, we’re not going to allow free access to your products.”

Jagdeo also highlighted Trinidad’s frequent appeals to the Caribbean Court of Justice (CCJ) for treaty interpretations and encouraged Guyana’s business community to adopt a similar approach. Additionally, he urged the GMSA to bring these concerns into the public arena to apply pressure for resolution, stressing that such barriers undermine CARICOM’s food security objectives.

Reciprocity, as suggested by Vice President Bharrat Jagdeo, is not a viable solution to address Trinidad and Tobago’s non-tariff barriers against Guyanese exports. While the frustration over these trade restrictions is valid, retaliatory measures would amount to Guyana itself violating the Revised Treaty of Chaguaramas, which mandates free trade among CARICOM members.

Such violations could expose Guyana to legal challenges before the Caribbean Court of Justice (CCJ) and the imposition of significant penalties. Beyond legal ramifications, these actions would undermine Guyana’s reputation as an advocate of regional integration and fair trade, which could have long-term economic and diplomatic consequences.

The economic stakes are too high for reckless retaliation. Trinidad and Tobago is one of Guyana’s largest trading partners, constituting the second-highest source of imports, surpassed only by Singapore. Should Trinidad escalate its actions in response to Guyana’s proposed reciprocity, the effects on Guyana’s economy could be catastrophic. Does Guyana really want a trade war with Trinidad and Tobago?

Many of the imports from Trinidad are critical to local businesses and consumers, ranging from construction materials to consumer goods. Any disruption in this trade relationship could cripple supply chains, raise costs, and destabilize key sectors of the economy. Additionally, the significant presence of Trinidadian companies in Guyana, operating in areas like energy, manufacturing, and retail, means that an economic tit-for-tat could also harm local employment and investment.

Jagdeo’s suggestion of reciprocity not only reveals a lack of understanding of the complexities of Guyana’s economy but also risks escalating tensions unnecessarily. Instead of resorting to counterproductive measures, the focus should be on leveraging legal and diplomatic avenues to press Trinidad to relax its non-tariff barriers.

In any event, Bharrat Jagdeo is the last person who should be advocating reciprocity against Trinidad. Guyana has a track record as one of the most egregious violators of the Revised Treaty of Chaguaramas (RTC). The Caribbean Court of Justice (CCJ) has ruled against Guyana for breaching regional trade rules, including its illegal imposition of tariffs on regional cement and the environmental tax, both of which violated the RTC.

These measures not only undermined CARICOM’s trade principles but also cost Guyana millions in repayments. Jagdeo’s call for reciprocity is thus hypocritical and risks exposing Guyana to further scrutiny and retaliation, compounding its already tarnished record in adhering to the very rules it now claims to defend.

While the Local Content Act has facilitated billions of dollars in business for local companies in Guyana’s oil and gas sector, its alignment with the Revised Treaty of Chaguaramas (RTC) has been contentious. This column has long argued, with agreement from some Trinidadian stakeholders, that the legislation likely contravenes RTC provisions on non-discrimination within CARICOM.

Should Trinidad retaliate against Guyana’s proposed reciprocal measures by formally challenging the Local Content Act at the CCJ, the consequences could be severe. Such a challenge might lead to a ruling that undermines the Act, disrupting the economic benefits it currently provides to Guyanese companies.  Has Vice President Jagdeo fully considered the far-reaching implications of his rhetoric, particularly the potential for exposing one of Guyana’s most pivotal economic policies to legal jeopardy?

This is why organizations like the Guyana Manufacturing and Services Association (GMSA) must exercise greater caution in selecting speakers for their feature addresses. Reckless outbursts can cause more harm than good to the interests of the manufacturing and services sectors.

Vice President Bharrat Jagdeo’s intemperate remarks at the recent GMSA Presentation of Awards Ceremony exemplify this risk. His call for reciprocal measures against Trinidad reflects a troubling misunderstanding of the critical economic and trade issues at stake.

Jagdeo must put a lid on his inflammatory rhetoric, as such statements jeopardize Guyana’s economic stability and regional standing. The GMSA and similar bodies should ensure that their platforms advance, rather than endanger, their members’ interests.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.) 

(Does Guyana really want a trade war with Trinidad and Tobago?)

(trade war with Trinidad)

 

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• Caribbean Court of Justice, CARICOM, Peeping Tom, trade war with Trinidad, Vice President Bharrat Jagdeo

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