Prime Minister of Trinidad and Tobago Dr Keith Rowley has acknowledged that while non-tariff trade barriers are meant to protect the interest of individual countries they, more than often, are “artificial” and hinder production in a single market economy.
Rowley made the statement on Thursday during a joint press conference with Guyana’s President Dr Irfaan, who is on a State Visit to Trinidad and Tobago.
Ali and Rowley held bilateral talks on Thursday, following which they held a joint press conference.
Addressing the media, Rowley said that the meeting was a continuation of “incorrectly started” discussions between the two countries. He explained that initial discussions relating to the removal of trade barriers and creating a more integrated CARICOM Single Market and Economy (CSME) started back in May while he was in Guyana attending the inaugural Agri-Investment Forum.
During his visit in May, Guyana and Trinidad and Tobago signed a memorandum of understanding (MoU) which provides for renewed and enhanced cooperation in the areas of trade and investment. It also addresses non-tariff barriers and other impediments to the flow of goods and services, while pursuing enhanced cooperation in agriculture and food security, security, energy, infrastructure, tourism, education, sport and culture, the Department of Public Information had said.
As a result of that MoU, a task force was set up to identify the areas in which the two countries can collaborate as well as the barriers to be removed. At yesterday’s press conference, Rowley said that the COVID pandemic and Ukrainian war have identified the need for CARICOM to, now more than ever, address its food and energy security.
He noted that CARICOM’s food model is heavily dependent on importation whether it is actual food or raw materials that go into the production of food items. In that regard, he pointed out “as long as that is the model that we are into [then] food supply and food availability will always pose a threat to us if there are external factors that interfere with those suppliers, not the least of which is price. In recent times we understood availability and of course, availability and price wrapped up into something called affordability.”
He added “So what we have been trying to do is to crystallize our situation and our circumstance towards a situation where we change the food model to one where we produce more food within the region, more raw materials to make food, support more food production on a much larger scale and also encourage young people to go into food production. And we do that within CARICOM in the context of the CARICOM Single Market and Economy and the removal of artificial barriers between CARICOM countries. Because if a CARICOM country is producing food, or the raw material for making food, and another CARICOM country has a barrier between us… whatever the non-tariff barrier is, if there are barriers between CARICOM countries, then increasing CARICOM production for CARICOM countries will not succeed.”
Rowley further explained that if CARICOM countries remove the artificial barriers, safely, then it could generate food production business on a scale that could be significant, compared to the current scale. He noted that while the St Ann’s Agreement, signed by CARICOM leaders, identifies the barriers and nudges the community toward a more unified CSME, the implementation has left much to be desired.
He explained that in an ideal single market, countries within the bloc should be able to trade freely.
“There are some safety issues involved, some phytosanitary issues involved, yes. But they must not become non-tariff barriers, so we’ve done that. But we are doing it at a pace and leisurely enough that sometimes all of this would happen and we’re better off. We agree that we are better off with it in place and then came COVID under Ukrainian – Russian war and we now know that there’s a fierce urgency to get it done, we do not have time,” Rowley said.
The T&T Prime Minister related that there is a Guyana-Trinidad and Tobago Food Development Plan which identifies various areas for collaboration, mainly in rice, sugar, agro-processing, livestock production, shade houses, coconut, corn and soya production and exchange of human resources.
He also announced that T&T will be receiving 5,000 coconut plants from Guyana to support the resuscitation of their coconut industry, which was devastated by beetles. Additionally, Guyana will also be providing the island republic with shade houses to aid in vegetable production.
Food security
During his opening remarks to the Trinidadian press, Guyanese President Ali explained that the collaboration between the two countries is action-based since a lot of the plans are already in motion. He said that they are working on an agenda which is aimed at building a sustainable pathway for both countries and their peoples.
“We are not here to create an environment in which one party see themselves as, well, as winners. We are here to work on creating and advancing institutions and systems that will create a win-win environment for all those who are willing and ready to participate in the development the advancement of both countries,” Ali said.
He said that while the world’s economy is in shambles, countries within the CARICOM bloc have to work closely to overcome the challenges. Ali said that CARICOM has the ability to become a world leader not only in food security but also in energy.
He pointed out that Trinidad and Tobago is already heavily invested in manufacturing and agro-processing and that coupled with its low energy costs, make the country a force to be reckoned with. In the same breath, Ali said that countries have to work collaboratively to realize the true strength of the CSME.
“It’s not only about increasing the food production, it is not only about getting people involved in agriculture, it is ensuring we develop and have the right policy framework in place to support the investment we’re going to make, to support local farmers, to support the regional trade system, to support the logistics hub and logistics framework that must be developed to advance our plans on food security. Make no mistake, we don’t have the luxury of time to advance this issue of food security. Food security is not only important from a price perspective,” the Guyanese head of state highlighted.
He said that Guyana has the availability of fertile land and freshwater to accelerate food production.
“So what we are working on between Guyana and Trinidad and Tobago in relation to food security is combining our efforts, combining our policymaking environment and framework, combining our commitment to removing the barriers, combining our access to technology and use of technology, combining our education system our research and development system into one integrated whole in advancing the food production plan of Trinidad and Tobago and Guyana. That is what we’re doing,” he added.
Standardization
Both leaders agree that CSME is in dire need of strengthening in an effort to address trade within CARICOM. President Ali identified that there is a need for the standardization of policies and laws that govern trade within the CARICOM block.
He explained that if one were to ask 10 public servants for their interpretation of a statute then it is likely that 10 different responses would be submitted. That, he said, needs to be addressed and pointed out that the task force will be looking at it.
“The Prime Minister pointed that a technical task force as part of the list of things that has to be done. That technical task force part of their responsibility is to work on the removal of one all non-tariff barriers and we have already have a complete list of all the non-tariff barriers and you will see the potential that exists. But Prime Minister [Rowley] pointed out a very important issue and that is standardization.
“So what we want to do in this task force is to have the interpretation done for them by the policymakers. So no individual can determine or try to interpret a statute outside of the interpretation that will be given…so we will have to, in this task force, define a lot of these things, so that subjectivity that is in the system is removed. One of the things that is critical for the success of this is ensuring the institution’s function,” Ali explained.
He said that both countries recognize that there are systemic issues and they are now taking time to address them.
Meanwhile, Prime Minister Rowley told reporters that while the CSME provides an arrangement for trade it is the individual countries that decide whether goods enter or not. He added that they are now working to have those standardized to facilitate unhindered movement within CARICOM.
“…if we say that we have a common market, a single market and economy, that should mean something. A single market and economy mean that a perfect example of a perfectly working single market and economy means that you should have goods going to any part of the market unimpeded. You should have people going to the market. You should have financing going to the market,” Rowley posited.
He added, “Sometimes a customs officer by him or herself alone, using the custom law of the country, could say this cannot come in and a lot of that is happening in CARICOM…those [non-tariff] are impediments to production in the region and once there are impediments to production in the region, it invites supply from outside of the region.”
Both leaders said that the task force is working with varying deadlines.
