| By Ivan Cairo
PARAMARIBO, Suriname – During their inter-sessional meeting next month in Dominica, CARICOM Heads of States are expected to take a decision regarding suspension of the common external tariff (CET) on cement, Suriname’s minister of Trade and Industry said in a prepared statement Friday.
Trade Minister Clifford Marica, who is the chairman of the Council for Trade and Economic Development (COTED) disclosed that Suriname and several other CARICOM member states applied for suspension of the CET to import cement from outside the region.
However, COTED, during its special meeting earlier this month in Guyana, dismissed the applications since Trinidad Cement Ltd. (TCL) has indicated that the company could guarantee to meet the demands of cement in the region.
According to Marica the interested member states filed a protest against the dismissal since during the past several years a shortage of cement has been created in order to increase the price of the product.
After ample deliberations during the COTED meeting in Guyana, the matter remained unsolved.
Marica disclosed that three options to resolve the issue were tabled: taking cement from the suspension list; lowering common external tariff; allowing CARICOM countries to import 15 percent of the demand from outside the region.
COTED could take a decision since in order to do so, amendments should be made to the Treaty of Chaguaramas. Only the CARICOM Heads have the authority to make such changes.
Therefore, it has been decided, said Marica, that the COTED would make the necessary preparations and present this issue to the Heads of Government for a resolution during their meeting in March.
For the past three years Suriname has imported cement from outside the Caribbean, after receiving a CET waiver from CARICOM. However, this waiver expired in November 2009.
While the decision to suspend the CET was procedurally wrong, the Caribbean Court of Justice (CCJ) in August 2009 ruled in favour of CARICOM. The CCJ ruled that there were procedural flaws in the decision of CARICOM’s secretary-general Edwin Carrington to authorize suspension by Jamaica in September 2008.
In November 2008, it was COTED which had authorized suspension of CET on cement for one year for seven member states.
Carrington testified before the court that, after receiving Jamaica’s request for suspension, he sent out inquiries to member countries to establish whether they could supply cement. The Trinidad and Tobago government replied with a “no objection” to the suspension.
According to the CCJ Carrington was wrong to have accepted a “no objection” reply from Trinidad as sufficient for an approval of Jamaica’s request.
Regarding COTED’s decision the CCJ ruled that it had found no basis for TCL’s claim that that decision was ultra vires. However, CARICOM was ordered to pay half of TCL’s legal costs. (Caribnet) |