Mar 2010 Financial News

Battle for cement: Guyana defied CCJ

Mar 31, 2010

The Caribbean Court of Justice (CCJ), in a 19-page judgment, found that Guyana had defied a court order to reinstate the Common External Tariff (CET) on cement from extra-Caricom sources within 28 days.

The CCJ found that Guyana took a full four months to reinstate the CET which it had suspended, placing Trinidad Cement Ltd (TCL) and TCL Guyana Incorporated, fighting for survival against cement manufacturers outside the Caribbean. The judgment was handed down on Monday in Port-of-Spain by the panel comprising CCJ president, Michael de la Bastide, Rolston Nelson, Adrian Saunders, Jacob Wit and David Hayton. Dr Claude Denbow, SC, led the team of lawyers for TCL, while Kamal Ramkarran appeared for the Guyana government. Douglas Mendes, SC, Michael Quamina and Grace Jankey, represented Trinidad and Tobago at the hearing. The CCJ granted a declaration that the State of Guyana was in breach of Article 215 of the Revised Treaty of Chaguaramas, which states that member states of Caricom must comply with judgments promptly. Guyana must pay half of the costs to TCL.

TCL and TCL Guyana brought applications, seeking to hold Guyana in contempt by virtue of its disobedience of an order of the CCJ made on August 20, 2009. The CCJ dismissed this claim, saying even if it had jurisdiction to make such a finding against Guyana, no claim for such a finding of contempt had been made. The CCJ also dismissed a claim filed by TCL for an order against the Attorney General of Guyana, Charles Ransom, requiring him to show cause why a finding of contempt should not be made against him. The applications by TCL were a sequel to the case brought against Guyana in connection with that country’s failure to impose the CET on cement imported into Guyana from States outside of Caricom.

On August 20, 2009, the CCJ gave Guyana 28 days in which to reinstate the CET. The time for compliance of the CCJ’s order expired on September 17, 2009. Guyana applied to the CCJ for a stay of execution on September 16, but this was dismissed by the court on October 14. It was not until January 8, 2010, four months later, that Guyana reinstated the CET on all imports of cement from non-Caricom countries. The applications before the court raised significant issues about whether the CCJ had jurisdiction to deal with civil contempt of court. As a result, the CCJ invited State parties of Caricom to make written and oral submissions. Mendes appeared, representing T&T.


Source:
Francis Joseph
Trinidad Guardian
Wednesday March 31, 2010

http://guardian.co.tt/news/general/2010/03/31/guyana-defied-ccj