Apr 2009 Financial News

T&T govt agreed to CET suspension

Apr 01, 2009

Secretary-General of Caricom Edwin Carrington said yesterday that the T&T Government agreed last year to the one-year suspension of the Common External Tariff (CET) on cement. Carrington said that by letter dated September 3, 2008, the Ministry of Trade and Industry informed him that “T&T has no objections to a request from Jamaica for the item for the period requested.”

Carrington was in the witness box at the Caribbean Court of Justice (CCJ) in the matter brought by Trinidad Cement Limited (TCL) against Caricom over the suspension of the CET, which meant that member states could have gone outside the Caribbean and imported cement because of a shortage of the commodity.

Among the observers at the hearing were former minister in the finance ministry Christine Sahadeo and former trade minister Mervyn Assam. The matter, which continues today, is being heard before Michael de la Bastide, chairman, Rolston Nelson, Adrian Saunders, Desiree Bernard and Jacob Wit. Carrington said it was Jamaica, by letter dated August 20, 2008, who requested the suspension of the CET. The secretary-general said he sent out inquiries to member states to see if they could supply the cement.

Carrington said the first response came from the Ministry of Trade in T&T who had no objection to the suspension. He said on September 5, 2008, the Barbados Government informed him that Barbados could supply the cement to Jamaica. Carrington said he did not authorise the suspension. Seventeen days later, the Barbados Government wrote to Carrington and informed him that “the results of further investigations have shown that Barbados cannot supply the cement and the Government wishes to withdrawn its objection.”

Carrington said he acted in good faith and relied on the representations of T&T and Barbados before he granted the suspension on September 23, 2008. The member states, he added, were informed of the decision on October 1. Cross-examined by TCL’s lead attorney, Dr Claude Denbow, SC, Carrington was unable to say if the T&T Government consulted with TCL before it agreed to the suspension. “I expected the T&T authorities had consulted with the relevant authorities. I can’t say if consultation took place. I do not need that, I do not expect that,” the secretary general added.

WHAT TCL CLAIMS

TCL is seeking to get the court to quash the decisions of the Caricom Council of Trade and Economic Development (COTED) and the Secretary General with respect to the suspension of the Common External Tariff (CET) on cement. The Trinidad-incorporated company, with operations in Barbados, Guyana and Jamaica, deems the suspension to be "irrational, unreasonable and illegal”, and as such is calling on the CCJ to declare the move “null and void.” In addition, the regional cement manufacturer is asking the regional court to issue a restraining order against Caricom, as well as to impose a “mandatory injunction against the community to revoke the suspensions and notify those affected.”


Source:
Francis Joseph
Trinidad Guardian
Wenesday April 1, 2009

http://guardian.co.tt/news/general/2009/04/01/tt-govt-agreed-cet-suspension