CARICOM INITIATIVE

Government’s proposal to supply crude oil to Caricom at below international pricing for electricity generation will assist the States in the rebuilding of economies hurt both by the September 11 event as well as by the United States assault on preferential entry of bananas to the European Union. But by itself it may not be enough. Government should also examine the possibility of financial assistance for training and/or retraining programmes geared to help Caricom nationals develop/strengthen skills appropriate to the needs of their individual countries. The courses can be taken at the University Government intends to establish here, and the financial assistance can be through either scholarships or student revolving loans, with the Governments of relevant Caricom countries acting as guarantors.

In turn, countries in the Eastern Caribbean which may benefit from any such exercise should be encouraged to have a searching look at their foreign exchange rate structure, to see if their rate of exchange is not affecting the competitiveness of their manufactured and agricultural products. For while there may be a sense of national pride in the strength of, say Eastern Caribbean currency vis a vis the United States or the Trinidad and Tobago dollar, nonetheless this adversely affects the ability of the goods of EC countries to be competitive with our manufactures and agricultural products on both the US and the Trinidad and Tobago markets.   

Meanwhile, the proposed cheaper cost of Trinidad and Tobago crude, although the details have not yet been made public are not likely to greatly offset the price of goods differential created by the more than two to one value of the EC dollar in relation to the TT dollar. The September 11, 2001 attack on New York’s World Trade Centre, which aggravated an already existing downturn in business and employment opportunities in the United States meant not only a drop in imports, and the emergence of a more price conscious American consumer, but the creating of new obstacles to, for example, agricultural imports. In addition, stringent requirements for foreign agricultural produce introduced by the US following on September 11, have made it more difficult for Caribbean fruits etc, to enter the United States.

The needed shift from agriculture that should take place even before the anticipated World Trade Organisation guillotine falls on preferential entry of bananas and sugar to the European Union, demands an emphasis on skills development throughout the region. Any assistance by the Government of Trinidad and Tobago with respect to this should not be viewed as altruism, but rather as a realistic approach. Caricom is this country’s second largest market for its exports. Already, the dwindling Caricom tourism market, caused by September 11 and the fall off in visitor arrivals, flowing from a diminished North American air travel market triggered by the commandeering and use of aircraft to demolish the World Trade Centre, has meant less money for the purchase of imports. This has impacted adversely on the ability of this country’s goods to access Caricom markets as at pre-September 11, 2001 levels. Any strategy pursued by Trinidad and Tobago to assist the Caribbean Community in restructuring will help this country’s exporters, and ipso facto revenues, export earnings, profits and employment opportunities.