Jamaica to appeal COTED’s refusal of CET suspension

Minister of Industry, Investment and Commerce Karl Samuda (left), speaking on Jamaica's application to the CARICOM Council for Trade and Economic Development (COTED) for a suspension of the Common External Tariff (CET) on 120,000 tonnes of imported cemen

KINGSTON, Jamaica, November 12, 2009 – Jamaica will appeal the rejection of its application for a suspension of the Common External Tariff (CET) on 120,000 tonnes of cement it is seeking to import from outside the region.

Minister of Industry, Investment and Commerce, Karl Samuda, said the country will be requesting a review of the provisions of the revised Treaty of Chaguaramas, which dictate the minimum number of the CARICOM Council for Trade and Economic Development (COTED) member states, which can support or reject applications to that body.

He said Jamaica's application for the suspension, which was made at a meeting of COTED on October 8th, was denied. It came after Jamaica failed to gain support from two of the three countries responding to the body's invitation to indicate their support or rejection of the request for the waiver, for which provisional agreement had been given.

The three respondents were Guyana, Suriname, and Trinidad and Tobago, who are among the 14 member countries of COTED.

Samuda said that following the conclusion of the previous CET waiver regime for 240,000 tonnes of cement, the administration took the decision to apply for a further suspension, initially for 170,000 tonnes.

He said that figure was subsequently revised down to 120,000 tonnes, representing 15 per cent of the country's demand, following discussions with local manufacturer, Carib Cement Company Limited, which had indicated support for the application in a correspondence to the Ministry.

Minister Samuda said Jamaica went to the COTED meeting to explain its concern about the ability of the local cement company to provide adequate storage of inventory that would protect the construction industry.

He said the COTED Secretariat forwarded correspondence to members inviting responses to Jamaica's request, to which only Trinidad and Tobago, Guyana and Suriname responded.

"As it turned out, Trinidad (through Trinidad Cement Limited, TCL) indicated that they could supply Jamaica's needs, Guyana supported the suspension, and Suriname did not support the suspension, notwithstanding the fact that they joined us on October 8 to apply for (a CET waiver) for 90,000 tonnes (of cement)," he said.

"The fact of the matter (is that) only three member states responded , and my understanding is (that) Article 29 (2) of the revised Treaty of Chaguramas indicates that, in order to overturn a decision of the COTED, requires that there be a majority from among a minimum of three-quarters of the membership, which is 14. Which, in essence, translates to a minimum response of either six or seven, depending on the Secretariat's interpretation," Samuda added.

He stressed that barring TCL, no one from CARICOM has indicated ability to supply Jamaica's need. This includes Carib Cement which, he pointed out, has not responded to COTED indicating its ability to supply, despite increased capacity.

However, while TCL has indicated its ability to supply the local market, Samuda has lamented the entity's monopoly, describing it as "unhealthy."

"If we, as a Caribbean people and a region, intend to become world competitive, then we cannot continue to use crutches, such as the CET, to block out any attempt, by even a minimal percentage, of supplies to come in from extra-regional (sources) just to keep us on the competitive edge," he said.

"It cannot be that the application of a tariff, under the revised Treaty of Chaguaramas, intended that it would be in place in perpetuity because, quite frankly, it impedes our ability, our willingness to become world competitive.”

Samuda said that Jamaica would place that concern on the agenda of the next COTED meeting and, if necessary, take it to the (next) Heads of Government meeting for re-examination of the provisions under the revised Treaty.

"It is (also) the intention of this Government, and this Minister, to request of the Attorney General that they bring to the attention of the Secretariat, the provision which requires a much larger number of responses, than has occurred so far," Samuda indicated.