THE EDITOR, Sir:
I READ the October 26 editorial on PetroCaribe with interest and must congratulate you on a succinct and balanced commentary. I particularly commend the effort you made to position PetroCaribe in the several contextual settings that are important to a full understanding of the issues.
May I point out, however, that it is not accurate to summarise PetroCaribe as a 'rebate offer' - it is actually an arrangement that allows Venezuela to extend favourable credit terms to participating Caribbean states. This is, however, a technicality and does not detract from the thrust of the editorial.
Like you, I am confident that the concerns raised within CARICOM will be quickly and amicably resolved. I should point out, for clarity, that the Most Honourable Prime Minister of Jamaica has not accepted that PetroCaribe violates aspects of our CARICOM obligations and we are not awaiting a ruling from the CARICOM Secretariat. PetroCaribe is an enhancement of principles and terms already established in the 2001 Caracas Accord. In addition, the region's Common External Tariff (CET) allows the duty-free imports of crude oil - regardless of the source. It is the extra regional importation of processed petroleum products (gasolene, lubricating oils, etc.) that are dutiable and this is not an area of dispute.
CARICOM member states are aware that, should they wish to import finished petroleum products duty-free from Venezuela, they are obliged to seek the approval of the Council for Trade and Economic Development (COTED) in accordance with the procedures outlined in the Revised Treaty.
Once again, let me express appreciation for your even-handed analysis of the issues at play.
I am, etc.,
PHILLIP PAULWELL
Minister of Commerce,
Science and Technology
