Venezuelan President Hugo Chavez (left) in conversation with Prime Minister P.J. Patterson. - FILE
THE ANNOUNCEMENT several months ago by President Hugo Chávez of Venezuela of the PetroCaribe energy facility led to some division with the region about the merits of the programme.
The speed at which the Jamaican Government indicated its willingness to make use of the facility suggested that it found it to be of potentially significant economic value. This was a position shared by the region's bigger oil importers, Cuba and the Dominican Republic. However, others hesitated. The Bahamas Cabinet was divided on whether to sign the agreement. Trinidad and Tobago and Barbados declined, claiming damage to their respective energy sectors.
Prime Minister Patrick Manning of Trinidad and Tobago, argued that PetroCaribe would destroy the US$600m per year market that Petrotrin, the state-owned refiner, has in the Caribbean.
Mr. Manning also had other concerns. Trinidad and Tobago's participation in PetroCaribe would complicate already protracted negotiations with Venezuela about the sharing of the rich oil and gas fields that straddle the maritime border of the two countries.
For his part, the enthusiasm of Jamaica's Prime Minister Patterson, reflected his administration's acceptance of PetroCaribe as bringing some relief to the island's pressured import bill.
However, the issue turned on questions of the legal implications of the participation in PetroCaribe of Jamaica and other Caribbean Community countries. The CARICOM secretariat was asked to investigate whether member countries signing the PetroCaribe agreement were violating the Community's rules that set conditions on bilateral arrangements.
The Community's leaders met two months ago to discuss this, and the region was told that these issues have been resolved, and the CARICOM countries have agreed on how they will approach PetroCaribe.
The region has not been told the basis of this. We suggest that there are important questions to be answered by the Jamaican Government and by CARICOM. Has the Community changed its rules on bilateral trade arrangements by its members?
Has a derogation been granted in the case of PetroCaribe? Has Venezuela been granted 'most favoured nation' status by CARICOM? Such are the differences over PetroCaribe among the Caribbean's energy importers, that we consider it necessary for the region's leaders to explain the basis of their agreement on a common approach to the Venezuelan facility.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
