Belize

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Belize: Swapping Debt for Nature

By Nicholas Owen
May 4, 2022

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(This article first appeared in the March 2022 issue of Finance & Development.)

Belize’s barrier reef is a marvel of biodiversity. Stretching 170 miles through the warm waters of the Caribbean and around atolls, cays, and coastal lagoons, the Western Hemisphere’s longest reef is home to some 1,400 species, from endangered hawksbill turtles and manatees to several threatened types of sharks. But climate change and warming oceans, excessive fishing and mangrove felling, and unchecked coastal development all pose risks to the fragile ecosystem.

The reef’s chances of survival received a vital boost last year. On November 5, Belize signed a debt-for-nature swap with The Nature Conservancy (TNC), an environmental organization, which reduced the country’s external debt by a striking 10 percent of GDP. Perhaps more significantly, it greatly improved the prospects for marine protection. Belize’s prime minister, John Briceño, said the deal would protect the country’s oceans and pave the way to strong, long-lasting growth.

Under the agreement, a TNC subsidiary lent funds to Belize to buy back a $553 million “superbond”—the government’s entire stock of external commercial debt, equivalent to 30 percent of GDP—at a discounted price of 55 cents per dollar. It financed this by issuing $364 million in “blue bonds” in a sale arranged and underwritten by Credit Suisse, a bank. The US government’s development bank, the International Development Finance Corporation (DFC), provided insurance. This allowed the loan to have a low interest rate, a 10-year grace period during which no principal is paid, and a long maturity of 19 years.

In return, Belize agreed to spend about $4 million a year on marine conservation until 2041. It will double its marine-protection parks—spanning coral reefs, mangroves, and the sea grasses where fish spawn—from 15.9 percent of its oceans to 30 percent by 2026. An endowment fund of $23.5 million will finance conservation after 2040.

Jaime Guajardo, the IMF’s mission chief for Belize, said the deal is of tremendous benefit to the country and contributes to the authorities’ objectives of restoring debt sustainability, promoting sustainable development, and enhancing resilience to natural disasters and climate change.

Debt-for-nature swaps are not new. They have existed, in one form or another, since the late 1980s. But these early deals typically involved creditor governments writing off debt bilaterally so long as the savings were channeled into conservation: they were, in effect, grants. Two things stand out about the Belize deal. First, the bond market itself provided the “grant” in the form of a discount price. And second, the deal involved debt owed to private creditors and was, in the end, financed by a different class of private investors. It showed the potential for deals with countries that are experiencing economic difficulties and have expensive debt on their books.

Kevin Bender, sustainable debt director at TNC, says Belize itself needed little convincing to press ahead. The government soon recognized the savings and the cash they could generate for conservation. Private investors, however, were cautious about putting money into the blue bonds. After all, a debt swap of this sort is complicated and had not been done before. Investors were also leery of lending to a country with a history of defaults. But momentum built as the DFC, Credit Suisse, and other large institutions signed on.

The US development bank’s involvement was crucial. The DFC’s insurance meant the blue bonds received a strong investment-grade credit rating (Moody’s rated them Aa2), and so even risk-averse investors such as pension funds could be confident they would be repaid.

“If we didn’t have the insurance, no one was looking to lend to Belize,” says Bender.

Investor interest in environmental, social, and governance considerations played a part in marketing the complex product. In Belize’s case, TNC’s three-decade history running conservation programs in the country meant that investors could be sure that the promised marine protection would actually take place. They would not, in other words, face charges of “bluewashing.”

There is scope for more swaps with countries whose debt is trading at a discount or incurring high rates of interest. TNC, which also helped Seychelles—off Africa’s eastern coast—restructure its Paris Club debt to official creditors and channel the savings into ocean conservation back in 2016, is exploring similar arrangements in seven other countries.
Not all debt-for-nature swaps will have the same impact as the one in Belize, at least not on the debt side. The small Caribbean economy owed creditors a lot of money relative to its GDP. This meant that the impact of the deal on its overall debt-to-GDP ratio was significant. Moreover, its debt was trading at an especially deep discount.

All the same, future debt swaps could still mean cash for conservation or climate projects and some savings. “Some countries have debt on their books that is outrageously expensive,” says Bender. “Why on earth wouldn’t you let us give you the money to pay that off?” Hopefully many more countries with natural wonders like Belize’s barrier reef will take up his offer.

Suriname

12 May 2022 European supermajor Shell lined up a drilling rig for a key deep-water exploration well. The Maersk Drilling drillship Maersk Voyager is set to spud the Zanderij-1 wildcat in Block 42 in the third quarter

Suriname partners drilling Rasper prospect

May 5,
Offshore staff

HOUSTON — TotalEnergies and APA Corp. have completed flow test operations on their recent Krabdagu oil discovery in Block 58 offshore Suriname.

In its latest results statement, APA said buildup tests continue and should finish later this month.

The partners spud the Rasper exploration well on Block 53 in late March. The well has not yet reached the targeted zones.

Agri-investment to end food blockade

Guyana Minister of Agriculture Zulfikar Mustapha advised regional stakeholders that Caricom states are ready for investments in the agricultural sector. Mustapha was joined by Caricom Assistant Secretary-General in Trade and Economic Integration Joseph Cox in a virtual discussion on the agriculture expo in Guyana. The virtual meeting was convened by the Global Business Leadership Forum.

Guyana will host Agri-Food Investment Forum and Expo under the theme Investing in Vision 25 by 2025 on May 19-21.  Mustapha said the region’s annual food import bill, about US$6 billion was only expected to increase in future. To reduce its bill by 25 per cent by 2025, there must be political and private sector willingness and partnerships. The poultry industry, corn and soya are the main sectors with the potential to expand regionally.

“We have to woo investors to come to the Caribbean. Almost 98 per cent of poultry meats and products are being imported into the Caribbean. Guyana, Suriname, Belize, TT, Jamaica and Barbados can satisfy poultry demands in the Caribbean. Corn and soya are linked directly to the poultry industry in producing protein and feed and there is where we can start production. In the Caribbean, we already have a market for this important crop.“

Guyana and other countries provide land space, fresh water and a conducive climate for production. There were already proposals and at the expo they will match capital investments with assets and partnerships. There were 200 interested participants from the US, Canada, Geneva, Ghana, Cameroon and China.

“Investors can come and set up shop as long as the laws permit. We also have a lot of incentives for investments such as agriculture machinery, no taxes or value added tax on agriculture inputs. I don’t think we have problems with labour. We have enough labour to satisfy the job market in the Caribbean, both skilled and unskilled.”

Caricom was seeking ways to make doing business easier, removing trade barriers and updating certain standards for effective operations that meet sanitary and phytosanitary requirements.

Cox said while the goal was to reduce the food import bill, targets included development of the agriculture sector, increasing private sector involvement and improving the value chain. To address these concerns, there must be a collaborative effort among Caricom states in transport and ease of doing business for progress to take place.

“Inter-island transportation has been a longstanding challenge, but we are far advanced in the establishment of a fast ferry (service) to really treat with the movement of products across the island chain, especially the southern islands. There is some element of hope. There is a great need for agricultural insurance. The primary production is important but we also need the support mechanism.”

Reducing regional food imports has been a main objective of Caricom and heads of government took the initiative as a personal task, led by Guyana’s President Irfaan Ali, who holds responsibility for agriculture in the Caricom quasi-Cabinet

 

CARICOM – US forum

May 8, 2022

Guyana’s right to produce took centre stage when U.S. Vice President, Kamala Harris, hosted a virtual meeting of 15 heads of CARICOM states to discuss U.S. commitment to advancing cooperation for economic recovery, mitigating the climate crisis and other areas of concern. At the summit President Dr. Irfaan Ali sought a “strong and strengthened relationship” between the US and Guyana and better coordination through CARICOM, repeating calls for cooperation on areas of mutual benefit, including energy.

“There is an absolute need for the building of trust—trust in our policy formulation and trust and predictability in what we do; trust in the partnership that we seek to endeavour and this trust must lead to an institutional arrangement, outside of the annual meeting that will allow us to address some very key issues—energy and climate change being two of them.”

Debating Guyana’s sovereign rights to produce petroleum, President Ali asked “if you’re locking out new suppliers, it is to whose advantage? We can very well be creating a monopoly for those who are already in the business, who have already extracted this natural resource and developed their own jurisdiction.”

These remarks track with a broader emerging narrative that other Guyanese and regional leaders have highlighted: that developing countries should not be unfairly blocked from development by long-time oil producers in the developed world.

At a private sector meeting in December of 2021, Vice President Bharrat Jagdeo also alluded to how hypocritical policies would affect new producers like Guyana. “In the developed world, they want more oil pumped [at home] because prices are escalating and affecting their people, their businesses, their consumers.”

Demand has continued to surge, even as oil-producing developed nations like Norway call for the developing world to halt production. Meanwhile, legacy producers like the US, Canada, and Norway continue to explore and develop new fields. The right to produce is fundamentally a decision that belongs to the people of Guyana and its elected representatives. Guyana’s government strongly believes that oil represents the best chance to earn the capital needed to grow the economy, improve the standard of living and build stronger and more resilient infrastructure.

Three new discoveries have been made at the Patwa, Barreleye, and Lukanani wells. After full assessments are made, it’s likely these new discoveries will be added to the Stabroek Block’s estimated resources of nearly 11 billion barrels of oil. In preparation for up to ten FPSOs operating in Guyana by the end of the decade, ExxonMobil increased investment in local facilities such as the Vreed-en-Hoop Shore Base Inc. (VEHSI) project, a majority Guyanese owned operation that will significantly boost logistics capacity in all sectors. These investments represent confidence that Guyana’s position as a stable and democratic oil producer will be a precious commodity in the future, as it joins a small band of countries that produce over one million barrels of oil per day.

With more oil production comes the potential for more investment, better infrastructure, and a wealthier society. For Guyana, the timeline to reap the full benefit of petroleum developments will not last forever. For every project delay, Guyana stands to lose millions of dollars in revenues to fund priorities like schools, roads, bridges, and healthcare. This is why countries like Guyana and others in the region are demanding the autonomy to utilise their resources without interference.

The right to own natural resources and to reach the global net zero emissions goal by 2050 can be accomplished simultaneously. New oil producing countries are now reaping the benefits of investments flowing into their economies.

As the Prime Minister of Barbados said at a climate conference , developing countries need “a way to finance our route to net zero,” and they need to findways to generate revenue, such as exporting fossil fuels. “There has to be equity.”

 

PRC Diplomacy

April 29, 2022

Guyana Minister of Foreign Affairs and International Cooperation, Hugh Todd, on April 28, , participated in a virtual meeting of the Foreign Ministers of China and Caribbean Countries sharing Diplomatic Relations with China. The main purpose of the meeting, co-chaired by His Excellency Wang Yi, State Councilor and Foreign Minister of PRC and Acting Prime Minister Dominica, Hon. Reginald Austrie, was to reflect on the achievements of Caribbean-China relations over the past 50 years, discuss issues of mutual interest and recommend an advancement in the programme of cooperation and interaction among Caribbean countries and China.

Minister Wang Yi lauded the relations and said that over the past 50 years PRC remained committed to supporting developing countries. Relations remained fruitful through cooperation in a wide range of areas of mutual interest. China continues to be committed to further strengthening these relations, particularly through enhancing medical cooperation by donating Covid-19 vaccines. China respects the sovereignty of all nations and is well aware of its international obligation to support developing nations, such as those of the Caribbean, in their efforts to forge paths of development and manage global issues.

The Hon. Hugh Todd provided a wide-ranging intervention on how Caribbean-China relations can be enhanced through collaboration at the multilateral level. He noted China’s commitment to true multilateralism as the path to finding shared solutions to global challenges with the participation of all states and reaffirmed Guyana’s commitment to the One China Policy. He addressed the prime global issue of climate change , owing to the existential threat it presents to countries in the Caribbean that are most vulnerable to its impacts.

Minister Todd highlighted Guyana’s principal concerns which remain the achievement of the 1.5 degree C target and access to sufficient financing for adaptation and mitigation. He outlined the particular challenges of Guyana as a low-lying coastal state, vulnerable to flooding as a result of sea level rise and extreme weather events, such as heavy rainfall.

This phenomenon threatens important sectors of the economy, including critical infrastructure, thereby hindering ability to adapt to the devastating impacts of climate change. It was within this context, that Guyana launched the Low Carbon Development Strategy (LCDS) in 2009 and the expanded Strategy-LCDS 2030 in 2021.

There is a need to bridge the energy and infrastructure gap in the region to increase disaster preparedness, boost economic recovery and address challenges to food security, among others. Impediments to investment in infrastructure, both on the demand and supply sides and lack of available funding pose a challenge to bridging this gap. Building resilient economies entails investing in resilient infrastructure, restoring trade, particularly through increased connectivity and sustainable supply chains and long-term investments in low-carbon technologies.

Guyana welcomes China’s support and advocacy to increase ambition for adaptation and mitigation as a coordinated push for finance is ungently needed. He reiterated Guyana’s interest in collaborating with the Caribbean region and China. Foreign Ministers of Antigua and Barbuda, Bahamas, Dominica, Grenada, Jamaica, Suriname and Trinidad and Tobago participated in the meeting. Barbados was represented by the Minister in the Ministry of Foreign Affairs and Foreign Trade.

Polite diplomatic speeches belie the harsh reality of daily existence on over 700 islands, islets, volcanoes and cays .  The only solution to socio–economic- political challenges is for USA to acquire the West Indies.as Unincorporated Territories, like Puerto Rico to end the deadlock of the elusive CSME and drive progress. Foreign investors from advanced economies include the oil industry which made material discoveries of resources at colossal cost for exploration and production of cheap energy.

With massive revenues from energy projects,over a century, independent states, which grabbed power to subjugate citizens, feather their nests and ignore the rule of law, all collapse under wrong-headed policies of corrupt, bigoted, racist, lawless regimes.

All sectors crumble as ministers abdicate responsibility for administration, agriculture, arts, business, culture, communities, development, education, energy, environment, finance, food, geopolitics, health, housing, industry, infrastructure, justice, labour, planning, security, sport, technology, tourism, trade, transport, foreign relations, utilities, works and youth.

CARICOM is an acronym for the modern geopolitical region of the West Indies. Indebted republics are characterised by , tax-guzzling state enterprises, bloated bureaucracies where impoversihed citizens seek work, unwilling to implement decisions. and demanding hefty pay rises. Ex-British colonies plan to overthrow the Monarch as head of state to appoint kith and kin lookalikes as Presidents living high on the hog. Rampant crime terrifies citizens while PRC/PLA snatches resources, creating a strategic threat, escalating since the RF invasion.

 

ECLAC

April 28 2022

The economies of Latin America and the Caribbean face a complex juncture in 2022 as global growth, is now estimated at 3.3 per cent, a point below original projections before the hostilities began between Russia and Ukraine.

At the regional level, lower expected growth will be accompanied by higher inflation and slow employment recovery, according to new estimates released by the Economic Commission for Latin America and the Caribbean (ECLAC).

It said average growth of 1.8 per cent is predicted for the region and warned the conflict in Ukraine has heightened inflation, increasing financial volatility and costs.
ECLAC also noted that the economies of South America will grow by 1.5 per cent, Central America and Mexico 2.3 per cent, while 4.7 per cent growth is expected for the Caribbean economies (excluding Guyana).

The new figures were announced by the organisation’s acting executive secretary, Mario Cimoli, to the ambassadors for the Group of Countries of Latin America and the Caribbean during a recent meeting held at United Nations headquarters in New York.

According to ECLAC, the conflict in Ukraine will also negatively affect world trade dynamics, causing a decrease in foreign demand in Latin America and the Caribbean.
The region’s main trading partners—the United States (US), China and the European Union (EU)– will see lower growth rates than those expected before the conflict began.

ECLAC added that the war in Ukraine has also caused an increase in commodity prices, mainly in fossil fuels, some metals, food and fertilisers, adding that this price increase is in addition to higher costs observed due to disruptions in supply chains and exacerbated interruptions in maritime transport.

Monetary adjustments in the countries of the North have accentuated the tightening of global financial conditions witnessed in recent months, causing greater volatility in financial markets.  Alongside the increase in global aversion to risk resulting from the conflict in Ukraine, this has jeopardised capital flows to emerging markets, ECLAC also noted.

These trends may be accentuated in the coming months, especially if inflationary pressure persists in developed economies and the central banks in these economies deepen contractive monetary policies, including rate hikes and the reversal of monetary stimuli (asset purchases).

As in the rest of the world, inflationary dynamics have accelerated in Latin America and the Caribbean, warned ECLAC. It said as of March 2022, regional inflation is estimated at 7.5 per cent, and many central banks in the region anticipate sustained high inflation for the rest of the year, given the greater uncertainty abroad in light of the war in Ukraine.

Jamaica

April 26 2022

It will take billions of dollars and many years to fix a growing problem that has placed Jamaica into the unlikely bracket of being among the world’s most water-scarce countries due to the unavailability of potable water.

The worsening water crisis of the Kingston and St Andrew (KMA) metropolis results in rationing for months in some years. Lock-offs are exacerbated by droughts, broken pumps and crumbling pipelines making up the water distribution system. In the aquifers below the capital, over 104.3 million cubic meters of water, or about 60 percent of the available resource, remained unusable due to pollution.

A 2020 study, Groundwater Availability and Security in the Kingston Basin, found that high levels of nitrates in the city’s main aquifer were making the water unusable for domestic purposes. The study by researchers at the University of the West Indies (UWI), Mona,’ Departments of Chemistry and Geology and Geography, pointed to the contamination by effluent from the septic and absorption pits that litter the landscape and saline intrusion from over-pumping as the cause of the pollution.

Lead researcher Arpita Mandal reported that the two-year study, which started in 2018, showed no “significant change” in the levels of chloride and nitrates during the period.: “The historic data is patchy, but the chloride and nitrate levels have always shown high above the permissible limits”.

The report concluded that there is an urgent need to address continued contamination of the Kingston Basin, but the cleaning process would be extremely lengthy and costly. Many wells across KSA were decommissioned because between 50 and 80 per cent of the effluent from absorption pits and septic tanks goes directly into the ground.

The same was true for many Caribbean Islands, including Barbados, Antigua and Barbuda, and Grenada.

Noting the concerns for the quality and quantity of water in the aquifers of the KSA, the managing director of the Water Resources Authority (WRA) Peter Clarke pointed to the existence of several working wells in use by companies that treat the water to potable standards for industrial use.

While the contamination from “200 years of pit latrines” (in KSA) continues to cause concern, “the hardscaping of car parks and roofs” means there is less water available to recharge the aquifer. Therefore, to preserve the continued viability of the aquifer, the WRA, Jamaica’s water management and regulatory body, is preparing to put a moratorium on new wells.

Clarke is confident that the island has enough water and reserves for decades to come. It is the distribution and access that makes water a scarce commodity in some areas.
“It is where the people are, where water is distributed, and access to the water that is important.”

In 2015 the state-owned domestic distribution agency, the National Water Commission (NWC), announced an extensive 15 million US dollar programme to refurbish Kingston’s ageing distribution network. The programme included decontamination and recovery of old wells, decommissioning old sewage plants, and rehabilitation of water storage facilities.

The water company mended 40,000 leaks, which were reportedly costing the city 50 percent of the potable water it produced. They also replaced ageing pipelines installed before independence in 1962. The programme continues with the replacement and installation of hundreds of miles and pipelines.

Jamaica’s groundwater supply is three to four times greater than that which runs to the sea via the island’s 120 rivers and their networks of streams and provides 85 per cent of potable needs. Jamaica uses roughly 25 per cent of its available groundwater resources and 11 per cent of its accessible surface water.

To satisfy the growing demand in the KMA, the Ministry of Economic Growth and Job Creation is considering a new treatment plant in St Catherine among its planned and existing solutions. In 2016, an artificial groundwater recharge system was built at the cost of over 1 billion Jamaican dollars or 133 million US dollars, on 68 acres (27.5 hectares) of what was once cane-lands in Innswood, St Catherine, to replenish wells that supply the most populated areas of the metropolis and surrounding areas.

The system currently injects an extra five million gallons of potable water per day to replenish abstractions from supply wells. The Ministry of Local Government and Rural Development is considering similar systems to store excess water for use in times of drought and to reduce evaporation from surface systems like reservoirs and dams in other water-stressed areas of the island,

Gordon Smith and Mandal agree that Kingston’s water shortage is worsened by climate variations, increased urbanisation, and the inadequate management of existing resources. In the last few years, a construction boom has transformed the KMA, placing increased pressure on the available water supply.

UWI Climate Research Group warned of increased temperature and extremes in rainfall and droughts. Based on the 6th Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC), the Group warned Caribbean governments to brace for more prolonged and more intense droughts and higher temperatures that will impact, among other things, food production and water supplies.

In the case of the KSA, the NWC has continued to build and upgrade the city’s sewage treatment capacity in the areas affected to end sewage and wastewater contamination of the aquifer. Hopefully, the aquifer will naturally flush itself when the work is complete. “Jamaica is not short of water,” Clark said. “It’s a distribution issue”.

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IPS UN Bureau Report

GraceKennedy

May 13 2022

GraceKennedy (GK) s maintained a stable performance for the first quarter of the year, achieving robust revenues of J$36.26 billion, an increase of 15.5 per cent or J$4.86 billion over the corresponding period of 2021, according to the company’s unaudited financial results for the three-month period ending March 31, 2022.

GK’s profit before other income for the period was J$1.55 billion, a J$26.6 million or 1.74 per cent increase over prior year, and profit before tax was J$2.57 billion, representing a J$53.9 million increase over the same period in 2021.  Net profit after tax was J$1.88 billion, an increase of 2.1 per cent or J$39.4 million over prior year.

Net profit attributable to stockholders was J$1.74 billion, 4.9 per cent or J$81.7 million higher than the corresponding period of the previous year.

Earnings per stock unit for the period was J$1.75 compared to J$1.67 in 2021.

Group CFO, Andrew Messado also announced a dividend payment of 48 cents per stock unit, payable on 16 June 2022, totaling $476 million.

Commenting on GK’s first quarter results, Group CEO of GK, Don Wehby explained that since late 2021 the GK team has been navigating inflationary pressures, rising interest rates, and supply chain disruptions in many of the markets where it operates around the world.

“The COVID-19 pandemic has taught us how critical it is to remain agile in the face of challenges, and the GK team continues to operate with this in mind, as we work together to mitigate the impact of headwinds on our businesses,” Wehby.said.

GK’s Foods business recorded an overall growth in revenues and PBT when compared to the corresponding period of 2021; however, there were mixed results across its divisions, as logistics issues and margin pressures continued to impact its operations globally.

GraceKennedy Financial Group’s (GKFG) Banking and Investments and Insurance segments recorded positive performances for the period, while its money services segment reported a decline in revenue and PBT, primarily attributed to low remittance flows and foreign currency volatility during the quarter.

Overall, however, GKFG continued to record growth in revenues and PBT during the period.  “The geopolitical developments of the last few months, coupled with the ongoing challenges related to the pandemic, have resulted in our outlook being cautious for the rest of 2022, but this does not daunt us in any way, and the GK team continues to execute our strategic initiatives with determination – we are always up for any challenge,” Wehby added.

In April, GK announced that it would be making a private equity investment in the research and data intelligence business consultancy firm, Bluedot, which uses data collection and analytics to inform business insights and decision-making.

GK also recently released its new GK ONE mobile app on Google Play and in the Apple App Store.   Using the GK ONE app users can currently pay bills or apply for a First Global Bank credit card. The app’s Receive Remittance feature, which will allow users to deposit their remittances directly into their GK ONE wallet is expected to launch in the coming months.

Guyana Chamber tells President to blank T&T MoU

May 18 2022

Prime Minister Dr Keith Rowley visited Kaieteur Falls, the largest single-drop waterfall in the world based on the volume of water during an official visit to Guyana. Rowley and a team of three ministers are attending Guyana’s Agri-Investment Expo, which starts today.

Georgetown Chamber of Commerce and Industry, led by Timothy Tucker, disagrees with the Guyana government proposed Memorandum of Understanding with Trinidad and Tobago, urging against any signing until non-tariff barriers that T&T allegedly have in place against Guyana are removed. The chamber stated that such barriers prevent exports from Guyana and inhibit the growth of Guyanese enterprises.

The Chamber’s view followed a meeting of Prime Minister Dr Keith Rowley and President Dr Mohamed Irfaan Ali. Rowley and Ali had engaged in broad, extensive bilateral talks and pledged to deepen ties between Guyana and T&T. Discussions focused specifically on agriculture, energy and national security.

The Georgetown Chamber stated, “The Georgetown Chamber of Commerce and Industry (GCCI) is cognisant of the government of Guyana’s intent to establish and sign a Memorandum of Understanding (MoU) with the government of Trinidad and Tobago.”

The target areas for the MoU are intended to be agriculture, energy and national security.
However, the Chamber said it “wishes to express its disagreement with this action by the government of Guyana. The chamber’s concern comes in light of the fact that there are still many non-tariff barriers (NTBs) implemented by Trinidad and Tobago against Guyana.”

“These NTBs prevent exports from Guyanese businesses and, by extension, inhibit the growth of Guyanese enterprises. Accordingly, the Chamber of Commerce, as it did in 2018 with a previous MoU of a similar nature, strongly urges the government to refrain from signing any MoU with Trinidad and Tobago until these non-tariff barriers are removed.

“Being the oldest and largest private-sector representation organisation in Guyana, it is our mandate to ensure that the concerns of the enterprises that have continuously expressed difficulties as it relates to doing business in and with Trinidad and Tobago are voiced.

“The Chamber of Commerce, therefore, reiterates its disagreement with this action by the Government of Guyana and, once again, urges that these long-standing NTBs be removed.”

A Guyana government official said the query on the chamber’s statement was sent to the Foreign Affairs Ministry. Former United National Congress MP Ganga Singh, who is Trade Director at Guyana’s Port-of-Spain consulate, didn’t respond on the issue.  Singh is leading a delegation to the Agri-Forum.
Trade and Industry Minister Paula Gopee-Scoon declined comment on the NTB matter, as the Prime Minister and other ministers are in Guyana and she was certain there would be bilateral talks on all areas.

 

 

Bureaucrats, buccaneers and business models

May 20, 2022

CARICOM rhetoric is yielding to  collaborative action to improve regional food production systems,  as Prime Minister, Dr. Keith Rowley proposed that Trinidad and Tobago,  one of the CARICOM founding members, would build a business model to boost food supply with Guyana’s vast agricultural potential as a springboard for success.   The Prime Minister made this offer at the opening of the inaugural Agri-Investment Forum and Expo, held under the theme, “Investing in vision 25 by 2025.”

Rowley said the event represents a giant step to improve the quality and quantity of production systems for food sustainability in all conditions but time and action are of the essence.

“I have seen this before, I have heard this before and that means, we know what to do but the question is, are we prepared to do it? I have been saying, unless we get the appropriate investments, the scale at which we are required to perform will not be achieved…It therefore means that Guyana’s role in giving CARICOM the opportunity to produce on the scale at which we can produce to be a participant in feeding ourselves is important, hence I support this initiative driven by the works of President Dr. Irfaan Ali and Vice President, Bharrat Jagdeo who are integral leaders in CARICOM.”

Even as this support is given wholeheartedly, Rowley said there are some key issues to be addressed. Some persons are going to lobby to have the conversation of increased production done with a level of protectionism. PM Rowley warned, that the greater good for the region cannot be achieved if there is fear of disturbing a few in their comfort zones.

Along with the need to confront those who wish to keep the status quo and protect their interests, regional leaders must address the question of transportation barriers to goods and services among CARICOM States.

“…If we are going to produce in significant volumes then we bring into question the issue of transport. When we became independent as a federation that fleeting existence that we had, the Canadian government gave us a gift, two ships: the Federal Maple and the Federal Palm and they ran up and down across CARICOM…At no time I can recall that the people of the region were ever better connected and better served, but at the end of the useful life of those ships, they were never replaced. Not because there was no reason to but that the independents did not do what was needed to serve our people.”

He urged international supporters and donors to help fund and operate within the CARICOM region vessels of that nature.

The Prime Minister Rowley mulled the possibility of a CARICOM business register that could propel agri-investments and recognition. ” I and .. Barbados, Prime Minister Mia Mottley QC talked about this idea…Once a company is registered in one place in CARICOM, it is deemed to be registered everywhere; that is a simple, straightforward way of encouraging entrepreneurial recognition under law but it will remove a lot of the impediments…”

The Prime Minister proposed a sustained business model to truly unlock the agricultural potential of CARICOM member states; otherwise, their ideas will remain just words on paper. At a meeting with President Ali they spoke at length about the business modelto underpin the ideas that will flow from the forum.

“We will need a business model to bring about this expansion in food supply that will survive fair winds and foul and that will bring us the benefits we desire because increased production with proper transportation, storage, and of course, agro-processing requires a proper business model.”

TT is in a position to develop this model with the potential in Guyana and CARICOM. By combining this with the right energy infrastructure, expertise, and universities within the region to drive research, Rowley expressed confidence that CARICOM leaders can put its people in a position to do what has to be done for the benefit of current and future generations.

All that is trequired is for the TT Agriculture budget to be doubled, land to be delivered to farmers, rural infrastructure to be repaired and expanded, water supply to be boosted, marketing to be supported and security to prevent larceny to be increased.

All ministries are thus involved. UWI research must be funded to support farmers. Agriculture graduates must be employed. Food companies such as Nestle must be incentivised to invest in agriculture. Government must divest shares in WITCO and Angostura and support investment in fruit trees, chataigne and cashew for nuts, coconut, corn, legumes including Moringa, bamboo to conserve water, herbs and spices.

Montserrat

May 19, 2022

Honourable Joseph E. Farrell, Montserrat Premier, told the Agri-Investment Forum and Expo he has confidence in President Irfaan Ali’s agriculture drive, which will help achieve the region’s agriculture goals.

“When discussions began on reducing food import bill by 25% by 2025, I was skeptical, as a Caribbean man. I have heard it time and time again and we have failed, but I’m convinced, having seen the energy, enthusiasm with which your president embarked on this mission, I am convinced that it can come to fruition.”

The Premier noted that after gaining independence or republican status, not many Caribbean states invested in agriculture, but focused more on s education, manufacturing and technology.

“Indeed, we have been taught as a nation, as a people, that anything that is foreign is good, and so we enjoy importing food from other places out of the region. We spend our limited resources that we could use for healthcare systems and other social safety nets, to import food, rather than developing our own sectors.”

He told leaders to consider that Caribbean nations could not access Personal Protective Equipment (PPE), from external suppliers in the pandemic.

“What if something happens and the region is not able to produce food? Our people will die, and that is why we must all rally around this vision, and put it into practice so that at least we begin to produce food for the region. It is absolutely critical that we do that.”

Montserrat, imports 75 per cent of its poultry products and 85 per cent of its food from outside the region. This, he said is “embarrassing.” The Premier also noted the issue of connectivity and challenged persons to invest in shipping. “Why should I be importing onions from North America, when my colleagues from the region have lands, enough to produce it?”

The biggest factor is not that food is not available in some countries in the region, but getting food where it is most needed.

“For over 25 years the region has been speaking to movement of food from one country to the other, and to this day we have not succeeded, so then we now need investment in shipping, so that we can move those products from Guyana in the South, to Jamaica in the north, from Dominica in the south to Montserrat and Antigua. This is what we need at this point in time. Let us put our money where our mouth is and invest in shipping,.”

The Premier also noted the importance of food and nutrition security, as there is a high number of non-communicable diseases in the region. Food produced must be high valued, and not necessarily for use outside the region.

“There is no need for all of us to produce everything. We must begin to specialise. If Belize is producing oranges, I don’t need to produce oranges, we need to specialise and seriously produce and get produce out of our countries and to the countries who need them most.”

Farrell also urged the youths to take up the challenge of finding a solution to irrigation water challenges in the region to maximise the use of water.

“The government of Montserrat is supportive in working with Caricom, to achieve vision 25 by 2025,”

 

 

CARICOM must remove barriers to food security

May 19, 2022

Member States of CARICOM were urged to remove barriers to trade among nations, in order to achieve food security within the region.

The call was made at the launch of the premier Agri-Food Investment Forum and Expo

The three-day Forum and Expo aims to achieve the 25 per cent by 2025 vision of reducing regional food imports. It also seeks to stimulate increased investment and expenditure in the agriculture and food value chain, and support infrastructural sectors, strengthen cooperation and economic integration in the agri-food industry, and seek practicable solutions to foster intra-regional trade.

His Excellency, Dr. Mohamed Irfaan Ali led the CARICOM delegation in attendance including, Prime Minister of Belize & Chairman of CARICOM, Hon. John Antonio Briceño, Prime Minister of Antigua & Barbuda, Hon. Gaston Browne, Prime Minister of Barbados, Hon. Mia Mottley, Prime Minister of Dominica, Hon. Roosevelt Skerrit, Prime Minister of Trinidad and Tobago, Hon. Keith Rowley, Premier of Montserrat, Hon. Joseph Farrell, and Deputy Prime Minister and Minister of Tourism, Investments & Aviation of Bahamas, Hon. Isaac Chester Cooper.

Leading the charge was Prime Minister Briceño who said CARICOM states must do better to remove impositions and barriers affecting trade regionally. He said [we must] “use our efforts and energies to adopt policies to support the growth of our productive sector, improve market facilitation and develop international transportation.”

Addressing the issue of regional food security, Briceño stated that there must first be an appreciation for the fact that there are dedicated CARICOM farmers and agro-processors, who are knowledgeable and skilled enough to take advantage of the many opportunities that exist within the region, to attain food security and enhance economic activity.

While welcoming the forum which brought together member states and other key stakeholders, the CARICOM chair commended the government role in leading the charge for agriculture and food security.

“As Heads, we are convinced that President Ali’s plans for agricultural development in the region are realistic and more so, they are imperative if we are to achieve food security for our CARICOM region.”

Echoing similar sentiments, Prime Minister Mottley said it is time to accelerate the advocacy to remove the international trade barriers that have strangled the region. She noted that, “we expect our farmers to produce for us only in a crisis; they have to be able to produce all year round.”

“We have a responsibility now to change mindsets and to change policies…because if we don’t make the steps now to remove the barriers, God knows how we can create the productive base that President Ali has so masterfully drafted for us, in terms of the plans to expand productivity, and to expand production.”

Similarly,  CARICOM member states have to ensure that ports- of -entry are priority areas of investments to facilitate the movement of cargo and people.

“We have a responsibility to take preemptive action in this region to protect our people and that is why all of us meet in Georgetown today, against this backdrop ”

The investment forum and expo is being held under the theme: “Investing in Vision 25 by 2025.”

It will also see engagements, and inform dialogue among key stakeholders along the agri-food value chain —policymakers, development partners, foreign and local private investors, farmers, distributors—on how investment could be encouraged. Stakeholders within the industry are also exhibiting their products and services.

Elusive Caricom single market economy

TT Prime Minister urged economic unity at the Caricom Agri Investment Forum and Expo in Guyana, saying that unless Caricom recognises itself as a single market economy and compiles its knowledge and talents, it will never achieve common goals, such as food security.

“We know what to do. The question is, are we prepared to do it?”

“We cannot, as a small economy fighting against the winds that are buffeting us, as they did so valiantly during covid19’s worst days, still be operating on the basis ‘of you versus me’ and ‘mine versus yours.’ While we want to protect our present agriculture, while we want to ensure that our interest is not trampled upon, we must do what we have to do to increase production.”

Joining him in making opening remarks were leaders such as Barbados Prime Minister Mia Mottley and Dominican Prime Minister Roosevelt Skerrit.

Rowley said the pandemic and the resulting strains on food security, medicine and food supply were a warning that the region needs a unified approach to food production, should there be another crisis.

“The experts have told us is that what we have experienced in covid19 is likely to happen again, and likely to happen more frequently. And for those who, in the worst days of covid19, heard our private sector tell us as government that they could not place an order for a supply of food and our ministry of health could not administer a vaccine, even though they had the money to buy it, but because we could not buy a vaccine, we have been warned.

“At the beginning of the pandemic we saw that nobody is going to come to our assistance and we will have to do it ourselves. When Barbados couldn’t buy a half-dozen ventilators, we couldn’t buy a vaccine. Those who had them kept them for themselves.

“Nobody is going to give us food when it is in short supply. We have to act now so that next time we would be in a better position.”

He said during his visit to Guyana he spoke at length to President Irfaan Ali on increasing food production and trade in food and they agreed it could not be done without a business model. Trinidad and Tobago is in a position to provide such a model that will help the region expand its food supply to weather any crises.

Rowley also shared several ideas to boost business in the region and increase the ease of doing business. These included a single Caricom business registry – where, if an entity registers its business anywhere in the Caricom, that registration would be valid in all Caricom countries.

He also spoke about a Caricom ferry service to transport people and goods.

“When we were a federation – that fleeting existence that we had – the Canadian Government gave us a gift. That was two ships the Federal Maple and the Federal Palm – and they ran up and down the Caricom. At no time that I can recall were the people of this region ever better connected and served.

“But at the end of the useful life of these ships, they were never replaced. Not because there was no reason to replace them and that the job had been done, but that we, the independents, had not done what had to be done to serve our people.”

Rowley also suggested people change their diets to suit the crops tthe region can produce. He lamented that not enough ground crops such as cassava and sweet potato were being consumed. He suggested diversifying crops on a regional scale, with different crops being available for trade from different countries. He said although other countries are growing grain and other foods, it does not mean the region has to grow the same varieties, and it is possible to get varieties of these commodities that are suitable for regional climates and environment.

“That is where our universities come in: the University of TT, the University of Guyana, UWI. Our research now has to be identifying for our producers the varieties that we can produce on scale, so we could supply ourselves with the inputs for animal feed.

“We want to see fields of soya in Belize and Guyana, where there is land availability. We want to see corn being harvested and grown in areas where it can be grown.”

However, he noted there would be naysayers to the idea of Caricom’s being a single market economy. Two weeks ago his government approached Parliament with legislation that would increase the range of skilled people allowed to move from country to country in the region and they were faced with opposition.

“We experienced voices within our Parliament openly objecting and indicating that it would be taking jobs from our local people. We have to get away from that.”

Rowley said while there would be people who wanted to protect the present agriculture of each individual country and ensure each country’s interest is not overlooked, the region has to do what it can to increase production.

“That increase in production is going to disturb the status quo of the current arrangements. That status quo will dominate the conversation of protection. and we will not get things done. Why do you think Prime Minister Skerrit is saying to you today that he could sell avocadoes to Europe, but he can’t sell it 100 miles down the road? Why do you think we have so many possibilities of production within the region, but there is no easy movement of these products? A lot of it is the protection of the status quo.”

After the contributions, the Caricom leaders were taken on a tour of the expo by President Ali, where the leaders looked at innovations and new trends in agro-processing and farming.

 

 

Trade barriers

GUYANESE President Irfaan Ali highlighted trade barriers as one of the topics for discussion at the Guyana Agri-Investment Forum and Expo. The statement came on the heels of concerns raised by the Georgetown Chamber of Industry and Commerce warning the Guyanese government against signing a memorandum of understanding between TT and Guyana amid barriers to trade imposed on Guyana by TT.

Ali said every aspect of food production, security and trade was up for discussion in his opening remarks at the expo.

“From production to trade relations issues, to markets and barriers, every single issue is on the table.We recognise that if we cannot address these issues in a collective, multi-faceted manner, then we will not be able to bring the long-term solutions that we so critically require.”

 

 

T&T, Guyana , Commonwealth, EU

May 22 2022

Prime Minister Dr Keith Rowley told media at Piarco International Airport on his return from Guyana that relations between Trinidad and Tobago and Guyana are good. He had good relations with Vice-President Bharrat Jagdeo, who had described T&T’s economy as “falling apart” earlier this year.

“He will tell you and I will tell you we get along very well.”

Concerns raised by the Guyana business chamber on the non-tariff barriers were a case of their business community wanting the best for their country. He said that as long as barriers do not hurt T&T’s economy, the Treaty of Chaguaramas regarding trade should take precedence if the interests of Caricom and the interests of the free market and economy are to prevail.

“I have been in Guyana for a week and I’ve had nothing but a warm welcome and a clear understanding and enthusiasm from the government and people of Guyana.”

Trinidad and Tobago continues to work with Guyana’s energy sector and the National Helicopter Service has confirmed its third contract to service offshore Repsol fields in Guyana.

June will be very busy for Caricom internationally. He will attend the Summit of the Americas in Los Angeles from June 6 to June 10 with the majority of Caricom members, after US concessions towards Cuba, to address issues important to the region.

Foreign Minister Dr Amery Browne will lead a T&T contingent to the Commonwealth Heads of Government Conference in Rwanda from June 21. T&T will vote for Jamaican Foreign Affairs Minister Kamina Johnson Smith as the new Secretary-General of the Commonwealth.

At a world summit called by the European Union on June 21 and 22 to discuss development decisions of interest to the region, Dr Rowley will represent Caricom with its chairman, Prime Minister of Belize, John Briceno and Jamaica Prime Minister Andrew Holness. Three Latin American leaders will join the EU leaders, the President of the USA and leaders from Asia.

TT Chamber of Industry and Commerce, responding to the Georgetown Chamber, urged both countries to cooperate to achieve the mutual goal of increased and streamlined regional trade.

“It is hoped that the concerns would have been addressed in the discussions with the President of Guyana and that the proposed MOU would have been designed to bring some form of resolution to the issues. We do believe that working together for the common goal of improving and increasing regional trade will improve economic benefits to all territories in the region.”

Vice President Bharat Jagdeo said the MOU was a way forward to remove the barriers. Guyana would focus on removing barriers to trade between the countries in its discussions with TT .

At the forum and expo Rowley stressed the importance of strengthening trade and connection with Caricom countries, with the ultimate goal of becoming a single-market economy.

Georgetown Chamber warned against an MOU, saying Guyanese businesses are hindered by non-tariff barriers – a measure that imposes limitations on how a product maybe manufactured, handled or advertised, and quotas of products that may be sold in a market.

Among the barriers is a 1930s law limiting the transport of honey within one mile of TT. In February 2015, TT customs officers seized honey from freight company Laparkan and fined it US$3,000.

 

 

New Principal at UWI Trinidad

April 30 2022

Among the many deliberations which took place during the April 29 meeting of The UWI University Council were the appointments and reappointments of executives and senior managers of the regional university.

Members of the highest governing and decision-making authority gathered for its annual review of the academy’s business affairs, operations and financial management, and as is customary, HR appointments.

The University of the West Indies is pleased to advise of the following appointments and reappointments approved by Council, which are anticipated to take effect from August 1, 2022.

New appointments

● Professor Rose-Marie Belle Antoine as new Principal at the St. Augustine Campus

● Dr. Francis Severin as new Principal at the Open Campus

● Professor Elizabeth Walcott-Hackshaw as Dean of Humanities and Education at the St. Augustine Campus

Reappointments

● Professor Winston Moore as Deputy Principal at the Cave Hill Campus

● Ms. Charlene Riley as University Archivist

● Mrs. Andrea McNish as University Bursar

● Mrs. Judith Nelson as University Management Auditor

● Dr. Paulette Kerr as Campus Librarian at the Mona Campus

● Dr. Rhonda Jaipaul-O’Garro as University Director, Marketing and Communications

● Mr. Howard A. Pearce as Deputy Campus Bursar at the Mona Campus

● Professor Michael Taylor as Dean of Science and Technology at the Mona Campus

● Professor Edwin Ekwue as Dean of Engineering at the St. Augustine Campus

During the public, open session of the meeting, broadcast live via UWItv, Chancellor, Robert Bermudez, delivered remarks as Council Chairman. Vice-Chancellor, Professor Sir Hilary Beckles followed with a detailed account of The UWI’s operations in the 2020-2021 academic year, including highlights of key achievements for the period, and projections for The UWI’s 2022-2027 strategic cycle delivered in a presentation entitled: A Global Disruptor.

UWI Trinidad

Emeritus professor RAMESH DEOSARAN wrote:
UWI St Augustine campus) deserves a new principal like Professor Rose-Marie Belle Antoine, a well-rounded academic with policy-making experience. She has a good understanding of the fundamental purpose of the university in our developing Caribbean society, especially in our diversified Trinidad and Tobago.

There is hope that Antoine will effectively handle the challenges of the university-government connection and also the statutory criteria of effective teaching, sound published research and public service for academic staff.

As a former member of the Faculty of Social Sciences, I respectfully suggest, as one of her early projects, that a look be taken at the step-by-step process for academic appointments and especially promotion to help ensure that these are effectively done according to merit, transparency and demonstrated performance.

Consistent fairness is a key element in maintaining the morale of academic staff. Outcomes of critical thinking and fairness are vital to university culture and the tax-paying society. A university is no place for friendly favouritism or heavy-handed patronage.

There are obvious difficulties in raising such a matter from inside The UWI. I have unfortunately witnessed how cliquishness and compliant leadership could damage the otherwise honourable objectives of an institution.

The recent Sir Dennis Byron report on The UWI governance and, as accepted by the University Council chaired by Chancellor Robert Bermudez, raised a number of macro overhead issues, mainly about regional management and finance. There remains, however, a number of ground-level campus issues needing attention.

The 30-year old push for campus autonomy as against centralised management seems to have withered. It remains an objective worthy of current attention.

I congratulate Prof Antoine and The UWI on a deserving appointment.

The new principal must focus on the current scandal of food insecurity, seek more funds for the Faculties of Agriculture, Engineering and Science and curb the resources and time wasted on identity politics, sacrilege of heritage and reparation for historic woes. Research must have a positive impact and UWI can enhance this contribution through strong collaborations with other leading organisations.

Saint Lucia

 May 11th 2022 –

A Decolonization C24 Pacific Regional Seminar will include a video message from UN Secretary-General.

St Lucia Prime Minister Philip J Pierre, will formally open a United Nations Seminar on Decolonization, at the Sandals Grande Hotel until 13th May 2022.

The Pacific Regional Seminar is held under the auspices of the UN General Assembly’s Special Committee on Decolonization, known as the C-24.

The seminar is held annually for the C-24 to obtain the views of the representatives of Non-Self Governing territories, Member States, members of civil society, and other stakeholders on policies that can assist the Special Committee in advancing the decolonization process.

The theme for the 2022 Seminar is “Advancement of the Non-Self-Governing Territories through the Coronavirus Disease (COVID 19) Pandemic and Beyond”.

It will be presided over by Ambassador Keisha Aniya McGuire, Grenada’s Permanent Representative to the UN and the current Chair of the Special Committee, C24.

There are seventeen Non-Self-Governing Territories (NSGTs) under the purview of the Special Committee:

1. American Samoa,
2. Anguilla,
3. Bermuda,
4. British Virgin Islands,
5. Cayman Islands,
6. Falkland Islands,
7. French Polynesia,
8. Gibraltar,
9. Guam,
10. Montserrat,
11. New Caledonia,
12. Pitcairn,
13. Saint Helena,
14. Tokelau,
15. Turks and Caicos Islands,
16. United States Virgin Islands and
17. Western Sahara.

The administering Powers are

1. France,
2. New Zealand,
3. the United Kingdom, and
4. the United States.

Approximately one hundred participants, comprising Special Committee Members, other United Nations Member States, administering Powers, as well as representatives of the Non-Self Governing Territories, civil society, non-governmental organizations, experts, and regional organizations registered for the Seminar.

In addition to the Address by Prime Minister Hon. Philip J Pierre, the seminar will include an address by the C-24 Chair, Ambassador McGuire, and a video message from UN Secretary-General Antonio Guterres.

St Lucia is a Caribbean island, north of Trinidad and Tobago, since 1814 British colony which in 1967 was granted self government and in 1979 independence. She is a member of the Commonwealth