Kingdom of the Netherlands-Curaçao and Sint Maarten: Technical Assistance Report-Implementation of Risk-Based Supervision

Publication Date: March 25, 2022  Electronic Access: Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:  The CBvCSM is the sole supervisory authority for all regulated financial institutions operating locally and in the offshore (or international) sector, as well as the stock exchange in Curacao and St Maarten.

The financial sector comprises different types of institutions, which include banks and non-bank institutions, insurance companies (both Life, and Non-life), securities intermediaries, asset management firms, investments institutions, fund administrators, management of pension funds, reinsurers, and trust companies.

Series: Country Report No. 2022/088 Subject: International organization Monetary policy    Frequency:  regular
ENGLISH
Publication Date:   March 25, 2022

Colombia :

IMF Executive Board Concludes 2022 Article IV Consultation with Colombia

March 28, 2022

Washington, DC : The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with Colombia [2] on March 25, 2022. This also included a discussion of the findings of the Financial Sector Assessment Program (FSAP) exercise for Colombia [3] .

Colombia’s very strong policy frameworks and comprehensive policy response to the pandemic supported the economy’s resilience. A flexible exchange rate, central bank credibility under inflation targeting, effective financial sector supervision and regulation, a medium-term fiscal rule, and strong institutions have helped the country to withstand external shocks and promote economic growth. Over the last two years, the authorities have used the flexibility of their macroeconomic framework to deliver a coordinated and timely response to mitigate the impact of the pandemic.

Colombia’s economic recovery in 2021 was among the fastest in the region. After a strong economic rebound last year, Colombia’s economic momentum is expected to continue into 2022. Above-potential growth is expected around 5¾ percent this year, led by robust household consumption and continued recovery of investment and exports. Supported by a still accommodative monetary stance, the output gap is projected to close by 2022H1.

Over the medium term, GDP growth is expected to converge to its potential growth rate of about 3½ percent. The projected increase in the price of key commodity exports would lead to a significant reduction in the current account deficit from -5.7 percent of GDP in 2021 to -3.3 and -3.4 percent of GDP in 2022 and 2023, respectively.

Inflation continues rising led by supply-side shocks in the context of strong demand. Higher inflation is expected to persist and will likely remain above the upper limit of the central bank’s tolerance band (4 percent) throughout 2022, with upside risks. Inflation is projected at around 6¾ by end-2022.

Risks to growth remain tilted to the downside. External risks remain elevated led by an intensification of the ongoing war in Ukraine. While Colombia stands to benefit from higher hydrocarbon prices, rising and volatile international prices for food and energy, as well as more persistent disruptions in global supply chains, would exacerbate domestic inflationary pressures.

Global financial market volatility arising from the conflict or the monetary tightening cycle in major economies could also create shocks to capital flows. New outbreaks of Covid-19 variants could lead to subpar or volatile growth in trading partners . Domestic risks are also tilted to the downside—including uncertainty around the domestic evolution of the pandemic and political risks associated with the upcoming elections.

The banking system entered the COVID-19 pandemic from a position of relative strength, and the authorities mounted a strong policy and support response. As a result, the financial system has weathered the pandemic relatively well so far. As outlined in the FSSA, overall, banks are largely resilient to solvency and liquidity shocks. But it is essential to monitor interconnectedness and contagion in view of the complexity of financial conglomerates and increasing cross-border exposures.

Bank supervision has been enhanced, including by introducing a comprehensive framework for conglomerates. Macroprudential oversight is overall effective, but some macroprudential tools and data collection should be expanded to address leakages and risks from potential rapid household debt growth. The crisis management and safety net framework has been strengthened significantly, but recovery and resolution planning needs further improvements, including for cross-border institutions.

Executive Board Assessment

Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities for their very strong policy frameworks and a comprehensive pandemic response, which have supported the economy’s resilience and a strong recovery. Directors noted that uncertainty and downside risks remain elevated, including from inflation, global financial conditions, and geopolitical tensions. They agreed that policies need to be recalibrated carefully to sustain the growth momentum, manage inflation, further strengthen public finances, and reduce external imbalances.

1. Directors agreed that an accelerated monetary tightening is appropriate to reduce inflationary pressures and safeguard the credibility of the monetary policy framework. They emphasized the need to ensure that policy decisions remain data-driven and accompanied by clear communication.
2. Directors welcomed the authorities’ commitment to maintain a flexible exchange rate to help absorb the impact of global shocks, including swings in commodity prices. They encouraged the authorities to continue with international reserve accumulation over time to help maintain reserve adequacy and insure against external liquidity risks.
3. Directors noted that the Flexible Credit Line provides additional buffers and enhances market confidence.
4. Directors commended the authorities for the improved public finances and strong commitment to maintain fiscal credibility. They recommended continued efforts to save revenue windfalls, control spending, and phase out exceptional support measures, as conditions allow.
5. Directors recognized that the Social Investment Law, including a new debt anchor, is an important step to strengthen the fiscal framework. They stressed that deeper fiscal reforms to secure new revenue sources and enhance spending efficiency would safeguard key social programs and public investment, while further reducing debt.
6. Directors welcomed the strengthening of the regulatory and supervisory frameworks. They encouraged the authorities to build on this progress by implementing the 2022 FSAP recommendations.
7. Directors underscored the need to enhance data availability, crisis management, and the bank resolution and macroprudential frameworks.
8. Directors stressed the importance of further structural reforms to boost productivity, external competitiveness, and greener, inclusive growth. They called for continued efforts to strengthen governance and the anti-corruption and AML/CFT frameworks.
9. Directors looked forward to further progress in implementing the green strategy, reducing trade barriers, and increasing labor force participation. They commended the authorities for their ongoing efforts to integrate Venezuelan migrants into the economy.

[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

[2] Disclaimer: This Staff Report was prepared by a staff team of the IMF for the Executive Board’s consideration on March 25. The Staff Report reflects discussions with the Colombian authorities from February 1- 15, 2022 and is based on the information available at that time. It focuses on Colombia’s near, and medium-term challenges and policy priorities given the pandemic and subsequent economic recovery. The report was prepared before the Russia-Ukraine conflict and, therefore, does not reflect the implications of these developments and related policy responses. The Supplementary Information is based on the information available as of March 11, incorporating initial effects from the ongoing conflict which has amplified uncertainty and downside risks around the outlook.

[3] Under the FSAP, the IMF assesses the stability of the financial system, and not that of individual institutions. The FSAP assists in identifying key sources of systemic risk and suggests policies to help enhance resilience to shocks and contagion. The last FSAP exercise for Colombia took place in 2012-13.

[4] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here:    http://www.IMF.org/external/np/sec/misc/qualifiers.htm .

 

 

Colombia:

2022 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Colombia

Publication Date:April 4, 2022 Electronic Access:  Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Colombia: 2022 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Colombia

https://www.imf.org/en/Publications/CR/Issues/2022/04/04/Colombia-2022-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-516082?cid=em-COM-789-44599

Summary:  Colombia’s economy rebounded strongly in 2021 with 10.6 percent growth led by pent-up domestic demand, notably private consumption. Around 66 percent of the population is fully vaccinated against Covid-19 as of end-February and the economy continues to reopen more fully.

While GDP has already reached pre-pandemic levels, employment has trailed in its recovery and macroeconomic imbalances have emerged. Amid strong demand, supply constraints, and rising commodity prices, rising inflation exceeded the upper limit of the central bank’s tolerance range in 2021.

With demand-led growth and higher import prices, the current account deficit widened to 5¾ percent of GDP. Under staff’s assumptions for the evolution of the pandemic, above-potential growth around 5½ percent is expected in 2022, led by robust household consumption and a continued recovery of investment and exports.

External vulnerabilities remain elevated with high external financing needs and tighter financial conditions. External risks remain elevated and an intensification of the ongoing conflict in Ukraine may impart considerable volatility in financial and commodity markets.

Domestic risks are also tilted to the downside—including uncertainty around the evolution of the pandemic, political uncertainty with national elections this year, and slower implementation of the infrastructure agenda and peace accords.

Series:Country Report No. 2022/097 Subject: International organization Monetary policy      Frequency: regular

Colombia/Ecuador

Gran Tierra Energy update

19 Apr 2022

• Achieved First Quarter 2022 Total Company Average Production of 29,362 BOPD, Up 20% Year-on-Year
• Acordionero and Costayaco Infill Development Drilling Campaigns Yielding Encouraging Results
• Expect to Meet Full Year 2022 Guidance of 30,500-32,500 BOPD
• As of March 31, 2022, Paid Down Credit Facility to $40 Million and Had Cash Balance of $59 Million
• Balance of Credit Facility Expected to be Fully Paid in Second Quarter 2022

Gran Tierra Energy  has announced a corporate update. All dollar amounts are in US dollars and all production volumes are on a working interest before royalties basis and are expressed in barrels of oil per day (‘BOPD’), unless otherwise stated.

First Quarter 2022 Production:-

• Gran Tierra’s total average production was 29,362 BOPD during the first quarter of 2022, which was approximately flat when compared with fourth quarter 2021 production and
• up 20% from first quarter 2021’s level.
• The Company’s first quarter 2022 production was in-line with management expectations.
• Expect to Meet 2022 Production Guidance: Gran Tierra believes its ability to keep production flat quarter-on-quarter demonstrates the ongoing successful results from the Company’s waterflooding efforts in all major assets.
• The ongoing infill development drilling campaigns in the Acordionero and Costayaco oil fields are expected to increase the Company’s full year 2022 average production into the guidance range of 30,500-32,500 BOPD.
• The ramp up in production from first quarter 2022’s level is expected to begin in the latter half of second quarter 2022 as new Acordionero and Costayaco oil wells are brought online.

Significant Debt Reduction:

• Gran Tierra’s credit facility has been reduced to a remaining balance of $40 million as of March 31, 2022, down $27.5 million or 41% from a balance of $67.5 million as of December 31, 2021, and down $164 million from March 31, 2020.
• With a cash balance of $59 million as of March 31, 2022, forecasted 2022 free cash flow and recovery of tax receivables, Gran Tierra expects to fully pay off the remaining balance of its credit facility in the second quarter 2022.

2022 Financial Forecasts and Plans:

• At an $80/bbl Brent price (The Company’s previously announced high budget case), Gran Tierra’s 2022 capital program of $220-240 million is forecast to generate 2022 cash flow of $330-350 million, free cash flow of $100-120 million, EBITDA of $440-460 million and a 2022 year-end cash balance of $120-140 million.
• With Brent currently at significantly higher levels than $80/bbl, the Company has increased its 2022 Brent price forecast to $95/bbl.
• At this higher oil price, the Company would maintain 2022 capital at $220-240 million with forecast 2022 cash flow of $410-430 million, free cash flow of $180-200 million, EBITDA of $550-570 million and a 2022 year-end cash balance of $210-230 million.
• The Company’s 20 to 25 well development program continues to focus on asset optimization, maintaining a low operating cost structure and increasing oil recovery factors across its extensive portfolio.
• Gran Tierra’s 2022 exploration campaign of up to 6-7 wells is expected to be fully funded from forecasted internally generated cash flow and is designed to focus on near-field prospects in proven basins with access to infrastructure, providing short cycle times from discovery to bringing production on-stream.
• The Company continues to have Brent oil price hedges in place for 9,000 BOPD in first half 2022, with an average ceiling price of $87.62/bbl on 8,000 BOPD.
• Therefore, approximately 73% of Gran Tierra’s oil production, which is unhedged, has been able to fully benefit from the current high oil price environment.

Operations Update:
1)Acordionero:

1. Gran Tierra has allocated capital of $70 million towards 2022 development activities for the Acordionero field (14-16 development wells) in the Middle Magdalena Valley Basin.
2. Drilling began on February 15, 2022, with one rig on the Southwest Pad. Three infill producers and two water injection wells were drilled before the end of first quarter 2022. All producing wells will be on production in April 2022.
3. Gran Tierra was successful in its ongoing focus on quick-cycle times, drilling these five wells for an average per well cost of $1.3 million.
4. Completion costs for the three infill oil wells were on budget at an average cost per well of $0.6 million.
5. The first water injector’s completion cost was on budget at $0.8 million. The second water injector completion is planned during April 2022.
6. The drilling rig is being moved to Central Pad with recommencement of development drilling of the next 9-11 wells expected before the end of April 2022.
7. The results of the development drilling campaign have met expectations and the benefits to the Acordionero field’s oil production are expected to be realized through the course of second and third quarter 2022 with increased production.
8. A polymer injection project is expected to begin early in the third quarter of 2022, where the Company plans to inject polymer into one or two waterflood patterns. The main objective of the polymer is to determine whether this widely practiced enhanced oil recovery process would be successful at increasing Acordionero’s ultimate oil recovery factors and remaining oil reserves.

2)Costayaco and Moqueta:

1. Gran Tierra has allocated capital of $40 million and $30 million respectively to the Costayaco (4-5 development wells) and Moqueta (3 development wells) fields in the Putumayo Basin in 2022.
2. The first Costayaco well was spud in late February 2022, and as of early April 2022, three infill development oil wells have been drilled. Two of these wells were the fastest and lowest cost wells ever drilled in the field (average per well cost of $1.8 million).
3. The three wells are expected to be completed and brought on production during second quarter 2022.
4. The Moqueta work program is expected to commence in the fourth quarter of 2022 and is planned to continue into 2023.

Ecuador Exploration:

1. Gran Tierra expects to drill 2-3 exploration wells in 2022, targeting multi-zone prospects near existing fields with access to infrastructure.
2. Gran Tierra’s first exploration well in Ecuador is scheduled to spud in the third quarter of 2022 on the Chanangue Block.
3. Environmental licenses for exploration drilling have been granted by Ecuador’s Ministry of the Environment for both the Chanangue and Charapa Blocks, as well as for seismic activities in the Charapa Block.
4. Approval of the environmental license for the Iguana Block is expected during third quarter 2022.

Colombia Exploration:

1. The Company is also progressing its 2022 exploration campaign in Colombia with the first exploration well expected to be spud in the Putumayo Basin in early second half 2022 targeting multiple horizons in a prospect between the Costayaco and Moqueta fields.
2. Another one to two explorationJ wells in the Putumayo are planned for second half 2022, as is one exploration well in the Middle Magdalena Valley Basin.

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented:

‘Gran Tierra is in a strong position for the continued development and enhanced oil recovery activities in 2022 to optimize value from each of our assets. Gran Tierra’s balance sheet has significantly strengthened since 2020 and paying off the entire credit facility will be a major milestone for the Company.

Looking to the end of the year, we are forecasting a net debt to EBITDA ratio of under 0.8 times. In addition, we plan to allocate capital to prioritized, high-impact exploration drilling opportunities. Our waterflood programs across all of our assets continue to perform well and we expect another strong year of free cash flow from these high quality, low decline assets.’

Source: Gran Tierra Energy

Colombia

PGS Colombia Pacific seismic project

30 Mar 2022

A new reprocessed regional Tumaco Basin dataset will provide the entry tool for exploration in Colombia’s Pacific offshore area, improving imaging of the play elements and de-risking the prospectivity potential.

PGS has received a ‘Surface Prospection Clearance’ (APS) issued by the National Hydrocarbon Agency (ANH) from Colombia, which authorizes it to reprocess existing 2D lines from different vintages applying the latest imaging techniques and incorporate these lines to a MegaProject covering the Pacific Offshore. The MegaProject will be done in partnership with SCG (Servicio Geologico Colombiano).

Geological Context

The project area of interest covers most of the Tumaco offshore Basin, including the San Juan Basin. This area is characterized by the forearc basin structural style in convergent margins, related to subduction of the Nazca Plate beneath the western part of South America.

Along the South Colombia pacific margin, thick Cenozoic sedimentary sequences accumulated over blocks of transitional and oceanic crust basement that accreted between the Late Cretaceous and Early Cenozoic with a sedimentary fill of predominant from Tertiary age.

The potential petroleum system is related to source rocks of late Cretaceous and early Tertiary age, migrated to turbidites fan systems associated with the Miocene interval. Trap and seal are provided by Middle-Upper Miocene shales combined with early-Middle Miocene mud. Such a framework presents an attractive array of potential hydrocarbon-bearing traps.

‘This reprocessed regional Tumaco Basin dataset will provide an entry tool for Colombia’s Pacific offshore area, improving imaging of the play elements and de-risking the prospectivity potential,‘ says Adriana Sola, Area Manager – Latin America and Caribbean at PGS.

To explore prefunding options, or to arrange an early data show, contact nsa.info@pgs.com.

Source: PGS

 

Cuba:

Melbana Energy update at Alameda-1

29 Mar 2022

Highlights

• Logging operations in the Marti structure completed
• Preparations underway to drill a short side-track well in order to safely conduct flow testing of the high pressure 300 mMD1 / 245 mTVD2 gross interval encountered in the Marti objective
• Melbana Energy reports that logging operations in the Marti structure of its Block 9 contract area, onshore Cuba(Melbana’s working interest 30%), have concluded.

The Marti structure is the updated interpretation of the subsurface environment and was the lowest and largest primary predrill target (and was previously known as the ‘I’ structure) for the Alameda-1 well, the first of two exploration wells planned for Block 9.

Logs were acquired over 276 mMD of the Marti objective, however logs were not able to be acquired over the bottom 16 mMD, where the strongest influx of hydrocarbons was encountered. The quality of the data gathered was good and analysis is now underway.

Data acquisition took longer than expected due to well control considerations during the logging program. At total depth there was some evidence of formation water returned with the oil during logging operations, even though no water had been encountered whilst drilling. There are several reasons why this may be the case, but the lowest oil indications in Alameda-1 are in any case more than 500 metres below the crest of the Marti structure on the pre-drill mapping.

Continuous excellent oil shows were encountered over the entire gross interval of almost 300 mMD / 245 mTVD whilst drilling the Marti structure. Work has now commenced on preparations for flow testing this interval. The high pressure encountered at the bottom of the Marti structure necessitated the calling of total depth on the Alameda-1 well3 at 3,916 mMD / 3,694 mTVD. It is therefore similarly considered prudent to conduct flow testing a little above this zone. As such, the interval drilled in the Marti structure will be plugged and a short side-track well drilled to about 50 mMD higher than current total depth. Flow testing of the Marti section in the side-track well is therefore currently projected to commence about mid-April.

Executive Chairman, Andrew Purcell, commented:

‘We’re not sure if we’re seeing evidence of the full extent of this hydrocarbon interval in the Marti sheet, but even if it turns out to be so we’ve got about 300 mTVD of gross hydrocarbon interval – the bottom of which is estimated to be some 500 mTVD from the crest of the Marti structure given we intercepted it down dip. Efforts are now turned to preparations for flow testing.’

Source: Melbana Energy

 

 

Venezuela

Venezuelan economic authorities again reported one-digit monthly inflation for a country accustomed to astronomic figures but independent observers consider this data to be absurd. According to a Central Bank (BCV) release, March showed a 1.4% adjustment, the lowest since 2012. It was the seventh successive monthly price index below 10% for a total of 11.4% in the first quarter of 2022, against 127.8% in the same period of 2021. In August 2012, inflation stood at 1.1%.

The country is emerging from hyperinflation after four years.

”With March’s result, the accumulated variation at the end of the first quarter of the year stands at 11.4%, much lower than that obtained for the same period last year (127.8%),“ the BCV said. With this new data, annualized inflation stood at 284.4%, ”less than one-tenth of that observed in March 2021 (3,012.2%),“

Nevertheless, it continues to be one of the highest in the world. The BCV has been regularly publishing the variation of prices in the last months, leaving behind the usual delays. In previous years, months went by without any updated figures.

The government of Nicolás Maduro believes the slowdown is the result of economic policies adopted since the end of 2018 when tight controls on the economy were eased down, while analysts claim that the de-facto dollarization, the reduction of the fiscal deficit, and the stability in the dollar rate ensuing the constant injection of funds by the State in the exchange market have influenced the deceleration.

The opposition-linked Venezuelan Finance Observatory questions the official figures and places the March index at 10.5%. ”The March 2022 inflation figure of 1.4% is an absurdity (…)“Do not believe this figure from an institution that has hidden the data and publishes what is convenient for it,” said economist José Guerra, a scholar at the observatory.

 

 

Citgo Petroleum Corp.

The U.S. oil refiner controlled by the Venezuelan opposition, ousted chairman Luis Giusti Lugo less than a year after appointing him. Giusti, a 24-year veteran of the oil industry, was dismissed by the board of parent company Citgo Holding Inc., according to people familiar with the matter who asked not to be identified because the decision isn’t public. The reasons for his removal weren’t immediately clear. His biographical page on the company’s website has been removed.

Giusti was appointed chairman of the fuelmaker last year, replacing Carlos Jorda. His dismissal comes as Citgo struggles with lawsuits seeking its sale to pay down debts. The refiner has been through several board reshuffles since 2019, when the Venezuelan opposition took control of the company following escalating U.S. sanctions against the regime of Nicolas Maduro.

The opposition takeover has also sparked a legal battle with creditors, including Crystallex International Corp, seeking compensation for a gold mine seized a decade ago. The U.S. government has been shielding Citgo from claims by banning transactions of a key bond backed by Citgo’s shares.

Representatives for Citgo did not immediately respond to requests for comments. Opposition leader Juan Guaido’s office, in control of PDVSA assets in the U.S., did not immediately respond to a request for comment.

 

Nicaragua

Nicaragua expels OAS mission

The Nicaraguan regime of former Sandinista leader Daniel Ortega Sunday announced the delegation of the Organization of American States (OAS) had been stripped of its diplomatic credentials and thus expelled from the country.

Nicaragua’s Foreign Minister Denis Moncada explained the decision had been made because the OAS does not contribute to the union of the region, nor does it respect the sovereignty and self-determination of the peoples.

“This diabolical organism will not have offices in our country either. Its headquarters have been closed. Nicaragua is nobody’s colony,” Moncada said.

“We communicate that Nicaragua expels the Organization of American States, the people and Government have denounced and continue to denounce the shameful condition of one of the political instruments of intervention and domination of the US State Department, wrongly called OAS,” Moncada added.

In line with Managua’s Nov. 19, 2021, decision to leave the OAS, “we also communicate that as of this date we cease to be part of all the deceitful mechanisms of this monstrosity: Permanent Council, Commissions, Meetings, Summits of the Americas,” he went on.

”We withdraw the credentials of our representatives, the comrades: Orlando Tardencilla, Iván Lara, and Maicol Cambell, we will not have a presence in this diabolical instrument (…) Neither will this infamous organization have offices in our country. Its headquarters have been closed. Nicaragua is not anyone’s colony,“ the Nicaraguan minister also explained.

”We have disowned this instrument of colonial administration that does not represent the sovereign union of our Caribbean America and is a Yankee instrument to violate rights and independence, sponsoring interventions and invasions, legitimizing coups d’état in diverse modalities,“ the Nicaraguan official elaborated.

”We ratify our respect, affection and recognition to Cuba and Venezuela, as well as to the peoples who wage their struggles and have accompanied us (…) We feel free from the repeated insolence of the employees of the Yankee State Department who represent servility, lackeyism, surrender, the decadence of an institution reduced to servitude to the Yankee,” Moncada also pointed out.Monday.

April 25th 2022
Food and Agriculture Organisation

 

 

Promising food security summit

Caricom must close ranks and collaborate with Latin American officials to urgently address the need to reduce food prices and bolster food security. The FAO summit in Ecuador provided hopeful signs for regional action in the right direction.

At the 37th (FAO) Regional Conference for Latin America and the Caribbean in Quito, Ecuador, the host state tabled a proposal for examination of how food prices and the regional food import bill could be reduced. The proposal was supported by Guyana’s Agriculture Minister Zulfikar Mustapha and St Vincent and the Grenadines which noted that the food outlook been affected by the RF war after significant disruptions in food supply chains in the pandemic.

 

Jamaica

Jamaica is placing emphasis on the importance of food security.

Avinash Singh of Trinidad, Minister in the the Ministry of Agriculture, Lands and Fisheries, noted the FAO’s support for local initiatives such as updating the 150-year old fisheries legislation and the national school feeding programme but also pledged government’s commitment to regional food and nutrition security.

Over decades, there has been a lot of talk about how to boost our production, but very little effective action.  A policy of using fiscal measures like tax incentives and VAT removals to attempt to stimulate the sector has not really yielded the kind of results needed to make sure we are in a better position.

As many know, direct attempts to pump money into farming have also failed, and past agreements with countries like Guyana have not really borne fruit. Now is the time to focus on the basics: such as growing local produce and changing the consumer habits of shoppers. But the approach should also keep in mind that we are not alone and that there are regional implications for the failure of any one state to achieve food security.

There should be an examination of the areas in which expertise can be shared between countries. Attempts should also be made to formulate a Caricom-wide strategic plan that would identify which countries might be best suited for specialist areas or crops and to determine whether some countries might be poised to enjoy economies of scale.

Efforts should also be made – and some are already in the legislative pipeline – to guarantee the free movement of workers who may be needed for agricultural ventures. There should be attempts to improve travel linkages more generally and the free movement of goods across borders. It is worth examining past bilateral agreements that could be repurposed for the current moment.

Focusing on food security should also take into account the impact of the ongoing climate crisis, which can only complicate efforts. All of this suggests that Caricom and Latin American partners  need more summits to iron out the path ahead.

Government co-operation for regional food security
Food security has captured the attention of many sovereign states, particularly small island developing states in the last three years.

The covid19 pandemic forced the conversation forward and at the recently concluded 37th Regional Conference for Latin America and the Caribbean of Food and Agriculture Organization in Quito, Ecuador, Caricom heads called for a policy to address rising food prices.

Amid the ongoing Russia-Ukraine war, food security was paramount for the region.

The idea of attaining regional food security was nothing new, said Jamaican High Commissioner Arthur HW Williams. Providing an insight into his country’s perspective into the topic, he said the region was well equipped to grow and produce many of the foods imported and questioned why initiatives were not put in place to form stronger bilateral and multilateral partnerships in this regard.

“We have all the infrastructure, synergies, we eat mostly the same things across the Caribbean and so our food production can be significantly enhanced, providing we agree to trade with each other.

“Yes, Caricom has the master plan, but every territory must have their own plan. Food security is an age-old problem, it did not just arise with the pandemic and we as a region, as a people, are not doing enough. Hopefully, the pandemic would have taught us that we need to do more.”

For instance, there was no need to import livestock because the sector was capable of adequately meeting the demands, with the right investments.

“Why are we importing lamb? Do you know how much money the hotels in Jamaica spend importing products like lamb? Why can’t we dent that market? Even if we cannot supply for the vast majority right now; it would be a step towards production and the more we produce the less we import.”

Farmers needed to be adequately looked after to ensure that they were not discouraged from feeding the region’s population. Farmers were given promises for investments and infrastructure, yet they continued to be neglected.

“There are so many areas that one could look at in terms of reducing the region’s food import bill. We have to guarantee our farmers that when they go out to plant they have somewhere to sell. Too often they have gone out, taken their savings and invested in production and when the time came for sales there were all kinds of sad stories (from commercial buyers).”

So then, how can this be achieved? The FAO has reported the agri-sector contributed between nine and 35 per cent of the gross domestic product in Latin America and Caribbean states and 25 per cent of their exports.

One sure way was regional co-operation, which was also not a new concept and to use land space in the bigger countries Guyana, and Suriname to grow food.

“Guyana and Suriname with vast acreage of land can significantly expand agricultural output. It is up to the ministers of agriculture in the region to use the initiative of Caricom to really set out a workable programme that will bind all the Caricom countries to ensure that we substantially increase food production, so we can see the reduction in our import bills.”

At the 33rd Inter-Sessional Meeting of the Conference of Heads of Government in San Pedro, Belize in March, Caricom Secretary General Dr Carla Barnett said through various initiatives it was hoped that regional food importation would decrease by 25 per cent by 2025. At that meeting, Guyana President Dr Irfaan Ali who heads Caricom’s quasi-Cabinet on agriculture, agricultural diversification and food security, said a fund of US$100 million in financing for the development of the agriculture sector should be set up. The Trinidad-based Republic Bank will be offering this facility. Williams said the target was not difficult to achieve but it required Governments commitment and change in thinking.

“I don’t think it is all that difficult to achieve. What it requires is the commitment of the governments to see it as a priority and that it is a sector that they will not compromise on. It is also going to require a change in mindset in the same way that every ministry of government has to recognise that climate change affects everybody. They have to recognise that food production everything.”

As sovereign states that chose to form and be a part of an organisation such as Caricom, actions and commitments need to be adhered to the various decisions , especially in the agricultural sector.

“It can be difficult, in the sense that our priorities are not the same and it is not a one-size fits all but if we are committed as a region, we can be a powerhouse.”

The geopolitical climate was unstable and as the Russia-Ukraine war persists food and oil prices will likely drive inflation even higher. As households struggled to recover from the pandemic, further price increases in basic food items could exacerbate an already volatile system of poverty and hunger.

 

 

Trinidad & Tobago

UNC meets Deputy Assistant Secretary Barbara A. Feinstein

Mar 30 2022

Trinidad and Tobago Opposition Members met Barbara A. Feinstein, Deputy Assistant Secretary for Caribbean Affairs and Haiti of the US Department of State. They discussed the importance of the United States and Trinidad and Tobago partnership for the economy and national security and issues regarding both nations. Details follow in this press release from the Leader of the Opposition:

Members of the Opposition were pleased to meet Barbara A. Feinstein, Deputy Assistant Secretary for Caribbean Affairs and Haiti of the US Department of State at the Office of the Leader of the Opposition.

Deputy Assistant Secretary Feinstein was accompanied by Charge d’Affaires, Shante Moore and John A. Miller, political officers both from the US Embassy in Port of Spain.
Representing the Opposition at the meeting were Chief Whip Dr David Lee, who extended greetings on behalf of Opposition Leader Mrs Kamla Persad-Bissessar SC, MP and MP Rodney Charles who shadows foreign affairs.

This meeting underscored the continued importance of the US/TT partnership as it pertains to our economy and national security and various issues regarding US/TT relations were discussed. The Opposition looks forward to continuing to work with all our regional and international partners in the best interests of Trinidad and Tobago.

 

Vice President Kamala Harris Meets Caribbean Leaders

APRIL 29, 2022

STATEMENTS AND RELEASES
Vice President Kamala Harris met virtually today with 15 leaders representing Caribbean nations and underscored the importance the Biden-Harris Administration places on our partnerships throughout the Caribbean.

The Vice President made clear the United States is committed to work with our Caribbean neighbors to advance cooperation on economic recovery, the climate crisis, and security, among other areas of mutual concern.

As part of the Administration’s commitment to continued engagement within the Caribbean, the Vice President proposed an annual meeting of this group to continue high-level discussions.

The Vice President discussed economic recovery following the COVID-19 pandemic and reaffirmed that equitable economic growth in the Caribbean is a priority. As the United States is the region’s largest economic partner, the Vice President and the leaders discussed ways to further facilitate trade and attract U.S. investment.

On security, the Vice President informed the leaders that the United States will expand our assistance to the Caribbean through the Caribbean Basin Security Initiative (CBSI). The Vice President discussed new funding to combat firearms trafficking, enhance maritime security, and support training for police and others.

The Vice President and the leaders discussed cooperation to address the climate crisis and the transition to clean energy. They discussed ways to strengthen energy security, increase the deployment of clean energy, and enhance resilience and adaptive capacity to withstand the impacts of climate change and extreme weather events. The Vice President welcomed the input from the leaders on these areas, and they agreed our governments will stay in close touch, including at the upcoming Summit of the Americas in Los Angeles.

The Leaders that participated:

Prime Minister Gaston Browne of Antigua and Barbuda
Prime Minister Phillip Davis of The Bahamas
Prime Minister Mia Mottley of Barbados
Prime Minister Juan Briceño of Belize
Prime Minister Roosevelt Skerrit of Dominica
President Luis Abinader of the Dominican Republic
Prime Minister Dr. Keith Mitchell of Grenada
President Dr. Irfaan Ali of Guyana
Prime Minister Ariel Henry of Haiti
Prime Minister Andrew Holness of Jamaica
Prime Minister Phillip Pierre of Saint Lucia
Prime Minister Dr. Timothy Harris of Saint Kitts and Nevis
Prime Minister Dr. Ralph Gonsalves of Saint Vincent and the Grenadines
Prime Minister Chan Santokhi of Suriname
Prime Minister Dr. Keith Rowley of Trinidad and Tobago
Secretary General of CARICOM Dr. Carla Barnett