The Patty War

Many in the Anglophone Caribbean would have heard of Jamaicas Patty War
with Trinidad. It came to a head in 2009. At its root was what some describe as nontariff barriers imposed against Jamaica under the guise of the World Trade
Organizations sanitary and phytosanitary (SPS) guidelines. These WTO guidelines
concern food safety and came into effect in 1995. They allow countries to set their
own standards so as to ensure that their citizens are not exposed to harmful products.
Since everyone (or nearly everyone) in Jamaica eats and enjoys Tastee patties
and many have done so for close to 50 years, that war was won after the various
inspections of plant and product to ensure safety supported by scientific evidence.
Jamaican patties are now being enjoyed in the republic of Trinidad and Tobago,
alongside the Trinis delightful doubles.
The Energy War
The energy war between Jamaica and Trinidad is far more complicated than the
Patty War and goes back further in time. It is as yet unresolved. Interestingly, though,
it is the present Minister of Industry, Investment and Commerce, Anthony Hylton,
who in about 2004 negotiated the deal with Trinidad for a twenty year supply of 1.1
million tonnes of Liquefied Natural Gas (LNG) to Jamaica each year. It seems war
erupted over transporting the gas to Jamaica. There are many sides to this and
different understanding by different persons, depending on where they sat/sit.
In a 2009 newspaper publication, Hylton stated, we made it clear that Jamaica
was fully prepared to pay all extra processing and transport costs involved in getting
gas to Jamaica. The matters remain unsettled because Trinidad and Tobagos Prime
Minister, Patrick Manning, expressed his dissatisfaction with the opinion and
advisedthat he intended to appeal the matter in the CARICOM Court of Justice
(CCJ) once it became functional, which has yet to occur despite the functioning of the
CCJ for some time now.

There is a new prime minister in Trinidad. She is Kamla Persad-Bissessar.

Months ago, Minister Hylton reported that discussions with Trinidad over LNG are
back on track. To the extent that the energy Minister, Phillip Paulwell, has spoken on
this matter, he has described talks as at ground zero.
He did not sound hopeful, even while hoping that something would
materialize. Jamaicans are anticipating hearing more on this given Paulwells June
deadline and that we are now at the start of July.
WTO & CARICOM
At the heart of these wars are notions of transparency and fair-play within the
context of the CARICOM Single Market and Economy (SME), designed to facilitate
intra-regional trade as well as against a backdrop of WTO guidelines.
With WTO, it is those pertaining to Most-Favoured-Nation (MFN) status
generally, but specifically national treatment. Under this WTO conditions, nationals
and foreigners are to be treated as equals. Their goods and services are to be treated
the same, with no special favours for locals.
The trade deficit between Jamaica and the Republic of Trinidad and Tobago is
vastly in favour of the latter and reportedly running in the region of well over $1 to
$2 billionUSD per year. The Trinis export about seven times as much to Jamaica as
Jamaica exports to them.
This is partly seen as the consequence of the Trinis use of non-tariff barriers
and sector subsidies, plus what some regard as unfair leveraging of their oil fields and
natural gas trains, in contravention of the spirit of CARICOM and the letter of its
Grande Anse Declaration.
There is a view that Trinidadian manufacturers, because of their reduced price
of energy, have an unfair advantage compared to their Jamaican counterparts. This
advantage is reflected in the cost of energy in Trinidad and Tobago being ten times
cheaper than it is in Jamaica.

CARICOM, to which some in Jamaica are eager to wave goodbye, is regarded

as having been impotent in dealing with these wars. Enter CARICOMs still
relatively new Secretary General, Ambassador Irwin LaRocque, close to completing
one year in the post.
Secretary General Ambassador La Roque
The SG was special guest at a June 29 breakfast meeting with business leaders
in Jamaica. The session was organized by Samuda & Johnson, whose founding
partner, Milton Samuda, is president of the Jamaica Chamber of Commerce, as well
as Chairman of JAMPRO, the government entity tasked with driving trade and
investment in this island. The CARICOM SG shared some important observations.
For me these triggered an aha moment.
Ambassador LaRocque highlighted Jamaicas comparative advantage in trade
in services. He referenced the cultural industries, in particular musicians, as well as
the work of Jamaican professionals throughout the region. He stressed the need for a
widening of the construct of trade beyond our more accustomed limited restriction
to goods. It is true. Many of us forget or ignore trade in services.
This aspect of trade, while acknowledged under the terms of the CARICOM
SME, is hardly measured and accounted for when issues relating to trade imbalance
are discussed. This is so for Jamaica.
Often the earnings of entertainers and others in the cultural industries are not
captured in the formal economy. If, or, dare I say, when this is done, the trade
imbalance between Trinidad and Jamaica may begin to look less iniquitous. I hedge
my bet though, because, while we havent heard of Jamaica refusing entry to any
entertainer from Trinidad, we do know that in 2010 Ding Dong, a DJ known
primarily for his happy, party lyrics, was banned, along with several others dancehall
artistes from entering Trinidad for fear they would corrupt that society.
Trade Facilitation Desk
A Trade Facilitation Desk between Trinidad and Jamaica was established in
October 2011. Its creation was driven by the Manufacturers Association in the twin

island republic and specifically, it seems, by Bermudez, the high profile biscuit
company with a large number of exports to Jamaica. Both Jamaicas and Trinidads
Chambers of Commerce, as well as the Jamaica Manufacturers Association and the
Jamaica Exporters Association, are signatory to the MOU to facilitate business
opportunities and ease up trade challenges between the two countries. This is
laudable.
The primary objectives of this Trade Facilitation Desk are:

To open doors in Trinidad & Tobago on behalf of Jamaican firms

To provide Jamaican firms with information on the T&T market including

trade regulations and import procedures, including intermediating with such arms as
customs, the standards authorities, and assisting with negotiating the bureaucracy etc.
as required.

To assist with matchmaking between Jamaican firms and their T & T

counterparts and or customers.
No doubt all Jamaicans would like to see this desk deliver tangible results and
meet with tremendous success.