CCJ affirms importance of imposing, maintaining CET

…in ruling on case filed by Belize against T&T Govt

The Caribbean Court of Justice (CCJ) on Wednesday re-emphasised the importance of maintaining the Common External Tariff (CET) on the importation of products in the Caribbean, particularly brown sugar.
This judgement was given in a case filed by the State of Belize against the State of Trinidad and Tobago. Belize had alleged that Trinidad and Tobago failed to comply with its obligations under the Revised Treaty of Chaguaramas (RTC).
According to the RTC, Caricom (Caribbean Community) States are required to impose a 40 per cent CET on brown sugar imported from sources outside the Caribbean region.
Belize contended that it had evidence to demonstrate that between November 2018 and June 2020, brown sugar produced outside the Caribbean region entered the market of Trinidad and Tobago without the 40 per cent CET being imposed.
Consequently, it claimed that Belize Sugar Industries Limited (BSI), a company incorporated in Belize, was not able to sell the volumes of brown sugar into the Trinidad and Tobago market that it had projected. Belize commenced the action to enforce the RTC, so that BSI could enjoy the benefits of what it referred to as an assured market.
In a statement on its ruling, the CCJ said the application was of historic significance, since it was the first time that the regional court was asked to adjudicate a suit where one Caricom State brought proceedings directly against another for alleged breaches of the RTC.
The CCJ had heard the matter on November 2 and 3, 2021. During the hearings, Trinidad and Tobago contended that it complied with its obligations under the RTC, and denied that it permitted the importation of brown sugar from any extra-regional territory, that is: brown sugar imported from outside of the Caribbean without the imposition of the 40 per cent CET.
Trinidad and Tobago also contended that, as BSI was not a state-owned entity, Belize could not present the claim for the benefit of BSI.
Initially, Belize had, in its application, asked for declarations and damages against Trinidad and Tobago. However, at the hearing, Belize expressed its willingness to accept, in substitution of the relief claimed, appropriately worded judicial statements on the importance of implementation and maintenance of the CET on brown sugar imported from outside of the Caribbean.
While robustly defending the case brought against it, Trinidad and Tobago did not object to this way of proceeding.
The CCJ, in its judgement, found there were severe shortcomings in the evidence offered by Belize in respect of the alleged failure of Trinidad and Tobago to apply the CET. However, given the concessions made by Belize, the CCJ was not required to rely on, or make specific findings on, this evidence to make the requested statements.
“The CCJ re-emphasised the importance of maintaining the CET, especially in respect of a product such as brown sugar, which is of demonstrable importance to Member States such as Belize that manufacture it. The CCJ found that the CET does not guarantee regional brown sugar producers an assured market, but that those producers are entitled to the protection of the market that the CET is intended to provide. The CCJ also found that there was no doubt that, under the RTC, Belize was entitled to espouse this claim on behalf of BSI,” the missive from the regional court stated.
Each state was ordered to bear its own costs. The matter was presided over by CCJ President Justice Adrian Saunders, along with Justices Jacob Wit, Winston Anderson, Maureen Rajnauth-Lee, Denys Barrow, Andrew Burgess and Peter Jamadar.
This case against the T&T Government over its alleged breaches of the RTC comes on the heels of major Private Sector officials in Guyana calling out the twin-island State of Trinidad and Tobago for its treatment of Guyanese companies and products.
The issue arose last month after a senior executive of a Trinidad-based conglomerate raised concerns, in an email that was later leaked, over Guyana’s recently passed Local Content Legislation, saying that it violates several provisions of the Revised Treaty.
But according to President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker, Guyana has always been shortchanged within Caricom when it comes to trade, especially with Trinidad.
Tucker had complained about certain trade barriers that were put in place by some Caricom countries, including Trinidad and Tobago, that prevent Guyanese businesses from freely exporting their products, thus violating the Revised Treaty, but they never faced any ramifications.
According to the GCCI President in a subsequent interview with Guyana Times, the removal of non-tariff barriers, which are trade restrictions put in place by countries to protect their own local industries, would create in the region a level playing field for trade. (G8)