TRINIDADIAN trade groups this week disputed allegations that exporters from the twin-island republic are engaging in unfair trading practices in Jamaica.

Jamaican manufacturers have raised concerns that exporters from Trinidad and Tobago are violating trade rules by misrepresenting products as being of Caricom origin, allowing them to benefit from lower customs duties and price advantages in the local market. Goods from Caricom member states which meet rules of origin are traded duty-free throughout the region. A Common External Tariff is usually applied on products originating from outside Caricom.

In response to an article on the allegations published in the Caribbean Business Report last week, the Trinidad and Tobago Manufacturers’ Association (TTMA) said the organisation is “committed to fostering the process of free and fair trade” among Caricom member states “as enshrined in the Revised Treaty of Chaguaramas”.

“The association strongly condemns the practice of any company engaging in activities that are in breach of the Caricom Rules of Origin. Such actions cause problems for legitimate businesses, and portray Trinidad and Tobago in a negative light both to our Caricom neighbours and internationally,” said the TTMA in a statement.

The TTMA particularly took issue with Jamaica Manufacturers’ Association (JMA) President Brian Pengelley saying, “In other words, you could bring in imported peanuts, but all you do is put the peanuts in a little bag… That’s not what we call a full conversion process,” though it’s unclear whether Pengelley was making reference to a suspected violation or just providing an example of how exporters can attempt to circumvent rules of origin.

“We wish to categorically state that we have found no evidence to support Mr Pengelly’s statement,” said the TTMA.

“Shelled peanuts are imported into Trinidad and Tobago under tariff heading 1202.20.90 (Shelled Peanuts) then processed [roasted, blanched (removal of skins), fried, seasoned and packaged] and exported under tariff heading 2008.11.00 (Prepared Peanuts), thereby meeting the criteria of substantial transformation qualifying for Caricom originating status,” said the Trinidadian manufacturers’ lobby group.

The national export facilitation organisation in Trinidad also disputed the allegations of unfair trading practices. ExporTT noted that one of its responsibilities is to provide certification of origin (COO) for Trinidadian products that are exported into the Caricom market. Against this backround, the organisation said that it wants to assure that all T&T products undergo a rigid certification programme to ensure that they meet the trade requirements to qualify as locally produced.

“Each exporting company and exported products are recertified at regular intervals. This involves our officers undertaking site visits to production facilities and observing the entire production process to ensure that enough transformation takes place for the goods to qualify under the COO regime,” stated ExporTT.

Both organisations, TTMA and ExporTT, said they were ready to assist with investigating the claims of trade rules violations by Trinidadian exporters.

Jamaican Opposition spokesman for Industry, Commerce and Energy Gregory Mair raised the alarm to the Standing Finance Committee of Parliament last week, saying that there have been reports of goods being passed off as Trinidadian when in fact they were only repackaged in the twin-island republic.

Mair said the practice would make it even more difficult for Jamaican manufacturers, already being hurt by a flood of cheap imports and high cost of production, to compete. JMA head, Pengelley confirmed that there were indeed concerns over imports not being completely made in Caricom.

It’s the latest complaint in a long-running trade dispute between the two Caribbean countries.

As Jamaica grapples with a widening trade deficit with Caricom, now nearly US$1.2 billion ($119 billion), there have been increasing calls by some locals to pull out from the 15-member regional organisation.

Jamaica has the largest market in Caricom. The country reportedly imports 30 per cent of total intra-regional Caricom exports, but produces less than two per cent of those exports.

Trinidad and Tobago accounts for the bulk of the trade deficit between Jamaica and Caricom. This imbalance compounded with several high-profile trade disputes have strained commercial relations between the two countries in recent years.

The twin-island republic’s Government has also been accused by Jamaicans of providing unfair energy subsidies to its manufacturers. Trinidad, which is rich in gas and oil resources, supplies energy to its manufacturers at just over three cents per kilowatt-hour, while in Jamaica, it’s supplied at over 30 cents per kilowatt-hour, giving Trinidadian manufacturers a huge competitive advantage in trade.