CARIBBEAN INSIGHT The editorially independent publication of The Caribbean Council

3 February 2014 Volume 37, Number 5

Political discontent grows over Barbados’ economy

Divisions within Barbados’ ruling Democratic Labour Party (DLP) over economic policy, the island’s ailing economy, and the way in which government and the country is being run, threaten to cause political turmoil.

Speaking to journalists on 29 January, the Island’s Agriculture Minister, Dr David Estwick, said that he can no “longer sit silent” on whether the island’s present economic path is the right or wrong one or the path to be pursued.

Dr Eastwick said, “this is not the time to be pig headed or this is not the time to close off all options. This is the time for innovation, this is the time for creativity and this is the time that every single option must be evaluated clinically and surgically in the interest of Barbados.” He said he could also not sit by “when this debate is raging on and when the outcome of any action may seriously undermine the stability of this country”.

Dr Estwick, who is a former finance minister, said that he is uneasy about the direction of the island’s economy and is promising to make public his position in the coming weeks when he will make a full statement. “I am going to make my statement very, very soon on what my position is,” he told reporters, adding, “I was a man before I got into politics, and I can stay one if I am out of it. But I will do what I believe I have to do, honestly and diligently in the interest of Barbados and in the interest of my children and grandchildren to come.”

Mr Estwick said that he has served as a government minister from 2008 and prior to that he was the spokesperson on Finance and Economics during the DLP’s prolonged period in opposition. He also served as the minister responsible for economic affairs and economic planning between October 2008 and October 2010, serving as the Chairman of the Cabinet Committee of Economic Policy and the Chairman of the Infrastructural Committee of the Cabinet. He is often tipped as a future Prime Minister.

The Minister’s comment comes as the Barbadian government prepares to lay off 3,000 public servants and has approved a strategic plan to create 2,000 new jobs in the global business and financial services industries.

Speaking the same day as Dr Estwick, to a meeting of the Barbados International Business Association, the island’s Attorney general, Arial Brathwaite said that that cabinet had approved a plan which aimed to achieve a 40% increase in foreign exchange earnings from the financial services sector, a 40% increase in revenue from corporate and personal income tax, and that Government hoped it would create 2,000 new jobs over the next five years.

Mr Brathwaite said that the plan proposed the registration of 2,000 to 3,000 new corporate entities in Barbados. This compared with 474 new entities in 2013. Another part of the plan includes the registration of 50 new foundations and private trust companies as well as the conclusion of 20 new double taxation agreements and 15 agreements for tax treaties.

The Attorney General said that he had discussed the registration of such companies with officials in Anguilla over foundations and that he could “see no reason why we cannot…be able to attain, if not surpass this target [for foundations]”. One additional part of the plan is to develop Barbados as a centre for medical and educational services, including a possible boarding school development and upgrading of the island’s medical school as well as making Barbados a location for private banks and investment from Canada and South America.

In other recent comments on the Barbados’ deepening economic crisis, the Prime Minister, Freundel Stuart, has said that his country will get out of its current economic slump.

Speaking to ruling party supporters, the prime minister compared his country’s current problems to the period between 1973 and 1975 when he said unemployment had been running at 22.5% and inflation at 40%. “This is not the first occasion on which we’ve had to traverse this treacherous terrain,” he said.

Prime Minister Stuart told a gathering of ruling party supporters that thousands had been laid off in the 1980s when Barbados had called in the IMF. He also recalled the 1990s when the IMF helped Barbados once again at a time when it had two weeks of foreign exchange cover remaining. He added that Barbados currently had 15 to 16 weeks of foreign reserve cover. “The difference between those three recessions and this one is that whereas each of those recessions lasted for about two years almost, this one is five years and counting. The wealthiest countries in the world are having the same difficulties that Barbados is having,” he said, adding, “there are challenges related to growth in the United States, United Kingdom, France, Italy and all over the place”.

CELAC summit reaches a number of political agreements

The Second Summit of the Community of Latin American and Caribbean States (CELAC) held in from 25-29 January resulted in a number of agreements that suggest that the body will play a continuing political role in the Americas.

Among the elements expected to be contained in the final communiqué are: the establishment of a CELAC-China forum, with a focus on economic issues and China’s role in the world; CELAC’s involvement in the peace process in Colombia and the negotiations between the FARC and the Colombian Government; language supporting Argentina’s sovereignty over the Malvinas (Falkland) Islands; and the declaration of the Latin American and Caribbean region as a zone of peace. In all some thirty documents were considered during the meeting.

In his keynote speech as host for the summit, President Castro said that CELAC should consider self- determination, sovereignty and equality as indispensable principles of the organisation. He argued that the bloc should aspire to unity despite its diversity, describing it as “the legitimate representative of the interests of Latin America and the Caribbean.” “We should establish a new regional and international cooperation paradigm,” he said. “In the context of CELAC, we have the possibility to create a model of our own making, adapted to our realities, based on the principles of mutual benefit.”

“The integration of Latin America is a strategic project ... CELAC does not impede bilateral relations within and outside of the region. On the contrary, it strengthens them,” Brazilian President Dilma Rousseff, said in her evening address.

In his wide-ranging opening speech, President Castro touched on the risk that global climate change poses to the region, especially low-lying Caribbean islands. He expressed solidarity with Argentina’s claim to the Falkland Islands (Malvinas); for Puerto Rican independence; and for Ecuador in a legal battle with the US oil company Chevron.

He also criticised the 52-year-old US economic embargo on as well as American surveillance targeting the communications of foreign heads of state, companies and individuals, appearing to call for an international agreement on cyber warfare.

The CELAC summit attracted 31 of the 33 invited leaders from Latin America and the Caribbean to Havana. Only two Latin American presidents stayed away: Mauricio Funes of El Salvador, who was involved in presidential elections, and Ricardo Martinelli of Panama, who declined to attend in protest at last year’s capture in the Panama Canal of a North Korean ship that was carrying Cuban weapons in violation of a UN arms embargo. The large turnout of regional heads of state was in contrast to the 2013 Ibero-American Summit in Panama City, in which 12 of the 22 leaders from that body failed to show up.

The UN Secretary-General Ban Ki-Moon, was invited as an observer and met with President Castro and with Fidel Castro. Speaking to journalists he praised Cuba for its historical preservation efforts, its international medical missions and its work fighting violence against women and girls while emphasising to reporters the importance of “providing spaces for people’s right to peaceful assembly and freedom of association, and the cases of arbitrary detention occurring in Cuba”.

The Organisation of American States, (OAS) Secretary-General José Miguel Insulza also attended the summit as an observer, in what is believed to be a first visit by a secretary-general to Cuba since its founding in 1948. His attendance went unremarked in the extensive CELAC coverage in the Cuban media.

In Washington, a State Department spokesman said that US officials have strong alliances with other regional forums and will push for greater cooperation on common issues at next year’s Summit of the Americas, which will be held in Panama.

In an interview with the Spanish newspaper, El Pais, the Costa Rican President, and CELAC’s next President, Laura Chinchilla, said that CELAC should not been seen as a replacement for the OAS. “Each hemispheric body, whether it is a dialogue group or an institution like the OAS, has its own dynamics, its own priorities and its own agenda. And like Costa Rica and other countries have said, CELAC isn’t here to replace or destroy the OAS; they can both continue to co-exist. But the important thing here is to nurture institutionalization in the region, which an instrument like CELAC can do,” she said.

CELAC was established in 2010 out of the Rio Group, and reflects a desire to reduce the overwhelming influence of the United States on the politics and economics of Latin America and to lessen the influence of institutions such as the OAS sometimes seen as being a construct of the Cold War.

Unlike the OAS, which includes the US and Canada but in which Cuba does not participate; CELAC consists of all 33 nations in the Americas other than Canada, the US and the territories of European nations.

Although the new grouping has been championed by left leaning Latin nations, it represents a broader desire to establish a political framework based on the similarities in thinking between member nations and a desire to authentically represent the views of the southern two thirds of the hemisphere to a world in which the location of power has changed significantly over the last decade.

Antigua and Barbuda

 The Governor of the Eastern Caribbean Central Bank, Dwight Venner, has urged the Eastern Caribbean to implement as a matter of urgency its economic union plans as it faces current challenges. Speaking at the Eastern Caribbean Currency Union’s (ECCU) 2013 Economic Review on 28 January, he said that the Union created by the Revised Treaty of Basseterre would help the sub-region deal with its most basic challenge, that of its smallness of small scale. Sir Dwight said that the Treaty provided for an Eastern Caribbean State Nation with core functions dealt with at national level and the outsourcing of other functions at regional and local levels. “The treaty implies that there will be a dual system of government and governance which could lead to a more efficient, effective, lower cost and coordinated system of government,” Sir Dwight said. He added that: “the fundamental problem facing governments in small developing states such as ours is the absolute cost of government.” The Basseterre Treaty signatories are Antigua and Barbuda, Anguilla, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines. According to the review, economic activity in the ECCU grew by 0.7% in 2013. This follows a 0.2% growth in 2012 and represents a recovery from the two years of the negative growth in 2010 and 2011.

Belize

 Belize and Guatemala have signed an agreement aimed at strengthening bilateral ties and returning to talks in their decades-old border dispute. The agreement, ‘Roadmap for Strengthening Bilateral Relations in 2014 between Belize and Guatemala’ was signed by the countries’ foreign ministers in the presence of the Organisation of American States (OAS) Secretary General in Washington on 24 January. The document provides a framework timetable and brings together previous negotiations as well as revisiting an earlier commitment for the countries to hold simultaneous referenda: an action that failed to happen in 2013. Belize had accused Guatemala of pulling out unilaterally from the joint referenda scheduled for October 2013 but had said that the date, rather than the principle, had been the stumbling block. The new agreement details what it called negotiations and confidence building measures in order to promote peace, security and cooperation. The foreign ministers said that the agreement is aimed at ensuring the good management of bilateral relations between Belize and Guatemala until Guatemala’s claim to Belize is definitively resolved. Belize’s Attorney General and Foreign Affairs Minister Wilfred Elrington said at the signing that the lack of a successful resolution of the Belize-Guatemala claim could be a “deterrent for the complete integration of the region”. Last year, the Belizean government had said that it remained hopeful that a referendum would be held in 2014. The referendum in both countries would seek agreement to refer their territorial dispute to the International Court of Justice (ICJ).

Cayman Islands

 The Royal Cayman Islands Police Service (RCIPS) confirmed that it is seeking the extradition from Switzerland of the former president of the University College of the Cayman Islands (UCCI), Hassan Iftikar Syed. The RCIPS confirmed on 30 January that Mr Syed had been arrested in Switzerland in November but that there had been an ‘ongoing process’ for his proposed extradition. Mr Syed, 47, had left the Cayman Islands in 2008 stating that he was suffering from a severe illness. His departure had come after the release of a financial audit to the UCCI board which had found ‘unsubstantiated financial transactions’ for the office of the President. The RCIPS has been seeking Mr Syed’s arrest for some years over charges including theft and obtaining a pecuniary advantage by deception. International arrest warrants had been issued through Interpol and Mr Syed was charged in absentia in 2012. The Cayman Islands has an extradition agreement with Switzerland through the UK. A RCIPS statement on 30 January said: ‘The RCIPS is currently liaising with the [Director of Public Prosecutions] and the Swiss authorities in an effort to secure Syed’s extradition to the Cayman Islands as expeditiously as possible.’

Cuba

 The Cuban government has adopted legislation that introduces a range of new sanctions against any bank, company, investor or individual who facilitates terrorism. The decree law, signed by President Castro, makes clear that these are a part of Cuba’s legal framework demonstrating its ‘commitment in the fight against money laundering, financing terrorism and the proliferation of weapons’. The text in the Official Gazette said that ‘funds or other derived or generated assets that belong to or are directly or indirectly controlled by persons or entities linked to Al-Qaeda or the Taliban will be frozen immediately and without notice’. The measure also targets ‘persons or entities’ identified as terrorists by the United Nations or ‘at the request of cooperation by third countries’. The new decree law makes clear that sanctions can be applied to foreign financial institutions operating under licence from Cuba’s Central Bank, their representative offices, or to individuals and legal persons. The law brings Cuba in line with international conventions. The passing of the new decree law coincides with two significant developments. The first is the announcement that a new foreign investment law will be introduced shortly (Cuba Briefing, 23 January 2014) and the second is the improvement in functional relations with the United States that still designates Cuba as a state sponsor of terrorism despite Havana’s willingness to co-operate internationally in this area. The change in the law may be seen in Washington as a further step by the Cuban government towards facilitating the new thinking about the US-Cuba relationship that President Obama spoke about last November.

 Cuba has formally inaugurated its newly extended and upgraded port at Mariel, just 120 miles south of the United States and adjacent to major sea lanes between the US East Coast, the Atlantic and the Panama Canal. The US$957m facility, which was opened by President Castro and President Dilma Rousseff of Brazil, on 27 January, is now one of the most modern in Latin America. Operated by the Singaporean port operator, PSA International Pte Ltd, it will be able to berth Post-Panamax ships when the widened Panama Canal opens in 2015. It is also expected to handle vessels licensed by the US Administration to carry food and would quickly become the main port of entry for US trade if the US embargo were ever to be lifted. When the project is completed, the port is expected to be able to handle 3m containers annually. As a part of the Cuban Government’s plan to make Mariel Cuba’s principal port it is also hoped that its extensive surrounding 180 square mile economic development zone will attract investors to take advantage of opportunities for manufacturing, assembly and research. The zone is also expected to offer the possibility of, tourism, leisure and real estate investment opportunities. Located 28 miles west of Havana, it is the first of a number of development zones that will be established. Other regional leaders in Cuba for the Community of Latin American and Caribbean States (CELAC) summit (see above) also attended the inauguration.

A longer and more detailed version of these and other stories on Cuba appear in Cuba Briefing, which is available by subscription or to Premier members of the Caribbean Council free of charge. Dominica

 Dominica’s government has said that it has completed the legal and administrative paperwork needed to give effect to the Revised Treaty of Basseterre, the sub-regional agreement on economic union within the Organisation of Eastern Caribbean States (OECS). A government statement issued on 25 January said that Rouseau had met all the requirements to allow the free movement of OECS nationals in the economic space agreed. That statement added that: “As a result, Dominican nationals are expected to receive the same treatment in other OECS Member States, as the free movement of OECS nationals intensifies.” However, the statement pointed out that Antigua and Barbuda, St Lucia and Grenada are yet to meet all the requirements on free movement. The Revised Treaty of Basseterre, signed in 2010, allows for the establishment of a single financial and economic space within the OECS for all production resources – people, capital, goods and services.

Dominican Republic

 President Danilo Medina has strenuously defended his country’s sovereignty during his participation in the Summit of Latin American and Caribbean States (CELAC) in Cuba (see above). He said in Havana that he did not accept CARICOM’s criticism of a September 2013 Constitutional Court ruling on criteria for nationality as racist, discriminatory and a violation of human rights making clear in unusually direct language his country’s particular displeasure with comments made at the meeting by St Vincent’s Prime Minister, , who is also the present Chair of CARICOM. Speaking to journalists on 29 January, he added that the Dominican Republic was “the most supportive country with Haiti because, in our country, there are nearly a million Haitian nationals without any documents, enjoying educational and health without paying for them, costing the Dominican state over five billion pesos”.

 The Dominican military has been put under heightened alert in the Ouanaminthe town near the Haiti border after protests there on 26 January. The protesters have been calling for drinking water, electricity and other services in the town. Immigration officials said that they had received reports from residents, community groups and farmers that an increased number of undocumented Haitians had been taking advantage of the Ouanaminthe protests to cross the border in the area while the authorities dealt with the protests. Immigration authorities and the army have heightened their security along the border in an attempt to block the journey from Haiti, across the mountains to reach Santiago, the Dominican Republic’s second biggest city. There has been increased surveillance in wooded areas and more road checkpoints have been put in place. On 28 January, Defence Minister Sigfrido Pared announced the deployment of 600 additional soldiers, taking the border patrols to 1,400 soldiers.

Grenada

 Grenada’s Prime Minister has announced his country’s intention to join Venezuelan-led regional cooperation organisation, the Bolivarian Alliance for the Americas (ALBA). Dr Mitchell said in a 29 January press release that “the more cooperation we can get among the countries in the region…to me is better”. He added that “my own view is that we have nothing to lose in joining ALBA”. The Grenadian leader later said in interviews that he expected the process to take a month and that he reserved the right for his country to take its own individual positions on issues while being a member of ALBA. Before Dr Mitchell could return from his visit to the CELAC summit in Havana, former Prime Minister Tillman Thomas said in a media interview that his administration had steered Grenada away from ALBA in the past because of its ideological slant. He accused the Mitchell administration of being “somewhat desperate for financial assistance”. Antigua and Barbuda, Dominica, St Lucia and St Vincent and the Grenadines are already ALBA members. St Kitts and Nevis also announced on 28 January that it planned to join ALBA but no details have been forthcoming on that country’s timetable for joining. All are members of PetroCaribe.

Guyana

 Guyana’s Finance Minister, Ashni Singh, has said that a second invitation to the opposition to discuss the 2014 budget has been rejected. Shadow Finance Minister, Carl Greenidge, said in a letter to Dr Singh and shared with the local media that government had shown a ‘cynical and arrogant approach’ to previous budget discussions. Mr Greenidge said that the Finance Minister had not responded to opposition requests for clarity on the process for future budgetary discussions. The opposition party A Partnership for National Unity (APNU) is arguing that joint discussions in previous budget discussions have been ‘studiously ignored’. Mr Greenidge said that this was being taken as “a sign of the lack of seriousness on the part of the government representatives towards the discussions and their contempt for the opposition”. He added that he was not in a position to recommend to any of the opposition parties that they take up the second offer to meet. Mr Greenidge added: “It is clear, therefore, that the conditions are not at all ripe for any fruitful Budget dialogue. Further discussions prior to the presentation of the Appropriation Bill would be pointless at this stage.” The stalemate over budget discussions comes as the impasse over financial control in Guyana has reached the courts. The Chief Justice had ruled that the opposition APNU and the Alliance for Change (AFC), which control the 65-member Assembly by one seat, can only approve or disapprove budget estimates but that they did not have the power to alter government budget estimates.

 Guyana and the European Union have signed a US$19.9m (€14.8m) sea defence financing agreement to support Guyana Sea and River borders which are vulnerable to rising sea levels. The agreement, signed on 31 January, comes from the European Development Fund (EDF) Sea and River Defence Sector Budget Support Programme. As part of the deal, Guyana will be expected to invest US$26m (Guy$5.5bn) in preparing the groundwork for sea and river defences and satisfying the EDF criteria over the next three years. The arrangement was signed in Brussels and a joint statement from Guyana’s government and the EU stated that Guyana’s topography rendered it vulnerable to natural risks related to climate change and sea level rise ‘as most of the country’s key assets are located in vulnerable low-lying areas and protected by sea defences’. Around 90% of Guyana’s population live on or near the coastline and much of the coastal zone areas are only 0.5-0.7m above the average sea level.

 Guyana seized more than US$2.9m (Guy$600m) in illegal drugs in 2012. Home Affairs Minister, Clement Rohee, speaking at the launch of Guyana’s National Drug Report of 2012, said that many took Guyana’s fight against the drug trade for granted. The report outlines the seizure of cocaine and arrests made by the country’s Customs Anti-Narcotic Unit and Revenue Authority. The report pointed to the development of cooperative relations with Brazil, Venezuela and Suriname and international drug-fighting agencies. Guyana’s national report comes after the critical 2013 report by the US’s Bureau of International Narcotics and Law Enforcement Affairs which had said that the influence of narcotics trafficking was evident in Guyana’s political and criminal justice systems. The report had added, “Traffickers are attracted by the country’s poorly monitored ports, remote airstrips, intricate river networks, porous land borders and weak security sector capacity.”

Jamaica

’s Finance Minister, Peter Phillips, has said that he expects to be enacted by the end of March legislation that will ensure that in future there will be clear fiscal targets for the country. Dr Phillips told the House of Representatives on 28 January that the new legislation would give parliament a greater responsibility in managing Jamaica’s fiscal affairs. He added: “The enhanced fiscal rules will seek to bolster fiscal transparency, ensure a sustainable budgetary balance and consolidate the gains of fiscal consolidation. The transparency and automaticity of fiscal adjustment will be enhanced by an explicit, time-bound adjustment path to sustainability.” The framework for legally binding fiscal rules had been developed and submitted to the IMF in August 2103 as part of phase one of Jamaica’s IMF programme. It allows limitations on the annual fiscal deficit for the public sector and makes a commitment to reduce public debt to no more than 60% of GDP by 2025/26. The rules contained in the legislative package will mean that overspend and budget deviations, as well as issues of compliance and transparency, will come before parliament at hearings, and that there will be more public statements from officials. However, a report from the think tank, the Caribbean Policy Research Institute (CaPRI), made public on 31 January, said that the new fiscal rule would not work without the oversight of an independent, non-partisan body. CaPRI added a series of proposals which it said could support government in financial and budgetary prudence and credibility. The report concluded: ‘An independent technocratic committee, selected through a transparent meritocratic process, should be appointed to oversee the creation, execution and monitoring of the budget, specifically the targeted aggregates. This committee must make recommendations to the relevant body to determine infractions, culpability, and apply any resulting penalties.’

 The Jamaican Senate has adopted a report reviewing the country’s Cyber crime act. The report from a parliamentary committee set up to review the 2010 act had followed criticisms that the legislation did not go far enough. Members of the Jamaican public had been invited to submit comments to the committee which also had support from the International Telecommunications Union. Opposition Justice Spokesman Alexander Williams said during the 31 January debate on the report that the committee had still not gone far enough to address problems being faced by investigators and prosecutors. He told the Senate that “It may well mean that we would need specialised units and prosecutors to deal with cybercrime and that may well be the reason why we have had the low prosecutions under the cyber-crimes act.” There has been one prosecution under the legislation. Justice Minister Mark Golding told the Senate debate that he believed that the act was sufficient to deal with cyber crime.

St Lucia

 St Lucia’s Prime Minister, Kenny Anthony, has said that his country needs to deal with its economic problems or face regional and international agencies imposing further stringent measures. Speaking on 26 January during his New Year address to the nation, entitled A Year for Renewal, the St Lucian leader said that his country could not continue to borrow as it had in the past. He said that “tough and unpopular” decisions had been made. “It has not been easy,” the St Lucian leader said. “Some of our citizens have lost their jobs as the private sector made adjustments to cope with the downturn. Some businesses have suffered in the process. I know that many families are engaged in a continuous battle to make ends meet.” While outlining what he called a “good, solid rebound” in tourism and a gradual return of foreign investment, Prime Minister Anthony told St Lucians that he could not paint a rosy picture for government finances. He said that St Lucia’s principal problem was the fiscal deficit. Dr Anthony explained that St Lucia’s expenditure had exceeded its revenue by 5% of GDP in fiscal year 2010-2011. This had moved to 7% of GDP in 2011-2012 and deteriorated further to 9.5% of GDP in fiscal year 2012-2013. He added: “Admittedly, there are instances where current expenditure will exceed current revenue. However, this should not be the acceptable norm. When this happens, all efforts should be geared towards returning the situation to normal. This now is the challenge that confronts us.” Dr Anthony said that there had been a time when banks and other investors had been eager to lend money to governments to deal with their deficits. “This is no longer the case,” Dr Anthony said. “Things have changed. The market has changed. Since we cannot continue to borrow as we used to, we must address our fiscal situation. If we do not do so, then we will not be able to attract future financing.” The St Lucian leader announced a retreat in February with the country’s business community, trade unions and other social partners.

 St Lucia’s new Parliamentary Opposition Leader, Gale Rigobert, took office from 1 February. Dr Rigobert, a former University of the West Indies lecturer, takes over from who was ousted from his post by colleagues in the United Workers Party (UWP). The UWP had originally voted businessman, politician and former tourism minister Allen Chastenet as party leader in July 2013. Without a seat in parliament, Mr Chastenet promoted UWP Deputy leader Dr Rigobert for the opposition leadership job stating that she would bring a “cohesive voice” in parliament. Gale Rigobert won her seat in 2011 and has also served in the Senate. The UWP has been seeking to reignite its electoral profile since its 2011 electoral loss, the first time a UWP government had been removed from office after only one term. The UWP was formed in 1964 by Sir who went on to become one of the region’s longest serving leaders until his death in 2007.

Trinidad and Tobago

’s Prime Minister and its Attorney General have outlined the country’s efforts to assist US investigations into the multi-million dollar drug seizure which found cocaine in Trinidad in soft drink cans at a Virginia port. US Federal officers found 732 pounds of cocaine with a street value of US$100m at the port of Norfolk, Virginia in December in cans of fruit juice shipped from Trinidad, the port’s biggest drug haul ever. Prime Minister Kamla Persad-Bissessar said at a Sunday night service to launch a National Week of Prayer on 26 January that information would be shared on a “need to know basis”. She said that the matter was under investigation and that it would be inappropriate to comment on the matter. "Every nation in the world has issues with narco-trafficking and therefore it’s (about) our response now. We learn every day,” she said. Attorney General Anand Ramlogan told reporters that his office remained ready to assist the US both in its investigations and in any extradition requests.

 Trinidad and Tobago’s Energy Minister Kevin Ramnarine said on 29 January that the country had spent US$3.13m (TT$20m) so far on the clean-up of the December oil spill off Trinidad’s South West peninsula. Mr Ramnarine said in a statement to parliament that the company dealing with the clean-up, Oil Spill Response Limited, had started to cut down on its experts on the ground and that there had been an indication that the clean-up operation was near completion with only lighter work remaining.

 British gas and oil production company, BG Group, listed lower than expected margins from its Trinidad operations among the factors contributing to its 2014 outlook. BG Group also listed the ongoing turmoil in Egypt and shortfalls in its US productions in its preliminary 2013 fourth quarter report issued on 27 January. The group’s full report will be published on 4 February. Noting production growth in the UK, Norway and Bolivia, the BG Group went on to say that “this is expected to be offset by declines to the rest of the base, notably in Trinidad and Tobago, where expected production sharing contract (PSC) production entitlement has been reduced due to higher realised prices (the final selling price for oil produced) in 2013.”

 A 3-D seismic survey is to be conducted in Trinidad’s Gulf of Paria over the next few months as state- run Petrotrin has stated that the area has more potential. The Ocean bottom 3D seismic survey will cover 510km2 of the Gulf. The survey contract was awarded to OceanGeo B. V., a company which specialises in multicomponent seismic work. Work reportedly started in December 2013 and is expected to be completed in April-May of this year. Petrotrin’s VP Exploration and Production Jamaludin Khan said, “The Gulf of Paria has produced in excess of 1.5 billion barrels of oil since 1955 and still has significant hydrocarbon producing potential”.

Regional

 The US Coast Guard and a British Fleet Auxiliary have in a joint operation seized US$37m worth of cocaine in the Caribbean Sea. After tracking a 25-foot fast boat with suspicious packages it was seized off the south coast of the Dominican Republic. The use of a helicopter allowed the coast guard to catch the group as they attempted to throw packages overboard while being pursued. Coast Guard Lieutenant Commander Gabe Somma said later in Miami that the operation had been “the first time an armed Coast Guard helicopter has launched from a UK military ship” and is part of a new approach to narcotics interdiction the Caribbean.

 Information sharing, regional strategies and human rights were at the top of the agenda as the Caribbean Nations Security Conference (CANSEC) held its 12th annual meeting. The meeting in the Dominican Republic brought together defence, law enforcement and civilian leaders from twenty countries across the Caribbean Sea area as well as law enforcement experts from Canada, France, the UK and the Netherlands. The conference was sponsored by the US Southern Command (SOUTHCOM) under the theme ‘Caribbean security support to CBSI: Sustaining the capacity to counter transnational organised crime’. CBSI is the Caribbean Basin Security Initiative which had been developed in 2010 by the US and Caribbean leaders to co-ordinate regional security. Francisco Palmieri, US Deputy Assistant Secretary for Central America and Caribbean at the State Department’s Bureau for Western Hemisphere Affairs, told the gathering that the US has committed US$263m to support the initiative since its inception and that £60m had been spent last year. He added that “as the regional security initiatives in Colombia, Mexico and Central America produce successes, we know transnational crime and violence will inherently become a greater challenge in the Caribbean”. During the conference, delegates were given details of SOUTHCOM’s training of Caribbean coast guard unites, naval and other maritime patrol forces as well as it donation of intercept boats and other resources needed to deal with transnational crime.

 Venezuela’s Federation of Chambers and Associations of Commerce and Production, Fedecamaras, has asked government to publish regulations for the new exchange rate regime. The government issued some guidelines on 22 January but Fedecamaras President, Jorge Roig, said that the measures still looked inadequate. He said in a local interview that the dual exchange rate system was a devaluation for companies which will now receive exchange at 11.30 bolivars per dollar. Mr Roig added that the 6.30 bolivars per dollar exchange rate would allow “distortion and perversion” in dollar transactions. He added that: “this will allow speculators that distort the country’s economy”.

 In the space of one week, two Caribbean cruises have been forced to cut short their trips because of a suspected norovirus outbreak. In the first incident, a Royal Caribbean International cruise was curtailed and returned home on 29 January after 600 passengers and crew members fell sick with suspected norovirus. The Explorer of the Seas had left New Jersey on 21 January and had reached St Thomas when health officials from the Centre for Disease Control and Prevention had to board. The cruise ship journey was cut short by two days. In the second incident, the Caribbean Princess returned early to Houston’s Bayport Cruise terminal on 30 January after 165 passengers fell ill with a gastrointestinal illness. The ship had been on a western Caribbean cruise since 25 January and had been due to return to Houston on 1 February. The cruise line claimed that the reason for cutting the voyage short had been because of fog. A spokesperson for Princess Cruises said that no passengers had been admitted to hospital; all passengers had been provided with overnight accommodation and would receive a 20% credit for a future cruise. The spokesperson also promised that the vessel would “undergo a thorough sanitization” before the next scheduled cruise on 1 February. The Caribbean Princess incident is the third so far for this year. In 2013, there had been seven outbreaks of suspected norovirus on board cruise ships.

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