VZCZCXYZ0000
RR RUEHWEB

DE RUEHKG #0509/01 1801505
ZNR UUUUU ZZH
R 291505Z JUN 09
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 7784
RUEHSP/AMEMBASSY PORT OF SPAIN 5197
RUEHLO/AMEMBASSY LONDON 0578
RUEHOT/AMEMBASSY OTTAWA 2388
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEHDG/AMEMBASSY SANTO DOMINGO 6033

UNCLAS KINGSTON 000509 
 
SIPDIS 
SENSITIVE 
 
DEPT PASS EC CARICOM COLLECTIVE FOR INFO 
 
STATE FOR WHA/CAR (DHOFFMANN) (VDEPIRRO) (WSMITH) 
WHA/EPSC (MROONEY) (FCORNEILLE) 
EEB/ESC/IEC/EPC (MMcMANUS) 
INR/RES (RWARNER) 
SANTO DOMINGO FOR FCS AND FAS 
TREASURY FOR ERIN NEPHEW 
USTDA FOR NATHAN YOUNG AND PATRICIA ARRIAGADA 
OPIC FOR ALISON GERMAK 
 
E.O. 12958:  N/A 
TAGS: ECON ETRD ENRG PREL PGOV EFIN EMIN SOCI TRSY OPIC XL
JM 
SUBJECT: JAMAICAN-TRINIDADIAN-TRADE: FIRE SALES, FAILED DEALS 
AND DETAINED PATTIES 
 
REF: A) KINGSTON 471 
     B) KINGSTON 427 
     C) 07 KINGSTON 1659 
 
¶1. (U) SUMMARY: Trade relations between the Government of 
Jamaica (GOJ) and the Government of Trinidad and Tobago (GOTT) 
heated up again in May after Trinidad detained a container of 
Jamaican meat patties for several weeks before releasing them 
on June 1.  An ensuing media debate subsequently broke out 
over  the so-called ?dominance of Trinidad? in the Jamaican 
market, and Karl Samuda, Minister of Industry, Investment, and 
Commerce, put Trinidad ?on watch? for their ?unfair? trade 
practices. End Summary. 
 
¶2. (U) After several weeks of negotiations, GOTT released a 
container of Jamaican beef patties that had been detained 
pending certification of compliance with the GOTT?s sanitary 
and phyto-sanitary standards.  A frustrated Samuda said, 
?Quite frankly, I tell you here and now, Trinidad is on 
watch,? and speculated as to what Jamaican product Trinidad 
would detain next. 
 
Minister Frustrated Over Production Drain 
----------------------------------------- 
 
¶3. (U) Samuda pointed out that trade tensions between Trinidad 
and Jamaica have existed for close to two decades.  During 
Jamaica?s economic crisis in the 1990s, commonly referred to 
as FINSAC, many Trinidadians bought up inexpensive Jamaican 
assets and turned quick profits after the downturn. (Reftel 
A).  Trinidad?s per capita GDP is more than triple that of 
Jamaica?s (USD 5,500 versus USD 17,000), and Trinidad now owns 
several large firms in Jamaica, including the Caribbean Cement 
Company, Guardian Life Insurance, the Jamaica Biscuit Company, 
and RBTT bank. 
 
Energy Also A Source Of Tensions 
--------------------------------- 
 
¶4. (SBU) Former Minister of Industry and Commerce Claude 
Clarke has accused Trinidad of using its liquid natural gas 
(LNG) reserves to subsidize energy costs, thereby gaining an 
unfair advantage over Jamaica.  Clarke laments that many 
products previously made in Jamaica, such as chocolate and 
biscuits, are now manufactured in Trinidad.  (NOTE: Clarke 
once owned High Gate chocolate company, which failed during 
the FINSAC period due to competition from Trinidadian 
chocolate companies) END NOTE. 
 
¶5. (U) In 2004, the GOTT and GOJ signed a memorandum of 
understanding for the supply of 1.1 million tons of LNG per 
year over a 20 year span, but the deal broke down and left 
Jamaica embittered and struggling to find other lower cost 
energy options.  Jamaica continues to explore LNG development 
and hopes to include such plans as part of a new energy policy 
to be released in July (Reftel B).  More recently, during a 
Parliamentary meeting on June 24, Trinidad?s Prime Minister 
Patrick Manning told lawmakers that supplying LNG to Jamaica 
was a ?national priority.?  Manning said falling world demand 
for LNG has freed up supplies that could become available to 
Jamaica.  In addition, he said technological improvements in 
the area of re-gasification of LNG make supplying Jamaica more 
feasible.  Manning explained that the new technology allows 
floating terminals to be used and reduces the need to 
construct costly re-gasification terminals which would have 
been needed in Jamaica if it were to buy LNG from Trinidad. 
 
CSME and CARICOM 
---------------- 
 
¶6. (U) Samuda?s comments come just ahead of the Caribbean 
Community (CARICOM) Summit in Guyana, scheduled for July 2-5 
and suggest that the likelihood of a Caribbean Single Market 
Economy (CSME), originally planned to be in operation by the 
end of 2008, is receding (SEPTEL).  ?The level of frustration 
 
 
that has been relayed to me and to my office in respect of 
these attempts to export to Trinidad cannot be described in 
any other language than frustrating, and it serves as a major 
impediment to the concept of free trade within Caricom,? said 
Samuda. 
 
COMMENT: 
-------- 
 
¶7. (SBU) Samuda most likely welcomes this trade dispute as a 
distraction from Jamaica?s economic woes, and appreciates the 
increased positive media attention for his Ministry.  He had 
an early win immediately upon taking over the Ministry by 
successfully cracking down on the illicit scrap metal trade 
(Reftel C).  However, over the past year-and-a-half Samuda has 
not had many notable victories in promoting trade or 
attracting new foreign direct investment. Even recognizing the 
challenges he has faced amid the global economic downturn, his 
successes have been few.  END COMMENT. 
 
MOSS