Byron Buckley, News Editor
JAMAICA COULD eventually buy liquefied natural gas (LNG) from Trinidad and Tobago (T&T) cheaper than the price negotiated in the recent agreement signed between both countries.
This will happen if the soon-to-be-established Caribbean Court of Justice (CCJ) settles a contentious trade matter in Jamaica's favour.
FIRST CASE
Prime Minister P.J. Patterson explained on Thursday that the CCJ will be called upon to determine, as its first case, whether Jamaica should buy LNG at the price that prevails in Trinidad and Tobago's domestic market.
The pricing issue has been a sticking point in prolonged negotiations between oil-rich T&T and Jamaica, to supply the latter with LNG, which is critical to the implementation of several industrial projects such as electricity generation and bauxite mining, that are in the pipeline.
CARIBBEAN SINGLE MARKET RULES
Jamaica insists that it should be allowed to purchase Trinidadian oil at domestic rates in accordance with the rules of the emerging Caribbean Single Market and Economy (CSME), but the oil, producing country disagrees. Nevertheless, Prime Minister Patterson and his Trinidadian counterpart, Patrick Manning, signed the energy agreement nearly two weeks ago in Port-of-Spain, after agreeing to put the controversial pricing issue to arbitration before the CCJ which is the trade dispute tribunal under the single market arrangement. Jamaica, T&T and Barbados will initiate the single market arrangement next January, one year ahead of the remaining Caribbean Community (CARICOM) member-states.
"The current price is below market, but not at the price we would get if the Court said Jamaica was eligible for national treatment," Mr. Patterson advised journalists during a briefing at his Devon Road office in Kingston on Thursday.
CONSTITUTIONAL CHALLENGE
Although the legislative framework for the CCJ is in place in Barbados and Trinidad and Tobago, Jamaica is awaiting a ruling by the United Kingdom Privy Council on a constitutional challenge, brought by the Parliamentary Opposition and others, against the establishment of the regional appellate court to have jurisdiction in Jamaica.
Mr. Patterson said this week that he was confident that the Privy Council would uphold the rulings made by the Jamaican High Court and Appeal Court in favour of his administration.
