CARICOM Bureau silent on Guyana concerns
VENEZUELA has officially informed Guyana about its concessionary oil deal it is offering some other countries in the Caribbean Community (CARICOM) but the Foreign Ministry here yesterday said it was not yet clear whether the offer extends to Guyana. This country, which has been importing oil from Venezuela with which it has a century-old border controversy, had drawn the attention of CARICOM to its exclusion from the proposed agreement because of a statement attributed to Venezuela's Foreign Minister, Mr Vicente Rangel, that "petroleum has been used as a political weapon throughout history".
Sources here felt that by excluding Guyana from the proposed oil deal for other countries in the region, Venezuela was using oil as a bargaining chip in the controversy over the Essequibo.
The CARICOM Bureau, made up of some heads of government, met in Barbados Monday and welcomed the Venezuela offer but remained silent on Guyana's concerns about oil being used as a political weapon.
President Bharrat Jagdeo had written CARICOM Chairman, Prime Minister Sir James Mitchell of St. Vincent and the Grenadines, on the issue noting that a reason for Guyana's exclusion from among impending beneficiary Caribbean states, is, according to Rangel, because "we have a conversation of a different kind" with this country.
"Guyana, as a matter of principle", said President Jagdeo, "has always been opposed to petroleum or food-exporting countries using these commodities as political weapons against importing countries, especially small vulnerable economies such as those of the Caribbean Community".
Mr Jagdeo further told Mitchell that in the context of deliberations at last July's CARICOM Summit at Canouan in St. Vincent, he decided to bring to the attention of heads of government this most recent development in Guyana-Venezuela relations.
The Foreign Ministry here yesterday said Rangel wrote Foreign Minister, Mr Clement Rohee on Monday "officially apprising" Guyana of the proposed Energy Cooperation Agreement of Caracas in the context of the San Jose Accord, under which Mexico and Venezuela offer developing nations oil on concessional sales.
It noted that Rangel stated that the beneficiaries of the San Jose Agreement are Barbados, Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Panama and the Dominican Republic.
Rangel told Rohee that in light of the interest "expressed by other countries of the Great Caribbean to participate in a similar plan of cooperation, the (Venezuela Government) would be ready to examine the energy situation of each country and reach an agreement of this nature."
However, the ministry noted that Rangel "has not clarified Guyana's status (in relation to) to the new agreement which Guyana understands includes countries other than the original beneficiaries of the San Jose Agreement."
The Foreign Ministry pointed out that the letter from Rangel coincided with the statement from the CARICOM Bureau which noted that the Caracas Agreement "provides scope for other interested CARICOM oil-importing states to participate through bilateral agreements...the facility is open to other CARICOM states who express interest in participating under its terms and conditions."
After the Bureau met in Barbados Monday, Sir James told reporters the "Venezuelans have assured us that they are not excluding anyone and anyone who wants to take advantage of that facility must apply and their Caracas declaration is open for signature."
Under the San Jose accord, when the market price of crude is below US$15 a barrel, recipient states pay the market price, but when the price rises above US$15 a barrel the beneficiaries get a rebate of the difference, as a credit for imports of other products from Venezuela and Mexico.
Venezuela is moving to improve the offering under the Caracas Agreement.
"There are others of us who are not beneficiaries of the San Jose Accord and we are anxious to find out how we can benefit from that facility and we will be having dialogue to ensure that that facility is possible," Sir James said.
He added: "One has to understand that there are certain countries listed in the San Jose Accord and in particular these are the countries which needed assistance and which had oil-refining capacity to absorb the gift.
"Guyana had its own relations with Venezuela and Guyana does have its own relations with Trinidad in respect of the purchase of oil."
Sources here yesterday noted that several CARICOM countries were discussing the offer with Venezuela before heads met last month in Montego Bay, Jamaica, but this was not officially discussed at that meeting.
Caribbean states identified to benefit from the proposed preferential sales agreement are Jamaica, Cuba, Haiti, Suriname, St Lucia and St Vincent and the Grenadines.
Jamaica also put tremendous pressure on the Bureau to back the offer by announcing before the Bureau met that it was accepting the Venezuela deal, a source here said yesterday.
Prime Minister of Antigua and Barbuda, Mr Lester Bird, has openly condemned the Venezuelan discriminatory cheaper oil offer and urged CARICOM countries that have been identified to resist such a "benefit" in solidarity with Guyana.
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