Local trade groups have denied that exporters from this country are engaging in unfair trading practices in Jamaica.
Jamaican manufacturers last week raised concerns that exporters from T&T 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.
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," the TTMA said in a statement.
The group took issue with Jamaica Manufacturers' Association (JMA) President Brian Pengelley who had said: "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.
In response, the TTMA said: "We wish to categorically state that we have found no evidence to support Mr Pengelly's statement. 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."
Also commenting on the issue was ExporTT which said one of its responsibilities is to provide certification of origin (COO) for T&T products that are exported into the Caricom market. The agency assured that all T&T products undergo a rigid certification programme to ensure they meet 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," ExporTT said.
