Guyana’s Treaty obligations can be adjusted if necessary – Datadin

Mar 16, 2022 News

…CARICOM nationals cannot take precedence over locals in oil sector

By Kiana Wilburg

Kaieteur News – When Guyana’s Local Content Act (LCA) came into being on December 31, 2021, major private sector interests in Trinidad and Tobago were visibly worried. Fears of losing lucrative market share here translated into discussions in the upper echelons of the Trini business grouping about the ways in which the new law could be challenged for violating the Revised Treaty of Chaguaramas (RTC).

PPP/C Parliamentarian, Sanjeev Datadin

In fact, it was less than two weeks after the passage of the law, that a leaked email quoted Chairman of the CARICOM Private Sector Organization (CPSO), Gervase Warner, as stating that Guyana’s Local Content Law contains several provisions that are in contravention of the Treaty of Chaguaramas. Warner allegedly said the CPSO will raise its concerns with the Guyana Government then ultimately with CARICOM.
Warner who is also an Executive Director of Massy Holdings and the President and Group CEO of the Massy Group, said Suresh Beharry, Chairman of Edward B. Beharry and Company Limited, will assist with the communications strategy to be ferried to the government. While Beharry has since distanced himself from this arrangement, the divisive comments continue on Guyana’s law which demands that locals be given first consideration in its oil sector.
One key observer of this worrying development since January has been PPP/C Parliamentarian and attorney-at-law, Sanjeev Datadin.
In a comment posted on his Facebook profiles on Tuesday, Datadin said the introduction of the LCA has indeed brought with it “whispers of resistance,” mainly from Trinidadian businesses.
Datadin said these “whispers in the shadows” recently made a bold entrance into the light Sunday last in an article portrayed as a legal opinion of sorts published in a Trinidadian newspaper about the legality of the LCA; with detailed focus on its compliance with treaty law.
The attorney-at-law added, “The sense of entitlement was un-surprising in the article. The implied portrayal of Guyana’s oil resources as CARICOM’s oil resource (as opposed to Guyana’s) was most significant and interesting. The attitude in some quarters seems to be that Trinidad’s involvement in Guyana’s oil sector, by virtue of them being a historical oil producer, was somehow pre-ordained and unstoppable.”
Datadin was keen to note however, the writer of that article ignored, entirely, the mood and sentiment of the Guyanese people and the resolve of the Government of Guyana on this issue. He said it was ignored that the people of Guyana are firm that they must benefit more than tangentially or on the fringes; their benefit must be real and substantial. The lawyer stressed that this involvement is seen as the path to lift an entire nation from a poor developing nation to a prosperous nation. Datadin, who is a key representative of the government on such policy issues, said too that it ignores totally, the determination of the present Government to deliver on its campaign promises.
More importantly, Datadin said it is useful to note that every CARICOM Member State can issue a reservation and/or opt out of treaty obligations at its discretion. Expounding in this regard, Datadin said the Caribbean Court of Justice (CCJ) in an Advisory Opinion (AOOJ2019/001) in an examination of opt-out powers as set out in Article 27(4) of the RTC made clear that a reservation to any treaty obligation can be unilaterally done, whilst to opt-out of treaty obligation it required consent of the other Member States.
The lawyer said, “The reality is that Guyana can enter a reservation to the relevant part of the RTC and/or opt out; depending on the prevailing circumstances. This may be sought for a period of years deemed sufficient for the Guyanese sector to mature and be able to compete with foreign businesses.”
The attorney-at-law said it is well known that Bahamas has taken itself out of the CARICOM Single Market and Economy (CSME) and therefore does not allow free movement of CARICOM Nationals. He added as well, that Antigua and Barbuda and St. Kitts and Nevis have opted out of the free movement of skilled labour (security guards and agricultural workers) in 2019.
In concluding his argument, Datadin who has been on the frontlines of the government’s local content fight said, “It is inescapable, that it is the fair and right thing to do, to allow Guyanese to benefit from her oil resources in a preferential manner. This is not to say that our CARICOM neighbours are not welcome; everyone is, but respect must be had to the LCA in this regard. The benefit to our CARICOM brothers can’t be at the expense or marginalisation of Guyanese nationals and companies.”
The Parliamentarian said those who seek to challenge the LCA in Court do so at their own peril, while adding, “They would be underestimating or not understanding the sentiment across Guyana on this issue; across all ethnic, cultural, class and political lines.”
He further noted that in his interactions with those in Government, there is a quiet but firm resolve on the issue. He said the resolve is so strong that a treaty reservation/opt out or even a withdrawal are all possible. “Make no mistake, Guyana will assert her sovereignty and right to choose in coming days, and likely if necessary, adjust her treaty obligations to remove any possible conflict, real or perceived,” the lawyer concluded.