St Vincent’s Prime Minister Ralph Gonsalves has announced that Trinidad’s Kamla Persaud Bissessar, has expressed genuine interest in addressing several contentious issues between the twin island republic and the Organisation of Eastern Caribbean States (OECS).
Gonsalves revealed that the breakthrough came after he raised these concerns during the OECS heads of government summit on June 17.
The Heart of the Matter: Three Critical Issues
Airspace Control and Revenue Distribution
Perhaps the most complex issue involves Trinidad’s continued control over OECS airspace and questions surrounding how revenue generated from this arrangement is distributed. This has been a source of frustration for OECS nations who feel they deserve a greater share of the financial benefits derived from their own airspace.
Currency Payment Challenges
OECS countries have faced significant difficulties in receiving payments in US or Eastern Caribbean dollars when selling goods to Trinidad and Tobago. This seemingly technical issue has real-world implications for businesses and governments trying to maintain stable foreign exchange reserves.
Outstanding CLICO and BAICO Commitments
The most emotionally charged issue stems from the 2009 collapse of insurance giants CLICO and BAICO. Trinidad and Tobago had committed to compensating OECS countries affected by these failures, but outstanding payments remain unresolved more than a decade later.
According to recent Caribbean Development Bank data, intra-regional trade accounts for approximately 15% of total Caribbean trade, with Trinidad and Tobago serving as a major trading partner for many OECS nations.
The currency payment issue alone has cost OECS exporters an estimated $12 million annually in additional transaction costs and exchange rate losses, according to figures from the OECS Secretariat.
