Prime Minister Kamla Persad-Bissessar yesterday entered into an initial agreement with Venezuela President Nicolas Maduro which will see the two countries bartering products they produce.
It is a process Persad-Bissessar says can help develop the two economies in the face of the continuing dip in world oil prices.
“We discussed ways we can share commodities in a bid to preserve our economies, develop the manufacturing of goods and services, so that we can share with each other,” Persad-Bissessar said yesterday after a meeting with Maduro at the Diplomatic Centre, St Ann’s.
“The concept of commodity sharing is very simple. This is where T&T will purchase goods identified by the government of Venezuela, manufactured here in T&T, and then for export to Venezuela. In return we can trade these for other things that are needed for our industries, like bitumen and crude oil.
“Our proposals are in the planning stages and we have to look at monitoring mechanisms.”
The PM said T&T exported gasoline, machine parts, air conditioners, parts for refrigerators, toilet and facial tissues and cement to Venezuela, while T&T imports from Venezuela include crude petroleum, gas oil, jet fuel, electric conductors, iron ore and bars and rods.
Both countries, whose economies depend heavily on oil and gas, were affected by the collapse of the prices of those commodities last year.
Persad-Bissessar spoke after the signing of two energy agreements with Maduro.
The last time Maduro visited T&T to have discussions with T&T's Prime Minister was in 2013.
Persad-Bissessar called the signing of the energy agreements “historic.”
She said: “While we already had agreements with respect to the Loran Manatee Field, today we welcomed the signing of another agreement for exploitation and development of hydrocarbons in the Manakin Cocuina field, which extends across the lines between T&T and Venezuela.
“We also welcome the signing on energy sector co-operation between the two countries. The Energy Minister pointed out this is the first time in the history of the western hemisphere there is commercialisation plans for cross border reserves. It is also the third time in the history of the world we are witnessing such co-operation.”
CAL matter resolved
Persad-Bissessar said the debt Venezuela owed to Caribbean Airlines (CAL) was also discussed yesterday.
“President Maduro was very adamant on settling that debt to CAL,” she said.
Venezuela reportedly owes CAL US$50 million for services the national airline provides to that country.
Persad-Bissessar said they also raised the issue of five T&T nationals who are in a Venezuelan jail after they were charged with terrorism and criminal conspiracy last year.
“We did raise the concerns by some of our citizens in T&T with respect to the five Trinidadian citizens incarcerated in Venezuela. We spoke about the justice system of Venezuela. Our Ministers of Foreign Affairs and National Security will have further dialogue on that matter,” she said.
Maduro, who spoke after Persad-Bissessar, said both countries must come up with new ways of working together to boost the economies.
He said Venezuela would revive selling Venezuelan oil and bitumen/asphalt to T&T.
“We are going to start again selling Venezuelan oil to the refinery in T&T, the selling of bitumen and selling the equipment to strengthen the network for gas distribution,” he said.
He noted other areas addressed in the meeting, like a mechanism for continuous dialogue on the energy agreements for exploitation and development of hydrocarbon deposits, air services, education and tourism.