If the “very good” and “balanced” negotiations between Trinidad and Tobago and Guatemala continue as expected, the two countries should be signing four agreements by December 21, 2012, in time for the change of the Mayan era of 13 Bak’tun or 144,000 days, Guatemalan Ambassador Guisela Godinez Sazo said on Tuesday. The four agreements comprise a reciprocal protection of investments agreement, a partial scope agreement, and two other agreements on tourism and culture.

The negotiation of the reciprocal protection of investments agreement comes as local businessmen, including Victor Mouttet, founder of food manufacturer and distributor, VEMCO, are showing interest in partnering with Guatemalan investors to set up the Caribbean’s first edible oils plant in Trinidad, the ambassador said. It is envisaged that the plant will produce vegetable oil, palm oil, sunflower and other oils for export to the Caribbean Community (CARICOM).

“I think that Trinidad and Tobago and Guatemala have very complementary economies,” she said. The Guatemalan envoy said her country “has very good agriculture companies” including producers of sugar, edible oils and corn. Trinidad and Tobago currently imports these commodities from other countries. From Trinidad and Tobago, Guatemala imports urea, cement and aluminum products. Asked about oil and gas, she said, “We are, in the negotiations, looking at all the energy-related products.”

The four agreements are currently being negotiated. The first three rounds of negotiations covered tourism, culture, the reciprocal protection of investments, and initiated discussions for the partial scope agreement. She said she hopes the fourth round of negotiations, which will take place in Guatemala “either on September 17 or October 1” will be conclusive, and her hope is that a signing would take place in time for the grand December 21 celebration of the new Mayan era in Tical. About an hour away from the capital by airplane, Tical is an ancient Mayan city. The Mayan civilization was headquartered in Guatemala from where it spread to other Central American countries.

She said the tourism agreement will encourage Trinidad and Tobago tourists to visit Guatemala, its political capital Guatemala city, and its Mayan capital, Tical, which has been declared a World Heritage site by UNESCO. It will also encourage Guatemalan tourists to visit Trinidad and Tobago which she said is “very attractive to Guatemalan people.” She said Guatemalans love Tobago and its beautiful beaches because there are none like them in Guatemala. In the area of culture, the proposed agreement will take the steelpan to Guatemala and bring the marimba to Trinidad and Tobago through a series of exchanges.

On the partial scope agreement, she said sugar is “one of the very sensitive products in these negotiations” because Trinidad and Tobago currently imports from its CARICOM partner Guyana, and “we do not want to have any problems there.” Guyana is also a customer of Guatemala when it needs to meet its sugar quotas. Asked what other products will be covered in the partial scope agreement, she said she preferred not to say as the negotiations are still ongoing, and some of the items may change, but she said she is confident it will be mutually beneficial to both countries.

Asked if taxes will be eliminated on certain items she said, “There will be tax-related advantages, and advantages related to market access; not all will be tax exonerations. There will be products on which tariffs will stay, but market access will be provided.”

Questioned about opportunities for T&T businesses in Guatemala, she said, “I think Guatemala is the biggest and most important place for commercial diversification where Trinidad can, from Guatemala, increase its exports to the rest of Central America.” Guatemala is the most industrialized country in Central America, she said. She said agriculture and industry are Guatemala’s strong points.

At present, T&T has a free trade agreement with Costa Rica through which most of this country’s trade with Central America takes place. Asked why Guatemala is not pursuing a free trade agreement with T&T, she said, “At this stage we are on a partial scope agreement which is a little smaller than a free trade agreement, but the conditions are very good and very positive for both countries. I think that, in the not too distant future, we could be talking about a free trade agreement.”

Though without exact figures on Guatemala-T&T trade at the time of the interview, the ambassador said “a very important corridor of trade exists (between the two countries) that has been increasing.”

She said the main opportunities for Guatemalan companies in T&T are around agriculture. “Fruits, vegetables, and sugar are some of the products that will give the population very positive advantages,” she said. She said that although sugar is much cheaper in Guatemala than in T&T, local companies cannot buy directly from Guatemala. She said some of the sugar that is bought by local importers as a commodity on the international markets is often originally from Guatemala.

On Guatemalan investments in Trinidad and Tobago, she said, “At present, business people are conducting their studies and analyses to construct an (edible) oil refinery” in T&T. She said it will be a significant Guatemalan investment that could lower the cost of vegetable oil in Trinidad and Tobago as it purports to produce for local consumption as well as for export to CARICOM. She said the Guatemalan investors have already made contact with T&T businessmen, including Victor Mouttet. She said the Guatemalan investors have also already looked at land near the port of Port of Spain. She said Guatemala currently exports millions of US dollars in palm, sunflower, corn and vegetable oils every year. She said the edible oil industry in Guatemala is very developed.

“Given that in CARICOM, there isn’t an (edible) oil refinery, except maybe I think in Guyana where there could be palm (oil), the investors are considering if in Trinidad and Tobago a refinery could be constructed for export to the Caribbean. It will be a very interesting investment in Trinidad,” she said. The ambassador said there has already been interest from, and visits with prospective T&T partners.

The ambassador said that if it comes to fruition, the investment in an edible oil refinery in Trinidad would also bring jobs to Trinidad and Tobago nationals. She said the other investment from Guatemala is the Pepsi Cola plant which employs primarily Trinidadians and Tobagonians and “only about two Guatemalans.”

Godinez said the growing interest in bilateral investments underscores the need for the reciprocal protection of investments agreement. “Given the significance of the four agreements, we hope to sign them within the framework of 13 Bak’tun, as a change of era (for) us and the Caribbean. It is an honor for us to be in Trinidad and Tobago and to conclude the process. It is very important for both countries, and it will have an international connotation, just like the 13 Bak’tun.”

She explained that the 13 Bak’tun is a big deal because it is like the Gregorian calendar’s century. “Of course, for us it will be very important to invite the head of state and of government of Trinidad and Tobago in the hope that they will attend,” she said. The ambassador said the event will take place in Tical, and has been declared “the most important event of the year.”

Source: News.co.tt