Smelting and regional integration

John Spence
Friday, June 26th 2009
http://www.trinidadexpress.com/index.pl/article_opinion?id=161497149

I have written some 15 articles in the Express during 2006 and 2007 on aluminium smelting. In this article I shall revisit some of these articles and relate some of the issues discussed therein to the proposal to integrate this country with the Organisation of Eastern Caribbean States (OECS)

I have not been able to obtain a copy of the Prime Minister's address to the PNM's Convention on June 21, or the Vaughn Lewis report on the integration of this country with the OECS so my comments have to be based on newspaper reports. When these documents become available I will discuss these issues in more detail.

No doubt there is a historic linkage between Trinidad and Tobago and the Windward Islands (St Vincent, St Lucia, Grenada, and Dominica) but less so with the Leeward islands (St Kitts, Nevis, Antigua). The main argument put forward by the Prime Minister for the economic and political integration with the OECS is that worldwide developments are likely to result in adverse economic circumstances for the OECS. This would result in loss of markets to Trinidad and Tobago manufactured goods and an influx of illegal immigrants from the OECS to this country. As yet there has been no indication as to how economic and political integration will help the OECS to stave off an economic recession. Conversely no argument is being given to indicate why economic development of the OECS could not take place with investment of Trinidad and Tobago petro-dollars without political integration. Further the comment on influx of immigrants without political integration would imply that free movement of peoples is not contemplated in the proposed integration. Compare this with the broader concept of the Caribbean integration movement which includes the large land masses of Guyana and Suriname. If there is to be mass immigration, surely the economic development of Guyana and Suriname financed by Trinidad and Tobago petro-dollars is a more logical development for long term sustainability for the region. It is in this context that I link the statements on economic and political integration to the aluminium smelting articles which I have written on this issue. I shall quote appropriate passages from those articles. From the Express of November 9, 2006 I quote: "The Prime Minister has made a very significant statement at the post-Cabinet briefing that has so far gone without public comment. That was to the effect that it is Government's intention to import aluminium to begin downstream manufacture even before the smelters are constructed! I have repeatedly asked the question in previous articles-why must we smelt aluminium in this small island with limited land space when we could import aluminum and go downstream? To my great relief the Prime Minister has answered the question-this is feasible since it is Government's intention to do so. Japan has one of the largest industries in the world in the manufacture of aluminium products but has only an insignificant smelting capacity (6,000 tonnes) but in 2004 imported approximately two and a half million tones of aluminium. The Prime Minister has settled the aluminium smelting question. We must not smelt; instead, we must import aluminium. Since the downstream processes require significantly less energy our gas resources will last longer." From the Express of November 16, 2006 I quote: "It is important to note that the major issues (with aluminium smelting) are not only in the area of health, so economists and development planners must be involved. Indeed, it is my view that there has been an overemphasis on the health issues and not enough attention to the long term economic and development issues, particularly sustainability of the industries, and consideration of alternatives to smelting. In my last article I raised the possibility of developing an aluminium smelting industry in Guyana based on hydroelectric power which is sustainable in contrast to a natural gas-based industry. I have consulted some of my electrical engineering colleagues to ensure that my ideas were not dotish or foolish. I am advised that it would be technically feasible not only to supply electricity from hydroelectric power in Guyana (for smelting and other manufacturing purposes) but also to transmit such electricity from Guyana to Trinidad and Tobago. This could be done either entirely by underwater cable or overland through Venezuela, and then under water to this country. The land route opens interesting possibilities for collaboration between Venezuela, Guyana and Trinidad and Tobago. Thus when (not if) our gas supplies are exhausted we would have a sustainable energy supply from Guyana." Thus the development of an aluminium smelting industry is logical in a country with a sparse population and a large land mass (Guyana) but illogical on a small island with a relatively high population density (Trinidad and Tobago). Also it is appropriate in a country with the potential for a long term energy source such as hydroelectric (Guyana) but inappropriate in a county with natural gas which is a finite asset (Trinidad and Tobago). To conclude, it is my view that any discussion on integration of part of the Caribbean community must be in the context of the integration of the whole and the aluminium industry is but one example of how this country can advance regional integration while advancing our own interests.