A late-night Tweet by US Secretary of State Marco Rubio on Wednesday was enough to drive fear into the hearts and minds of Trinidadians and Tobagonians, who are penning any hopes on the Dragon Gas deal with Venezuela—not least of all acting Prime Minister Stuart Young, who admitted to reporters yesterday that he was quite concerned about the US government’s latest articulated position.
“It is understood by many levels how important this deal [is] … not only for the energy security of Trinidad and Tobago, but also the stability of the region, Caricom, as well as South America, and also the conversations we’ve consistently had with the United States of America, how it also affects the geopolitics, not only of the region, but also as far away as Europe, as well as some other entities,” Young said.
He was reacting to Rubio’s Tweet which was in keeping with the political rhetoric being spewed by the Donald Trump administration against the Nicolas Maduro government in Caracas.
Pursuant to a directive issued by Trump himself, Rubio said: “I am providing foreign policy guidance to terminate all Biden-era oil and gas licences that have shamefully bankrolled the illegitimate Maduro regime.”
It is a decision that stands to affect the licence granted for Venezuelan oil to be processed in Trinidad and Tobago and the agreement between the neighbouring states to co-operate in their mutual economic interest.
This would amount to a lost opportunity for a measure of revival of the energy sector here and could seriously retard the possibility of a restoration of the energy sector.
For certain, in the short to medium term, jobs would be lost in both the public and private sectors and the hope for the recovery of foreign exchange inflows through investment and increased functioning of the energy sector would be doomed.
The effects of such a possible outcome would run through the economy, impact investor confidence and lead to further drying up of options for economic recovery, which the oil and gas deals were supposed to at least get off the ground in the medium term. Social aggravation and protest action could follow if this is the outcome if the Trump administration intensifies its current campaign.
The most enfeebling outcome of Trump’s decision to halt the two-nation agreement is that Trinidad and Tobago can do little but appeal to the US President for mercy on a Caribbean neighbour friendly to the US and with historical links. Whether such a diplomatic overture can prevail over Trump’s intent to remove President Maduro, who the US leader believes is illegally in office and who defied him during his (Trump’s) first term of office, is a real long shot.
But before panic sets in fully, the Government needs to know for certain how the decision will impact or not when the elements are made clear to the Government here.
What cannot be entertained in the national interest are calls for the US to remove every element of the deal to completely nullify the agreed-upon energy co-operation deal through narrow politicking.
Dragon is critical to T&T’s economic survival no matter which party takes charge after the upcoming general elections, but given Trump’s current posture, hopes of a deal are quickly waning.