Caribbean Food Corporation

• Author: Duke Pollard
• Profession: Sitting senior judge of the Caribbean Court of Justice (CCJ), the highest appellate municipal court of the Caribbean Community (CARICOM)
• Pages: 269-287

The Caribbean Food Corporation 269

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THE CARIBBEAN FOOD CORPORATION

The first preambular paragraph of the Agreement establishing the Caribbean Food

Corporation acknowledged the need for the rationalisation of agricultural production

with a view to promoting complementarity in agricultural programming as contemplated

in Article 49 of the Common Market Annex to the Treaty. Although the operations of

the Caribbean Food Corporation are being terminated, the Agreement establishing the

Corporation remains the only precedent for a regional food Corporation in the Caribbean.

Some of the objectives identified in the scheme for the rationalisation of agricultural

production envisaged in Article 49 included: a regional plan for the integration of

agricultural development in the Common Market; the achievement of optimum utilisation

of agricultural resources; enhancing the efficiency of agricultural production, import

substitution on a regional basis and enhanced employment opportunities and standards

of living for peoples in the Common Market Area. The Caribbean Food Corporation’s

objectives were the production, processing, packing, storage, transportation, distribution

and marketing of food which were incongruous with the stated objectives of Article 49

set out above.

In effect, the main focus of these stated objectives was directed to post-harvest

technologies. Achievement of these objectives would go a far way in integrating the

tourist industry backwards into the agricultural sector and effect significant foreign

exchange savings through reduction in the Region’s inordinately high food import bill.

It is unfortunate and surprising that the Corporation had such a protracted gestation

period.

Pursuant to its objectives the Corporation was empowered to make investments,

manage, establish and operate enterprises; engage in the purchasing, processing,

transportation, marketing and distribution of products; engage in financial operations

and engage in any other activity related to its objectives. Membership of the Corporation

was open to members of the Caribbean Community and Common Market, new members

of either the Community or Common Market, Associate Members of the Common

Market and countries having a special relationship with the Community or Common

Market. In pursuance of the objectives of the Corporation, investments could be made

in financially viable enterprises due regard being paid to the ability of the enterprise to

increase agricultural production in the interest of regional self-sufficiency and to produce

agricultural products capable of enhancing nutritional levels in the Region. In the

performance of its functions the Corporation had a discretion to utilise the services of

wholly-owned subsidiaries; to enter joint ventures with national governments and

270 THE CARICOM SYSTEM

statutory bodies, and utilise as appropriate the services of the Caribbean Investment

Corporation, the Caribbean Development Bank, the Caribbean Agricultural Research

and Development Institute and similar institutions within and outside the Region.

The authorised share capital of the Corporation was one hundred million dollars

in the currency of Trinidad and Tobago divided into shares of one thousand each. The

initial issue of shares was in an amount of ten million dollars at par and allotted in a

prescribed manner. Liability of Member States was limited to the unpaid portion of

their issue price. Shares could not be pledged or encumbered in any manner and were

transferable only to another Member State. The capital resources of the Corporation

consisted of ordinary capital resources and loan capital resources. The Corporation

was empowered to borrow money which could be guaranteed by Member States jointly

or severally.

The management of the Corporation was vested in the Board of Governors which,

subject to specified exceptions, could delegate its powers to the Board of Directors.

The Board was empowered to approve the investment programme of the Corporation,

its annual budget and to give general directions to the Board of Directors. The Board

consisted of Ministers of Agriculture of Member States to which shares were allotted.

Other bodies of the Corporation were the Board of Directors and General Manager and

such staff as were necessary for the efficient performance of its functions. The Board of

Directors consisted of directors appointed by the Member States, together with the

Secretary-General of the Caribbean Community or his nominee and the Managing

Director. Subject to any general directions from the Board of Governors, the Board of

Directors was responsible for the management of the affairs of the Corporation, the

general policies of the Corporation and could give instructions to the Managing Director

for the implementation of such policies.

The Corporation enjoyed in the jurisdiction of Member States such status,

immunities, exemptions and privileges as were required to enable it to fulfil its purposes

effectively. The Corporation possessed full juridical personality with full capacity to

contract, acquire and dispose of moveable and immoveable property and to institute

legal proceedings The Corporation was empowered to cooperate with national or

international organisations and to seek all appropriate contacts with a view to cooperation

with the institutions of the countries to which its operations extended.

AGREEMENT ESTABLISHING

THE CARIBBEAN FOOD CORPORATION

The Contracting Parties, being Governments of the Member States of the Caribbean

Common Market:

Conscious of the need to adopt a scheme for the rationalisation of agricultural

production within the Region with a view to promoting complementarity in national

agricultural programmes as contemplated in Article 49 of the Annex to the Treaty

Establishing the Caribbean Community;