Raphael John-Lall
President-elect Donald Trump’s choice of Marco Rubio to serve as Secretary of State of the United States could spell trouble for the Dragon gas deal and other agreements with Venezuela.
T&T is no stranger to hardliner Rubio who in 2019 warned the country about its relationship with Venezuela and Cuba.
Energy economist Dr Francisco Monaldi, who is the director of the Latin America Energy Program at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy in the United States, told Guardian Media that Rubio is a war hawk who wants to see the socialist regime of Venezuelan President Nicolás Maduro toppled.
“Without a doubt, Marco Rubio represents a more hawkish policy towards Venezuela. He is, of course, a Cuban American who has in the past been very antagonistic towards the Venezuelan regime and has suggested that maximum sanctions should be imposed. It is still unclear if he will define the policy or Trump will do so. There are other members in the administration like Tulsi Gabbard, who is proposed to be the director of National Intelligence, who has the opposite position about levelling sanctions against Venezuela.”
Monaldi is warning that sanctions against Venezuela could be “hardened.”
“However, the preponderance of the evidence is that being the Secretary of State who is so concerned about Venezuela and Cuba, that could imply a tougher sanctions regime against Venezuela. Compared to a week ago, when we knew that Trump was the President-elect, we can say that more likely than not that sanctions could be hardened. It is the case that the gas projects to T&T are in a separate category from the oil projects but having said that, it is hard to predict.”
He qualified his statements by saying that it is Trump who will make the final decision and Trump’s mandate is to end wars and conflicts globally.
Last week, Trump nominated Florida Senator, Marco Rubio as the next US Secretary of State and the first Hispanic to hold this position.
Rubio, 53, who is of Cuban heritage, was born in Miami and is a vocal critic of Cuba and Venezuela and has repeatedly called for a hardline stance against the two socialist countries.
On his X account, Rubio has mentioned T&T several times over the years.
Earlier this year, he congratulated T&T on its 62nd Independence Day but in 2019, he was more critical of T&T’s relationship with Venezuela and Cuba.
In July 2019, Rubio on his X account said: “The US has an excellent and growing relationship with #TrinidadandTobago. @TTMEEI helping #Cuba circumvent sanctions related to #Venezuela through shipment of LPG via a 3rd party would be an unnecessary irritant in our bilateral relationship.”
Then T&T Energy Minister Franklin Khan was quoted by a local newspaper as saying that T&T cherishes its relationship with the United States and it will not help any country that the United States has sanctioned.
Guardian Media reached out to Minister of Energy Stuart Young for his position on Rubio’s new role but he did not respond to the messages or calls.
Energy consultant and former energy minister Kevin Ramnarine told Guardian Media that the Dr Keith Rowley administration has not built any meaningful relationship with the Republic Party, which is back in power, and this could have a negative impact.
“I have never seen any evidence that the current Rowley administration has built any material relationship with persons in the Republican party. They seem to have focussed almost exclusively on building relations with Democratic party functionaries.”
He pointed out that the last Trump-appointed ambassador, Joseph Mondello, had a major dispute with the current Minister of Energy over the Delcy Rodriguez visit and the Rio Treaty.
“Moreover, Marco Rubio and Elon Musk, two of the most senior members of the incoming Trump 2.0 administration, have expressed strong views on Venezuela and its leadership. Rubio had tweeted in 2019 about what he saw as Trinidad’s complicity with Venezuela and sanctions evasion. They will have their opinion of T&T and its relations with Venezuela, and they will have their foreign policy position on Venezuela. I can’t say what they will do or not do. There are many moving parts that the US will consider such as illegal immigration of Venezuelans into the US and Venezuela’s claim on the Essequibo region of Guyana.”
Ramnarine also said only time will tell if the Office of Foreign Affairs Control’s (OFAC) licences will be extended. These licences have allowed the energy projects to be possible.
“I can’t say what they will do when the two OFAC licenses related to Dragon and Coucina-Manakin expire. That, however, introduces another layer of uncertainty into the equation and ramps up political risk. Shell and BP will not commit US hundreds of millions of shareholder money to these two projects unless the OFAC license ‘sword of Damocles’ is removed. It shows that in politics things change all the time and one day you are out and the next day you are in.”
A retired director of the Institute of International Relations, University of the West Indies (UWI) Dr Anthony Gonzales, in an interview with Guardian Media, is warning that a maximum pressure approach can affect T&T energy agreements if pushed to the extreme. That would mean even US energy interests could also be affected.
“Chrevron for instance will have to be sanctioned and generally US (and European) companies will lose access to Venezuelan oil. I am not sure if Trump is prepared to go that far. But it is possible he may believe he can overthrow the regime in Venezuela, something which he tried without success in his first term. I would think that it is even more difficult today to change this regime given the fact, that there are more left-wing governments in Latin America which are against external intervention as well as the unwavering support of the military in Venezuela.”
Venezuelan opinions
While the Venezuelan Embassy in T&T declined to comment on the matter, last week Venezuela’s daily newspaper El Ultimas Noticias quoted Diosdado Cabello, the First Vice President of Venezuela’s ruling Socialist Party as saying that Rubio is hardliner and Cabello believes that he will be one of the first officials who will clash with Trump and will be fired.
Prominent Venezuelan economist Luis Vicente Leon on his X account analysed Trump’s victory and how it could impact on Venezuela’s energy industry.
Leon painted several scenarios but does not believe Trump’s Government, even with war hawks like Rubio, will tighten sanctions.
Leon believes that Trump will instead focus on immigration issue and deporting illegal Venezuelan migrants back to Venezuela.