EPA detritus

Sep 26, 2012 Editorial

The report that the government collected $247 million from a revolving rice fund established by the EU is a reminder that the Economic Partnership Agreement (EPA) which we, as a member of Cariforum signed in 2008 with the EU, is quietly unfolding behind the scenes. It is to be noted that the Caribbean is the only region in the 75-member ACP to have signed an EPA with the EU so far.
In the lead-up to the negotiations, as the Caricom Secretary General said in 2003, “When Caribbean Ministers participated in the negotiations for the Partnership Agreement between ACP and the European Union, they expressed deep concerns over the future of commodity exports from CARIFORUM to the market of the European Union. In that process they were particularly concerned over the loss of preferences and, in the case of rum, the total liberalisation of the European Market. Subsequently, the “Everything But Arms” policy of the European Union was cause for even more concern, as that policy would have the effect of increasing competition for Caribbean Rice on the European Market.”
The Caribbean negotiators convinced the EU to agree to a “Joint Declaration on Rum” and a “Joint Declaration on Rice”. Subsequently, they secured two tranches of 70 million Euros and 24 million Euros to improve the competitiveness of Caribbean Rum and Rice respectively to enter Europe on a duty free-quota free basis. That is to say on a totally competitive basis with other suppliers.
In terms of the support for rice, which was to be shared primarily between Guyana and Suriname, the Secretary General very candidly remarked, “That amount may sound like a lot of money. But, believe me, it pales in comparison to the known requirements of the industry. The experience of the private sector operators in Guyana, burdened with commercial debt, is a clear indicator of the kinds of challenges faced by the industry and the efforts required to ensure its future sustainability. The 24 Million Euro will, therefore, certainly not solve all or perhaps even most of the problems of the industry, and we had hoped to get much more from the EU.”
The programme that was supposed to have been implemented in Guyana consisted of marketing support, technical assistance, improving water management and provision of working capital. The financial support part of the programme was to enhance the availability of credit to farmers and millers in Guyana. This was facilitated by creating a financial facility through GBTI.
The revolving fund was established and functioned between November 2006 and September 2011 and provided some 100 loans to rice farmers and millers. Other components of the programme had sought to aid in the development of National Rice Policy and Strategy Actions Plans by both Governments as well as to encourage producers, millers and exporters into effective and sustainable associations.
The end of this programme brings several questions to the fore. As was made clear by the Caricom Secretary General, the funds were a quid pro quo for our signing the EPA, which most academics and former President Jagdeo held, would place our economies at a severe disadvantage now that the reciprocal tariff reductions are being implemented. The first question then, is whether we received value for the monies received. Take for instance the support for rum. How were these funds disbursed? Who ensured that the industry spent the money wisely?
While rice, like rum, is in private hands in Guyana, the former is heavily regulated and most of the infrastructural work is done by government. As such there are periodic reports of various activities which might have been funded from the EU support. But at this time, we should have a total accounting of these activities along with those undertaken by our rum producers. This is an activity for which the bi-partisan Economic Services Committee is most eminently qualified to undertake.
The $247 million revolving fund monies should not be placed in the Consolidated Fund but a new loan facility for rice farmers should be initiated.

Latest News

EPA detritus

Related

Similar Articles

The Glenn Lall Show|| February, 14th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Everest Masters to engage Costa Rica in T20 fixtures

GCB saddened at passing of Former GCB...

Guyana/Barbados battle as opening round gets...

ESCL T20 starts March 2

Guyana boys team selected for 2025 PAHF Jr...

Mainstay Goldstar FC receives NSC support ahead...

Features/Columnists

A flawed interpretation of international law

CARICOM Nations Should Respond Together To new U.S. Policies

SN on TI, a thorough battering of the PPP Govt.

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

EPA detritus

Share this:

Related

Similar Articles

The Glenn Lall Show|| February, 14th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]