REFRAMING GUYANA’S TRADE

May 05, 2013 Features / Columnists, Peeping Tom

---

 
Venezuela has inked important agreements with the government of Guyana which should see increased cooperation in the sharing of intelligence in so far as both countries’ anti-narcotic efforts are concerned. But more importantly, one of the agreements signed relates to the critical issue of rice.
In recent years, Venezuela has become Guyana’s main trading partner in so far as rice is concerned. The prices offered for rice by Venezuela were far more favourable than that offered in Europe and as a result there has been a shift in rice exports.
The European market still remains, but it is no longer as important. Guyana has to be careful how it deals with the European market because the political situation in Venezuela is tenuous and Guyana has already experienced the problems associated with the delay in exports which was caused by the death of Hugo Chavez, new elections for a President in Venezuela, and the swearing in of new persons into certain ministries, a development that led to delays in the renewing of the rice agreement between Guyana and Venezuela.
These delays have already hurt, seriously so, the local rice industry. Farmers from Essequibo to Berbice have been complaining about the poor prices and limited quantities offered for rice by millers. Understandably, the millers were unable to commit to purchasing paddy, and to offering better prices, because they were uncertain as to the market in Venezuela which offers premium prices.
The losses have already struck home and farmers will have to wait until the second crop before they reap the rewards. But given the small margins that they work with, most will suffer serious losses as a result of there not being an agreement in place. This is how important the Venezuelan market is now to Guyana, because the prices are so favourable, a development that is no accident, but is a direct result of the socialist revolution initiated by the late President Chavez.
Guyana has to be very careful, however, in not placing all its eggs in one basket, because the political situation in Venezuela is worrying and with only a slim majority, and with problems developing in the economy, there can be a return to the old oligarchic rule in that country, a rule that led to great hostility with Guyana.
Guyana therefore has to try to cultivate deeper relations with Venezuela, with the intention of supporting that socialist government while exploring new markets in South America. The European market will remain an option, and it should be kept open, but it is not likely that Guyana will ever again want to depend as highly as it did in the past on Europe, which the government indicated, betrayed the Caribbean when it came to the Sugar Protocol.
Over the past few years there has been a discernible shift in Guyana’s trading relations, with increasing trade being consolidated with countries such as Venezuela, China, India, and with the countries of Caricom. Guyana should reduce trade relations with Europe and the United States, without abandoning these markets.
Guyana has more to benefit from seeking alternatives to its traditional markets, because our new and non-traditional trading partners have been far more generous to us than Europe and America.
If you look at China, for example, it makes more sense for Guyana to continue to forge relations with that country. China’s aid and assistance to Guyana over the past few years has been far more than the Americans have given over the past two decades. China recently gave thousands of laptops to the country as a gift. What have the Americans given?
Economic relations with India have also increased in recent times, and that country also gave a significant grant to Guyana to help build the National Stadium, and they were putting some of their own funds into the construction of the Specialty Hospital.
Of course they expect certain things in return. They expect that their companies will be used in the construction, but all countries that lend monies or provide grants expect the same. When USAID offers grants or loans to Guyana, they expect that American companies and consultants will be used.
In the anti-narcotics fight, the Americans like to lecture you. They want the local country to face all the risks associated with this effort and they put very limited resources, which serves their national security interests in as much as it does ours. But as the stronger economy, they wish small countries to bear the bulk of the responsibilities, financial and otherwise, in reducing the trafficking of narcotics and they penalize these small countries, while they are unable to reduce the demand for drugs in their country.
They now want to lecture to Guyana about press freedom. But where is the press freedom in America when following the Boston bombings recently, and even before the facts were known, fingers were being pointed by the same so-called free media at a possible Middle Eastern link. As it turned out, the suspects were not Middle Eastern and had in fact had been living in the USA for a number of years. Yet the western media wants to deflect this terror attack as not being home-grown.
Numerous examples can be cited as to how controlled and biased is the media in the United States; how they serve the interests of the Empire and their deliberate caricature of Arab countries and their favouring of Israel, in line with official policy. The press in America may be free of government control, but they are by no means fair and totally independent of the very interests that are represented in the American government.
It is refreshing that our President has finally and diplomatically told them to stop the lecturing and to put themselves in order before they dictate.
In the meantime, Guyana should begin the process of securing additional markets and deepening economic relations outside of Europe and America. It is in Guyana’s interest to reframe trading relations and to rely less on America and Europe, without fully abandoning these traditional markets.

 

 

---

---