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Guyana’s agriculture exports will weather Brexit – Min. Holder
The results of the referendum that saw the United Kingdom (UK) voting to exit the European Bloc has already seen major ramifications, including the announcement that British Prime Minister David Cameron will resign come October.
It has sent shockwaves on the world market, with gold prices rising to a two year high and the pound sterling dropping. There are also concerns about the effect it is likely to have on Guyana and trade. According to Minister of Agriculture, Noel Holder, however, effects on agriculture exports are not likely to be felt by Guyana.
The Minister, in a brief interview on Friday, stated that since the announcement of the referendum results he has considered it, but that Guyana ought not to be too worried about its trade pacts with the European Union (EU).
Guyana, as part of the African, Caribbean and Pacific (ACP) Group of States, enjoys preferential access to European markets for commodities such as rice and sugar.
UK High Commissioner, Gregory Quinn
Minister of Agriculture, Noel Holder
Minister Holder stressed, however, that it could take at least two years for the UK to complete its move from the EU and with that time, there should be opportunities to fully analyze the ramifications of the exit.
At this point, Holder observed, there is little basis to judge that the overall agriculture import policy would change.
In fact, Holder pointed out, most of Guyana’s sugar was going to other European countries, besides the UK. In this vein, he noted the shift should not impact sugar exports.
The EU is one of Guyana’s main trading partners. It has been a steady market for Guyana’s main export items such as raw sugar and rice.
According to WTO’s 2014 figures, 90% of sugar produced in Guyana was exported, with around 84% of the sugar exports going to the EU, 9% to other CARICOM countries, and 7% to the United States.
Guyana’s sugar export is already under threat, however, as the EU took a decision back in 2013 to phase out the sugar quota system with the ACP Group of states by September 2017.
The decision could have serious ramifications for Guyana, which held an almost 200,000 tonne sugar supply quota with the EU.
Rice exports to Europe, on the other hand, were at an all time high in 2016, with data from the Guyana Rice Development Board (GRDB) showing that out of 93,531 tonnes in total exports from January to March, 63,890 tonnes went to Europe.
Meanwhile, UK High Commissioner Greg Quinn had also provided assurances to Guyana that it would not be affected by the divorce from the EU. He had stated that benefits derived from both the UK and the EU would continue.
“There is no plan to change anything in the bilateral relationship,” Quinn had said. “Bilateral funding and grants remain as they are. In terms of the EU we are still a member and will remain so until the leave negotiations are completed. That can take years.”
EU Ambassador, Jernej Videtiè enjoys a light moment with President David Granger
Minister of Foreign Affairs, Carl Greenidge, also stated that there was no immediate concern of any curtailing of Guyanese commodities on the European market.
Delivering on a promise made by Cameron to hold a referendum on whether the UK stays in the union or goes, the referendum was held on Thursday.
After the close of polls, figures showed that 51.9 percent of Britons voted to leave the EU, while 48.1 percent wanted their country to remain in the trade bloc.
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