While President Bharrat Jagdeo is still holding out against signing the European Union (EU) trade deal in Barbados on Wednesday, EU foreign ministers are expected to meet Monday to agree a document which would pave the way for the EU to impose punitive taxes on goods from Guyana.

This means that Guyana could lose as much as 70 million euros (94 million dollars) each year.
Reports out of Brussels yesterday said that according to the document Guyana will no longer benefit from the favourable treatment it had received since 1975 for its exports. It would be subject to higher tariffs on its exports of rice, rum and seafood.

The document also suggests that that some leeway is likely to be granted to sugar exports, at least on a temporary basis. Guyana is the largest sugar exporter in the Caribbean.

A report from Inter Press Service, quoted Guyana’s ambassador to Brussels, Patrick I Gomes as saying that the EU’s move could ultimately lead to the country losing 70 million euros (94 million dollars) each year. “For a small economy to absorb that loss would be devastating,” he said, adding that he will be holding discussions with EU officials to see if a solution can be found ahead of the foreign ministers’ meeting in Luxembourg. The EU foreign ministers meeting takes place just two days before the formal ceremony in Barbados, at which the Economic Partnership Agreement (EPA) will be signed by EU and Cariforum representatives. To date Guyana is the only country in Cariforum, which has indicated its intention not to sign the EPA in its present form.

Jagdeo on Wednesday indicated that Guyana would sign if Cariforum countries and the EU agreed to a declaration as an appendage to the EPA suggested by Guyana. “Guyana would be signing on October 15,” he had said, “If the declaration includes faithfully the two clauses that we suggested, I may reconsider this position.”

The first clause suggests that in its implementation should any of the provisions of the EPA conflict with the Revised Treaty of Chaguaramas the revised treaty would take precedence thereby safeguarding the regional integration process.  The second clause suggests that there be a review of the EPA every five years to look at the socio-economic impact of the agreement on the people of the region and a commitment by Europe to address the adverse impact.

Indications out of the Cariforum Secretariat were that other Cariforum countries had no problems supporting the declaration but the EU also would have to agree to it.