The Deputy Director-General of Trade, European Commis-sion Karl Friedrich Falkenburg has said he does not feel that Guyana could have a goods-only agreement in the place of a full Economic Partnership Agreement (EPA) with the European Union (EU).
President Bharrat Jagdeo has said that he was not prepared to sign a full EPA but a goods-only agreement as suggested by a national consultation on the EPA held at the Guyana International Con-ference Centre last Friday, until a full agreement is renegotiated that is more development-oriented. The President has also been tasked by the stakeholders at the consultation to ask his colleagues to put on hold the signing of the agreement until after Cari-forum leaders would have met with their counterparts at the ACP (African, Caribbean, Pacific) Heads of Govern-ment meeting to be held in Accra, Ghana on October 2, 2008 where the EPAs are scheduled to be discussed.
Answering the question posed by President Jagdeo at the one-day consultation as to whether Guyana could sign only a goods-only agreement until a full EPA is renegotiated, Falkenburg said that the goods-only deal was not a development supportive solution. “Honestly my answer is no,” he said adding, “I don’t see how that is possible.”
Consequences
However, he did not answer the question put by the President on what the consequences would be for Guyana or the region as a whole if Guyana or any other country does not sign the EPA or would want to sign only a goods-only agreement.
Meanwhile, the President who is scheduled to travel to Barbados today to attend the Caricom Heads of Government Special Meeting told Stabroek News last evening that throughout the formulation of the EPA the negotiations were very fluid and this was a matter of concern. Even when the EPA was initialed in December, he said that he expressed his concerns on a number of issues and indicated that he was participating because of the threat of the imposition of the Generalised System of Preferences (GSP) which would see Guyana’s exports to Europe being treated in the same manner as the Most Favoured Nations or as equal partners.
Because of the fluidity of the negotiations, Jagdeo said that even at the last minute before the initialing of the EPA the final document looked different from what it was in the beginning. For instance, he said that the ‘Singapore Issues’ were only dealt with within the last six months of the negotiations.
The Singapore Issues which came out of the WTO ministerial conference in 1996 in Singapore deals with the issues of transparency in government procurement, trade facilitation, (customs issues), trade and investment, and trade and competition. These issues were pushed at successive ministerial meetings by the EU, Japan and Korea, and opposed by most developing countries.
Facing
devastating tariffs
Asked whether the EU rammed the EPA down the throats of the Cariforum countries, the President said that the EU had superior bargaining powers and the threat of facing devastating tariffs was always hanging over the heads of the Caribbean negotiators led by the Caribbean Regional Negotiating Machinery (CRNM) like the sword of Damocles.
He has said that in the same manner that the African and Pacific regions were allowed to sign only interim trade deals and given time within which to hammer out a full EPA, Cariforum could also be granted such a concession.
Speaking on the Cotonou goods-only agreement which had tied Europe and the ACP until the end of 2007, Falkenburg said it had not produced the development supportive outcomes that they had all hoped for.
“We needed to make sure that there are conditions for doing business, for creating new business opportunities for attracting investments, to make use of what such a business environment could offer for development. That is what we think is necessary and in such a framework to maintain preferential market access,” he added.
Falkenburg said that the Cariforum countries, that is Caricom countries and the Dominican Republic, have negotiated for four years the current EPA, compromised in a range of areas, opened access in services, and made commitments that were “explicitly sought for by Cariforum countries” in the investment sector and that were now contained in the agreement.
When the EU and Cariforum countries initialed the package in December, he said they were all aware that it was not a legally binding international commitment but they were all very clear that it meant that the negotiators had identified the outcome of the negotiations which were recommended by the respective constituencies for their governments to approve.
Falkenburg said that on a good-faith basis, Europe had taken the unprecedented decision to grant market access from January 1, 2008 to its ACP partners. Europe, he said, took that action without any international legal basis and as such was now in a vulnerable position. “It has no legal basis in Geneva. The first country that challenges it would bring it (down).”
He declared that the only way in which the European Union could get away with granting market access was by urgently signing the EPA and notifying the World Trade Organisation in Geneva if the EU were to continue to allow rice, rum and sugar or other products from the region on a preferential basis into the EU. “If we don’t do it we cannot continue to extend this market access,” he said.
Falkenburg, who was one of two speakers who spoke in favour of the EPA as against eight – including President Jagdeo at the head – who were for the signing of the EPA to be put on hold until issues of concern to Guyana were addressed, said “This is not of my bullying. The EU has to play within the confines of a multilateral trading system. He added that the EU and the ACP countries collectively sought derogation for its original preferential trading regime and obtained it until the end of 2007. They obtained the derogation but in the process granted equal access to some other developing countries which helped in eroding the preferences the ACP countries had enjoyed exclusively.
Zero chances
The chances of getting additional time or extension for preferential treatment at the level of the WTO, he said, are not good. “The chances of getting it are zero,” he said.
He said that during the four years of negotiations Cariforum and EU negotiators looked at the issues of maintaining preferences from every possible angle and concluded that the chances of getting more time from “your partners is not there.”
He said that Guyana was not being forced to sign anything. “You will have to make your decision. I still believe that the opportunity that Europe is offering you in the EPA is extremely valuable – duty free/quota free, market access for rice, sugar and rum is valuable for many of your companies and employees.” All of this, he said would be put into in question, if at this stage of the process, Guyana opts out of the EPA.
“This is not a threat. This is not an EU community choice. This is what we will have to do within the WTO rules to which we have all subscribed…” he said.
Noting that based on the discussions it would appear that there were no negotiations between Cariforum and the EU and that the EU was forcing the EPA on the region, Falkenburg reiterated that the negotiating teams involved technical teams and policy makers. In the case of the Caribbean, there were negotiating sessions that involved technical and ministerial teams and the heads of government.
He said too, that, there were a fair number of meetings of civil society and social partners over the past four years of negotiations and he took part in one such in Barbados early last year before the text of the EPA was decided. “That is not a description of a diktat to me,” he said, adding that many of the meetings produced very good supportive outcome in terms of what Europe and Cariforum wanted to achieve in the EPA.
these people just want to entrap and enslave the poor as they have always done.
On this issue I have to support Jagdeo, the Europeans are simply trying to secure our resources for themselves in the immediate and distant future, when they know we do not have the fiscal policies nor actual cash which would support an immediate upgrade of our status of commerce to be able to trade/compete in Europe proper. From my interpretation of this document, they (Europe’s representatives) are saying “well, we are giving your (Caribbean) companies equal status to trade in Europe, We will treat you the same as our companies, just reciprocate.” Naw… lets not buy into that. We must know and deal with our limitations first and I think Jagdeo realizes this. What the Europeans should offer is real equality based on an understanding of both side’s capabilities with due regard for the social-economic effects on the lesser participant. Europe is not going to be disadvantaged with this agreement in it’s present state, therefore, in a competitive trade environment who is going to come in second place?… and that means? = we become de facto “employees” of Europe, other persons may chose a stronger word!
Let us ,, for a moment look at a different scenario of this goods only deal ,, if the President stays his course and does not sign ,, the infamous EPA,, that would mean ,, they way it seems now ,, is that we would be excluded from the european market ,, which now puts a load on the economy ,, an impediment if you will,, the CSME is not capable of handling our out put of agri based products ,, so what remains will have to be either subsidised or to agressively start market research ,, to bring on board ,, other buyers ,, wiith robust marketing and advertising budget ! ,,
Enter the min. of agriculture robert persaud !,,,, armed with his MBA ,, i would begin to believe that it should be no real problem for him to reach these other markets ,, and “convince” them to buy our goods,,,,,, or would he then advise his
boss ,, to diversify the economy ,, using the lemon they / we have no shortage of ,, and of course if we build a better trap ,, there is no telling how many will come running to our shores
Well maybe if the MBA- holding Agri. minister (he has a MBA? :o) was doing all this in the first place Guyana could now tell the EU what to do with the EPA.
Sharing what I just read from Guyanese Entrepreneur Peter Ramsaroop, this morning.
The other side of the EPA: Fix Guyana then negotiate
Peter R. Ramsaroop, MBA
INTRODUCTION:
Headlines on the Economic Partnership Agreement (EPA) have been numerous over the last few weeks in our local papers. For the most part, it is all about President Jagdeo’s objection to the proposal by the European Union (EU).
There is no union in Caricom as yet as we struggle to implement the Single Market; therefore, many individual countries see the proposal as a good thing.
I would go out on a limb here and advocate that Guyana should not tie herself to Caricom but to the South American Bloc. We have seen the consequences so many times in the way we are treated in other Caricom countries.
Guyana’s landscape and products do not align as well with Caricom as they would to South America countries such as Brazil.
What the EU is showing us is how well they have integrated as a bloc, and what we are experiencing is how disintegrated we are as Caricom.
Come on stakeholders, the discussions should not be what this agreement will do to us, but what do we need to do in Guyana to improve our economy.
What did the President tell you he would do as the alternative to this agreement? Did he promise more jobs, more products, other markets, new investments?
Does he have other monies lined up from other Unions to attract to Guyana? Let us focus on the real issue here.
No other Caribbean leader has praised the President for his actions. Our Private Sector must learn to ask the correct questions and advocate for future development.
OUR DIRECTION:
Guyana needs to step back and take stock of what our current and future products will look like. Would it really matter if we signed the EPA?
Where else can we market our products? Would the assistance granted by the EU be better for us since no other investors are coming into our country?
Caricom is stagnant in many areas and Guyana needs to figure out what is the best direction going forward. I have written many times about the Brazil link and that is where our focus needs to be right now. The airline that we have serving us from another Caricom country treats us as second class citizens.
A fare from Miami to Trinidad (3+ hours of flying) one-way is US$89.00 and from Trinidad to Guyana (45 minutes flying) is double that, but that is another issue.
WE ARE IN NO POSITION TO NEGOTIATE DIFFERENTLY:
Had our government continued the economic recovery plan in the early 1990s, opened our investment code to attract investors and invested in key new areas such as alternative energy, the Brazil connection, and diversification of our agriculture industry, we may have been in a better position to negotiate.
The agreement as I see it is very rewarding for Guyana and what we have to give back in return is limited. Many of our products are excluded in this agreement. We will be gaining access to the largest market in the world.
What we need to concentrate on then is what we will grow, produce and manufacture in Guyana to sell to these markets. How will we take the returns they are giving us to attract investments that will create jobs for our people?
We tend to be so protective of the little we have, instead of opening our eyes and dreaming bigger. Even if a large company from the European Union with deeper pockets comes into Guyana and buys out some of our local businesses but is able to expand and create jobs while expanding our trade, should that not be our desire?
Countries such as Barbados, Belize and Trinidad and Tobago have indicated their willingness to sign the agreement. What do they see that we have not?
CONCLUSION:
Our President needs to concentrate on improving and expanding Guyana’s products first before worrying how we will be able to trade what we do not have right now. Sugar and rice will be taken care of under this agreement in a few years, so the traditional base is covered.
We need to take the incentives that this agreement will give us and use it to expand our nation in order to create jobs for our people and prosperity for all.
Let us get off the world stage and focus on making our nation’s products and investment strategy open. Let us concentrate on security and energy in order to have products that we need to get to market, AND THEN we negotiate with the power of our products and partnerships with larger countries such as Brazil. Without new agreements, we will continue to redistribute poverty among our citizens.
Send responses to peter.ramsaroop@gmail.com
Dr, Ally,
This is a complex and far reaching issue, so lets see if we can disect some of the points raised by Mr. Ramsaroop.
First of all Mr. Falkenburg is useing the old good cop/bad cop routine to pressure the Caribbean countries into selling the entire farm. He is saying ” sigh this agreement now or else we will all get into trouble with the WTO”. I say boloney. The WTO and the EU are both partners in crime. They are both owned and controlled by the same banking cartel.
Second issue. “Countries such as Barbados, Belize and Trinidad and Tobago have indicated their willingness to sign the agreement. What do they see that we have not?”
These countries are service and tourist oriented and are therefore not as fully starved as Guyana in obtaining a supply of the worlds reserve currency-The US dollar- which is brought in by tourists on a daily basis.
Third issue ::”We tend to be so protective of the little we have, instead of opening our eyes and dreaming bigger. Even if a large company from the European Union with deeper pockets comes into Guyana and buys out some of our local businesses but is able to expand and create jobs while expanding our trade, should that not be our desire?”
No company in the EU will ever come and set up shop in Guyana for any reason but to fully exploit its resources to their own benefit. Here’s why, The EU has already cornered all of the worlds market of all the goods and services they need. They will not promote the same kinds of business in another country to serve as a compeditor, it is not practical nor would it create more profit to them. They are not into the employment business, they are in the loan for profit business. To keep you coming for more, they deliberately keep the money in short supply.
Fourth issue:::Trading with Brazil, Great idea since Brazil is fast becoming one of the giants of world trade. Guyana was not in a position before to trade in the South American region because of the restrictions caused by the worlds reserve currency requirements. Let me explain. Guyana would need US dollars to trade with Brazil, When the EU finds out they will dry up all the US currency coming into Guyana. These viscious shakedown Shylocks has got us by the balloons.
However Guyana may just be able to take advantage of a new development taking place between Brazil and Argentina, These two countries are now planning to start trade useing their own local currencies, a number of other countries are planning to do the same while the US and the European banks are busy trying to plug the holes in their great Ponzi scheme which is now falling apart.
Guyana need to turn her attention away from the EU and try and slip in on this deal and also bring along Chavez. If these four countries can set up trade useing their own local currencies, hey , we got a chance for change.
Joe.
I am glad that there is now more information on the Guyana consultation which is being released to the general public and to those who could not be there. We often talk of the developed countries stereotyping the Third World but I think some of us are trapped in a similar mindset about the developed countries.
Let us be realistic and adopt a more pro-active approach instead of constantly whining and stubbornly swimming against the tide. Nothing is being rammed down our throats. The EAP was painstaingly arrived at through a deeply transparent and democratically representative process. It seems to me that some of us have not been doing our homework while the negotiations were in progress or are simply hiding behind a calculated agenda to highjack the whole process.
The EPA is just another ‘agreement’ for Europe to screw us over. Yes there are a few seemingly good things thrown in there to entice us-like selling our goods- but what about the services? Can we really expect our engineering firms to land a contract to build roads in Europe? Fat chance there.
It’s a pity that President Jagdeo has waited this long to voice his disapproval of the terms of the Agreement. All he’s doing now is creating a stink and more than likely will have to sign just like the rest of the leaders. He knows Guyana needs that E U aid that we’ve become so dependent upon (quite likely what the E U will withhold from us if Mr. President refuses to sign).