Jagdeo says will only sign if forced to
Guyana was the lone holdout at a pivotal meeting in Barbados yesterday on a controversial regional trade deal with the European Commu-nity (EC) and President Bharrat Jagdeo restated that he would only sign if forced to do so through the imposition of damaging tariffs on the country’s exports.
This was the President’s position at the December 7, 2007 meeting of Caricom Heads of Government in Georgetown prior to the initialling of the agreement later in the month and a shift in his declaration of intent of September 5, 2008 at a national consultation on the Economic Partnership Agree-ment (EPA) also in George-town to sign a goods-only agreement even if he had to “go it alone.” With the rest of the Cariforum (Caricom plus the Dominican Republic) leaders closing ranks in favour of signing, sources say that Guyana would have had no traction on a goods-only deal as this could have thrown the entire deal into jeopardy. Guyana not signing was also not an option as the entire bloc had to be on board. Despite the significance of the meeting, there was no Guyana Government statement last night on the matter.
According to the Barbados Nation, President Jagdeo confirmed Guyana’s opposing stance following an “intense” special summit of Cariforum heads of government and representatives of other countries that make up the 16-member grouping, at the Sherbourne Conference Centre, in Barbados yesterday.
President Bharrat Jagdeo (left) in dialogue with Barbadian Prime Minister David Thompson (centre) and St Lucian Prime Minister Stephenson King yesterday in Barbados. (Barbados Nation photo)
Guyana, which had earlier signalled its willingness to sign a “goods-only” agreement with the EU, was the only firm holdout among the states with Haiti expressing some reservations about certain provisions, including that the final text varied from that sent to the Caribbean Region-al Negotiating Machinery (CRNM), which its representatives said would have to be taken back to that country’s President Rene Preval.
“I said if I had the most to gain and the least to lose, why is it I am opposed to this agreement in its current form?” Jagdeo asked.
“I am opposed to it largely because I feel it is a bad agreement. I have gone through this issue publicly on more than one occasion. I have pointed out that throughout the negotiations even when we met in Guyana in 2007, I said the only reason I’m going to sign this agreement is if Europe imposed GSP (the Generalised System of Preferences, which is a formal system of exemption from the more general rules of the World Trade Organisa-tion) on my country because I don’t have a choice. My exports are vulnerable, but outside of that, I will never subscribe to such an agreement.”
He added that there were many good things about the EPA “but there are some horrendous positions”.
Jagdeo said Guyana argued that it should have been in the forefront of signing the EPA, because it had the most to lose from the imposition of tariffs on its exports going in to the EU, which could exceed US$100 million ranging across sugar, rice, rum, and seafood.
In addition, he said, Guyana was one of the most liberalised economies in the region – it does not have exchange controls, restrictions on foreign investment, and treats foreign and national companies the same way.
“I wish the outcome would have been different,” he said, according to the Barbados Nation, “but it’s not. I have to live with that. I can’t throw up my arms in despair, and life moves on, and we have to continue the battle, and we have to continue to expose the deficiencies of the agreement, and if I were to sign, I’d do so with a clear understanding, with everyone understanding, that I’m not doing this because I feel it’s such a great thing, but I’m doing it in a very pragmatic sense.”
Jagdeo indicated that the heads of government understood his position, and while he acknowledged that the vast majority of the heads had agreed to sign the comprehensive EPA, they did discuss the possibility of collectively taking Guyana’s position to the EU, but no agreement was reached.
Challenges
Should Guyana not sign the EPA, which replaces a seven-year interim trade deal under the Cotonou agreement and which came to an end on December 31, 2007, the CRNM has said that some Guyanese exports would not be affected at all, such as diamonds and bauxite, which together account for 20% of the country’s exports to the EU. Some other products would face relatively small tariff increases because exports would have to be made under the less generous GSP system, rather than duty-free under the EPA. This would affect exports of wood products, heart of palm and shrimps which account for some 7% of exports to the EU.
Exports of sugar, rice and rum would however face tremendous challenges in the EU market. None of these products are covered by the GSP system, and Most Favoured Nation (MFN) tariffs are very high.
According to the CRNM, sugar accounts for 50% of Guyana’s exports to the EU and MFN rates for sugar are prohibitive. Once the Sugar Protocol expires in September 2009, sugar exports to the EU would practically be impossible, the CRNM said.
In relation to rice, Guyana mainly exports husked rice to the EU. These exports are now duty-free under the EPA, which is an improvement compared to the Cotonou agreement, under which only a reduced duty applied. Without the EPA, Guyana would face a tariff of 65 Euro per tonne of rice, which corresponds to a tariff of around 25-30%.
Meanwhile rum exports to the EU, which are exported in the form of bulk rum would face high tariffs – around 30% – if exported under the MFN regime.
As such, while many exports would hardly face major difficulties without EPA market access, Guyana’s three key export products (sugar, rice and rum) could face dramatic consequences, with a complete cease of exports in the case of sugar. Together, these three products represent 70% of all exports to the EU and 30% of Guyana’s total exports. The EPA was negotiated between the EU and Cariforum countries for a four year period and it was scheduled to take full effect from January 1, 2008.
Stabroek News was unable to contact President Jagdeo or any senior government official who accompanied him to Barbados yesterday on how the outcome of the meeting has affected Guyana’s position. Asked whether there would be any statement from the government on the outcome of the meeting last evening, press affairs officer within the Office of the President, Kwame McCoy told the Stabroek News there was going to be none at that stage. McCoy had earlier announced that the President was going to hold a press conference at the Cheddi Jagan International Airport Timehri immediately on his arrival into the country from Barbados last night but this was later cancelled.
When contacted to find out what were the possible implications there could be for Caricom if Guyana does not sign the EPA, a spokesperson for the European Commission delegation to Guyana asked the Stabroek News to be excused for not giving a comment on the issue before the end of the Caricom Heads meetings.
Collective pause
Host Prime Minister David Thompson said no new date had been fixed for the formal signing but it could be late this month or early in October. The date for the signing of the agreement has been rescheduled on a number of occasions and more recently to Guyana’s opposing stance on the signing of the agreement in its current form.
The deadline for the signing of the EPA is October 31, 2008 and Stabroek News has learnt that an October 15, 2008 date is tentatively set for the signing of the EPA in Barbados.
Earlier in the day yesterday, the Barbados Nation reported President Jagdeo repeating his appeal for the leaders to have a “collective pause” and to review the EPA which was initialled on their behalf last December.
Thompson dismissed the appeal, saying now was the time for action and “time is not on our side”.
He told reporters: “I think the time for pausing has ended. Pausing will only end up being the thief of time in this particular instance.”
The Barbados leader admitted that the EPA was “not perfect”, but pointed out that “no agreement ever is”.
In an apparent dig at Guyana, he said he was concerned about “persons who previously supported certain scenarios that we would have pushed for (who were) now pretending that they know nothing about it and are acting as if they are the biggest advocates for us not signing”.
Addressing the opening session of the summit, Thompson said: “Today is no time for us as leaders of this region to vacillate for posterity will judge us harshly if we do so.”
He urged heads of government to “take the correct decision on behalf of our Caribbean people”.
He reminded the leaders that they had committed to ending the negotiations on the EPA by last December 31 and to have new trading arrangements with Europe in place by January 1, 2008 at the latest.
“When we did so we all fully understood that an EPA with the European Union would represent a fundamental turning-point in our economic relations with Europe and have major implications for the Caribbean in the context of the global economic environment,” he added.
He warned yesterday that reopening negotiations on a new EPA at this late stage could cause the collapse of a new platform of trade with Europe.
“My own view is that the entire process will collapse,” he told reporters at Sher-bourne Conference Centre, minutes before the opening of the 14th special meeting of the Caricom Heads of Government.
He was commenting on calls by Guyana and a number of regional agencies and prominent figures to delay signing the full agreement until areas of concern are re-negotiated.
Jamaica’s Prime Minister Bruce Golding on the other hand also made the point ahead of the Caricom Heads special summit that stiff duties on Caribbean exports to Europe are just one of the penalties the region will face if it does not hurry up and sign a new trading arrangement with Europe.
“There is the danger, and I would say the imminence, of Caricom exports being subjected to GSP (Generalised System of Preferences)…,” the Jamaica leader told reporters on his way to the meeting.
“Can we afford on November 1 to have duties that average out at 20 per cent, 20 per cent, being applied to exports from Caricom countries? Our exports can’t withstand that.”
Golding spoke against the backdrop of calls for Caricom leaders not to sign the EPA until they have negotiated areas of concern.
“If we reopen the negotiations, the issues that will be reopened are not just the ones that we are concerned about,” he said.
“The Europeans are going to want to list their items as well for reopening and I don’t think that we want to go around that mulberry bush.”
Golding takes the position that the trading relations between Caricom and the EU became illegal at the start of this year, with the old trading regime having been folded up at the end of 2007.
“The European Union, in an act of good faith said we go ahead and give you our end of the deal in terms of trade and wait for you to sign for your end of the bargain to come on line,” he explained.
“If we appear to be unwilling to sign, I believe there is going to be a change in that position.
“Any country could now file a complaint to the World Trade Organisation to say that the deadline of December 31, 2007 has passed and we are still continuing arrangements that came to an end in 2007 and we could be called to book.”
According to Golding, Jamaica does not have any “overriding concerns” about the EPA and was “absolutely ready to sign it”.
He added: “Did we get all we want? No. Did we get a good agreement? Yes. Could we have gotten a better agreement? I doubt it. Should we seek to reopen the negotiations? I don’t think that’s possible.”
On the issue of whether an EPA could be in place for a limited number of Caribbean Forum countries (Caricom plus the Dominican Republic), Golding pointed out:
“We negotiated as a group. The agreement arrived at in December, 2007 represented a consolidation of Caricom and the Dominican Republic.
“It could be argued that, look, this thing was a package and if one country pulls out then the package unravels.”
Why people always try to put down Guyana? Bharat Jagdeo is a good President and if he feels it’s best for the country not to sign at this time so let it be. God will provide for us and we will some day show the world that we are independent, if we can’t get our produce exported we will have enough to last us a lifetime and the EU will have to locate some other country’s market, As for the rest of the Caribbean let them fend for themselves cause they treat us like we are a bad people when we go to work in their Island. Guyana will rise again by God’s grace and become a prosperous nation as Guyanese strive to keep the commandments
yes i agree guyana will rise again but not under this malignant regime, maybe
under the PNC , guyana will rise to be a great country.
This is enough proof that Caricom does not act as a body but countries deal with issues independently.Barbados will not be too bothered that Guyana(through the nature of its exports) stand to be exploited and she is not.Rather,no other Caricom country cares how much Guyana will b exploited.
It’s time in Guyana that we see “Cari-gone” than Caricom and cleave stronger to our South American neighbours(light on Venezuela though)
The reason that the other caribbean islands treat Guyanese badly is simply because they want to know why we are so dumb, now not being able to export Guyana’s resources how would the country earn foriegn exchange and what would happen to all of the rice sugar ect. could Guyanese consume it all domesticly.
Most Guyanese try hard to reach another destination in order to improve on their economical situation and the countries they try are places that has an open economy which attracts foreign and local investments since GT&T and the few other investments the PNC attracted to Guyana the only other popular company I see now in Guyana is Digicel which has set up its base within the Caribbean,all that Barrat Jagdeo is continuing to demonstrate is that if he cannot have his own way it is no way . These same small islands as I see you have the Antiguan flag are committing to the same deals and are still better off and remains a transit point to many Guyanese like you and me to better our economic situations.
agree with what?
all of this is waste—if jagdeo see how he look…
he would have gone behind that photographer instead…
WO,WO,WO,
I see my entire blogger family are all out on this issue, and boy are they all fired up. Some are for , some are against, and that is good, shows that this blog is a truly democratic forum. So lets us give a big round of applause to SN who is making this all possible.
I see my brother Evan Thomas, is intent on making his point clear, that is good and well taken. Some other blogger states that the EU decree is 1000 pages long, so therein lies the problem, with one stroke of the pen Jagdeo agrees to 1000 pages of Europeanese money lingo.
Included in that language are hints of developmental assistance, but that is the carrot stick, they have been peddeling since the Burnham era.
Forbes Burnham was considered a more dynamic, eloquent and learned leader of his time, and for all intents and purposes, he was. He was trained and educated by the same European masters, whom he later had to confront.
We all looked up to him, after all he was the Big Kabakka, the Black Caiman, our leader in the fight against British exploitation, but after attending the same forum as Jagdeo is facing right now, how could he come back and tell his people that all is lost, and that he is treated no better than a bowl of Jello in front of the British Lords of Plunder.
He has gone down in history as just another third world, incompetent, ruthless dictator. But we are now witnessing, history repeating itself. If Jagdeo stays at it long enough, his legacy will be the same, and so will any other that comes after him.
Forbes tried his best to convince all Caribbean leaders to hold together, but as the saying goes -you never know where a house is leaking until you live in it. So that caused a fragmention among the Caribbean countries.
Listen my friends, there is no shortage of money or food in this world, the same way that there is no shortage of diamonds. Diamonds are hoarded to create artificial shortages, to bolster premium prices. It is controlled by De beers, and guess who owns and controls Debeers?- You got it right
There is no shortage of money in this world either, the banking cartel who own and control the worlds money come from a long leaneage stretching back to the crusades. Their is enough money in this world to intoxicate every person on this planet with prosperity for 100 lifetimes. There is no shortage of food or fuel either.
What is happening is that these commodities are being deliberately sucked up into a single source warehouse called the EU and other names, It is then auctioned out to the highest bidder in the commodities trade market.
Food is not sold to the most starving nation, it is sold to any country that can turn around and sell it at the highest price to a starving nation.
On any given trading day, the derivative traders are gambling with 673 thrillion dollars, all guaranteed by the banking cartel. These speculative bets on money and business outcome in any one day, can and does bankrupt countries and their business sector overnight.
These traders sit at their terminals in the Cayman Islands and make a killing by devastating whole countries and their industries by speculative trading. It is a far easier way to make billions than investing in a countries development.
It is people slavery turned into economic slavery my friends, but we can fight back by gaining knowledge our parents were never privilaged to. We can fight back with the internet and the blog. So spread the word and support our leader, even though his chances of success are slim to none.
Joe.
This guy is playing ‘republican’ type politics. He knows he has no alternative but to sign and is trying to show that he is being held hostage by the EU…big and powerful capitalists….A PPP hang up. Is this how he trying to make a positive name for himself.
I would repeat, he should have consulted with the experts of both opinions before and during the negotiations. The HOGs went alone into the negotiations and like politicians true to the core, he is now trying to extricate himself from any fallout.
Good for you caricom islands and Belize…let Guyana venture in South America and let’s see how fruitful this will be. Since the PPP came into government, they only paid lip service to caricom unity if only because caricom has intervened and pressured hoyte to hold free and fair elections….it is a kind of offhand gratitude. They always had their eyes on South America only for the reason the Caricom was a Burnham initiative and Guyana under the PNC was a leader in caricom.
This time he should do his home work properly about the cost and benefits of caricom isolation and shifting integration to the non- english speaking and culturally and politically diverse grouping of South America.
This deal if examined properly is not a good one, it is fundamentally skewed and if sign, will put the region back at this same position in a few years time. It is a shame that the Caribbean leaders still cannot move out of their comfort zone and live up to the challenges of making sound decisions. The region has a lot to offer and could negoiate a better deal rather than begging….with looming food security issues in the world and pently of potential in guyana….there is a good positon for us to get a better deal as a region.The world has continued to manipulate the region because of our lack of unity…President Jagdeo should be commended for taking a stance.
Of course, there are consequences to not signing, but it would be worst if signed in its present form. Do recall, a decade or so ago, EU give us the preferential access deal for banana, sugar etc, but hardly any of the money under the deal came back to the region (as intended), ….out of the 2 billion dollars a year, only 150 million/yr went back to the region…the rest was diverted to businesses in the EU. read Borrel (1999) regarding this issue.
Guyana need to start expanding its base beyond CARICOM, into south america and further the block of Small islands with its scare resources seems very impotent …it is time we take on new challenges..
what a shame, guyana had to go it alone and the other islands readily sign their life away. in unity there is strenght when will they learn.
Think this time Jadgeo was right. There are little benefits from the EPA as it is. Sorry his counterparts did see the EPA as he saw it. The issue on hand now is the repercussions for Guyana given our refusal to sign on to the EPA.
Shame on Caricom. I don’t think we are ready yet for real integration and the outworking of CSME
There is tremendous benefit for Guyana in the EPA as it stands which is why jagdoe wants to sign a ‘goods only’ agreement. Guyana has the most to benefit from the EPA. Jagdeo is contending about services, investments, intellectual property etc where the EU has not shown reciprocity. Can you identify for me how Guyana can currently benefit from these areas? can we actively compete in Eurpoe in these areas. Guess some of Guyana “contractors” will want to get contracts in the EU. BK is getting all the sea defence contracts funded by EU money in Guyana. Competition from EU firms should be welcomed; protectionist policies are long gone. Jagdeo claims to be concerned for the wider Cariforum countries and they have agreed to sign on. Let him give the specifics of where Guyana will be disadvantaged not glibbly parroting others who are really part of our problem…we need new thinkers who are conversant with how the world currently turns and can come up with new approaches and strategies.
I applaud President Jagdeo for the stance he has taken. The EU seems to want to have us in a trap with the best of benefits as per the agreement going to them…a la The EU having the loaf while the Cariforum gets the crumbs. Yes, it may be good that we’re getting some crumbs now (since we couldn’t get any in the ’70s or ’80s or even attend the party), but I think we should get crumbs with something to wash it down, NOT CHOKE US in the wind-pipe trying to swallow it. Our President has realised that.
Guyana is supposed to be moving up via our exports, the EU won’t mind having us remain poor. What, they think we’re still stupid to succumb to them for a piece of a pie while breaking our backs and necks stretching for it? We had experienced the outcome of succumbing to the IMF during The Burnham ERROR, doing whatever the IMF wanted for a lil “2 bobs” (money). We’re not stupid anymore…this is a new generation running Guyana’s interest and affairs now.
The Jamaican PM can say what he wants and go ahead and sign. Most of his country’s exports are to the USA, controlled by US manufacturers who owns the companies in Jamaica. The EU is only ANOTHER piece of the export pie that he can benefit from, for one thing, Jamaica’s bauxite goes to Canada, he does not need the EU like most of our Caribbean brothers, he can do without them.
I agree with the President Jagdeo, keep your stance, be strong and show some of our brown-nosing Caribbean leaders how to negotiate like a true leader.
Do you guys really know anything about the content of the EPA. have you read any of the 1000 pages or you just listen to the opinions of others and take sides because of your ethnicity. India, Brazil and one other country were the ones who first registered the complain against the EU preferential treatment to the ACP countries that they were not compatible with WTO rules. So the EU have acted in their interest. Again why should the EU face penalties on its goods to the rest of the world? I think the Barbados should have been screaming the loudest about the unbalanced agreement rather than Guyana. The Barbados economy is more diversifies geared towards the other areas and not primary commodity exports.
On this matter, the President should consider an “Insert” into the document prior signing which would in the future enable Guyana to seek legal and other compensatory redress from the EU, Should it be proven that this take-it-or-leave-it “agreement” is discriminatory to the People of Guyana.
You know some commentators are saying “sign sign, what are we going to do with the resources? leave it in the ‘ground’?” That’s not the point; we owe it to our future generation(s) to make sensible decisions today that will benefit them and not place a mill stone around their collective necks The other perception is; the EU can do without our resources, they can take all their business elsewhere. therefore it’s a all or none situation. Well it’s a fallacy. The expanded EU has more responsibilities to bargain for all it’s the nations (it’s a bigger family to shop for and it’s growing) We will get them as customers, that’s what we need to realize, They need us as much as we need them. CARICOM I believe is an illusion. But that’s ok. Guyana has the resources and the customers will come, because ‘the globe has become a village’ and the needs and wants of the developed and developing part of this village are rising, this is the time to be recognize the market and not be played, The EU is just a customer not Mother-Land
Finally, Our big-business brains, when dealing with this EU agreement become as bottom-house shopkeepers and think only for their cake-shops. I can’t figure out how the communist trained President see’s the con but our big entrepreneurs don’t. I refuse to believe that it’s self before nation for them.
Zero from Zero leaves nothing which means gross isolation. I see history repeating itself, because Burnham’s stubborn attitude in dealing with the BUYERS left Guyana exposed behind the 8 ball holding tons of product. Guyana needs dollars (foreign exchange) for national growth and development not stockpiles of raw product gathering dust in a warehouse somewhere.
Once again, it looks like Guyana finds itself on the wrong side of the equation, sales is always about the BUYER and not the PRODUCER. Caricom is but another producer like Guyana, therefore the focus ought to be laser like on the buyers instead. Guyanese!… get ready for more hardships.
It makes no sense to sign any agreement that would not benifit the country.The President has decided wisely in the interest of the nation.
…glad you can see it that way, there’s still lots of hope for us Guyanese to battle it through thick and thin. Unfortunately, the people that stood with the President backed out and claimed they they never supported him in any way and he found out he was an island unto himself. Fortunately Guyana is not an island. Can’t blame him now knowing where he stood in the first place. We in this region should form a SAU by ourselves. That is, South American Union. The north can have a NAU like the EU and then we can have real bargaining power. The only problem is that in future years there will be a crafty opening for a head of all the Unions ushering a one world government. I can point out in several ways that the implementation of this has already started. I gave the last Cricket World Cup security arrangements as an example. Do your research. I feel that more delayed time in signing is needed until more of this plight is brought in the light.
Caricom has shown themselves for what they are. We need more time. Another card might be dealt that suddenly makes our hand looks good.
alanzo YOU ARE RIGHT
OUR PRESIDENT IS A GOOD PRESIDENT
LET THEM WAIT TILL THE PRESIDENT SAY IS TIME
GUYANIES ARE SERVIVERS
I can see they are also great spellers
eloise, o eloise darlin…
President Burnham moves on Bauxite and Linden is going to be the equivalent to President Jagdeo obliteration of rice, sugar, rum and Berbice. (Linders were for the PNC and Berbicians are for the PPP will have no say)
People should remind President Jagdeo that President Burnham also tried his bauxite intrusion with rice and sugar. In fact after his damage(to sugar) Hoyte went back and ask the British to come back and run Guysuco.
All of this goes back to the fact for 41 years, the PPP and the PNC has develop absolutely nothing and they have no leverage in selling or marketing any of the traditional products that Guyana produce—-at an un-forgiven price( cost of electricity, water etc.)
President Jagdeo is going to sink Guyana further—more people will have to find jobs in the islands.