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EU readying punitive taxes on Guyana - IPS

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.

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12 Responses to “EU readying punitive taxes on Guyana - IPS”

Johan
on October 11th, 2008 7:23 am

More big stick behavior from our foreign overseers? These two clauses seem only fair, to me. And why aren’t the other Cariforum countries INSISTING on the clauses inclusion, rather than just ‘not having a problem’ with that? I guess Caribbean policy makers have still not learnt anything about regional solidarity and interdependence from the aftermath of 9/11.

[Reply to this]
shea30
on October 11th, 2008 8:10 am

President Jagdeo, stick to your guns on this one….don’t sign unless they agree to your inclusions or some similar form thereof. I particularly like the second clause, as it relates to social impact of such tax on the people of the region - I mean the US tax codes does have social consideration / externalities built in - so in my view, this is very reasonable request.

[Reply to this]
bungbang
on October 11th, 2008 9:19 am

Atleast this entire EPA thing made us GUYANESE know that we en have caricom on our side, we now know where the jamaicans,bajans and trinis interests are…..there’s a saying “NATURES FIRST THOUGHT IS SELF PRESERVATION” and cari-gone seems to be holding that up oops! I meant caricom!

[Reply to this]
guy123
on October 11th, 2008 9:27 am

Jagdeo finds himself in a similar situation as Burnham did many years ago,I know that all you bloggers who are always cussing out Burnham will try to understand and go along with whatever decision jagdeo makes,it is a very difficult job,being the leader of a country,he will have many more challenges along the way,lets hope that in the end of it all,he comes out of it with looking better than Burnham did.

[Reply to this]
Joe Coxall
In reply to the above comment on October 11th, 2008 5:10 pm:
Guy123,
there has always been a greater force working behind the scenes to shape matters throughout the entire world, Forbes and Jagdeo are no match for these forces.

Check out the following video, It is the first of a series of 5. That is why we must forget about our petty racial indifferences, there is a greater fight to be won for humanity’s sake.

Joe.

http://www.youtube.com/watch?v=_dmPchuXIXQ

[Reply to this]
Joe Coxall
on October 11th, 2008 10:03 am

If this is not the most shameless form of bullying and blackmail by the EU, then tell me what is?

Readers may find the following article interesting also.

By Bruce Porteous
10-10-8
Many are surprised at the speed of events occurring with the current global economic collapse. Yet few appear to be aware of what is still to follow as events unfold in the days that lie ahead. For some years I have been writing about this economic collapse, and now will explain the events that will unfold over the coming weeks.

The present crisis is not just an economic crisis it is a political crisis also. What is unfolding now is a going to result in the end of the Anglo-Saxon dominance of the global economy, along with the collapse of their economies and military capacity. We are experiencing some of the most dramatic and historic events in the history of mankind. The political landscape of the world we live is being significantly changed.

Here is a brief summary of the events to unfold.

1. The Anglo-Saxon financial institutions will continue to haemorrhage as investors withdraw their funds and no longer refinance loans as they fall due. Many of the investors are foreigners who have lost confidence in investing in the Anglo-Saxon banking system.

2. The fall-out is impacting the European Union economies, resulting political and economic changes is how the way the EU is govern.

3. There will be a lack of confidence by the Asian countries in reinvesting in the Anglo-Saxon nations the withdrawal of their capital will result in the collapse of the US dollar, British pound and other currencies depended on the carry trade, followed by national bankruptcy.

4. While Asia and European economies will survive and once-again prosper, the Anglo-Saxon nations will collapse into deep depression, poverty and social disintegration.

5. A new economic model will emerge, where the State replaces the private sector, exercising control over the population in how commercial activity is conducted.

Central banks over the last couple of weeks around the world have been increasing the money supply to prop up a collapsing banking system. In simple terms, this has meant creating money to advance to banks to ensure that they have funds to pay depositors and to provide additional funds to ensure banks will continue lending.

The recent $US700 billion bailout in the USA means that the banks will be repaid by the government for their bad loans, with the hope that they will continue loaning once again to debt-laden consumers to entice them to purchase more goods that they really don’t need in an effort to stimulate consumer spending. Yet banks are having trouble to find credit-worthy customers to lend to, or do not have the funds to lend at all as depositors withdraw their savings.

The expansion of credit through the global banking system on the scale of the last few weeks has been a risky gamble yet has failed to restore confidence in the global equity markets, and which in turn is further weakening the banking system as depreciating assets destroy their balance sheets.

The Anglo-Saxon nations are depended on their foreign creditors rolling over their loans they have advanced through the international banking system or by purchasing Government Bonds. Their creditors have been seduced into lending to them through complex financial products and high interest rates. The English speaking world need the inflow of capital to be to finance their current account deficits and maintain domestic liquidity. Without the inflow of foreign capital their currencies risk collapsing, drying up liquidity and economic activity in their markets. Countries such as the UK, USA, Australia and New Zealand now face national bankruptcy. They will not be able to sustain economic activity to generate the foreign exchange to enable them to repay their enormous debts to their foreign creditors.

[Reply to this]
Fulano de Tal
on October 11th, 2008 10:31 am

More woes for our ailing economy. It’s indeed easy to say hold out but our farmers & producers will pay the price. We could sign then as CARICOM make moves to have our recommendations tabled. To date we are the ONLY ones who refuse to sign which means we will be the only ones to pay the price, as we are seeing. Unless the pressie has viable alternatives which I seriously doubt, our economy will weep.In my opinion a 5yr review should be implicit in the agreement & the social impact that it could have for the region will more than likely be the drain of quality workers & professionals. The brain drain will have a much greater impact on countries like Guyana because of our polit(r)ics.

[Reply to this]
badlall
In reply to the above comment on October 11th, 2008 11:33 am:
He had four and a half years to put forward this proposal and did nothing …he will go to barbados ….AND SIGN

[Reply to this]
Wiffy
on October 11th, 2008 3:00 pm

I also believe he will sign - led to the slaughter but definitely not like a lamb!

[Reply to this]
Caesar
In reply to the above comment on October 11th, 2008 8:27 pm:
More like a meow.

[Reply to this]
Caesar
on October 11th, 2008 8:26 pm

Sorry for all you losers out there.I agree with the EU. Not everything done by government is to be viewed as correct for you and me.Think.Firstly,Guyana ,since 1964,in a label that has stuck thanks to you know who,is regarded as a seedy and corrupt country.Secondly,you have to meet certain requirements that guarantees your credibility and continued good standing will not be in doubt,you are dependable,etc, before you receive preferential treatment or rewards from those who make the rules. THE GOLDEN RULE IS THIS.HE WHO HAS THE GOLD MAKES HE RULES.You Guyana are looking for a job,you got that.So sign .

[Reply to this]
rambler
on October 11th, 2008 11:08 pm

Long live the Europeans!

[Reply to this]