Even with the price of rice rising over the past few months, a recent move by Trinidad and Tobago to have the common external tariff (CET) on extra-regional parboiled rice suspended has not been approved.
When the Caricom Council for Trade and Economic Development (COTED) held its 26th meeting recently in Guyana, it had before it, among other things, a proposal for a revision of the Monitoring Mechanism for Rice put forward by T&T, as well as a request by the same government for the suspension of the CET for parboiled rice. No decisions in this regard were taken at the meeting, well-placed sources said.
CEO-Production of Fairfield Rice Inc Dr Peter de Groot told this newspaper that Trinidad always tried to get a waiver for the year so as to force Guyana out as a supplier. “When they send in their requests for waivers, they send it as an annual request,” he said.
He noted that Jamaica was given a no-objection to import extra-regionally for two or three months. “What they [Trinidad] do is wait until we have short stock and then request a waiver for the whole year.”
Prominent rice farmer and miller Beni Sankar said the last thing the Heads of Government want to do is to eliminate the CET on certain items produced in the region.
“I am very aware of the way people are suffering because of the rising food prices – amazingly not only in Guyana but in the Caribbean and the rest of the world. I firmly believe that food prices should be reduced, especially in the region, to enable the most vulnerable group to have a better quality of life,” he said.
But he said the elimination of the CET would lead to the death of the industry, “because we will not be able to compete with the heavily subsidised goods from extra-region.”
Offering a solution, Sankar recalled that a few years ago when world rice prices were very low, Guyana had suggested something similar to the Food and Agricultural Organisation (FAO) price indexing; when world prices are low for whatever reason – mostly dumping – then the CET should be high and when prices start to rise, the CET should be lowered accordingly.
“By doing this, one tends to protect the consumers and the producers and allow the regional industry to stay viable,” he said.
He opined that had COTED adopted this mechanism then, at present the CET on rice would have been zero, resulting in member countries being able to import rice free of CET from outside the region and not having to fight for waivers.
“Food security has been an issue
