Remarks by the Minister of Agriculture Hon. Robert M. Persaud, MBA, MP, at the Signing Ceremony Financing Agreement between the European Commission and the Co-operative Republic of Guyana

Guyana is pleased to have reached another milestone in our negotiations with the EU on the Accompanying Measures for Sugar Protocol countries affected by the Reform of the EU Sugar Regime.

We have been working engaged in protracted discussions/negotiations to respond to the EU in a comprehensive manner on the many issues that arose. It has not been an easy task. There were several broad based consultative sessions involving a wide range of stakeholders; we could not have done less, given the major contribution of sugar to the national economy and rural development.

Unlike other sugar producing states, even our sister Caricom countries (Trinidad and Tobago and St Kitts) who have already made decisions to go out of sugar, Guyana has made a firm commitment to sugar. Sugar contributes annually 18% of our GDP and makes up 57% of the agriculture sector. The sugar industry is a major contributor to the social welfare of our population, providing employment for 19,500 workers and health care, training, education and support to workers’ communities with the total number touched by the sugar industry estimated at 125,000 people.

Guyana and other ACP sugar protocol countries realised that the reduction in the preferential price of sugar was inevitable.  But the fast-forwarding of the implementation of the price cuts, the steep cuts and the soon-to-be-end protocol all felt like a really hard punch to the stomach.

Notwithstanding, we are reasonably proud of the progress we have made to date. Our National Action Plan was amongst the first (if not the first) to be submitted and obtain approval by the EC. We were also amongst the first to sign the 2006 Financing Agreement for Accompanying Measures for Sugar Protocol Countries, which took place  right here last year. 

Today, we believe we are amongst the first (again, if not the first) to sign the Financing Agreement for the 2007-2010 Accompanying Measures.

Our progress here today confirms two facts:

1.  The sugar industry will survive and continue to be sustainable and viable.

2. The EU, both the delegation office in Georgetown and the Commission’s staff in Brussels, is supportive and considers the objectives of the GNAP achievable.

The Guyana National Action Plan focuses on expansion, development and diversification of the sugar cane industry in Guyana, growth and expansion of specific non-traditional agricultural sub-sectors as well as infrastructural and human resource development. 

However, the resources allocated by the EU are woefully inadequate to fund this Action Plan. The Government, through sound economic management and unwavering determination, has made much progress in the Plan’s implementation. This we will continue as we pursue the broad objectives of the plan, which are to:

-         Increase sugar production and expanding market share

-         Diversify the sugar industry and adding value to the final product

-         Improve the efficiency and profitability of sugar cane and sugar production

-         Mitigate the social impacts of the sugar action plan

-         Reinforce farmers’ organisation 

We were pleased to note, that in the February 2008 update by AIDCO of the EU Commission on disbursement for the 2006 and 2007 allocations to sugar protocol countries received from the European Commission, Guyana was well ahead on the 2007 programme, with a contracted amount for 2007 of 13.2M Euros. This we take as an indication of the progress made with the EU, and as a further reflection of our good working relationship.

Indeed, it was thought that we would not fully assess the indicators for the variable tranche until later in the year, but we have now finalised them. These indicators agreed on between the EU and the Government of Guyana included:

-         Submitting the GuySuCo business plan from which further indicators will be developed

-         Preparing a sectorial expenditure framework document

-         Submitting the 2008 budget for Guysuco as well as laying the audited accounts before Parliament

-         Preparing and detailing various social mitigation programs

I must say that we have completed the very important Business Plan and this has been submitted to the EC. Now that the indicators have been agreed, Guyana will work towards the achievement of them so that the money allocated is released.

I wish to return to a concern I highlighted here at a similar ceremony last year: Despite the promises of front loading, there has been little evidence of this.  The Government of Guyana hopes that the EU can again relook at the flow of money and do whatever it can to front load the monies to not only Guyana but also the entire ACP countries.       

 

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