EU rice markets no longer guaranteed
-de Visscher forecasts
Stabroek News
November 19, 2002
Guyana is faced with shrinking preferential markets for its rice in Europe and needs to quickly restructure to face the challenges of global trade, says Head of the European Union Delegation to Guyana, Vincent de Visscher.
De Visscher was speaking yesterday to rice farmers and other stakeholders at the opening of a series of consultations to discuss a strategic plan for the industry to be funded by the European Union.
He explained that reforms of the EU's common agricultural policy were necessary to cater for new member countries and that these would likely result in a reduction in preferential markets for Guyana's rice.
"As your minister said, the preferences are eroding, the preferential arrangements have been eroded, so Europe is also facing very important challenges," he said.
De Visscher noted that World Trade Organisation compliance means that the EU will over time reduce the services it provides to farmers. He spoke about the recent EU enlargement agreement noting that it was significant because the EU would have ten new members. "That means that the same package that we have will not only have to be distributed among the fifteen members we have now, but now 25. So the preferences even in Europe are going down."
De Visscher said what the EU has agreed to in the proposed regional partnership agreements with the African, Caribbean and Pacific (ACP) countries is not intended to put pressure on the farmers in developing countries, but to progressively help them consolidate their markets. He said markets everywhere are becoming more competitive and where the EU can help is helping to consolidate markets especially in the Caribbean region. According to him, the partnership agreement will assist in helping the rice industry become more competitive.
He said the EU commitment to support the ACP rice industry is based on the Cotonou Agreement, "Joint Declaration on Rice". The declaration acknowledges the importance of the rice industry for a number of ACP countries in terms of employment, foreign exchange revenues and social and political stability. De Visscher said the competitiveness and efficiency of the rice sector would be basic conditions for the ACP countries' smooth integration into global trade. He said the EU is therefore committed to providing the needed support to the ACP exporters of rice through specific integrated sector programmes where the improvement of conditions of production, transport and storage, environment management, trade promotion and value added products are focused on.
Under the European Development Fund (EDF) an action plan was prepared by the Guyana Rice Industry in collaboration with CARIFORUM and industry stakeholders. Guyana initially stands to benefit from some 70% of a 25M Euro grant for the region.
De Visscher said the EU is committed to helping the local industry face the challenges of the globalised world. He said it is time the rice industry devise strategies and policies to combat the problems it is faced with. He cautioned though, that money is not all that is needed but the plan of action should also be coherent.
