Rohee refutes PNC/R claims on OCT rice route
--challenges Corbin to public debate
Guyana Chronicle
September 19, 2003
GINA -- Foreign Trade and International Co-operation Minister Mr. Clement Rohee has refuted claims by the Opposition People's National Congress Reform that the Rice sector has failed because of ineffective trade policies and that Government lost the Overseas Countries and Territories (OCT) route for rice.
In response to a charge by the Opposition Leader Mr. Robert Corbin, which Minister Rohee deems an "argument without any foundation," he pointed out that Corbin was "ill-informed about the steps we took in respect to the OCT route."
"I would like to encourage Mr. Corbin to stop misinforming the public," Minister Rohee said.
Rohee also challenged Corbin, along with any expert on rice and trade, for a public debate on this matter.
He also took the opportunity to outline details of Guyana's rice exports. Guyana benefits from two quotas of rice sold to European markets. One of its annual African, Caribbean and Pacific States (ACP) quotas is shared with Suriname.
Through this system, Guyana supplies 125, 000 metric tonnes of semi milled rice and 20, 000 tonnes of broken rice.
The OCT quota takes care of 35,000 metric tonnes of Guyana's rice. Under the ACP agreement, rice enters the EU at preferential prices as part of the Most Favoured Nations agreement and a levy of 35 percent is affected. Prior to 1996, the levy was 50 percent.
Rohee said that prior to 1997, when there was no limitation on the OCT route, the price of rice was US$420 per metric tonne.
This was subsequently decreased to US$208 metric tonnes as a result of the imposition of a quota of 35,000 metric tonnes which was done by the Europeans at a mid-term review of the Lome Convention and not by the Government of Guyana.
This move by the Europeans, Rohee said, was to protect their rice markets and this followed a decline in international rice market prices.
The restriction to the 35, 000 metric tonnes was instituted after claims were made by Spain and Italy that they were unable to compete with rice coming through the OCT route and from Guyana.
The EU market is estimated at about 800,000 metric tonnes. Of this amount Guyana supplied 25 percent or 200,000 metric tonnes up to 1996, which resulted in a strong lobby in Europe to restrict the European Market.
However, the European Union still remains Guyana's largest rice market. Currently, Guyana is exporting in excess of 125,000 metric tonnes of rice per annum through the OCT and the ACP routes.
Rohee noted that even though these are preferential markets, they still pose a problem to Guyanese exporters. Guyana, he said, continues to press for changes in the quota system and hopes that this could be successful.