The Jamaica Observer editorial on the EPA is focusing on personality and not on the issues

Dear Editor,

I refer to the Jamaica Observer’s editorial of July 9, 2008, which was promptly published in the Stabroek News of July 10, 2008.

The editorial tries to explain President Bharrat Jagdeo’s position on the Economic Partnership Agreement (EPA) through an irrelevant “inferiority complex” framework. Using this shoddy line is a deliberate intention not to focus on issues, but solely on personality.

The Jamaica Observer, through this editorial, presents itself as a symbol of enlightenment thinking. Should that be the case, then how did Air Jamaica Express, a subsidiary of Air Jamaica, fall into bankruptcy, given that the Jamaica Observer Chairman had controlling interests in Air Jamaica Express. And so where was the enlightenment thinking then to save Air Jamaica Express?

The editorial implies that persons who are opposed to the EPA are mendicants or in simple language, beggars. Are the more than 500 academics opposed to the EPA mendicants? And then the Jamaica Observer should explain the impact analysis findings of the United Nations Economic Commission for Africa (UNECA) that examined the impact of trade liberalization features of the EPA in Africa.

UNECA’s findings showed that full reciprocity will be expensive for Africa, in relation to revenue losses and adjustment costs linked to de-industrialization and the adverse impact on regional integration. And so, clearly, these findings suggest that EPAs should give priority to the development dimension. However, the development dimension within the EPA is on the missing list for both the Caribbean and Africa.

And the Jamaica Observer implies that Cariforum should not wait with the African countries to ink the EPA because the African countries have different interests and are Least Developed Countries (LDCs). The Jamaica Observer seems to have forgotten that the African, Caribbean and Pacific (ACP) countries met regularly for many years as one trading bloc in their engagement with the European Union on sugar protocols; countries with different interests and different levels of development constitute the ACP. In this sense, the Jamaica Observer’s argument is misleading and is an attempt to cast aspersions on the least developed societies of Africa.

However, it is true that the Everything but Arms (EBA) pact provides duty-free access of products from 49 LDCs without restrictions, not including arms and ammunition. And so some countries in Africa, excepting the Caribbean, already are cushioned from the European Union’s $450 million market through the EBA.

But is this a sufficiently strong reason not to wait with Africa before inking the EPA? Africa, like parts of Cariforum, is concerned about the limited development dimension within the EPA. And, indeed, there is the question of economic sovereignty, meaning that if the EPA is inked now, then the Caribbean Single Market and Economy (CSME) may become a mere relic.

Norman Girvan believes that the EU will control the EPA, and so noted, “It seems to me that Caricom will have no chance but to adapt its own regimes to the requirements and compliances of the EPA. In fact, why go through all the trouble and expense of having CSME . . . [because] the policies, laws and practices would have been changed to suit the EPA. What really will be left of the CSME? We would have surrendered our autonomy and policy-making in these areas to the requirements of the EPA compliance and with it much of our ability to pursue a development path.”

And Jean-Denis Crola of France’s Oxfam, in addressing the EPA in Africa, said that in the Ministry of Foreign Affairs of France, “Some officials have become more critical of the proposed agreements as they realise they are about to ‘lose Africa.’” Crola noted, too, that this same ministry was advocating for the inclusion of food security in the EPA.

The President’s position on the EPA is beyond the boundaries of personality characteristics; the President’s position has to do with the long-term sustainability of the quality of life in the Caribbean.

It should be noted that Caribbean economies are not highly protected any more; and, indeed, something like a force field analysis may show that these economies have lost out with sugar, vis-à-vis the Economic Partnership Agreement (EPA) with the European Union (EU). How so? Let’s review the EPA through the Girvan-Brewster-Lewis Memorandum that presents 19 criticisms making the case for renegotiation as follows:

• the development component in the EPA is subordinate to trade liberalisation;

• the advanced partner, the EC, would have greater access to the resource transfer opportunities thrown up by trade liberalisation;

• tariff elimination on 82.7% of EC imports; many value-added goods from Cariforum will be excluded;

• nothing about aid mentioned in the EPA to enhance Cariforum’s supply capabilities; development
cooperation within the EPA is not calculated and time-bound;

• Caribbean labour desiring to provide services in the EU would face too many conditionalities attached to 29 service sectors and 11 professional services within the EC;

• entertainers can make their way to the EC, but they first need to be registered in the Caribbean, and the local registration systems will be subject to EC approval;

• the EC has made no provision for visa, immigration, residency requirements, and work permits for Caribbean service providers;

• 75% of the service sectors are available to EC service providers for MDCs, and 65% for LDCs, placing locally-owned firms at a disadvantage, due to the greater capacity of EC firms; EC pushing for WTO-plus commitments on services, intellectual property, competition, public procurement, investment, and e-commerce, but WTO rules only require the EPA to be WTO-compatible, not WTO-plus;

• WTO-plus commitments to EC would anticipate and prohibit Caribbean governments’ policies, placing Caricom’s priorities in the background;

• ‘national treatment’ requirements within the EPA may work against developing the capacity of local firms;
• the essence of the EPA is integration with the EC, and since the Caribbean Single Market and Economy (CSME) is not a substitute for integration with the global economy, then CSME could become marginalized;
• institutionalization of EPA would demand a lot more of Caricorum’s scarce funds and scarce technical manpower; parties to the EPA are the EC and 15 Cariforum states, but Caricom is not a party to the agreement; additional problematic provisions prevail;

• the EPA provisions may emerge as a standard to the forthcoming Caricom trade negotiations with the US and Canada; and Cariforum should have negotiated an EPA that is WTO-compatible and not an EPA that is WTO-plus.

The Girvan-Brewster-Lewis Memorandum expresses sufficient concerns about the evolving EPA to warrant a second-look at a document that has the potential to devastate CSME and eventually disintegrate the Caricom integration movement. It’s hard not to reach this conclusion, given the EPA’s incorporation of ‘national treatment’ requirements, WTO-plus considerations, implied low priority accorded local firms, unreasonable conditions to enter the EU, among others. And so it’s appropriate, prior to any inking, to advocate national consultations, and perhaps, institute a Caribbean-wide consultation on this EPA issue.

Yours faithfully,
Prem Misir
Pro-Chancellor
University of Guyana

I just pulled "Little concern for CSME & Caribbean integration", from Stabroek News' Letters of July 12, 2008.

Perhaps Jagdeo apologist extraordinaire, Prem Misir, thinks he appears clever by citing all these people. But he would be better off telling us what is the President's policy framework that require Guyana to hold off. Where is the industrial policy trail Mr Misir? How does this square with the US$200 mill investment in a sugar factory in the year 2008? But he is best placed to tell us what role UG will play in the President's competitiveness strategy. How are those labs Mr Misir? What's up with the physics program? What's the status of research at UG Mr Misir?

quote:

Originally posted by TK:
Perhaps Jagdeo apologist extraordinaire, Prem Misir, thinks he appears clever by citing all these people. But he would be better off telling us what is the President's policy framework that require Guyana to hold off. Where is the industrial policy trail Mr Misir? How does this square with the US$200 mill investment in a sugar factory in the year 2008? But he is best placed to tell us what role UG will play in the President's competitiveness strategy. How are those labs Mr Misir? What's up with the physics program? What's the status of research at UG Mr Misir?

You are on a need to know basis!!!

That same man could become the next president..

Who cares?

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Originally posted by TK:
Who cares?

Your response tells me that you do!!!

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Originally posted by Ramakant_p:

quote:

Originally posted by TK:
Who cares?

Your response tells me that you do!!!

Why don't you go to Guyana and declare yourself to be in the running for the presidential nominee of the PPP?

CARIFORUM will lose out with the EPA


Dear Editor:

The Government of Guyana’s position on the Economic Partnership Agreement (EPA) should not be taken lightly. Guyana’s position calls for national consultations on the EPA before signing. This decision has generated much heat, such as, personal attacks on the President accusing him of having inferiority complex, and so on.
The EPA, which will replace the Cotonou Agreement, will bring into fruition a removal of tariff elimination on 82.7% of EC imports to CARIFORUM countries. And the EPA is using WT O-plus rules rather the required WTO-compatible rules.
The inevitable signing of the EPA has the potential of having devastating effects on the economies of the Caribbean, culminating in a humanitarian disaster.
The President’s position is on the ball in deferring to sign the EPA prior to national consultations. Norman Girvan, Havelock Brewster, and Vaughn Lewis outlined their dissatisfaction with the EPA. One specific criticism was that there is no development component in the EPA. Girvan, Brewster, and Lewis pointed out that the EC would have greater access to the resource transfer opportunities induced by trade liberalization. With these problems within the EPA, we have no choice but to support the forthcoming national consultations on the EPA.

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no development component in the EPA

Ok...so where is the President's development component? Where is the "development component" in the sugar factory of the year 2008?

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Originally posted by Ramakant_p:

quote:

Originally posted by TK:
Perhaps Jagdeo apologist extraordinaire, Prem Misir, thinks he appears clever by citing all these people. But he would be better off telling us what is the President's policy framework that require Guyana to hold off. Where is the industrial policy trail Mr Misir? How does this square with the US$200 mill investment in a sugar factory in the year 2008? But he is best placed to tell us what role UG will play in the President's competitiveness strategy. How are those labs Mr Misir? What's up with the physics program? What's the status of research at UG Mr Misir?

You are on a need to know basis!!!

That same man could become the next president..

So the 750k people living in GY and the thousands of others who will have to support them if the economy implodes dont need to know facts that will directly impact their lives?

quote:

Originally posted by adanna:
CARIFORUM will lose out with the EPA

no development component in the EPA. .

Maybe the EU, caught up with their own developmnental problems with new members, have decided that ex colonies which are now sovereign nations need to stand up on their own two feet, except for the 50 poorest nations.

More disturbing might be demands that EU products receive preferential treatment to that accorded to imports from elsewhere including North America and Caricom itself.

However one can expect the EU to demand that any EPA will have to be compatible with the WTO.

The soon to be active Skeldon Modernization Sugar facility will certainly be a great asset to Guyana’s economy. Guyana will have a monopoly in the Caribbean in its production of sugar. Other than Trinidad which produces only 50 tones of sugar and the demand in the Caribbean exceeding 120 tones, Guyana will be look upon to be the leading sugar supplier. Also, the bagasse will be use to produce energy. The West Berbice community will gain this energy supply and the excess remain will go into the national grid.

Norman Girvan, Havelock Brewster, and Vaughn Lewis, three leading academics, in a report on the EPA stated that renegotiation is a must as, once the EPA is in force, it would be hard to amend.

CARIFORUM should have negotiated an EPA that is WTO-compatible and not is WTO-plus.

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Adanna: The soon to be active Skeldon Modernization Sugar facility will certainly be a great asset to Guyana’s economy. Guyana will have a monopoly in the Caribbean in its production of sugar.

You are listening to OP economist, eh? So Guysuco will sell only to Caricom? Does Caricom set world prices? Will the CET be levied on imported sugar into Caricom?

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Adana: Norman Girvan, Havelock Brewster, and Vaughn Lewis, three leading academics, in a report on the EPA stated that renegotiation is a must as, once the EPA is in force, it would be hard to amend.

I do not have a problem with renegotiation. But I keep saying the President must say why? Why renegotiate?

quote:

Originally posted by adanna:
The soon to be active Skeldon Modernization Sugar facility will certainly be a great asset to Guyana’s economy. Guyana will have a monopoly in the Caribbean in its production of sugar. Other than Trinidad which produces only 50 tones of sugar and the demand in the Caribbean exceeding 120 tones, Guyana will be look upon to be the leading sugar supplier. Also, the bagasse will be use to produce energy. The West Berbice community will gain this energy supply and the excess remain will go into the national grid.

1. Does Caricom, excluding Jamaica and Belize which wil continue to produce sugar, need 400k tons per year?

2. Will they buy from us above world prices?

3. What happens if world price drop below our costs of production, which is usually the case?

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CaribJ: 3. What happens if world price drop below our costs of production, which is usually the case?

World price is currently below projected cost of production.

quote:

Originally posted by adanna:
Norman Girvan, Havelock Brewster, and Vaughn Lewis, three leading academics, in a report on the EPA stated that renegotiation is a must as, once the EPA is in force, it would be hard to amend.

CARIFORUM should have negotiated an EPA that is WTO-compatible and not is WTO-plus.

The EU will focus its foreign assistance programs within the EU itself, to potential EU members, and to the world's poorest nations. Cariforum doesnt qualify and we cant force them if they dont want to. The writing has been on the wall for 30 years and we didnt take it seriously.

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Originally posted by TK:

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CaribJ: 3. What happens if world price drop below our costs of production, which is usually the case?

World price is currently below projected cost of production.

So Guyana will have to subsidize Caricom because they certainly will not pay more than world prices.

Or it will have a white elephant.

Personally jagdeo needs to stop screamingabout "Caricom hid facts from him". Given that GY had the most to lose I am confused as to why he left it in the hands of others who have their own agendas. Especially Jamaica under the JLP, a party which has never had any consideration for the rest of Caricom.

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CaribJ: Personally jagdeo needs to stop screamingabout "Caricom hid facts from him". Given that GY had the most to lose I am confused as to why he left it in the hands of others who have their own agendas. Especially Jamaica under the JLP, a party which has never had any consideration for the rest of Caricom.

That's the problem. They never had a clearly defined strategy. They were muddling through. They never said to Caricom that Guyana will need a different path than tourism and service driven Barbados or Bahamas. That's why I keep saying WHY.

And the desire to renegotiate does not square with the amount of money they pumped into the sugar factory!

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CaribJ: So Guyana will have to subsidize Caricom because they certainly will not pay more than world prices.

Or it will have a white elephant.

That will require a whole lot of political lobbying on the part of the government! Let's see what will happen.

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Originally posted by TK:

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CaribJ: So Guyana will have to subsidize Caricom because they certainly will not pay more than world prices.

Or it will have a white elephant.

That will require a whole lot of political lobbying on the part of the government! Let's see what will happen.

Better believe that there is no way that islanders already paying a lot for rice will pay more than they need to for sugar. The Trini manufacturers have already declared they have no intention in paying more for Guyanese rice than that obtainable from pother sources because they have to control their production costs.

The DR has already indicated an interest in supplying caricom with cheap food and scoffs at Guyana's ability to do the job. Brazil is also looking at these markets.

quote:

Originally posted by TK:


And the desire to renegotiate does not square with the amount of money they pumped into the sugar factory!

When you see who Jagdeo has being responsible for foreign relations and trade why are we surprised that they slept while driving and are now struggling to get out of the ditch.