The European Union (EU) has signed a financial agreement with the Guyana government to provide an additional 18.8 million Euros (Gy$5.62 billion) this year to boost development of the local sugar industry.
This forms part of the framework of the “Accompanying Measures” to changes in the EU trade regime with sugar protocol countries. As a result of the trade reform, which took effect in 2007, Guyana’s sugar is facing a 36 per cent cut in price on the European market.
Head of the European Delegation in Georgetown, Ambassador Geert Heikens
The EU office in Guyana announced the signing on Tuesday, May 17. It stated that the head of the European Delegation in Georgetown, Ambassador Geert Heikens, has emphasised the importance of the sugar sector in the economy of Guyana, and the vital role the EU support plays in enabling the sugar industry to become more competitive.
This latest grant to Guyana is part of the EU-funded “Multi-annual Sugar Programme 2007/2010,” which supports the Guyana government in its efforts to improve the competitiveness and viability of the local sugar sector. The EU support also seeks to promote agricultural diversification, and would help increase sugar production and expand market shares. Additionally, the grant would aid diversification in the industry, and add value to the final product.
Moreover, it aims to improve efficiency and profitability of sugarcane and sugar production, encourage private cane farming, upgrade factories, and provide skills training in phytosanitary and market standards for agricultural students.
The assistance, according to the Guyana EU office, would be provided through a direct budget support mechanism, and the disbursements would be triggered by the achievement of performance indicators monitoring the implementation of the sector policy on sugar, as well as progress in the export of agricultural produce. Funds would also be channelled towards studies, evaluations and audits to ensure effective implementation.
A further 74.7 million Euros (Gy$22.35 billion) would be made available to Guyana for the sugar industry for the period 2011-2013. In total, the EU has made available to Guyana 94 million Euros (Gy$28.11 billion) under the 2007-2010 programme.
Earlier in the year, it was revealed that Guyana lost six million Euros (Gy$1.79 billion) in budgetary support, during 2007/2008, which the EU said was due to late submission of the sugar action plan and expenditure framework for the period 2009-2011.
Under the agreement with the EU, Guyana is required to meet certain criteria to which it had agreed in order to receive the grants. The recently-commissioned Enmore packaging plant was built with some of the funds the Guyana government received from the EU under the “Accompanying Measures” framework.
