THE EU Ambassador Jernej Videti? at a press conference on Thursday last advised that there is no more funds available from the Sugar Protocol Guyana once enjoyed and that “this is it” after September 2017. Such news, though not surprising for watchers of global trade and preferential treatment, would have nonetheless caught some offguard and to others would have come as a blow. The ruling by the World Trade Organisation that preferential treatment, as Guyana received under the European Union (EU) sugar deal, violates free-trade rules, with time granted to phase out such condition, was bound to impact the country’s ability to continue to enjoy such treatment.

Guyana’s sugar would now have to compete in an open market. And in light of the aforesaid, it is reasonable for society to ask why did previous PPP/C governments, who would have been aware since 2006, fail to prepare for what could be a very heavy landing for sugar workers, their communities, and ultimately the society, if not properly managed. Leader of the Opposition, Bharrat Jagdeo, at a rally held at Enmore on 14th June 2016, said that sugar can be saved.

During 2006 to 2017, the EU provided a total of GYD$348.5 billion in budgetary support to compensate for the 36 percent cut in the preferential market price. In 2013 Komal Chand, President of the Guyana Agricultural and General Workers Union, who represents most of the sugar workers, said he would like to see the money given by EU being spent to make the industry competitive. Aside from the money-bleeding ineffective U.S. $200M put into the Skeldon Factory, there was no worthwhile investment in the industry.

In 2003, the La Bonne Intention Estate was closed. In 2011, Diamond Estate was closed and then President Jagdeo said this was part of restructuring of the Guyana Sugar Corporation (GuySuCo). Some of the best- yielding sugar lands were sold to investors to construct housing projects and there is nothing to show as benefit to the industry and for the sugar workers. These acts could further raise the spectre of concern that in spite of a known timetable, the PPP/C government opted to do nothing, somehow hoping GuySuCo could have ridden it out or plainly didn’t know what to do.

Where in our society sugar and politics are deeply intertwined and at times such relationship has had conflicting impact on the national body politic, in the presence of this reality it requires careful handling not to ignite a potentially flammable situation.  Where in this environment at times the truth is not told or partially told, very often it affects those whose livelihoods are directly impacted. How as a country we got to this stage where GuySuCo in spite of preferential treatment continues to face a dire future will be subject to debates and counter debates, finger pointing, accusations, and denials for years to come.

Suffice to say a future lay before the country and the decisions made can have deleterious impact, cushion the inevitable blow, or create new vistas for development. The harsh fact is GuySuCo is presently selling sugar at an estimated 12.66 U.S. cents per pound and producing at 30 U.S. cents. This figure is not only bad from a business perspective, but where the corporation remains reliant on its basic sustenance from the Consolidated Fund, not only exemplifies bad management, but would raise concerns as to what the future may have in store.

The APNU+AFC Government has made several commitments of its intent to save sugar. This includes a restructuring programme that would see some estates being closed. It is further advised that Government is also looking at the possibility of securing foreign investment in building a sugar refinery or takeover of the corporation. In the global market refined sugar is in demand. Should this be made possible, Guyana would be in position to compete in this market.

At a psychosocial level, the angst and uncertainty facing sugar workers and their families would be hard to ignore. GuySuCo and government may be doing what they think are their part to inspire hope and confidence in the future for sugar. The sugar unions too having being burnt in the past by the PPP/C government, come across as suspecting of government and unsure about the future of the industry and workers. The PPP/C has found a voice to tell these workers that the Government does not care. These competing interests would make it difficult to find common ground, talking past each other rather than talking with each other. The market for diversifying the industry and adding value to raw sugar may suggest that all is not lost for GuySuCo.