GUYANA and the European Union (EU) relations have historically been characterised by trade, economic co-operation and shared values. Indeed, the EU has been, over the years, a major player in the country’s socio-economic and political development. Under the then Lome Convention signed between the EU and the ACP countries, Guyana benefitted substantially from preferential prices for its sugar exports to the European Union but the country’s economy and the sugar industry in particular was put under severe stress following the termination of the agreement in 2000. A new agreement, the Cotonou Agreement subsequently came into being which, among other things, provided for budgetary support for participating countries.

President Mohamed Irfaan Ali recently announced that Guyana will receive GY$1.77 billion from the EU as part of its Budget Support Programme. That sum, according to the President, represents the last tranche of Guyana’s Budget Support programme with the EU and is indicative of the decades-old EU-Guyana partnership.

The EU has, over the decades, been one of the largest providers of grant resources towards the development agenda of Guyana in several sectors such as climate adaptation and infrastructure, with a significant sum going to sea defenses and the housing sector. According to President Ali, this support culminated in the funding of the country’s multi-annual sugar programme that followed the end of the country’s sugar protocol with the European Union which saw the loss of the preferential market for sugar. Thereafter, a multiannual arrangement was reached whereby the EU supported the country’s developmental agenda through budgetary support.

EU’s Ambassador to Guyana, Fernando Ponz Canto, described the assistance to Guyana “as proof of the EU’s trust in Guyana’s financial management practice and realisation of works”. He lauded the Guyana Government for its sea defence maintenance works and the planting of new mangrove sites. Making remarks at a joint press conference between President Ali and the EU representatives which included Deputy Managing Director for the Americas, Mr. Javier Nino Perez, the President took the opportunity to highlight the strong support and partnership that has been forged in the rebuilding of the country’s fragile sea and river defenses. The Guyana Shore Zone Management Programme targeted the reconstruction of several kilometers of damaged sea defences along the coast line to protect low-lying areas that are prone to flooding during high tide.

Mr. Perez, in his remarks, said that the EU wants to be partners and ‘political friends’ with Guyana since both countries face similar challenges and have faith in the same principles and objectives. According to Mr. Perez, ‘there is a lot we have in common historically, linguistically and socially but the most important element of what we share is the belief in many fundamental elements that will be essential to confront the challenges of today’s world.’

Not so long ago, President Ali during an address to the EU-Guyana virtual Investment Conference lauded the contributions of the EU to Guyana’s development. The EU, he said, has been a bastion for promoting human rights and democracy. Guyana’s relation with the EU and its member states are based on respect for human rights and democratic norms. Democracy, he said, remains indispensable to ensuring a favourable environment for attracting investment, stimulating trade and fostering development.

Guyana is grateful for the EU’s support for private sector development in Guyana and for its role in supporting climate adaptation and mitigation. Through the European Development Fund (EDF) and its support for Guyana’s National Indicative Programme, the EU has made significant contributions to the country’s efforts to reduce poverty and build greater climate resilience.

The European Union and the ACP are about to embark on a renewed partnership for the next 20 years. Guyana, according to President Ali, looks forward to an agreement which will continue to place emphasis on the traditional pivots — trade, development co-operation and shared values and increased investment opportunities.

Guyana is at a stage in its development in which investment prospects have never been better. The country is now in the cusp of exciting transformation which will see, in the coming period ahead, unprecedented levels of growth and development. The country’s Gross Domestic Product (GDP) is likely to be more than doubled and traditional sectors will be retooled, recapitalised and restructured. Several mega-projects are on stream encompassing a broad spectrum of developmental areas including agriculture, ICT, energy, tourism and transport. These projects will open up new and exciting opportunities for investors and for the Guyanese people as a whole.

At the political level, the Guyana-EU political dialogue in the framework of Article Eight of the ACP-EU Cotonou Partnership has commenced. The objective of the Political Dialogue is to exchange information, foster mutual understanding and facilitate the establishment of agreed priorities and shared agenda in particular by recognising the existing links between the different aspects of relations that already existed among the parties, including political, economic, trade and development issues.

Relation between Guyana and the European Union is on a good footing and, in the words of President Ali, can only grow and become stronger.