7 News Belize

GOB No-Go On Guyanese Rice
posted (December 21, 2015)
It's been 5 days now since 3 containers containing 75 tonnes of Guyanese Rice landed in Independence Village at the Port of Big Creek. The owner of that rice, Importer Jack Charles, is still waiting for the Belize Agricultural Health Authority (BAHA) to explain in writing why they have seized his cargo and refused to release it to him. He was hoping that would have released it by now so that he could start selling you his Grade A Premium rice at 69 cents a pound for the Christmas holidays. But, that is not going to happen. The Government is not budging, and today 2 senior officials, namely the CEO in the Ministry of Agriculture, and the Director General of Foreign Trade, were dispatched on the Morning Talk Shows to explain why GOB is refusing to allow Jack Charles to sell Guyanese Rice in Belize.

We met them after their appearance on the WUB Morning Show, and they discussed why BAHA and the Customs Department will not release the Guyanese rice from the Port of Big Creek. Here's what they had to say:

Jose Alpuche, CEO - Ministry of Agriculture
"The question is not even about Mr. Chawla importing rice, the question is whether what is being produced in Guyana Represent fair competition on the Belize market place. The reality is that rice is Guyana is heavily subsidized and we don't offer subsidies to our large scale commercial producers here. So what would come in from Guyana would represent an unfair trading advantage."

Dr. Leroy Almendarez
"If a product enters a market or if a product that is highly subsidized, subsidy that violates a certain threshold is illegal."

Jose Alpuche, CEO - Ministry of Agriculture
"Haiti had a vibrant rice industry in the 80's. They decided to pursue cheaper rice and now Haiti is a net food importer, not only rice. There is a lot that hinges on maintaining domestic production. We've had cases on this in Jamaica with poultry and there is many cases within the region. We cannot commit those same errors. We have got to ensure that we strike a delicate balance where the consumers are actually protected, but where we can protect production here in Belize."

Daniel Ortiz
"What is the situation right now with the rice that Mr. Chawla has imported, the 3 containers? Do you have any information on that?"

Jose Alpuche, CEO - Ministry of Agriculture
"The last that I heard is exactly what you have. Is that it's still held at the port."

Daniel Ortiz
"Do you know what could happen with that rice? Is it being follow up to be sent back or actioned off or destroyed? What is the sentiment of the government at this time?"

Jose Alpuche, CEO - Ministry of Agriculture
"I've not discussed with BAHA precisely where they are with that issue. But I really don't want to comment on the details of that, because we have already been publicly threaten that the matter will go to court."

Also, on Friday, we showed you how Sergio Garcia, the Importers' technical advisor, who is a former CEO of Trade, explained that this rice fight is bad for Belize's reputation with it's fellow CARICOM countries. Well, while we had the opportunity, we asked the Director General of Foreign Trade, about that accusation. He's been meeting with the CARICOM Trade technocrats very regularly, and he's the government's authority on the Revised Treaty of Chaguaramas. Here's what he had to say:

Dr. Leroy Almendarez
"The treaty, the revised treaty of Chaguaramas protects all member states who have signed on to it. The major objective of this treaty is economic development for all members' states. Not for one, but for all. There are also sensitive industries and sensitive industries are protected under the revised treaty. Belize is LDC, which means Lesser Develop Country. You have MDC, of which Guyana is one. But we must understand here that Belize and Guyana has no dispute. Because I was at COTED recently. As a matter of fact I went twice this year and we sat side by side and Guyana never mentioned, because this is where you mentioned on the agenda, I would like to export or market access for such a product into another member state. There is process that it goes through. The member state must be allowed to respond and you respond and then the discussion takes place or then you solve it bilaterally. We met with the head of Guyana Rice Development Board, we met with the minister of trade and they assured us that it would be a country - a government to government thing."

Sergio Garcia - Technical Advisor, RC Imports
"If the Guyanese to take the same approached like what we are suggesting to protecting our national industry. Let's say that all the countries in CARICOM, oh Belize want to protect, let us do the same thing. What happens? Our products will start to stay here. There is much more corn producers than rice producers in this country. This will put a black eye on our trade and sector because there are many countries who have seen this thing - CARICOM."

Dr. Leroy Almendarez
"It does not give us a black eye nor a bad reputation. Let just give you some examples; Grenada has tried to get honey into Trinidad for the longest time. Grenada's honey is still not into Trinidad, because there are talking about quality and standards etc. We have tried to get our poultry into Trinidad, we have tried to get some of our other products into other markets within CARICOM and they are still not there."

Sergio Garcia- Technical Advisor, RC Imports
"We cannot be like the spoil boy that say I will play football and because the ball belongs to me, if you don't let me play I will take home the ball. We cannot."

Dr. Leroy Almendarez
"It doesn't. Let me just say this again. Because it's handled at COTED (Council of trade and economic development), one of those major organs of the revised treaty. It's headed by ministers of trade. No other country will come to us and say oh but you did not take care of somebody's rice and so therefore we will not.... that's not how it works. Remember, it's more about collaboration. Yes there is an open market place, but we are joined and integrated, so we can compete with blocks outside of the region, not with each other."

Charles' sales pitch s that the local rice farmers have been gouging consumers with their unregulated, high prices for rice. He claims that the Government is trying to protect the profit-addicted producers, when its highest priority should be protecting the public.

Charles and his advisors were the ones who blew the whistle on the fact that about 3 million pounds of rice was brought into Belize in 2014 and sold as local produce. It was bought for the same prices that Charles paid for his containers of Guyanese Rice, and none of that benefit was passed on to you. In fact, the rice was bagged in packages from local producers and consumers were none the wise - we thought we were buying Belizean rice.

So, is this a double standard? That's what we asked the CEO in the Ministry of Agriculture. Here's how he responded:

Jose Alpuche, CEO - Ministry of Agriculture
"In 2013 we when we had tremendous rains going all the way in 2014. You will recall the unprecedented rains that we had. That led to several crop failure including a partial crop failure for rice. Rice had to then be imported. It was agreed that the BMDC would import the rice and the rice would be passed to the traditional millers so that they could retain market share. That is what happened and it was I believe somewhere in the region of about 3 million pounds. I can't remember the exact amount - about 3 million pounds of a rice industry that produces 21 million pounds annually."

Daniel Ortiz
"But sir none of those benefits of that lower price of rice from Guyana was passed on to the local consumer. The question is, do these producers, should they benefit from this protection? Do they deserve this protection when the last time this happened with this Guyanese rice, they didn't passed that on to the local consumer."

Jose Alpuche, CEO - Ministry of Agriculture
"There is no commercial or governmental system in place to compensate farmers for losses. And as you can see with the erratic weather and climate change with us, we are suffering quite a bit of losses."

Reporter
"Do you believe that the producers should have labeled that rice as Guyanese rice in terms of the packaging?"

Jose Alpuche, CEO - Ministry of Agriculture
"That I agree with yes."

Daniel Ortiz
"Isn't that an instance where the consumer was taken advantage of?"

Jose Alpuche, CEO - Ministry of Agriculture
"Those are your words. But I do agree that it should have been labeled differently."

Daniel Ortiz
"Can someone on the outside observing this situation take the position that it was wrong to allow the local producers to import Guyanese rice and sell it at their price, but now you are blocking an importer from doing the same thing. Isn't that an example of unfair treatment?"

Jose Alpuche, CEO - Ministry of Agriculture
"There was a short fall because of a natural disaster. We had to import rice. We could have imported rice from the US. We could have gone to COTED and ask for derogation to import the rice duty free from the US, because we had a natural disaster and they would understand."

Daniel Ortiz
"Sir, but you just also made the point or Mr. Almendarez also made the point that you all suspect that these are highly subsidized products. So if it was highly subsidized, then it's highly subsidized now and therefore its illegal in the trade aspect of it."

Jose Alpuche, CEO - Ministry of Agriculture
"In the case of needing to import for shortfall, we have to try to obtain the rice from somewhere."

This afternoon, when we contacted Jack Charles for comment, he told us that he is holding off on filing a lawsuit in court. He says that he is still hopeful that cooler heads will prevail, and that he will be given the Government green light to move forward with his plans. He says that he is also trying to give BAHA more time to provide him with written reasons as to why they have detained his cargo.

He says he would rather give consumers the benefit of the savings, rather than spend thousands of taxpayers dollars on litigation and lawyer fees.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize