New EU pesticide proposal threatens over US$70M in Guyana’s agri-food exports

Guyana’s rice exports to the European Union (EU) could be affected if the bloc goes ahead with proposed changes to its pesticide residue rules, with an estimated US$72 million in trade value at risk, according to a new assessment.

The assessment, prepared by Bryant Christie Inc for the Inter-American Institute for Cooperation on Agriculture (IICA), estimates that about US$75 million in Guyana’s annual trade with the EU could be exposed to the proposed changes. The figures are based on average EU imports between 2022 and 2024, with approximately US$72 million classified as value at risk. Guyana was placed in the assessment’s “critical” EU dependency tier, with 42.7 per cent of its assessed agri-food exports by value going to the European market during the period.

However, the report cautioned that this figure may be less reliable because of inconsistencies in trade reporting by Caribbean trading partners.

Rice accounts for the bulk of Guyana’s exports covered by the assessment, representing about 95 per cent of the country’s top 20 commodity categories exported to the EU. The average trade value for rice was estimated at US$72.05 million, while palm hearts accounted for US$2.85 million, or roughly three per cent.

The report identified rice as Guyana’s main area of exposure to the proposed changes, warning that trade in the commodity with the EU could be strongly affected if the new rules are adopted.

The proposed changes form part of the EU’s Food and Feed Safety Simplification Package, known as Omnibus X. Under the proposal, maximum residue levels (MRLs) for pesticide substances that meet the bloc’s hazard-based criteria would be reduced to the limit of quantification. The changes would also remove import tolerances based on pesticide uses in third countries or Codex standards and extend the criteria to environmental hazards.

MRLs establish the maximum amount of pesticide residue permitted in food and feed. The report noted that the proposed changes would mark a shift from the risk-based approach traditionally used by the EU, under which residue levels are assessed against potential exposure and risks to consumers.

Under the proposed approach, residue limits could be lowered even where the levels present do not pose a direct health concern, the assessment explained.

Guyana has its own system for setting pesticide residue limits under the Pesticides and Toxic Chemicals Control Act 2000 and its 2004 Regulations. The framework is administered by the Pesticide and Toxic Chemicals Control Board, which also serves as the country’s National Codex Contact Point.

However, the assessment said it was unable to obtain sufficient information on pesticide registrations and usage specific to Guyana. As a result, Codex maximum residue limits were used as a proxy to assess the possible impact on the country’s exports.

Of the 63 active substances examined in the relevant part of the assessment, 45 have at least one established Codex MRL. Given rice’s dominant share of Guyana’s exports to the EU, the review focused on pesticide residue limits for that commodity.

The report also noted that the Ministry of Agriculture advises rice farmers to comply with EU MRLs. It identified nine active substances for which the EU has established residue limits for rice above the default level or limit of quantification. Those limits could be removed if the proposed policy is implemented.

The substances are alpha-cypermethrin, beta-cypermethrin, cyproconazole, difenoconazole, fenoxaprop-P-ethyl, flubendiamide, glufosinate-ammonium, malathion and tebuconazole. They include insecticides, fungicides and herbicides.

Other Guyanese export categories were also assessed for their dependence on the EU market. Sesame seeds, coriander seeds and cumin seeds were classified as critically dependent on the market, although their trade values were considerably smaller than that of rice. Sugar, coffee, vegetables, tea and other commodities fell into lower dependency categories.

The wider assessment examined 151 active substances, of which 63 still have at least one EU MRL above the default level or limit of quantification. Further reductions could affect trade between countries in the Americas and the EU, while restrictions on future applications for import tolerances could create additional barriers to market access.

The report cautioned that its findings should be treated carefully because of gaps in trade and pesticide-use data. In Guyana’s case, inconsistencies in reporting by trading partners could overstate the country’s apparent dependence on the EU market.
It also stressed that the assessment does not establish whether the pesticides identified are actually used on the crops concerned.
Despite these limitations, the findings identify rice exports and continued access to the European market as the main areas of concern for Guyana as the proposed pesticide residue rules move through the EU’s decision-making process.