‘Banana republics’ hope Brexit will end trouble in paradise

By Amandla Thomas-Johnson

Travelling inland from Kingstown, the seaside capital of St Vincent and the Grenadines (SVG), suburbs quickly give way to the lush banana plantations that make up much of the interiors of the Windward Islands.

The prized fruit in plentiful bunches on the trees here has long been the major export of a number of Caribbean and Latin American microstates, leading them to be dubbed “banana republics”.{{more}}

Visitors might struggle to imagine life on a tropical island to be anything but bliss, but for the many SVG citizens who rely on bananas for their livelihoods, life has been hard lately.

In 2012, a World Trade Organization ruling, tabled by the US, made it preferable for EU countries to purchase Latin American bananas.

Fast-forward to Brexit, and the announcement of the UK’s decision to leave the EU was met with cheers on SVG.

Brexit bonus

Along with the inhabitants of other microstates, many here have expressed hope that the departure of Britain from the European trading bloc could revitalise their economy.

Direct trade with Britain could see these island nations re-establish a bilateral relationsip with what was, for many, their biggest customer. Thanks to Britain’s Leave vote, SVG could break Latin America’s monopoly over the bananas in our supermarkets.

“There may well be some positive outcomes for Brexit because the UK will place more emphasis on its trading relationship with St Vincent and the Grenadines and other Commonwealth countries rather than on the EU,” says Maurice Edwards, SVG’s director-general of Finance and Economic Planning.

He adds that he has yet to receive any indication from the British Government when negotiations will begin, but that “a lot of negotiations will have to take place”.

Unable to compete

These talks couldn’t have come at a better time. SVG and its neighbouring Windward Islands were once seen as the archetypal banana republics for their over-reliance on the crop. But the gradual re-orientation of the EU toward Latin America and a series of natural disasters and poor harvests have left the islands unable to compete globally. SVG hasn’t exported a single banana to the UK for three years.

The island nation, whose population numbers just over 100,000, instead invested more in tourism. The secluded bays and white sand beaches of the smaller Grenadines have long been a favourite with royals, celebrities and “yacht” tourists. Revenue surpassed that of banana imports in the early 1990s and continued to grow. However, the sector was badly hit by the economic downturn in 2008, and has yet to recover.

Hopes are high that a bilateral trade deal with the UK could help improve the country’s fortunes. “I’m not sure that we will be a priority in any forthcoming trade talks post-Brexit,” admits Renwick Rose, a director of Winfresh, a co-operative of 4,000 banana growers in the Windward Islands.

Special arrangements

“But because St Vincent and the Grenadines is small, there are opportunities for Britain to make special arrangements to facilitate small farmers and environmentally-friendly production.”

Mr Rose, who has negotiated fair-trade deals with UK retailers on behalf of the region, said that bananas imported under these agreements would be attractive to British consumers, often willing to pay more for ethically-grown produce, giving the Windward Islands a competitive advantage.

“Unlike the large corporations in Latin America, we don’t use pesticides and are eco-friendly, while our farms are often small family-run businesses. Women also play an important part,” he said.

Despite the broadly warm welcome for Brexit, there are concerns among former Commonwealth countries in the region over future trade with other EU countries.

For the most part, Britain brokered deals with the bloc on behalf of their former colonies.

Threatened uncertainty

Jeffrey Trotman, spokesman for the Caribbean Farmers Network, which represents 500,000 farmers, says that “there is a feeling among countries in the region that Britain looked after them. Now that Britain is no longer part of the EU, how will our farmers fare?”

Caribbean leaders have also expressed concern. Guyana’s Foreign Affairs Minister said after the Brexit vote that it “threatened uncertainty” between the Caribbean and European partners.

Ralph Gonsalves, the SVG Prime Minister, called on Caribbean countries to stop what he described as the post-Brexit “hysteria”.

But for now, with trade negotiations with Britain on the horizon, it seems trouble in paradise has been averted.

(The Essential Daily Briefing)