Category Archives: General

Guatemala Confronts the threat of Patented GM Crops – Uganda beware


Located in Central America, Guatemala is a country half the size of Uganda. It is known for its abundance of biologically significant and unique ecosystems that contribute to mesoamerica’s designation as a biodiversity hotspot.

This country draws many similarities with Uganda. It underwent many years of civil war during which it lost most of its productive population leading to the displacement and death of many peasant farmers as a result and the departure of the educated few in search of greener pastures.

It has the highest population growth rate in Latin America, an honour Uganda is vying for in Africa too. Like Uganda, it has one of the youngest populations in Latin America and is still dogged by a high birth rate. Economically, both countries have a significant Agricultural industry.

During the last decade, Guatemala begun flirting with Genetically Modified Crops with the USA playing an active role in pushing for their introduction. The United States Department of Agriculture (USDA) with the support of the local Agribusiness sector was able to lobby against Guatemala’s restricitive biosafety rules as far back as 2005 with transgenic agriculture advocates strategising to ensure that subsequent government administrations are GM friendly.

Companies like Monsanto known as ‘breeders’ after carrying out modifications on naturally existing crops are turning around to patent those crops and expecting any one that grows them to pay royalties. Imagine a rural farmer having to contend with purchasing seed each season, paying a royalty fee and not being allowed to re-plant from the previous stock. Essentially, the future of the Agriculture sector is being sold to corporates who want to control what you grow and how you grow it. These companies are driven by profit and care less about the potential environmental side effects of their grand plans. Argentina a country that took on mass adoption of GM Crops is already paying the price with numerous rural dwellers abandoning the countrysides due to a myriad of problems that have evolved as a result of this drive.

On 10 June 2014, the Congress of Guatemala approved the “Law for the Protection of New Plant Varieties” that among others stipulated punishments of upto 4 years imprisonment and fines in the range of US$ 1300 for any infringer. One could argue that only those who choose to plant GM Crops will suffer the brunt. This isn’t the case. When natural crop varieties are grown within the environs of GM crops, there is cross breeding that takes place thereby modifying the natural varieties. The farmer whose natural variety has been contaminated will now be liable to pay GM companies like Monsanto if they want to continue replanting their contaminated crop. Monsanto is on record in this regard in the case of Monsanto Canada Inc Vs Schmeiser. By virtue of being patent holders, these companies will determine what you can or can’t do with ‘their’ seeds and like software, they basically rent you their seeds.

The Public Citizen in one of its reports noted that Plant Variety Protection using Intellectual Property Rights is likely to achieve the following;

  • Increased harm to small scale farmers in developing nations. Worldwide at least 1.5 billion individuals depend on small scale farming for their livelihoods of which most are in developing countries. Saving, selling and exchanging seed is essential to the viability of their farming practices. Any system designed to stop this will create a catastrophy in future.

  • More harm to genetic diversity and other implications to Developing countries. Plant Variety Protection discourages breeding minor crops that don’t have a wide enough market. This is likely to have a significant knock on the bio-diversity currently being enjoyed. Traditional diverse agro-ecosystems containing a wide range of traditional crop varieties are likely to be replaced with monocultures of single agro-chemical dependent varieties.

  • The current domination of the GM Crop breeding by rich multinationals in developed countries is likely to skew development for farms in rich economies thereby ignoring crops like sorghum, millet, cassava among others. The spin off effect of this is a threat on food security especially in nations where there is heavy dependence on small scale farming like Uganda.

Following the passing of the “Law for the Protection of New Plant Varieties” in Guatemala, there was a lot of uproar in the country and protests followed. Subsequently, the same Congress that passed the law repealed it on the 4th of September 2014 to the joy of many, following a Constitutional Court ruling.

How did Guatemala get here? In 2005 Guatemala signed the CAFTA-DR Free Trade Agreement between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic and the USA. In this agreement, under Chapter 15 on Intellectual Property Rights, 15.1, 5(a) states; “Each Party shall ratify or accede to the International Convention for the Protection of New Varieties of Plants (1991) (UPOV Convention 1991). Nicaragua shall do so by January 1, 2010. Costa Rica shall do so by June 1, 2007. All other Parties shall do so by January 1, 2006.

Further clarity is provided on UPOV in the footer “The Parties recognize that the UPOV Convention 1991 contains exceptions to the breeder’s right, including for acts done privately and for non-commercial purposes, such as private and non-commercial acts of farmers. Further, the Parties recognize that the UPOV Convention 1991 provides for restrictions to the exercise of a breeder’s right for reasons of public interest, provided that the Parties take all measures necessary to ensure that the breeder receives equitable remuneration. The Parties also understand that each Party may avail itself of these exceptions and restrictions. Finally, the Parties understand that there is no conflict between the UPOV Convention 1991 and a Party’s ability to protect and conserve its genetic resources.”

On patents, the same agreement further states in 15.9, 2; “Notwithstanding the foregoing, any Party that does not provide patent protection for plants by the date of entry into force of this Agreement shall undertake all reasonable efforts to make such patent protection available. Any Party that provides patent protection for plants or animals on or after the date of entry into force of this Agreement shall maintain such protection.” This is the noose around the neck that could have led the Congress in Guatemala to proceed with the enactment of that harmful Act. Their desire to comply with the trade agreement meant going against their very people’s desires.

It is very clear here that the Government of Guatemala went into this agreement without thinking through whatever commitments were being made. Had they taken time to rummage through the paperwork, this scenario would have been avoided. At this juncture I realise that Uganda tends to be a victim of such gaffes and as the protagonists for GM crops mark their territory in this East African Country, the decision makers should take time to orient themselves with the implications of their decisions to the survival of humanity and natural life in this well endowed Agricultural country.

Why Raise School Fees?


Ever since the Minister of Finance read out the Government of Uganda’s Budget proposals for the financial year 2014/15, we have been treated to numerous threats by the some proprietors of Private Schools under the umbrella body of National Private Educational Institutions Association (NPEIA) to increase the School Fees charges. This came up as a result of the Government proposing to remove the Income Tax Exemptions currently enjoyed by the Educational Institutions.

As a parent I feel insulted by these continuous attempts to blackmail not only the Government but we parents into joining the crusade of these capitalists involved in our education industry. Do they think that they are dealing with illiterate parents who have no understanding of how the taxation system works? Do they somehow wish or hope that as parents we shall rise up based on mere emotions and lack of proper comprehension of issues to back their pleas?

Having read the Minister’s budget speech in its entirety, she stated; “… I propose to terminate the exemption on income derived by a person from managing or running an educational institution for commercial gain. This is consistent with the principle of equity and transparency in tax regime, and broadening the tax base by bringing more tax payers into the tax net.”

With all due respect and knowing that the proprietors of these institutions are all out to contribute to the Educational advancement of our population, why would one not want to pay tax on income accrued as a result of pursuing this agenda? Working class Ugandan citizens are taxed left right and center and Income Tax is one of those that they do not survive. While the Government might have given the Education industry a tax break in this regard, it didn’t mean that it would last a life time. Besides, the challenges that brought up this decision years back by Government to waive income tax seem to be no more. The proprietors of these institutions should just be ready to file their income tax returns and pay up.

I don’t see an argument of being over burdened by taxes as holding water. This tax only applies to those schools that are making profit. If no profit is made, then it doesn’t apply. This therefore means that the so called struggling schools will still not fall victim to this tax.

To simplify this, add up all the School income from school fees and any other sources then subtract expenses like costs of feeding, salaries for Admin, teaching and support staff, utilities, Local taxes among others. Whatever remains is expected to be the profit and that is what the 30% Income Tax is applicable to. Profits after expenses belong to the business owners and that is probably the bone of contention to many who have been enjoying a free ride making massive untaxed income.

Another argument that is being forwarded is one of loans that are even causing some of the schools to close. The performance of a school in regard to loan repayment cant be directly attributable to the existence or lack of Income Tax. In Uganda, most financial institutions lend against assets. It is highly unlikely that a school with assets worth Ushs 100 Million will be given a loan of Ushs 1 Billion.

It is a good idea for all actors in the Ugandan economy to realise that as we move towards full funding of our national budget, we have to bear the brunt of raising the much needed financial resources. This definitely might mean us remaining with less in our pockets in the process but lets avoid looking for scapegoats. Increasing school fees by the proprietors is not the solution to the Income tax resumption on the industry. Let the business owners readjust their expectations and those that have been stashing away massive profits, its the time to share the loot with Government. As for that poor struggling school that hardly makes a profit, they have no reason to be bothered by this tax resumption.

Fellow parents, let us not be drawn into this well orchestrated scheme by a few who want to continue earning untaxed income. Any school fees increments should be justified with facts.

@wirejames