EU proposals of grave concern to CARICOM
Edwin Carrington
Kaieteur News
July 16, 2004
Many of the sugar producers in the Caribbean may be out of business, with the massive cut in prices proposed by the European Union. The much talked about proposal sends the signal that the region must brace itself for the serious effects they may cause if implemented.
CARICOM Secretary General Mr. Edwin Carrington said that his guess is that a number of countries, including Guyana with least developed economies will have to take drastic measures to keep production levels up.
“We hope we can negotiate in the talks now starting but in the context of a regional quota for sugar which can be reassigned to whichever producer should there be a shortfall.
As it stands, the quota is ACP wide and any shortfall by a producer is shared back by the entire ACP group.
Mr. Carrington added, “Now that there is negotiation on regional and economic partnership agreements, a regional quota should be discussed, to see how best the region can cope and we have to rely on Guyana to help out in this regard.”
Questioned on whether the move by the EU is just a kite flying exercise to assess the impact on the region, Mr. Carrington said certainly not, although he wish it was.
“The pressure is not only coming from the internal restructuring of the common agricultural policy, but from the World Trade Organisation and from the member states of that organisation.”
The most unacceptable element to many in the region is the proposal to introduce a 20 per cent price reduction in 2005, reaching 33 per cent within two years after. This cuts right across the reassuring guarantees given by the EU that any changes would be gradual and designed to avoid severe disruption to the least developed economies.
The proposals were said to be outrageous and that the European Union is showing extremely bad faith.
In the Cotonou Agreement signed between the EU and the ACP countries, in clause 36:4, it is clearly stated that Sugar Protocol has a legal status of its own and in reviewing the Protocol, the EU will do so with a view to safeguard the benefits.
The proposals will affect most seriously the benefits of price. The EU has always said that it supports the development needs of vulnerable countries like Guyana and the rest of the Caribbean in trade negotiations; and the concern was that this review of the sugar regime is something that goes very much against development.
The Sugar Association of the Caribbean and other major stakeholders recently condemned these proposals and said that the proposals to change the EU sugar regime without regard for the real needs of the Caribbean and other ACP countries is in clear contravention of the EU’s commitments under the Cotonou Agreement to safeguard the benefits of the Sugar Protocol.