JAMAICA AND other African, Caribbean and Pacific (ACP) States are cautiously optimistic that a challenge to the European Commission's (EC) sugar regime by Brazil and Australia, in the World Trade Organisation (WTO), will not progress beyond consultations.
Speaking at a meeting on Wednesday morning to brief stakeholders in the Sugar Industry on the outcome of WTO consultations on the E.C's Export Subsidies for Sugar, Minister of Foreign Affairs and Foreign Trade, K.D. Knight, reported that following talks with EC Trade and Agriculture Commissioners Lamy and Fischler, respectively, the EC is confident that its sugar regime is compliant with WTO rules.
Mr. Knight cautioned that, "if the regime is successfully challenged, then the price paid to ACP sugar producers will be negatively affected, as this is based on the price paid to E.U. beet sugar farmers."
The Trade Minister noted that ACP Member States are taking a proactive approach to the challenge lodged in the WTO by Brazil and Australia, two of the world's biggest sugar exporters, that the EC subsidies are depressing world prices and reducing their earnings.
Mr. Knight noted that the ACP group is already studying the provision of legal representation for the ACP sugar producing states, should the consultations fail and progress to the quasi-judicial process, which is the establishment of a panel. He added that, in the interim, the ACP countries will be embarking on various diplomatic initiatives with Brazil and Australia.
Representatives of the unions expressed a commitment to work with the Ministry of Foreign Affairs and Foreign Trade to sensitise workers in the sugar industry about the developments taking place and the kind of adjustments that may be needed for the survival of the industry.
It was agreed that Jamaica must begin to explore alternative approaches that could be taken with parties, in an effort to find a mutually satisfactory outcome to the dispute.
The meeting included representatives from the Ministry of Agriculture, Office of the Prime Minister, the Sugar Industry Authority, Jamaica Cane Products Sales Ltd., the All Island Jamaica Cane Farmers Association, Sugar Company of Jamaica, the private sector, the Attorney-General's Department, the Anti Dumping and Subsidies Commission and the Jamaica Confederation of Trade Unions.
