By Leonardo Blair, Staff ReporterFOREIGN AFFAIRS and Foreign Trade Minister K.D. Knight says local sugar producers can expect a better deal in the future as the region continues to lobby for an increase of the new sugar prices proposed by the European Union (EU), but he warned that the diversification of the industry was urgent.
Yesterday at a press conference held at the Foreign Affairs Ministry in New Kingston, Mr. Knight said he would be using all channels at his disposal to protect the interests of Jamaican and other sugar producers to be affected by proposed EU price-cuts. He was optimistic about the outcome, but, nonetheless, issued a stern warning to the local sugar industry that it could not be 'business as usual'.
"It is expected that at the end of the day, the result that we will have is a movement upward in the price of sugar (currently proposed), however it has to be understood that as far as the industry is concerned it cannot be business as usual," said Minister Knight.
"There has to be some diversification in the industry and this is now urgent, if it had not been urgent before. I think that the industry is now fully aware that there is going to be a price reduction," he added.
REDUCTION IN PRICE
Last month the Caribbean Community (CARICOM) Heads of Government, at their 25th regular meeting in Grenada rejected a proposal for the reform of the European Union Sugar Regime which forecasts a 37 per cent reduction in the guaranteed price for sugar supplied under the ACP-EU Sugar Protocol.
The EU has proposed to reduce the price paid to African, Caribbean and Pacific (ACP) states for sugar sold on the European market. The European Commission noted that from 2005 to 2006, ACP sugar producers would be paid 506 euros per ton, down 20 per cent from this year's 632 euros per ton.
For 2006/2007 there will be no adjustment, while for 2007/2008 there will be a further 16 per cent reduction, which would see the price paid for sugar move from 506 euros per ton to 421 euros.
As part of the new proposal that was presented to the European Parliament, ACP countries will retain their preferential access quotas.
LOBBYING EFFORTS
Mr. Knight explained that the regional grouping would be embarking on a series of lobbying efforts between now and next year to get a deal on sugar that everyone could work with.
"Jamaica remains committed to a rules-based multilateral system. We insist however that the rules must be fair and balanced, that the process must be transparent and inclusive and that there must be appropriate recognition of the vulnerabilities of states like ours," said Mr. Knight.
He said that lobbying efforts would be conducted through Jamaican Missions and various ministerial representatives across the ACP grouping. New EU commissioners expected to begin their tour of duty on January 1, 2005 will also be invited to explore the matter.
"As we understand it, the proposals developed by the present set of commissioners are not intended to encumber the new commissioners. (While) we continue to have dialogue with the present commissioners, so as soon as the new commissioners are identified we will take a very proactive stance in dealing with them," said Mr. Knight. Regional stakeholders are also expected to meet in September to finalise a resolution on the matter.
