By Robert Hart, Staff Reporter
Minister of Agriculture Roger Clarke and Marshall Hall of Jamaica Producers Group. - Rudolph Brown/ Chief Photographer
LOCAL BANANA producers have raised concerns after reports surfaced yesterday that Minister of Agriculture Roger Clarke has softened Jamaica's stance in a long-standing dispute in the international banana trade.
According to yesterday's edition of the United Kingdom-based Financial Times newspaper, Minister Clarke on Monday "extended an olive branch" to the European Union by indicating that Jamaica could accept a new common import tariff proposed last year in Brussels, Belgium.
Yesterday's report from Brussels quoted Minister Clarke as saying that Jamaica could "live with" a common import tariff of 230 euros (J$18,600) per tonne, which is 45 euros (J$3,600) below the proposal from the African Caribbean and Pacific (ACP) countries.
"It was the most conciliatory comment by a banana producer since the European Commission made its proposal in October," the Financial Times said.
Most ACP countries, including Jamaica, are former European countries that benefit from preferential tariff treatment from the EU, and therefore gain an edge in the intense competition with larger Latin American producers.
The Latin American producers have, however, threatened legal action against the 230 euro proposal. They have argued that the EU should either move toward a zero-tariff policy or maintain a regime equivalent to the current tariff level of 75 euros (J$6,000).
Yesterday, neither the Agriculture Ministry nor the Ministry of Foreign Affairs and Foreign Trade could verify the Financial Times report. Minister Clarke is still off the island.
At the same time Dr. Marshall Hall, managing director of Jamaica Producers Group Ltd., the largest local banana producer, told The Gleaner that he was not prepared to support the acceptance of any tariff below 275 euros (J$22,300).
"I do know that as far as the Caribbean governments are concerned, we remain committed to that (275 euros)," Dr. Hall said.
He argued that with the increasing cost of production inputs, including fertilisers, local producers would find it difficult to compete against the larger producers.
The EU is due to introduce a new banana import regime in 2006, but is being hindered by the opposing wishes of the Latin American and ACP countries.
But the Financial Times report said Minister Clarke conceded that Jamaica, which exports 40,000 tonnes of bananas a year to the EU, was ready to "cut corners" and adapt to a new regime based on a 230 euro tariff.
"Much as we would have wanted a level of 275 euros or 300 euros (J$24,300), we now believe that we will just have to live with 230 euros," the Agriculture Minister was quoted.
