Ambassador Derick Heaven, Executive Chairman of the Sugar Industry Authority (SIA) prepares to address the American Chamber of Commerce of Jamaica SIA/EU Good Morning Jamaica Round Table Breakfast at the Jamaica Pegasus Hotel, New Kingston, yesterday. Professor Trevor Munroe (seated right), Ambassador Gerd Jarchow (second right), head of the European Union in Jamaica and Minister of Agriculture Roger Clarke were present for the discussion. - JUNIOR DOWIE/STAFF PHOTOGRAPHER
GERD JARCHOW, head of the European Commission (EC) delegation in Jamaica says the proposed price cuts in sugar produced by African, Caribbean and Pacific (ACP) countries should be seen as another opportunity to restructure and build a viable sugar industry.
He was speaking yesterday at a special forum hosted by the American Chamber of Commerce of Jamaica (AMCHAM), at the Jamaica Pegasus Hotel, to discuss the future of the island's 300-year-old sugar industry.
"The price cut must not be seen as a challenge, but as a last chance," Ambassador Jarchow said while stressing that it was unavoidable.
In trying to explain the reason behind the new sugar reform policy, the EC delegation head noted that this was done in a bid to reduce the surplus that was accumulating on their market and to reduce the cost to the EU taxpayers in subsidising sugar coming from the ACP.
A SURPLUS ON THE EU MARKET
Ambassador Jarchow explained that contrary to popular belief, the proposed price cut was not based on the world market price for sugar, but on the extent of the surplus on the E.U. market. He said the price cut would be implemented in four stages, starting next July.
"The consumers (in Europe) are not ready anymore to pay this high subsidised price and if you can tell me how to tax your surplus without price cuts, I think it should be proposed," he said. "I can't see any possibility."
However, Ambassador Derick Heaven, executive chairman of the Sugar Industry Authority (SIA), said he was not satisfied with the explanation given. According to him, the ACP countries were being treated like "collateral damage".
Ambassador Heaven said the EU's new sugar reform policy was in violation of a 1975 treaty signed between the two groups. In the meantime, he said other market possibilities were being explored in an effort to cushion the effects of the fallout.
- J.M.
