Ross Sheil, Staff Reporter

Jamaica and its partner nations have won their battle to have sugar and rice designated as 'highly sensitive' products by the European Union (EU) market, after the European Commission (EC) announced in Brussels yesterday full market access on a phased basis for producers.

Although no agreement has been reached on bananas, the EU and the African, Caribbean and Pacific (ACP) nations are scheduled to meet again in Brussels on May 25.

The EU still has to agree on a replacement quota and tariff system for bananas with the World Trade Organisation (WTO) following the latest complaint by Ecuador. The ongoing dispute may influence whether the Europeans decide to grant the industry the same designation as sugar.

Cautious welcome

Head of the Sugar Industry Authority (SIA), Derrick Heaven, gave a cautious welcome to the news saying that it could ultimately give ACP countries greater leverage within the WTO, the international body regulating trade between nations.

This could see a revival in fortunes for the Jamaican sugar sector, which is currently being divested, having previously seen the ACP-EU preferential trading arrangements ruled illegal by the WTO and suffering severe price cuts.

”What this means is that sugar can be treated as special outside normal trading arrangements that the WTO allows,” said Ambassador Heaven. “However, I don’t want us to get the impression that this is just benevolence by the EU in looking only at our situation.”

He noted that the EU also had consideration for its own beet farmers who could similarly benefit from the new designation of the product. Also, France and Spain, which produce bananas, disagreed with other EU development ministers in Brussels by pushing for only phased-in access.

The EC said the announcement would speed up the current economic partnership agreement (EPA) negotiations with the 80 countries within the ACP grouping, which it admitted have been progressing slowly. The current free-trade deal expires at the end of this year. The Caribbean Regional Negotiating Machinery (CRNM), representing CARICOM, together with the Dominican Republic (CARIFORUM), is negotiating its own EPA agreement with the EU with services still to be decided upon. Officials from both sides are meeting in Barbados today and Thursday.

A transition period for sugar and rice will be introduced before opening access to the EU market. ross.

sheil@gleanerjm.com