Latest update April 23rd, 2024 12:59 AM
Dec 14, 2012 News
– Warn about quota shortfall
Sugar-producing nations, affected by Europe’s decision to fully open its markets after 2015, want more financial help in face of growing hardship. Financial assistance has been significantly reduced by the European Union (EU) and those countries could face the very real possibility of not meeting quotas.
Foreign Affairs Minister, Carolyn Rodrigues-Birkett, who is attending the Ministerial Meeting of the African, Caribbean and Pacific (ACP) Group in Equatorial Guinea, on Tuesday reported to the ACP Ministerial Council on the deliberations of the 4th ACP Ministerial Committee on Sugar. Minister Rodrigues-Birkett chaired the latter Committee on the 10th December 2012 in the absence of her colleague from Mauritius.
According to the Minister, the Committee discussed the EU’s Common Agricultural Policy (CAP) reform and the devastating impact which the abolition of EU sugar quotas and increased duty-free imports from third countries from 1st October 2015 would have on ACP sugar-producing countries.
“Most studies conducted so far point to the fact that the abolition of the EU quotas will result in market volatility and uncertainty resulting inter alia from the link between domestic prices and world market prices. The European Commission’s own impact study predicts a 45 percent fall in prices compared to the market prices reported in September 2012,” the Minister said in her report.
Another study concludes that ACP countries stand to lose 850M Euros over the period 2019/2020.
“Such a situation would jeopardise ACP countries’ efforts and investments to render their industries more competitive and call into question the coherence of EU policies in the fields of agriculture, trade and development. Indeed, most if not all ACP countries would be unable to supply the EU market if prices were to fall to such low levels.”
The Ministers agreed that it was important to ascertain that the traditional supply needs to remain at 2.5 million and that border measures such as an appropriate tariff be maintained to protect the value of ACP preferential access. It was also agreed to oppose calls for an increase in the current EU quotas. The Ministers mandated the Sugar Sub-Committee to scale up its discussions with the EU Parliament and Council.
According to Minister Rodrigues-Birkett, the Ministers expressed concern that the EU financial assistance to help sugar-producing countries prepare for the freeing up of the market in 2015 had been scaled down for 2012 and 2013.
The matter will be followed up with the European Commission, “as a decrease in allocations would make the adaptation process unsustainable and difficult. Similarly, there was need to ensure that the Commission promptly re-allocates any unutilised funds. Some delegations also complained about the unilateral manner in which the EU delegation in their respective countries was selecting projects.”
The ACP Secretariat was requested to initiate discussions with the European Commission on ways and means in which new products could be financed. The ACP Ministers also want the EU to consider funding more sugar research programmes after 2014.
Minister Rodrigues-Birkett’s report from the ACP Ministerial Committee on Sugar was accepted by the ACP Council of Ministers.
Guyana’s sugar industry has been taking a beating in recent years as production declined and workers migrated to other sectors. Even a multi-million-dollar state-of-the-art factory at Skeldon, Berbice and a sugar packaging plant in Enmore, have failed to significantly jump-start the industry which directly employs at least 16,000 persons.
Sugar has also dropped from being one of the biggest earners. Several estates had to be closed as part of a consolidation programme to reduce costs. Large swaths of land were also sold for housing.
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