CARICOM to intensify lobby against sugar price cuts by EU
--If it becomes a reality, the EU price proposal would have a 'devastating effect' on regional economies --President Bharrat Jagdeo
By Chamanlall Naipaul
Guyana Chronicle
July 10, 2004
CARICOM is to intensify diplomatic representation in light of the European Union's (EU's) proposal to reduce sugar prices as part of the region's strategy to have the proposal withdrawn.
During an encounter with members of the media yesterday, President Bharrat Jagdeo emphasised that if the EU proposal becomes a reality it would have a "devastating effect" on the economies of the countries in the region because of its significant contribution to their Gross Domestic Products (GDP)The President noted that at the recent Heads of Government meeting in Grenada, leaders devoted much attention to this issue and agreement was reached on increasing diplomatic representation in Europe. In addition, CARICOM and individual Heads of Governments as well as Trade and Foreign Ministers will be writing the EU urging the withdrawal of the proposal.
Increasing contacts with sympathetic European governments is another facet of the strategy agreed to in Grenada, the President reported. He recalled that the EU had acted in "bad faith" in the past, thus stakeholders should recognise the limitations in getting the EU to reverse its proposal.
Touching on the double standards of the EU, the President said that the terms of compensation for European farmers are clearly spelt out, but on the contrary, the situation is the opposite in relation to the Caribbean region.
Within the region, President Jagdeo said, efforts would be intensified to raise the level of awareness with respect to the issue.
The President also indicated that at the upcoming G-90 meeting in Mauritius which Guyana's Minister of Foreign Trade and International Cooperation, Clement Rohee will be attending, the European Union's proposal will be discussed.
However, he urged that in the present situation one has to be optimistic.
Dealing with the matter in relation specifically to the local sugar industry, the Guyanese Head of State explained that in anticipation of the reduction of sugar prices, the Government opted for the Skeldon modernisation project, which, when completed, would see the cost of production decreasing from US18 to US10 cents per pound
Rejecting the suggestion by some that Guyana should pull out of sugar, the President stressed that the economic contribution of the sugar industry is so great -- some 16 percent of the country's Gross Domestic Product (GDP) -- that such a move would cause a multiplicity of economic and social dislocations.
Also dispelling the notion that money is not being spent in the bauxite industry, but is being poured into the sugar industry, the President disclosed that the Government has been allocating over $2 Billion annually from the Treasury to sustain the industry, whereas the sugar industry has been a net contributor to the Treasury.
President Jagdeo further explained that the loan acquired for the Skeldon project will have to be repaid by the Guyana Sugar Corporation (GUYSUCO).
Dealing with the issue of why the sugar industry, the Guyana Oil Company, and the national shipping company have not been privatised, President Jagdeo pointed out that these companies have all been net earners for the national Treasury, hence there was no need for privatising them.
The President once again made it emphatically clear that the Government will not close the Demerara Estates.
As the Head of Government within CARICOM with responsibility for agriculture, President Jagdeo presented a paper at the Grenada Summit on the restructuring of the agricultural sector in the region
He disclosed that during his well-received presentation, he urged the raising of the level of awareness of the importance of agriculture and its significance to regional economies as well as its potential to ensure food security. Mr Jagdeo noted that the annual food import bill for the Caribbean's is US$1.2 Billion despite the region's potential for being self-sufficient in food.
He also urged that CARICOM member states increase their budgetary allocations to the agriculture sector in order to give it greater impetus.
In this regard, a strategy is to be formulated on the production and marketing of agricultural products with technical assistance from the Food and Agricultural Organisation (FAO) and the Inter-American Institute for Cooperation in Agriculture (IICA), the President informed the media.