Caricom Chairman to write EU opposing sugar proposal
Stabroek News
July 10, 2004
Caricom Heads of Government have mandated the Chairman of Caricom, Dr Keith Mitchell to write to the Presidents of the European Parliament, the European Commission and the European Union (EU) outlining the region's opposition to the EU's proposal to cut sugar prices.
Briefing reporters at the Office of the President yesterday on the outcome of the 25th Caricom Heads of Government Regular Meeting in Grenada earlier in the week, Jagdeo said that individual Heads of Government would also be writing to those bodies.
In addition, he said that the Heads have agreed to increase their diplomatic representation overseas on the issue as part of several steps that Caricom will take to oppose the proposal.
The region's trade ministers would also be following up the issue, he said adding that Minister of Foreign Trade and International Cooperation Clement Rohee has travelled to Mauritius where it is expected that the matter will be discussed.
Caricom leaders, too, he said would increase their contacts with sympathetic governments in Europe on the issue and in their own societies they have agreed to raise the level of awareness on the matter.
The discussions would have to include the trade union movement and the private sector and not just those involved in the sugar industry.
This was necessary, he said since the European Union has in many instances, in spite of strong representation, pushed through proposals contrary to commitments they had made to the region such as contained in the Cotonou Agreement which provided for consultation before the taking of decisions that would affect the region.
Shortly after the Cotonou Agreement was ratified, he said that the EU introduced the Everything But Arms initiative without consultation. This initiative opened up the European market for goods - except arms - from the poorest countries in the world. This impacted negatively on various Caribbean exports.
Jagdeo said there are going to be many surprises that the region will be faced with as a number of countries become increasingly more selfish. He said that some countries that traditionally had some obligations to the region because they took resources through slavery and indentureship "do not have any regard any more for historical obligations." He said they pay a lot of lip service to cutting poverty but when investigated the policies they pursue run contrary to their objectives.
In their communiqué following the summit, the Caricom heads had pointed out that the proposed three-stage cut in the sugar price proposed by the EU would result in a "catastrophic loss" of approximately US$90M per annum to the region from 2008. This figure outstrips by 150% the sum the EU has committed to regional programmes for the current five-year cycle.
The EU's proposed price cut has also detailed proposals for compensating European sugar producers but not those in the African, Caribbean and Pacific (ACP) grouping, he said adding that their move was also discriminatory.
He reiterated that not only the sugar sector would be affected but there would be a knock-on effect on inflation and an escalation of the foreign currency exchange rate. Additionally, sugar has "tons of other linkages in the country which shows the multi-functional role that agriculture plays.
Stating that many times people compare bauxite and sugar claiming discrimination among other negatives, Jagdeo said that the government puts some US$10 million a year into the ailing bauxite industry while for the same period the government would not put a cent into the sugar industry.
He said, too, that for the planned expansion of the sugar industry, which includes a new factory and co-generation facilities at Skeldon, the Guyana Sugar Corporation has to pay back every cent.
He said that the government did not privatise the sugar industry along with Guyoil and the shipping industry because they were net contributors to the Treasury.
Stressing the need also to diversify the country's economy he said that it does not mean that GUYSUCO must go into tilapia cultivation or dairy production as was attempted before but there was a need to create value-added products as is currently proposed by the establishing of a distillery and refinery. He noted the need to diversify the economy through other industries such as tourism and oil exploration.