Caribbean countries export nearly 430,000 tons of raw sugar to Europe, with Guyana and Jamaica accounting for more than half of the quota. Here, a woman fertilises a sugarcane field. - FileGEORGETOWN, Guyana (AP):
A REGIONAL umbrella group of sugar-producing countries has vowed to fight off a recent motion by Australia and Brazil challenging preferential sugar quotas Europe has held with Caribbean countries for more than 300 years.
The Sugar Association of the Caribbean said earlier this week it would defend its contracts with the European Union, after Australia and Brazil said last month the arrangement gave unfair trading advantages to former European colonies in the region.
Noting that Australia and Brazil heavily subsidised their sugar industries, the Caribbean sugar group said its trade quotas were justified so local producers could compete on the world market.
"What we have had with the EU for more than 300 years is a marketing arrangement plain and simple, and that cannot be abrogated by either party, by any side," said Ian McDonald, executive director of the Caribbean sugar association.
"We have a very good case and all challenges to it will always be met," he said during a one-day conference on preparations for Monday's upcoming trade talks with the European Union.
Caribbean countries export nearly 430,000 tons of raw sugar to Europe, with Guyana and Jamaica accounting for more than half of the quota. The European Union pays 21 cents per pound of cane sugar, compared to 6 cents on the depressed world market.
Already the governments of Mauritius, Fiji, Guyana, Barbados, Jamaica and Swaziland -- some of the biggest producers in the 77-nation African, Caribbean and Pacific (ACP) group of countries -- have sent letters to the WTO asking to defend their own case rather than leave it to EU negotiators.
"We are saying to the Brazilians and the Australians that you asked for consultation on something that is our life bread and butter," said Clement Rohee, Guyana foreign trade and international cooperation minister.
If there are any questions, Caribbean representatives want to make sure "we are there to answer on our own behalf," Rohee said.
