By Robert Hart, Staff ReporterAGRICULTURE MINISTER Roger Clarke is hoping the region will succeed in its efforts to have the European Union (EU) push back its timeline for slashing the guaranteed price of sugar from producers within the African, Caribbean and Pacific (ACP) group of nations.
"The breakthrough has begun because people have begun to understand and we are getting a sympathetic ear," Minister Clarke said during a press briefing at his Hope Road, St. Andrew, office on Wednesday. He returned to the island last week after leading Jamaica's delegation to the second phase of the ACP ministerial sugar lobby in Europe.
PROPOSED 37 PER CENT CUT
He said he was confident that advances have been made in getting the EU countries to understand that a proposed 37 per cent cut in the price of sugar, over the next three years, could be devastating for the Caribbean Community (CARICOM).
Minister Clarke noted that he had painted a grim picture to the EU states, indicating that the cut in sugar prices at this time would lead to the closure of factories and the likely migration of the unemployed to the tourism sector and the city. This, he suggested, could lead to increased crime and violence.
It has been estimated that the Caribbean could experience an estimated US$90 million in lost revenue if the EU proposal was implemented.
Minister Clarke was accompanied by Ambassador Derrick Heaven, executive chairman of the Sugar Industry Authority, on the one-week trip which began in London, England, and ended in Portugal last Thursday.
Ambassador Heaven stressed yesterday that CARICOM was not on a "begging mission" in Europe, but was in fact seeking to ensure that the EU sticks to its agreement to purchase ACP sugar at the guaranteed price.
REDUCE PRICE TO BE PAID
Under the reformed sugar regime, the EU has proposed to reduce the price paid to ACP states for sugar sold on the European market. The European Commission has stated that from 2005 to 2006, ACP sugar producers will be paid 506 euros per tonne, down 20 per cent from this year's 632 euros per tonne.
For 2006/2007, there will be no adjustment, while for 2007/2008 there will be a further 16 per cent reduction, which would see the price paid for sugar move from 506 euros per ton to 421 euros.
Last month CARICOM heads of government rejected the proposal, which they said would result in the 37 per cent reduction in the guaranteed price for sugar supplied under the ACP-EU sugar protocol.
