GEORGETOWN, Guyana, CMC:
A SENIOR official of the Sugar Association of the Caribbean (SAC) has called for the 'regionalisation' of the sugar industry to counter proposals by the European Union (EU) that will result in a drastic reduction in price for the commodity next year.
SAC Chief Executive Officer (CEO) Ian McDonald believes that regionalisation could be achieved "through the trade arrangements or economic partnership agreements (which would) benefit the region".
Caribbean sugar producing countries say they could lose nearly US$90 million dollars annually if the EU goes ahead with its proposal to reduce the price of sugar paid to African Caribbean and Pacific (ACP) states by as much as 33 per cent.
LOSE REVENUE
The Guyana Sugar Corporation (GUYSUCO) which exports some 167,000 tonnes of sugar to the EU under the sugar protocol and a further 25,000-30,000 tonnes under the special preferential sugar agreement, says it will lose US$20 million in revenue between 2005 and 2006.
McDonald is sceptical that the EU proposal can be implemented from next year because of its perceived lack of benefits to EU workers.
The SAC official said when examined closely, the proposals do not benefit anyone in Europe in particular, but "seem to make the [EU] taxpayers worse off."
In addition, McDonald suggests that the internal turmoil within the EU and the need for a new Commission to be installed could further stall the implementation of the new sugar prices.
DIVIDED
He said that EU members were also divided on the new sugar proposals, with the majority of countries opposing the proposed changes directly, or, opting to support them.
Caribbean countries have been mounting various lobbying missions to Europe in a bid to get the Commission to change its proposals.
McDonald said that based on the response, "the prospects for the local and regional sugar industry appear to be much less gloomy in spite of a reduction in the price for sugar."
GUYSUCO's Director for Administration and Marketing, Nisa Surujbally, said in spite of the EC reform proposals, industry officials here do not think all is lost.
