Leonardo Blair, Staff ReporterGARETH THOMAS, permanent undersecretary of state for the Department of International Development (DFID) in Britain, said yesterday that he will be looking at ways to see how best his country can soften the blow of the proposed European Union price cuts to regional sugar producers.
Mr. Thomas, who was coming to Jamaica for the first time, visited several sugar-dependent communities in Clarendon where he said the importance of
the income generated by
the sugar industry was "brought home" to him.
HUGE DEPENDENCE
"This (visit) has brought home to me the huge dependence of a whole series of communities that depend on the sugar industry," Mr. Thomas told journalists at the office
of the British High Commission last night. "Instead of it being an academic discussion it has brought home the impact of the price cuts in very powerful messages."
While admitting that Britain could not do much about the proposed price cuts, Mr. Thomas said his country will be giving as much assistance as possible to help the island deal with the problem.
He noted that so far this year, Jamaica has received some $380 million in assistance and almost $743 million in debt relief from Britain.
REJECTED
In July, the Caribbean Community (CARICOM) heads of government, at their 25th regular meeting in Grenada, rejected a proposal for the reform of the European Union Sugar Regime, which forecasts a 37 per cent reduction in the guaranteed price for sugar supplied under the ACP-EU Sugar Protocol.
The EU has proposed to reduce the price paid to African, Caribbean and Pacific (ACP) states for sugar sold on the European market. The EU noted that from 2005 to 2006, ACP sugar producers would be paid 506 euros per ton, down 20 per cent from this year's 632 euros per ton.
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.
