AGRICULTURE MINISTER Roger Clarke seems to have skidded on a banana peel in his recent interview with London's Financial Times. As far as Jamaican banana producers are concerned, the Minister's seeming acceptance of the European Union's proposal of 230 euros (J$18,600) per tonne tariff on the import of bananas from non-ACP suppliers undercuts their position, especially while negotiations are still ongoing. The minister was quoted as saying that Jamaica could 'live with' the EU's figure.
Minister Clarke's comments as reported last week may have severely weakened the bargaining strength of the ACP's lobby. This seems to be the view also of local producers who have maintained that any tariff on the Latin American producers supplies to the European market below 275 euros would make it very difficult for them to compete.
The EU's proposal made late last year indicates that much progress was being made by the ACP negotiators and they believed they could achieve the desired 275 euros tariff by the end of the negotiations.
Local producers are convinced that they cannot be competitive at the rate being offered by the EU given the cost of production and inputs such as fertiliser.
We find it very interesting that subsequently Mr. Clarke has not only defended his comments but has insisted that we should accept the proposed figure as we are unlikely to achieve more and may even have to make do on less. In the context of globalisation and the reality of a free market system, Minister Clarke's pragmatism may prove in the long run to be the correct stance.
Our industries must be forced to achieve the level of efficiencies that will make them more competitive and, therefore, less reliant on preferential treatment. The proposed tariff represents a limited window of opportunity and the local banana producers must ensure that the best use is made of it.
The banana industry remains an important plank to the Jamaican economy for the employment and foreign exchange earnings it provides. It is imperative that sector leaders speed up their attempts to modernise and operate at more efficient levels to keep the sector alive.
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