Leonardo Blair, Staff ReporterSTAKEHOLDERS from the sugar industries of several Caribbean Community (CARICOM) states, including Jamaica, are expected to meet with European Union (EU) representatives in Trinidad next Monday to discuss aid to buffer the effects of the pending sugar reform policy.
"The EU will be proposing
the parameters guiding the assistance package accompanying the reforms," said Ambassador Derrick Heaven, chairman of the Sugar Industry Authority (SIA).
Ambassador Heaven explained on Monday that the EU representatives will be looking at country-specific action plans and finding out from each country how they would like to see the action plan developed.
ANTICIPATED LOSSES
While citing that it was a bit early to say what they expect to come out of the talks, the SIA chairman said: "Certainly, we will be looking at money to provide for the significant losses as a result of the reform. We will also be looking at grants and loans at concessionary rates to assist with the diversification of our industries," he said.
Just last month, the EU agreed to delay the implementation of the price cut on sugar from African Caribbean and Pacific (ACP) countries until July 2006, instead of the July 2005 date originally proposed.
The extent of the cut that will be made next year is, however, not known at this time, as the ACP states are still lobbying for modifications to be made to the EU proposal. The EU had initially proposed a 37 per cent reduction over a three-year period, beginning with a 20 per cent cut on July 1 and another 17 per cent reduction applied over the next two years. CARICOM remains adamant that there should be no price cuts until 2008, consequent on the review of the Cotonou Treaty in 2006.
Jamaica earns approximately US$100 million per year from sugar exports and the cut would result in a loss of some US$37 million in annual earnings and significantly affect rural families, a number of which are heavily dependent on the sugar industry for their survival.
