Claudine Housen, Staff Reporter
Sugar is an important ingredient in a wide range of foods. - RICARDO MAKYN/STAFF PHOTOGRAPHER
WESTERN BUREAU:
SHOULD THE European Union's (EU) bid to reduce the price of sugar by 39 per cent become a reality, Jamaican consumers could be faced with a hike in sugar prices, said Livingstone Morrison, chief executive officer of the Sugar Company of Jamaica (SCJ).
The European Union is to announce its final decision on June 22 on the proposed cut in sugar import prices form African Caribbean and Pacific Group countries. The cuts are expected to be implemented over the two years to 2008/9.
"There will be some serious consequences," Mr. Morrison said during an interview with the Financial Gleaner earlier this week.
Noting that the reduction will affect everyone from the factory owners to the cane farmers and ultimately the consumers, Mr. Morrison said that should the reduction come to fruition there is a possibility that it could have a negative impact on the local economy.
"It might affect the price that the Jamaican consumer will have to pay for sugar," Mr. Morrison said. "The world market for sugar is expected to increase that is what Brazil has been fighting for and they have won."
Adding that the country has long been importing sugar to assist with the occasional shortfall, Mr. Morrison said that they might have to consider increasing the amount of sugar imported for local consumption.
YEAR-OLD CONTROVERSY
"We have been importing sugar to make good the shortfall in domestic production and we will continue," he added. "(However), we may have to import more."
When asked whether the reduction would lead to loss of employment, Mr. Morrison declined to give a clear answer stating that, "Anything is possible going forward."
The issue with the sugar industry and the European Union has been brewing since August of last year when the World Trade Organisation (WTO) panel ruled that EU subsidies, which benefit sugar producers in the Caribbean, violate global rules. The decision was challenged but was upheld in April of this year.
In November of 2004, the European Union proposed to cut the price it pays for sugar originating from the ACP countries by as much as 33 per cent. This was projected to come on stream by 2007.
