GEORGETOWN, Guyana, CMC:
EUROPEAN UNION Agricultural Ministers begin a meeting in Brussels today with the African Caribbean and Pacific (ACP) states calling on them to abandon a controversial proposal to cut the preferential price for sugar by 39 per cent.
The Guyana Government Information Agency (GINA) quoted ACP Chairman, George Bullen, as saying that the ACP countries "are aware of the pressures for some degree of price cut, however, we cannot accept a reduction that is unjustifiably excessive and hits the most vulnerable stakeholders the hardest".
COUNTER PROPOSAL
GINA said the ACP chairman is comfortable with a net reduction of 19 per cent over an eight-year period. Although this would be "far from ideal, it would allow more ACP producers to remain competitive and offset the economic and human suffering that will inevitably be caused by the drastic reform".
The ACP also wants the retention of the refining aid saying this "would be fully in line with the EU's commitments to the World Trade Organisation (WTO)," GINA said.
Countries in the EU grouping are divided on the proposal to cut ACP sugar export prices and have been struggling to achieve a consensus in time for the May 22, 2006 deadline to limit subsidies for sugar to comply with the WTO ruling.
STAND TO LOSE
The reforms became necessary after the WTO declared the EU policies illegal following a complaint from Australia, Brazil and Thailand.
Caribbean sugar producing countries warn that they stand to lose as much as US$153 million annually if the EU goes ahead with its plan to cut sugar prices by 39 per cent under the reform proposal.
The EU says it also plans to make available Euro 40 million (US$46.8 million) to ACP countries, an offer which has been rejected as too inadequate by the ACP states.
