John Myers Jr., Agriculture Coordinator
Workers employed to the Monymusk Estate in Clarendon remove overgrown weeds from a sugarcane field. - File
Jamaica is to receive an additional one million euros in aid from the European Union next year under the special assistance programme for African, Caribbean and Pacific (ACP) countries that have been affected by changes to its sugar policy.
Donovan Stanberry, permanent secretary in the Ministry of Agriculture and Lands, disclosed that the island is to receive more than €5 million due to the failure of several countries in the ACP group to submit on time a multiannual strategy outlining the use of the funds. Jamaica was slated to receive about €4 million in the first year under the original package.
The office of the Delegation of the European Commission (EC) in Jamaica has confirmed the increased allocation for Jamaica. In an emailed response to queries by Farmers Weekly, the EC Jamaican Delegation's office, said the country is to receive €5.3 million ($445.2 million). Among the countries that failed to submit strategy proposals on time, she said, were Trinidad and Tobago, Ivory Coast, Zimbabwe, Congo (Brazzaville), and Kenya.
Result of trade block
The special assistance package was initiated by the EU after it was forced to discontinue a preferential trade arrangement with ACP countries for the supply of sugar. This resulted in the 25-nation European block announcing a 36 per cent cut in the price paid for ACP sugar over a four-year period. The EU is the largest market for ACP sugar.
Initially, the EU had announced a 40 million-euro compensation package in the first year to allow the 18-country ACP group to transform their sugar industries which are considered to be highly inefficient. Overall, the group is expected to get €1.2 billion in aid over four years. But the group of developing countries launched an intensive lobby, complaining that the allocation was inadequate to allow them to undertake the transformation. They instead requested a sum closer to €190 million to be divided among the group.
Last week, news emerged that the first-year allocation was to be increased to €200 million following a meeting between Britain's Prime Minister Tony Blair and Caribbean leaders in London.
No decision
However, the EC Jamaican Delegation said the increased amount had not yet been agreed on. "We can confirm that there will be an increase of funds available in 2007 for (the) reform of the sugar industry ... (but) no decision has been taken on the exact amount," she said.
While the Government will have more money to spend on programmes to assist those to be affected by the expected fallout in the sugar industry arising from the price cut, Mr. Stanberry said no plans have yet been made for it. He, however, noted that there were plans to establish a special unit within the ministry to develop and execute social intervention programmes for those persons to be affected by the fallout.
In the meantime, stakeholders in the industry are expressing concern that the first payout which was scheduled for early next year, will be delayed until mid-year.
