CARICOM PRESSES CASE FOR PHASED SUGAR PRICE CUT

(CARICOM Secretariat, Georgetown, Guyana) The transformation of the Region's agriculture sector and discussions on the future and present threats to the sugar industry being among the matters deliberated on by CARICOM Heads of Government at their 16th Inter-Sessional Meeting in Suriname.

Briefing the media on sugar, the development of a Common Fisheries Policy and the sustainable development of agriculture in the Region - issues for which he had portfolio responsibility in the CARICOM quasi-Cabinet - Guyana's President, His Excellency Bharrat Jagdeo said the European Union's (EU) proposed reform of its Sugar regime will be discussed fully with a view to advancing the Region's call for a reform which was fair and equitable, and which preserved the value of the Sugar Protocol as a contractual trading arrangement.

Under proposals for the new sugar regime, the EU is proposing a 37% price reduction for sugar exports from CARICOM and other countries of the African Caribbean and Pacific (ACP) group, over a three year period commencing in 2006, CARICOM leaders are calling for a staggered eight year introduction of the new policy, arguing that it deviates from the original agreement that guaranteed the Region's full access to the European market at negotiated prices. "We are arguing for a position that is more reasonable, fair and equitable," Mr. Jagdeo told the media, while alluding to what is regarded to the EU's moral and legal obligation to honour commitments under the Sugar Protocol.

President Jagdeo said Heads will identify a Ministerial spokesperson on sugar to press the Region's case, and noted that the Region was not without allies as ten European Union Member States were opposed to the current proposals for reform.

Referring to the challenges by Brazil and others in the World Trade Organisation (WTO) to the EU Sugar Regime, President Jagdeo indicated that CARICOM would be seeking to have Brazil give practical effect to the assurance by President Lula to Heads that his country, in challenging the legality of the EU Sugar Regime in the WTO, was in no way calling in to question, preferences enjoyed by the ACP countries which exported sugar to Europe.

Noting that the new policy could result in a revenue loss of approximately US$765,000, President Jagdeo called for an aggressive restructuring of the Region's agriculture sector, taking on board a new and collaborative approach in marketing produce with the involvement of the private sector. The Guyana Head of State said his country is in now undertaking a multimillion-dollar initiative of restructuring its Skeldon, Berbice sugar factory which is intended to reduce the cost of production and make Guyana's sugar industry more competitive.

Reporting on the flood situation in Guyana that resulted due to torrential rainfall during December-January last, the President told reporters that most floodwaters have receded, with small exceptions to two communities on the East Coast of Demerara. He said Government is working with the United Nations to quantify losses so as to meet the needs of those affected.

In plugging for a common fisheries regime for the Region, the Guyana Head of State cited the operation of multilateral fisheries regimes in the Region as the source for maritime conflict among Member States, and he contended that a common regime would reduce conflicts. He expressed hope that progress will be recorded in moving the issue forward at the Suriname Meeting.