SUGAR-PRODUCING NATIONS, including Jamaica, could take legal action against the European Union (EU) as a result of its sugar price cuts, according to Ambassador Derick Heaven, head of the Sugar Industry Authority (SIA).
Ambassador Heaven told The Gleaner that legal action and further diplomacy were discussed at a recent CARICOM stakeholders meeting on sugar. This is in response to the EU's decision to abandon its preferential trading agreement with African, Caribbean and Pacific (ACP) sugar producers and cut its sugar prices by 36 per cent.
CUTS DUE NEXT YEAR
"The lawyers are still working on this and the disadvantages of the legal challenge has been the time frame," he said in reference to the cuts due to begin next year, with the last to be made in 2009. Ambassador Heaven was speaking yesterday at the launch of the United Kingdom's Department for International Development (DFID's) launch of its Country Assistance Plan (CAP) for Jamaica at the Pegasus Hotel, New Kingston.
"As soon as a full agreement (is reached) on both the tactics and its possibilities, we will determine the way forward," he added.
But Ambassador Heaven would not be drawn into speculating on the strength of any legal challenge, or where such a case could be taken. The EU's change in policy and termination of its Sugar Protocol agreement was made following a ruling against it by the World Trade Organisation (WTO). The ultimate arbitrator in trade disputes, the WTO is the world's only global organisation dealing with the rules of trade between nations.
The EU's policy changes over bananas and sugar will go before the sixth WTO Ministerial Conference in Hong Kong, from December 13 to 18. This is the organisation's highest decision making body.
TOO LITTLE COMPENSATION
ACP nations are particularly vexed by the levels of compensation being offered by the EU. Known as 'accompanying measures', the EU is giving US$8 billion (J$520 billion) to its own sugar producing countries compared to just US$47 million (J$3 billion) for their ACP counterparts.
Also at the DFID event, Wesley Hughes, director of the Planning Institute of Jamaica, called for greater partnership and consideration for the most vulnerable in the adjustment process. He said he hoped history would not repeat itself.
"At the end of slavery, planters got their £20 million and the former (slaves) got
nothing," he said.
R.S.
