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CARICOM | Regional Sugar leaders say it's time to focus on our own markets

Featured Karl James, Chairman of the Sugar Association of the Caribbean (SAC). Karl James, Chairman of the Sugar Association of the Caribbean (SAC).
KINGSTON, Jamaica March 27, 2017 - Caribbean sugar producers have resolved to recommend to Regional governments that they focus their attention on the Caribbean rather than depend on overseas markets.

The decision followed a two-day regional workshop, funded by the EU, UK Foreign and Commonwealth Office, ASR Group, and the Inter-American Development Bank, and convened with the advice and support of The Caribbean Council, the CARICOM Secretariat and JAMPRO.

In a statement following the meeting Chairman of the Sugar Association of the Caribbean, Karl James said “Impending changes in Europe’s sugar policy mean we are now faced with a drop in the price we can expect to receive in the EU market – our biggest current export market. We now urgently need to refocus our attention on our own market here in the region.

“Governments around the world give tariff protection to their own sugar industries, yet in the Caribbean we are currently losing out to imported sugar from outside the region. It is time to modernise our approach to sugar.

“The net cost effect of tariff protection to consumers will be negligible but it will give our industry the ability to attract investment, mechanise the industry and provide quality jobs and a sustainable future for the sector.

“We urge our Ministers to adopt the recommendations in the industry position paper we have published today and to take back control of the destiny of the industry.

“The industry stands ready to play its part – and we have set out the ways in which we will work to create new efficiencies and productivity across the sector.”

Caribbean sugar
Stakeholders met in Jamaica to discuss future of regional sugar industry

The workshop brought together industry leaders and policy makers to inform and facilitate an in-depth discussion of how the Caribbean sugar industry now needs to adapt to the new market realities and the policy options which are available to both industry and regional governments.

The EU's quota management for sugar will end on 30 September 2017 and is expected to lead to a fall in prices towards the international sugar price and a decrease in sugar imports from the ACP, with particular impact on Caribbean producers.

According to Managing Director of the Caribbean Council commented, Chris Bennett, “The exciting range of ideas and opportunity which have been presented by Caribbean industry specialists over the past two days demonstrates that Caribbean sugar can be a modern and high value component to the 21st Century Caribbean economy.

“The framework for trade needs to be modernised also – to reflect that the Caribbean no longer can or should depend on the EU market as a guaranteed buyer. The trade and tariff policies required are straightforward and applied all around the rest of the world – there is an urgent need for the Caribbean Single Market and Economy to put in place the equivalent protections as soon as possible.”

Earlier, a senior official of the CARICOM Secretariat had warned that the ability of sugar industry in the region to survive after the removal of production quotas in the European Union on September 30, will depend on improved competitiveness and pragmatic diversification options.

The end of EU’s quota management for sugar is expected to lead to a fall in prices towards the international sugar price and a decrease in sugar imports from the African Caribbean and Pacific (ACP) states, with particular impact on Caribbean producers.

CARICOM Secretariat Programme Manager, Agriculture and Industry, Nisa Surujbally, said that securing more remunerative markets, value addition and an enabling policy regime within the CSME were also very important to the industry’s survival.

“We have witnessed major structural changes in the operations of our sugar industries, including the exit from sugar production of two Member States, Trinidad and Tobago and St Kitts and Nevis. Nevertheless, we are mindful of the vital role and contribution of the sugar sectors to the economies of Barbados, Belize, Guyana and Jamaica.

“Survivability of these industries, after the removal of production quotas in the EU on September 30 2017, will in no small measure be a function of improved competitiveness, securing more remunerative markets, value addition, an enabling policy regime within the CARICOM Single Market and Economy, and, not lastly, practical and pragmatic diversification options.

“I say this as a technical official while being acutely aware of the emotional associations we have with our Region’s oldest economic sector. This industry is responsible for us being here and has coloured our history from colonisation, to slavery to indentureship and to independence. It is not an easy time! Now is crunch time”, she said.

Last modified onTuesday, 28 March 2017 07:49
  • Countries: CARICOM