Cautious optimism on EC’s sugar subsidies challenge
JAMAICA and other African, Caribbean and Pacific (ACP) states are cautiously optimistic that a challenge to the European Commission’s (EC) sugar regime by Brazil and Australia in the World Trade Organisation (WTO) will not progress beyond the stage of consultations.
Speaking at a meeting yesterday to brief stake holders in the sugar industry on the outcome of WTO consultations on the EC’s export subsidies for sugar, Minister of Foreign Affairs and Foreign Trade KD Knight reported that following talks with EC trade and agriculture commissioners, the EC is confident that its sugar regime is compliant with WTO rules.
Knight cautioned that “if the regime is successfully challenged then the price paid to ACP sugar producers will be negatively affected as this is based on the price paid to EU beet sugar farmers”.
The trade minister noted that ACP member states are taking a proactive approach to the challenge lodged in the WTO by Brazil and Australia, two of the world’s biggest sugar exporters, that the EC subsidies are depressing world prices and reducing their earnings.
Knight noted that the ACP group is already examining the provision of legal representation on behalf of the ACP sugar producing states should the consultations fail, and progress to the quasi-judicial process, which is the establishment of a panel. He added that in the interim the ACP countries will be embarking on various diplomatic initiatives with Brazil and Australia.
Representatives of the unions expressed a commitment to work with the Ministry of Foreign Affairs and Foreign Trade to sensitise workers in the sugar industry about the developments taking place and the kind of adjustments that may be needed for the survival of the industry.
It was agreed that Jamaica must begin to explore alternative approaches that could be taken with the parties in an effort to find a mutually satisfactory outcome to the dispute.