ACP Fiji meeting centred around future of sugar
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| Published on Saturday, May 12, 2007 |
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GEORGETOWN, Guyana (GINA):The new European Union (EU) sugar regime and the future outlook of sugar amidst the restructuring process, coupled with areas pertinent to improved trade relations were the highlights of the tenth Special African, Caribbean and Pacific (ACP) Ministerial Meeting in Fiji.
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| Ministerial members who attended the 10th Special African Caribbean and Pacific (ACP) ministerial meeting in Nadi, Fiji |
Guyana's Minister of Foreign Trade and International Cooperation Dr Henry Jeffrey, the Caribbean Community’s (CARICOM’s) Ministerial spokesperson on sugar said discussions were focused around research projects such as the alternative use of sugar, diseases and irrigation of sugar crops that the ACP would like to see developed for implementation in member States. Over 13 million Euros have been allocated for this venture.
Over the years, the EU has been offering the ACP the reference price for sugar but, given the new scenario of the restructuring of the EU sugar regime, the ACP countries believe that it is time to re-negotiate the prices, taking into consideration several factors, including new freight and insurance costs, the Minister said.
The EU proposed removal of tariffs and quotas on all exports except rice and sugar from the ACP group of countries, as part of its Economic Partnership Agreement (EPA) negotiations with the member States which also dominated the meeting, he said.
Under the EU's market access proposal, quotas and tariffs for most of the ACP products including beef, dairy, cereals, fruits, and vegetables would be immediately lifted upon the signing of an EPA.
The duty and quota import regime for sugar would be phased out by 2015, with volume-based safeguards for exports from the relatively richer ACP countries.
The terms for rice are not yet completely determined but the EU has indicated that the transition period would be brief, with a duty-free import quota, Jeffrey said.
He noted that the Europeans have offered a transition period for sugar which starts in 2007 and goes up until 2009 when they intend to maintain the sugar protocol for the most part with substantial access for both least-developed countries (LCD) and non-LCDs of the ACP. From 2009, the EU intends to further liberalise the market.
The ACP countries have been arguing for maintaining the benefits of the sugar regime as opposed to those offered by the sugar protocol, however, this sugar protocol holds certain benefits that should be transferred into any EPA since the European offer is made within this context, the Minister said.
The Trade Minister pointed out that some aspects of the EU offer are vague and correspondence was sent by the EU to Dame Billie Miller, Minister of Foreign Affairs and Foreign Trade in Barbados and Chair, ACP Ministerial Trade Committee to facilitate discussions and clarifications on the issues.
The ACP countries have maintained that the EU and the World Trade Organisation (WTO) have committed to maintaining the benefits of the sugar protocol in any new arrangement but the framework provided so far has not maintained those benefits in the EPAs.
The Sugar Protocol is a legally binding inter-governmental agreement between the ACP signatory States and the EU with obligations to be met by all contracting parties.
As a consequence, any reform of the EU Sugar Regime must respect the rights and obligations enshrined in the Protocol.
The agreement, which was signed in 1975, guaranteed access to the EU market for fixed quantities of ACP sugar at preferential prices over an indefinite period.
Developing nations from Latin America and Southeast Asia, that were dissatisfied with the advantageous access enjoyed by the ACP, reported this arrangement under the WTO regulations as a violation of free trade and in 2001, they won an agreement under which WTO members allowed the EU to maintain its preferences for the ACP until the end of 2007, after which they would be replaced by two-way free trade agreements that would not need a waiver.
Since 2002, the EU has been negotiating with each of the six ACP geographical blocs to establish these EPAs. | | | | Reads : 183 | | | |
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