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Contact:
John Emmanuel
Wednesday, August 03, 2005 - The holding of region’s economy ransom by
international agreements which care little for the constraints of small size,
lack of economic diversity and vulnerability to external economic shocks has
once again been underscored. Prime Minister Honourable Dr. Kenny Anthony made
the statement Monday August 1st in his weekly radio address ‘Conversation with
the Nation’.
Reiterating his government’s firm commitment and support for the banana
industry, Prime Minister Anthony said the decline in the sector was due largely
to global forces of over which regional governments have little control. Those very
forces he said are now affecting the region’s sugar industry with severe
contractions and major economic and social displacements set to occur in Guyana,
Jamaica, Belize, Barbados and St. Kitts and Nevis.
Based on the latest proposed European Union (EU) Commission regime on the sale
of white sugar, effective 2006 guaranteed prices will be cut by 39% over a four
year period. The proposed cuts according to Dr. Anthony will reduce earnings of
African Caribbean and Pacific (ACP) sugar producers by US$400 million annually.
ACP states Dr. Anthony said were not opposed to reforms in the industry but like
what happened with Windward Island bananas he said the proposed cuts in prices
on the part of the EU “are too deep, too soon and too short.”
OECS sister state St. Kitts and Nevis Prime Minister Anthony said was the first
causality from the assault on sugar, with the sugar industry there leaving a
debt of over $350 million. “Could you have imagine what would have happened in
Saint Lucia if this government had allowed the debt of the old Saint Lucia
Banana Growers Association (SLBGA) to go above the EC$45 million which it
inherited in 1997.” He said in light of moves toward globalization, preferential
arrangements represented an economic lifeline for ACP states. He said as in the
case of bananas, aid from the EU designed to cushion the effects of the new
trading arrangements provided little or no relief. A 40 million Euro or EC$120
million aid-package has been described as grossly inadequate by ACP sugar
producers.
According to Dr. Anthony, “To begin with, the proposed aid programme is simply
too small. Imagine the sum of US$48.3 million to be divided among 18 ACP states.
It’s obvious that when this amount is shared between the respective countries it
will be wholly inadequate to compensate for the loss of earnings resulting from
the proposed cuts.”
Dr. Anthony said the unfortunate lessons currently being learnt by way of the
region’s sugar industry in more ways than one, flies in the face of critics who
say government is responsible for the demise of the banana industry.
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