Government seeks funds from EU for banana industry

Monday, April 12, 2010 – The government of Saint Lucia has submitted draft proposals to the European Union (EU) for support funding to assist the banana industry.

Agriculture Minister Honourable Ezekiel Joseph, announced the proactive step in response to renewed challenges facing the industry, such as the decision by the EU to pursue a banana deal reached with Latin American countries and the United States last December.

Under the deal, Latin American countries will enjoy benefits of reduced tariffs on their bananas exported to Europe, making it extremely difficult for banana exports from African, Caribbean and Pacific (ACP) states to compete on the European Market.

Minister Joseph says the island’s Prime Minister, Honourable Stephenson King, will lead a delegation to Brussels to negotiate with the EU to discuss the proposals and negotiate assistance for Saint Lucian farmers who will be affected by the deal.

“One of our major problems with the industry is our low production patterns which have been experienced over the years. This has impacted negatively on our farmers returns, so we need to have a different approach towards the industry, and give the farmers the necessary support to enable them to increase production.”

Often described as a compensation package, the ten ACP member states affected by the deal have been offered 190 million Euros or US$258 million, in addition to development aid from the European Development Fund.

Minister Joseph says Saint Lucia is targeting 10 to 15 million Euros from the direct compensation which has been allocated, but explains that there are some requirements for accessing the funds.

“Going around and speaking to farmers you get the feeling that the compensation allocation is for Saint Lucia. However, that is not the case. The money is for the ACP member states and Saint Lucia is only one country in that grouping. I also want to dispel the untruth that the money is for the Banana Industry; it is for the entire agriculture sector, the minister explained.

“We will not wait until we get feedback from Brussels; I think we need to go up and articulate our position because the project is over a three-year period ending in 2013. The money will be disbursed in phases. What we are saying is if we get the funds front loaded, come 2013, we will be in a better position to compete.”

Minister Joseph says the European Union has stipulated that the compensation funds must be utilised in three broad areas: increased productivity, diversification, and enhanced social safety nets particularly in agricultural communities.

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