BY JYOTI PRATIBHA
The stance taken by the European Union on the sugar quota was a hot topic of discussion at the organisation meeting in Nadi yesterday.
The workshop currently underway at the Sofitel Resort and Spa in Nadi discussed the repercussion EU’s decision would have on the sugar industry of African, Caribbean and the Pacific (ACP) countries.
Currently, European Union allows sugar into their market without any duty imposed, an arrangement which may come to an end in 2015.
Prime Minister Commodore Voreqe Bainimarama who is also the chair of the International Sugar Council highlighted the importance of urgently negotiating the EU economic partnership agreement.
The ACP sugar-exporting countries, including Fiji, are seeking a five-year extension of the EU-ACP quota system from 2015 to 2020.
“These additional five years will give ACP countries added security as they continue to restructure, modernise and diversify their sugar cane industries to meet today’s challenges and demands.”
For the Pacific ACP region, the issue of highest priority is the negotiation of a comprehensive Economic Partnership Agreement (EPA) with the EU, which in terms of sugar, would allow for continued duty-free access to their marketplace.
Problems with the interim agreement
Commodore Bainimarama said the interim agreement that the countries are working with is highly problematic.
The EU has announced that Pacific countries that do not ratify this interim agreement by 2014 will lose duty-free access, including for sugar.
“An EPA that addresses the contentious issues and aspires to the region’s development goals is the only answer,” Commodore Bainimarama said.
Sugar industry in Fiji
Commodore Bainimarama said Fiji faced a unique challenge- the renewal of long term leases for sugar cane farming.
“These lease renewals – which were only given for thirty years – limited the ability for farmers to properly commercialise these holdings.
“Not only that, land tenure was also highly politicised, fuelling insecurity and uncertainty for both landlords and farmers.”
He reaffirmed Government’s stance on ensuring that no stone was left unturned in assisting Fiji’s sugar industry.
“Land that had fallen fallow is being replanted, more long-term leases are being renewed, confidence is growing, stability is returning and a revitalised industry is beginning to take root.”
Raising questions
Organisation executive director Peter Baron, during discussions, also raised questions regarding EU aid to the sugar industry, through non-Government organisations.
Fiji Sugar Corporation chief executive Abdul Khan, in response, informed the group that the aid was not assisting the Fijian sugar industry.
He said there was not much benefit in funds from the EU.
Mr Khan said the funds which came via NGOs were not given to the sugar industry in terms of increasing yields. It was given more as supplementary income.
He said that the sugar industry was not just farmers and the entire chain needed to be looked at.
“This is the real danger that I see with money coming in from EU,” he said.
Mr Baron said it would be worthwhile to see a more balance distribution of funds from EU, if the Fijian sugar industry was to be assisted.
Fiji Sugar Corporation executive chairman Abdul Khan in meeting discussion with Nigerian’s Samuel Ali Kwabe during the International Sugar Organisation meeting at the Sofitel Fiji Resort and Spa on Denarau Island in Nadi yesterday. Photo: WAISEA NASOKIA