Caribbean states call for EU compensation

Caribbean countries have called for EU compensation following January’s overhaul of subsidised sugar prices.

On Wednesday officials from three Caribbean countries called for Brussels to step up compensation for losses suffered.

The delegation says the trip highlighted “the social and economic dislocation that will be caused by the 36 per cent reduction over the next four years in the price of sugar sold to Europe.”

“We want the Europeans brought up to date as to how the changes they are making are impacting us in the Caribbean,” St. Kitts prime minister Denzil Douglas insisted.

Government officials from St. Kitts and Nevis, Guyana and Jamaica met European commission president José Manuel Barroso to ask for more yearly aid in 2007-2012.

The EU has earmarked €40m in aid for 2006 but Douglas dismissed this as "paltry."

"There is a grave concern in the Caribbean region. We need to get a fair deal," Douglas declared.

In December the EU executive proposed offering €190m a year to Caribbean producers until 2013.

EU member states have since suggested the fund start at €130m in 2007 and peak at €170m in 2013.

The final amount will depend on the EU's 2007-2013 budget, which is yet to be agreed.

The January deal

In January the WTO forced Brussels to reform its nearly 40-year-old sugar policy after declaring it illegal.

So a reduction in subsidies for Europe's sugar farmers was agreed - but many former European colonies also suffered as they had enjoyed access to the EU subsidies.

EU farmers wishing to abandon growing sugar beet were offered compensation amounting to 64.2 per cent of revenues lost.

The Caribbean contingent say they are seeking the same kind of compensation and assistance given to European farmers.

Douglas said Caribbean sugar producers would like to receive some of the money from the proposed EU fund upfront, rather than wait for instalments.

"If this is not revisited, it could lead to social upheavals, economic instability and political unrest," he argued.

"We had to borrow €10m just to compensate our people.”

But if the EU’s long term budget is less than proposed, Brussels will struggle to pay the full €190m originally proposed by the commission.

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