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The end of an era?

5 juillet 2004, 20:00

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There is no time to lose. The deputy prime minister, Pravind Jugnauth and the Agriculture minister, Nando Bodha are already in Europe to start their campaign to save the sugar protocol of African, Caribbean and Pacific (ACP) countries. Lobbying is the first step to try and change the situation. The protocol is threatened by the possible adoption of a “leaked paper” from the European Agriculture Commission. The consequence of the adoption of this proposal is that export revenues of all ACP countries may drastically fall.

The ACP countries benefiting from the protocol rely on sugar for a great part of their revenues. In Mauritius, for instance, sugar represents around 17% of our export revenue, which is not negligible. The proposal by the EU intends to make prices drop by 37% – a catastrophe for all ACP countries and Mauritius particularly. According to Jean-Noël Humbert, of the Mauritius Chamber of agriculture, the revenue of Mauritius will fall drastically. Nearly half of the lands are under sugar cane cultivation at the moment and the government does not have the financial means to do anything else with them.

This is why the government intends to lead an intense diplomatic campaign in the coming weeks. The campaign starts in Brussels this week where the two Mauritian ministers should meet the European commissioner for agriculture, Franz Fieschler, as well as other European leaders like the Agriculture ministers of France, Belgium and Austria. They will thus discuss the issue – the importance of sugar for the ACP countries – with the persons liable to help.

Likewise, the prime minister has already started sending letters to European leaders, particularly those who have always had privileged relationships with Mauritius like Jacques Chirac and Gehrard Schröder. The many international meetings that will take place soon, like the ACP summit and the G90 especially, will also be occasions to try and find solutions with other countries concerned.

The government is however conscious that measures must also be adopted in Mauritius. As a result, Paul Bérenger asserted that “the government will first have to tackle all the unfinished business of the Sugar Sector Strategic Plan.” There will also be new measures to implement like the decrease in production costs but these will follow once the “unfinished business” has been tackled.

The prime minister gave assurances that the opposition leader would be kept informed on the issue as it goes beyond political interest. Labour MP and former minister of Agriculture Arvin Boolell agrees. “At the National Assembly, we have shown our desire to share ideas so as to find the best solution.”

The government is far from being the only one to care about the threat over the price of sugar exports. Representatives of the public and private sectors with the EU have started their own lobbying.

All ACP countries are concerned and will suffer from a drastic and short-term fall in prices but Mauritius has a lot more to lose. The country has benefited from the highest export quota of all ACP countries so far with 491,030 tons. According to Arvin Boolell, “we have to make sure that there is solidarity between ACP countries (…) The latter have just realised that they have everything to lose if they do not stick together, as a united group.” For instance, he believes that the minister of Agriculture should go to Brussels with ACP countries’ representatives. “to empower the efforts of lobbying.”

Mauritius will have to wait until the 14th of July to see if the proposal is adopted by EU member countries. This deadline, however, gives the government and all stakeholders more time for their lobbying to achieve a change in the proposal. What the ACP countries hope is that the eventual fall in price be less than 37% and also that it be spread over the largest possible time-span. At the same time, they wish that the drop in prices be fully compensated

If ever there is a significant fall, the government wants enough time to find solutions to save jobs and stabilise the economic situation in the country.

The EU is expected to make an effort with compensation programmes. What they intend to do for the moment is to give European sugar beet producers direct income support. For the time being, the ACP producers have hardly been taken into account regarding compensation…

<I>Mauritius will have to wait until the 14th of July to see if the proposal is adopted by EU member countries. This deadline, however, gives the government and all stakeholders more time for their lobbying to achieve a change in the proposal.</I>

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