The European Union (EU) Agriculture ministers met yesterday in Brussels to discuss the sugar reforms proposed by commissionner Mariann Fischer Boel earlier in June. The Mauritian side has, up to now, left no stone unturned to express its concern about the forthcoming drastic price cuts.

Whilst Agro-industry minister Arvin Boolell was lobbying at all levels in Brussels last week, stakeholders of the local sugar industry have taken to the streets alongside European beet sugar producers to protest against the reform plans of the European commission. “We need to tell the EU that such price cuts would be disastrous for ACP countries”, stressed Jacques d’Unienville, president of the Mauritius Sugar Producers’ Association. Christian Foo Kune, president of the Chamber of Agriculture, Lutchmun Roy, president of the Plantation Workers’ Union, and Greedharry Jugessur, a small-scale planter, are part of this delegation, whose participation in the demonstration has been approved by the government.

Last Wednesday, minister Boolell made a concise and forceful statement at the hearing of the European parliament on the reform of the EU organisation for sugar. As spokesperson of the 18 ACP countries, signatories of the Sugar Protocol, he stressed that the present reform has a bitter taste.

More than a simple trade agreement, Arvin Boolell said, the Sugar Protocol is part of the ACP culture, having contributed to political emancipation and guaranteed social stability and mobility. “The proposed drastic cuts in the sugar price do not go in that direction and, if adopted, they will threaten the already precarious livelihood of our poor farmers and workers who do not have an alternative source of income.”

Arvin Boolell explained that the 39% cut cannot be justified by mere reliance on WTO rules. “Neither the WTO Panel and Appellate Body rulings nor the 2004 WTO July Framework Agreement on Agriculture require a drastic cut in price of 39% over a short period. If upheld, it will cripple our vulnerable economies. This is unjust and unacceptable for the ACPs.”

Since the inception of EU sugar reform negotiations, ACP countries have been asking for less drastic price cuts starting from 2008 onwards. Producing sugar at lower prices will entail further reforms in Mauritius. However such reforms will not be possible if sufficient funds are not made available. Up to now, only Great Britain, current chair of the EU, has come up with satisfactory financial proposals, some 500 millions euros per year.

<B>Crippling effects </B>

On this issue, minister Arvin Boolell said, in his concluding remarks: “All financial resources should be provided upfront to the ACP states concerned so that they can prepare to adapt to the reform proposals and thus improve the competitiveness of their sugar industries in order to operate in a post reform situation.”

The crippling effects of the sugar reforms were also discussed last week at the House of Commons. MPs have shared similar views expressed earlier on by ACP countries.