After a long series of ominous reports for the sugar sector, Pravind Jugnauth’s latest lobbying campaign in Europe last week seems to foretell more positive results. “I don’t think that the new sugar regime of European Union will be implemented in 2005,” the deputy prime minister and minister of Finance told the press as soon as he came back.

French minister of Agriculture Hervé Gaymard’s attitude also points to the fact that the sugar reform proposed by EU agricultural commissioner Franz Fischler and involving a 37% drop in sugar prices, should not occur before 2006. “Negotiations will really start next year during springtime and should end by the beginning of 2006.” His short visit to Mauritius last week and his meeting with Pravind Jugnauth were quite encouraging for the country: “We are with Mauritius to help it defend its legitimate expectations before the EU and the World Trade Organisation,” he declared.

Pravind Jugnauth had already noted that there was a change in the behaviour of the European countries: more flexibility could be felt. “The European ministers we met looked conscious that, as African Carribean and Pacific (ACP) countries have said since the very beginning, the reform is too sudden and we need more time to prepare ourselves and adapt to this new situation.”

<B>Longer transition period desirable</B>

The minister insisted on the “disaster” the ACP countries would face if the 37% drop were to be implemented as such. This is why the Less Developed Countries have asked that the transition period be changed from 3 years to 10 years. As for the ACP countries, they are not sure yet whether they will need 10 years, but they nevertheless know that 3 years are definitely not enough to adapt to this new situation.

Likewise, ACP countries are conscious that a reform is inevitable. With the WTO decision to cut subsidies for European producers of sugar on the request of Brazil, Australia and Thailand, they don’t have the choice. However, Europe also has to realise that ACP countries will not be able to go below a certain rate. This would mean the demise of the sugar sector – and the agricultural sector at large – in Mauritius and other ACP countries as well.

“The sugar protocol is not only a commercial agreement. It is first and above all a development tool for ACP countries. The latter insisted on the fact that the EU has to abide by article 36 (4) of the Cotonou Agreement for the legal status of the sugar protocol and for the need to preserve ACP advantages,” Pravind Jugnauth explained.

Although nothing is certain yet, the change in behaviour of European ministers – including that of Luxemburg, who will preside the EU from January to June 2005 – allows more hope. But, as the French minister of Agriculture states, “The negotiations have not started yet and and no one can forehell the outcome.”