The World Trade Organisation (WTO) could well be the last resort for the sugar sector in Mauritius and African, Caribbean and Pacific (ACP) countries. According to the minister of Agro-industry, Arvin Boolell, who held a brainstorming session with all sugar stakeholders at Domaine Les Pailles last Saturday, sugar could be registered on a list of sensitiveproducts – which would be exempt from multilateral negotiations and dealt with in a different way.

All stakeholders seem to be in a fighting mood to save the sugar industry. The minister insisted on the fact that the sector is still alive and that Mauritius will continue to fight until the very end. “This sector is so important for our economy that we will overcome all the difficulties,” Arvin Boolell said to galvanize the whole sector. A diplomatic offensive appears to be the best solution to put pressure on international institutions and “make our partners understand how important the sector is for our future.”

The minister seems to have accepted the fact that the European Commission (EC) will not lift a finger to help ACP countries in their fight to avoid the 39% drop in sugar export prices. On the contrary, Arvin Boolell feels the EC is obsessed by a drastic price decrease. This is why he now thinks the WTO is the only way out for ACP countries.

“It is a paradox that the debt cancellation for poor countries and the end of the sugar protocol are mentioned at the same time,” explains the minister. This is what Mauritius intends to tell the European Union (EU) at a special meeting of the United Nations on the millennium agenda for Africa to be held in New York in September.

Mauritius will ask for a mini-summit between ACP countries and the EU, which will hopefully support them in their efforts. Mauritius indeed relies much on some EU governments to make ACP countries heard by the bigger powers. To achieve their goal, all ACP countries will have to show unity and solidarity so as to make themselves heard on the international scene.

On the local stage, there is a huge task as well for the government. The latter can’t afford to wait and see what will happen at the EC or WTO before making arrangements to avoid economic and social disasters. All people involved in the industry have to survive – with or without the sugar protocol. This is why the minister has committed himself to accelerating the reform of the industry. He thinks that the project “is behind schedule” as the reform should have started before 2001.

Production costs should decrease

Arvin Boolell wants to ensure that small planters and employees of the sugar industry in general will be given the opportunity to share the capital of sugar companies. He also intends to give special treatment to producers in poor regions. “Mauritius can’t at the same time ask for special treatment from the WTO and refuse such treatment on a local level.” Production costs should also be decreased.

The minister believes in the diversification of sugar cane. The production of electricity and ethanol are the two main possibilities. It seems the technical aspect is already settled and a change in policy should help start diversification.

Even if Mauritius succeeds in avoiding the 39% drop this year, the sugar protocol will come to an end one day. This is why the reform is important and should not be abandoned in any case. Diversification will, of course, cost much money. This is where the financial compensation by the EU is crucial to help Mauritius out of this tough situation.