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11/24/2005:

"Sugar producers see crisis ahead"

...European Union ministers are discussing proposals to slash subsidies for sugar exports from African, Caribbean and Pacific states by 39%.

The move follows a World Trade Organisation ruling that the above-market prices paid to European sugar producers - and to those in former colonies which have special access to EU markets - constituted unfair trade.

But the 18 sugar producers among the 79-strong group of ACP countries - including Mauritius, Swaziland, Fiji, Mozambique, Barbados and Kenya - say their developing economies are ill-equipped to deal with the cuts and are warning of social upheaval if the proposed reforms go ahead.

"We want a reform that is just and fair and not a reform which is going to have such a violent disruption to our economies," says Arvin Boolell, Mauritius' agriculture minister and spokesperson for ACP sugar-producing countries.

We have never gone around with a bowl in our hands... and yet we are now being penalised for our efforts
Navin Ramgoolam, Mauritius Prime Minister

"The effect of the price cut is going to be so devastating that we are talking of massive poverty and social upheaval," he says, adding that many ACP countries are net food importers who will not be able to provide basic staples and medicine if the reforms go ahead.
bbc.co.uk

Ah the wonders of 'free trade.'