Foreign trade minister Eamon Courtenay returned from a lobbying tour of European capitals this week.
The subject was Belize's Sugar Industry imminently imperiled by large sugar producing countries who want to outlaw the preferential treatment given to small sugar producing countries in the European market. But Courtenay argued to the world trade dispute panel in Geneva Switzerland that the European Union committed to the deal on quotas long ago and now it must honor its word.
In an interview today, he told us more and discussed what's at stake.
Eamon Courtenay, Minister of Foreign Trade
"If I was to forecast our chances I would definitely say we are battling uphill and speaking to the European Commission, we are not very hopeful they will win the case. The effect of that will is potentially lower prices for our sugar into the European Union. We had a meeting yesterday with the Cane Farmer's Association and BSI and disclosed to them the results of our lobby effort and our presentation in the WTO case.
Jules Vasquez,
"And so, they are looking at a situation where sugar prices are already appreciably low on the world market."
Eamon Courtenay,
"The point is that we sell 48% of our to the EU at 3X world market prices per ton so that's good for us and we also have our quota to the United States for 10 or 12,000 ton where we get a good price as well. The rest we sell into the CARICOM and the price there is good too. But a significant amount is on the world market and the price is so low that we loose money. What we are saying is that first of all, we should be allowed continuing market access in the EU because even if we loose that case, it doesn't mean that they cannot pay at a preferential price. There will be some new arrangement worked because remember I said the WTO does allow some special or preferential treatment granted to developing countries so some re-arrangement will be worked out. What we were arguing or trying to convince the EU commission and United Kingdom government of is that we need help now, not at the end of this process. We need help now to make BSI more competitive. When we say that, there is a study that was recently completed which says that Guyana has the best chance in the Caribbean of a long-term future for sugar. Belize is the only other country that has the possibility for a long-term future in sugar but we need to do a lot of improvements to the domestic competitiveness of our market, of our sugar production - better harvesting, marketing, and transportation system. What we are saying to the EU is help us with that now. Belize can become competitive in the long run so help us with that now. That basically was the lobby we were trying to push them, regardless of what is the outcome of the case we need to reform our industry. Government has started it, the cane farmers have started it, help us along with that. The basis of that of course is under the agreement we have with the EU, if they lose that case they have to compensate us."
Jules Vasquez,
"On what basis?"
Eamon Courtenay,
"That's the good point and why I think there is a difference between us and our Caribbean brothers. Take for example St. Kitts, they have no future in sugar so what will be done is a economic impact. They calculate the effect of the change and here is a check over 4 or 5 years whatever the case may be. In the case of St. Kitts, they will say give me a check I have no future in sugar give me a check for compensation and take it."
Courtenay also lobbied in Belgium and the United Kingdom.