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Dept for International Development

Answer

Mr. Foulkes: To ask the Secretary of State for International Development (1) what assessment his Department has made of the impact that a three-year transition period and a price reduction on sugar would have on the sugar industry in Jamaica; [200239] (2) what studies his Department has undertaken into the effects that the European Commission's proposed price reductions on sugar would have on the sugar industry in (a) Jamaica and (b) the wider Caribbean region. [200240] Mr. Gareth Thomas: DFID recognises that the reform of the EU sugar regime will have a significant impact on the sugar industry in Jamaica and the Caribbean, and hence on many communities already among the poorest in the region. The impact of EU reform will vary between countries, and will depend crucially on the policies that Caribbean countries adopt with regard to their sugar industries. The Government of Jamaica are bringing together representatives of the Government, the sugar industry, academia, trade unions, and other civil society organizations to identify possible future scenarios for Jamaica's agricultural sector. The exercise will develop a relevant and practical action plan for the future, which will be passed to the Government of Jamaica for consideration and action. The impact of EU reform will also depend on the transitional assistance available. On a parallel track, DFID is working to ensure that the EU offers the most effective possible package of transitional assistance. In order to help inform the debate and ensure the impact on developing countries is taken sufficiently into consideration, DFID commissioned a study last year with LMC International and Oxford Policy Management, `Addressing the Impact of Preference Erosion in Sugar on Developing Countries'. The study is divided into two sections. The first part assesses the economic and social impact on the African, Caribbean and Pacific Countries (ACP) Sugar Protocol countries of the various reform scenarios suggested by the European Commission. The second part of the study assesses alternative options for addressing the impact of preference erosion in sugar. The purpose of this analysis was to identify various options for debate by the ACP and the EU. DFID has recently commissioned two further pieces of work on this issue: from LMC International, 'EU Sugar Reform: the Implications for the Development of Least Developed Countries (LDC)s' and from the Overseas Development Institute: 'Forthcoming changes in EU sugar/banana markets: a menu of options for an effective EU transitional assistance package'. This latter report should help those countries affected by reform determine their priorities for a transitional package. It also includes some analysis of alternative uses for sugar. DFID is now following up this work by commissioning a series of country profiles for those Caribbean countries that will be affected by the change in the EU trade regime. The principle objective of these profiles is to identify a specific menu of options for an effective competitive fund package, which addressees the impact of sugar reform at both the national and the household level.

Secondary information

Type

Written question

Reference

428 c185-6W; 200239;200240

Session

2004-05

Subjects

Decreases Prices Reform Sugar Caribbean Jamaica Common sugar regime