Regional sugar body urges goverments to honour trade policies

The Sugar Association of the Caribbean (SAC) is of the belief that if the Caricom Single Market and Economy (CSME) cannot work for sugar, it will not work for anything.

The association’s statements were in response to the recent decision by the Caribbean Court of Justice (CCJ) on a challenged filed by Belize against Trinidad and Tobago of an alleged failure by the latter to apply the common external tariff (CET) on brown sugar imported from outside the region from November 2018-June 2020.

Although Belize lost the claim, the CCJ judges, in their ruling, emphasised the importance of maintaining the CET, especially on the importation of brown sugar from extra-regional, as it was important to member states which produced the commodity.

"In the present circumstances, this court re-emphasises the importance of maintaining the CET especially in respect of a product such as brown sugar which is of demonstrable importance to the member states such as Belize which manufactures that product.

"...The CET does not guarantee producers of sugar in Belize an assured market, but those producers are entitled to the protection of the market that the tariff is intended to provide." The court also urged the community work towards concluding the monitoring mechanism for sugar as quickly as possible to ensure that the benefits intended to ensure to the regional sugar producers are not frustrated and impaired.

In its statement, the SAC said the non-payment of the 40 per cent CET on imported extra-regional brown sugar was a direct violation of the Revised Treaty of Chaguaramas (RTC).

“SAC saw distortions in the regional sugar market and started collecting data to track sugar flows, particularly, into the region. After analysing and sharing the information, collected over the past three years, and recognising the downward trends in the market, Belize saw the need for a legal challenge.”

The SAC's statement said its producers have noticed increasing opportunities to market their brown sugars within Caricom as a result of this case and will continue to monitor carefully extra-regional imports and community pricing.

"Protection of the brown sugar market as set out in the RTC is one small contribution to maintaining the regional sugar industry’s viability,” the statement said.

The association’s chairman Karl James also said, “This case highlighted the lost opportunity in the Caricom market for regional sugar producers and signals to everyone that SAC will continue to actively monitor the Caricom markets sugar flows.”

“SAC views the CCJ decision’s statement on the CET as a call for Caricom member states to honor the policies set out in the RTC, and let the CSME work as envisioned to the benefit all member states,” he said in the statement.

“SAC also implores the community to operationalise the monitoring mechanism agreed at the Council for Trade and Economic Development (COTED) for regional sugar flows that will help to provide veracity to the CSME policies regarding sugar,” the statement urged.