The Secretariat of the African, Caribbean and Pacific Group of States

 

Mr. Prime Minister,

Colleague Ministers,

Excellencies,

Turanga Tui Nadi and the Chiefs of Fiji

Invited Guests

Ladies and Gentlemen

1. Allow me first of all to take this solemn opportunity of the traditional Fijian welcome ceremony, to extend, on behalf of representatives of the ACP Sugar supplying States and other organizations and institutions present here, our deep appreciations to the vanua of Narewa for their warm hospitality.  I would also like to thank the authorities for the elaborate arrangements that have been made to ensure the success of the 10^th Special ACP Ministerial Conference on Sugar.  Let me say that we are very happy to be here in Fiji.

2. Fiji is hosting this Biennial Ministerial Conference on sugar for the third time.  This demonstrates the importance which Fiji, the second largest ACP sugar supplying state under the Sugar Protocol, attaches to the sugar industry whose history and development is intimately linked to the plantation economy as part of the legacy of our colonial past. Indeed, it has become an important component of our cultural life as well as our economic and political emancipation and social mobility.  This process has been facilitated by the effective implementation of the Sugar Protocol which succeeded the then Commonwealth Sugar Agreement on the accession of the United Kingdom to the European Communities in the 1970s, and the subsequent conclusion of the first Lome Convention in 1975.

3. This Conference could not have come at a more opportune and critical time when the Sugar Protocol is facing an unprecedented challenge.  Indeed, its very survival in its present form is being threatened.  Therefore, more than ever before, all the Sugar Protocol ACP States and the ACP Group as a whole, should demonstrate their strong unity and solidarity in defence of the triple guarantees enshrined in the Sugar Protocol, namely an annually negotiated  remunerative price, access for at least the “agreed quantities” with the EU  remaining legally bound, as a buyer of last resort, to purchase these quantities and the special legal status of the Sugar Protocol on account of its indefinite duration.  These guarantees differentiate the Sugar Protocol from the other commodity protocols.  Unlike the Sugar Protocol the life of the other Commodity Protocols is co-terminous with that of the successive Lome Conventions and Annex 5 of the Cotonou Agreement.

4. The Sugar Protocol has stood the test of time as the single most important model of North South Agreement on a commodity with a strong development dimension.  Since its inception in 1975, the Sugar Protocol has played a multifunctional role and, as such, has significantly contributed to the sustainable development of the ACP Sugar Supplying States.

5. While we are still trying to adapt, at great economic and social cost, to the serious adverse effect arising from the recent reform of the EC Sugar Regime, in particular the drastic 36% cut in the guaranteed price, we have now to face the onslaught of the European Commission’s offer on market access including sugar, in the context of the negotiations of the Economic Partnership Agreements.  The EC offer is tantamount to an attack on the Sugar Protocol. And this is unacceptable.

6. Moreover, with the unprecedented reform of the EU Sugar Regime whose burden has been disproportionately imposed on the ACP Sugar Protocol countries, we are implementing bold and painful multi-annual adaptation strategy, in order to adapt to make our sugar cane industry sustainable and competitive.  In this respect, we welcome and appreciate the support of the EU to finance our adaptation strategic plans.  But the recent EC offer on market access under EPA will have serious negative effects on the implementation of the strategic plans for many ACP states.  We, therefore, like to appeal to the EU to pay particular attention to this.

7. Such an EU approach will be in full compliance with the oft-repeated position of the European Union to ensure coherence in its agricultural and trade policies with its development cooperation policy.

8. It is to be recalled that under Article 36(4) of the Cotonou, the ACP and the EU have reaffirmed “the importance of the commodity protocols, attached to Annex V of this Agreement.  They agreed on the need to review them in the context of the new trading arrangements, in particular as regards their compatibility with WTO rules, with a view to safeguarding the benefits derived therefrom, bearing in mind the special legal status of the Sugar Protocol”.

9. It is our considered view that the EC offer does not comply with the provisions of this Article.  It is a challenge for the Conference here in Fiji to examine this serious situation and devise a strategy that will preserve the integrity of the Sugar Protocol, and agree on measures to be taken collectively for safeguarding the benefits that we derive from this important trade and development instrument.

10. It is to be recalled that one overriding objective of the EPA negotiations is to improve on the current market access situation, building on the acquis, and no ACP state should be worse off.  Anything less will be unacceptable and unethical.  Therefore, this is something on which there cannot be and should not be any compromise.

11. We are determined to safeguard the benefits that the Sugar Protocol provides.  In this respect, we have to explore all the avenues - legal, political and diplomatic - to uphold this principled position.  This is the more so because we are all, ACP and EU, committed to ensure that the future EPAs are instruments for sustainable development And I would even say, for sustained economic growth in order to assist our countries to achieve the Millennium Development Goals, in particular the eradication of poverty, hunger and disease.  The Sugar Protocol is, par excellence, the proven trade instrument that has delivered on development.  Let us not, therefore, in the treatment of the Sugar Protocol in future EPAs, throw away the baby with the bathwater.

Excellencies, Ladies and Gentlemen,

12. Another important challenge is how to adapt to climate change that poses serious threat to our sugar cane industries.  As we have always argued, this is the only industry and crop which has a proven resilience to withstand long spells of drought and cyclones whose intensity and frequency are increasing due to climate change.  This is yet another important argument why we want our sugar industry to continue to be sustainable and competitive.  We have to maintain the sugar cane plants and modern and multi-purpose flexi-factories if we are to maintain our sugar industry, and this requires fair and equitable treatment to our small and poor farmers.  All the stakeholders, including the private sector, have to make a contribution to ensure a successful transition.

13.   In this regard, we are happy that, together with the support of the EU, we have at long last agreed to implement a number of Intra-ACP research and development projects and programmes that will hopefully contribute towards this objective.

14. Along with these challenges, we now also have an opportunity to rethink our sugar cane industry to exploit the opportunities being provided by the energy sector, in the wake of the phenomenal increase in the price of petroleum products.  Sugar cane can become an important source of environmentally friendly renewable energy.  To achieve this we shall require adequate resources, private investment, and the appropriate technology that will transform the sugar cane sector from a commodity to an industrial sector.  This issue will be debated with our invited experts at the conference.

15. I have no doubt that, as we have always demonstrated in the past, the Fiji Conference will rise up to these daunting challenge, and send an important political signal that we are determined to fight, with all the means available to ensure justice and equity, as well as the need for the upholding of the sanctity of the Sugar Protocol which is a legally binding inter-governmental Agreement with rights and obligations that both the ACP States concerned and the EU are legally and morally bound to fulfil.  We are ready and determined to assume our responsibility.   We expect and hope the EC, as our partners in progress and development, to do the same as it has done in the past.

16. For all these reasons the Fiji Conference, in my view, is very important and timely.  I look forward to a fruitful conference and, time permitting, we shall be only too happy to visit this beautiful island.  Coming from an island, I really feel at home.

17. Vinaka vakalevu!

Senirosi Ballroom, Westin Resort , Denarau Island, Fiji