AMIDST a dwindling sugar industry in the Region, the Sugar Association of the Caribbean (SAC) has recommended that CARICOM should amend common external tariffs to impose 40 per cent tax on beet sugar entering the Community’s market.

Beet sugar, which is commonly produced in European countries, has been used as a supplement for cane sugar in many countries.

SAC believes that imposing tax on beet sugar would increase the sale of cane sugar in Caribbean markets.
“It is a critical time for sugar in the CARICOM Region…..there remain significant challenges confronting the industry, which in our view can become viable if the necessary issues are addressed at the political level, so that sugar production can find a place in the market,” said Belize’s Director of SAC, John McLachlan, during a presentation to representatives of the Ministry of Agriculture.

McLachlan said total sugar production exceeds demands in the Region, something which needs to be urgently addressed.
He said that while the association has been doing much in terms of research, the reality is that sugar production will remain low unless governments intervene with significant financial support.

“Another area of focus is the impact the industry has on industrial producers which will continue to increase and I urge the political decision makers to fine-tune this,” McLachlan said.
According to SAC, the four CARICOM countries which have an active sugar industry are Jamaica, Belize, Barbados and Guyana.

Those and other sugar producing countries have to consider things such as global market challenges, European Union (EU) market changes, traditional reliance on the EU, alternative markets for CARCIOM and impacts on sugar production and industrial producers.

Global demand for sugar increases two per cent annually, fueled by population growth, however, demand continues to fall in the EU.
McLachlan said the association is working to correct market imbalances which exist. He believes that sugar remains competitive but there is need for strong regional integration and reform of sugar industries.

A report on SAC’s plan was presented to the Council for Trade and Economic Development (COTED) and major sugar importing companies in the Caribbean Single Market and Economy (CSME).

The next step will be to present a position paper to COTED which will show how countries can even-out pricing in the long run, after which there will be a presentation on the findings and key outcomes at the next Heads of Government meeting.