The International Sugar Organization is reporting that the Europe Union is lifting import tariffs from exporting nations with preferential status. This means that countries that have the capacity to increase production will be able to export more, pushing down the price of sugar in Europe.
Two countries that are expected to benefit from this new regulation are Mozambique and Sudan. Both countries have a large capacity to increase their sugar cane growing lands as well as very low costs of production. Conversely, many Caribbean countries, Belize included, will be adversely affected by this change in industry practice since they have relatively high costs of production and limited capacity to increase production. Thus, their ability to compete will be severely hamstrung. We can only hope that they will not follow the example of St. Kitts and Nevis who’s inability to compete caused them abandon sugar production all together.
This reform will be implemented on October 1, 2009.
