Loop- The Sugar Association of the Caribbean (SAC) has commended the Belize government for its decision to go before the Trinidad-based Caribbean Court of Justice (CCJ) alleging that Trinidad and Tobago failed to comply with its obligations under the Treaty of Chaguaramas (RTC) that governs the regional integration movement (CARICOM).

“This case was not primarily about compensation, it is about ensuring that protections set out in the Treaty, and reinforced by numerous decisions of COTED (Council of Trade and Economic Development), are abided by. Otherwise, the CSME (CARICOM Single Market and Economy) would have very little relative value for any of its members,” said SAC chairman R. Karl James.

Under the RTC, CARICOM states are required to impose a 40 per cent Common External Tariff (CET) on brown sugar imported from sources outside the Caribbean region.

Belize contends that it has evidence to demonstrate that between November 2018 to June 2020 brown sugar which was produced outside the Caribbean region, entered the Trinidad and Tobago market without the 40 per cent CET being imposed.

Trinidad and Tobago deny that it has permitted the importation of extra-regional brown sugar from any extra-regional territory without the imposition of the 40 per cent CET.

Last week, the CCJ, which sat in its Original Jurisdiction, which is an international court with exclusive jurisdiction to interpret and apply the rules set out in the RTC and to decide disputes arising under it, heard the arguments on the matter and has reserved its judgement to a later date.

The SAC said that over the last three years, it has “repeatedly raised its concerns about this practise that has drastically diluted the value and demand of the CARICOM market for regional sugar producers”.

It said that the attorneys representing the Belize government provided evidence of more than 4000 metric tons of sugar imported without any record of CET being paid.

“This evidence was underscored by a dramatic fall-off in prices for brown sugar during the same period. SAC has long contended that the level of pricing demanded by sugar importers to Trinidad and Tobago as well as some other CARICOM member states, could not be supportive of full implementation of the CET, which is set at 40 per cent of the CIF value of sugar entering from extra-regional sources.”

The SAC also indicated that the CCJ heard that as the governments focus on the serious issues confronting the world on dangerous climate increases at the COP26 meeting in Glasgow, it is fitting to focus on sugar cane, a regenerative agricultural crop that not only is a significant sequester of carbon but also the source for the production of green, renewable electricity across the region.

“Most global industries enjoy the benefits of protected domestic and regional markets. Protection of the brown sugar market as set out in the RTC is one small contribution to maintaining this industry’s viability and one that SAC believes should be strictly maintained and enforced,” the SAC added.