STATEMENT
DELIVERED
BY
MR. PHILIP MIKOS HEAD OF UNIT POLICIES FOR SUSTAINABLE NATURAL
RESOURCES MANAGEMENT
EUROPEAN COMMISSION DIRECTORATE~GENERAL AFRICAN, FOR DEVELOPMENT AND RELATIONS AND PACIFIC STATES WITH
CARIBBEAN
AT THE AGRICULTURE PORT-OF-SPAIN, DONOR CONFERENCE TRINIDAD AND TOBAGO
2 JUNE 2007
First of all, I would like to thank the organisers for convening this important conference offering me the opportunity to say a few words on behalf of the European Commission. In my address I would like to give you an overview of the role of the European Union in the agricultural sector in the Caribbeans, and share a few thoughts on the future of agriculture in the region.
The
importance
of Agriculture
for the Caribbean Region
is widely
acknowledged. Agriculture has been and continues to be a major contributor to wealth and· growth, it remains an important export earner and provides employment and livelihood for many across all sections of society. Although the share of agriculture may have decreased in the GDP, its importance is considerable if we take into account if its linkages with other upward and downward sectors of the economy.
The European Union has not only fully recognised this in the past 30 years but continues to do so today and I am sure it will do so in the future.
10 EDF programming:
th
encouraging signs of greater attention to Agr and RD
EC is developing a New Agricultural support strategy for Africa
Since the Caribbean States joined the Lome Convention, the EU has provided substantial assistance to the agricultural sector, with funds made available
through the European Development Fund and the Commission's own budgetary resources. Interventions livestock, agricultural agribusinesses, have covered the full agricultural spectrum, including research, fisheries, forestry, sugar, rice, rum, bananas,
agricultural infrastructure, credit etc.
In the last 15 years alone, the EU has financed € 700 million (900 MUS $) in agricultural programmes and projects. To which should be added the very
substantial benefits the Caribbean Countries have derived for many years from the high and guaranteed prices of the sugar and banana protocols. The 700 million can be broadly broken down into three components: The SFA, the EDF and STABEX. 236 M€ from The Special Framework ACP Banana Suppliers. of Assistance (SF A) for the Traditional from the European of the
These funds were provided
Commission's
own budgetary resources to improve the competitiveness
banana sector and/or support diversification where appropriate. 180 M€ (240 M$) for agricultural Including Caribbean programmes from the 7th 8th 9th EDF Programme for the
such regional projects as (i) the Development
Rum Sector (70M€) and (ii) the CARICOM Rice Project (24M€), at enhancing competitiveness and contributing to the export
both aiming
capacity of the Region.
Lastly, the Caribbeans
have received some 276 ME (360 M$) from ST ABEX
(the stabilisation for export earnings in the agricultural sector) in the
i
h
and 8
th
European Development Fund and of which about € 30 million still remains to be committed.
But I do not want to be looking only at the past as this conference is about the future. The current situation of agriculture, as is well analysed in the different strategy documents which have been tabled, requires a renewed commitment, but also undoubtedly a different one.
There is no doubt that agriculture is back on the front stage of the development agenda. After a decade of neglect, it has been finally recognised that the
agricultural sector cannot survive and thrive if left on its own, on the other hand the public sector cannot finance its social policies without growth and the public revenues it generates. And in many countries growth depends on agricultural development.
But agriculture is not the same as 15 years ago. Today a farmer can be a global player. In Uganda through mobile phones farmers can know the prices of crops on all the local markets which substantially increases their bargaining power.
Modem
agriculture
depends on markets and regional organisations
have a
critical role to facilitate and shape farmers' access to such markets.
So, let's look at what initiatives we have for the future In this new and vibrant context for agriculture sugar stands out as a major field in our agricultural cooperation. It is a crop that has been of crucial
importance to many Caribbean countries for centuries and the Commission has acknowledged this. While the reform of the European Common Agricultural
Policy is a necessity, the European Union has realised that the unavoidable reform of the sugar Market Organisation, with the related price cuts, may lead to significant impacts and adjustment needs and broad economic consequences in
ACP countries that are signatory to the Sugar Protocol. To palliate the effects and smoothen the transition the European Commission is committed to offer both trade measures and development assistance to help the Sugar Protocol
countries to adapt. The trade measures are being established in the negotiations on the Economic channelled though Partnership the Agreements. The development under the assistance is
Commission's
budget
"Accompanying
Measures for Sugar Protocol Countries" which were adopted in 2006 and will run until 2013. These measures include assistance in three areas, to:
i) Strengthen the competitiveness of the sugar sector, ii) Diversify by developing alternative economic activities and/or iii) Cover broader needs due to the reform (social, environmental, energy, macro-economic etc.).
"
Funds are provided in support of National Adaptation Strategies for the Sugar Sector as developed by the six Caribbean countries concerned: Barbados, Belize, Guyana, Jamaica, St Kitts & Nevis and Trinidad & Tobago. 345 ME have been allocated for the period 2007 to 2010; comparable amounts will be allocated for the period 2011 to 2013. The above interventions are in the start-up phase and we expect results to
materialise in good time to be able to adjust to changes in the ED sugar market.
But there are more instruments and programmes that we may want to look at to respond to the strategy and programmes which are tabled before us.
1) First of all the programming of the 10th EDF The programming of the lOth European Development Fund which will run from 2008 to 2013 is in an advanced stage of preparation. While agriculture has not featured prominently in the national priorities there is a 132 ME regional whose targeting is under discussion. It would be the ideal source of funding for many of the regional activities envisaged in your strategy as it should take into account the needs arising from the conclusion of the EP A between the Caribbean and the ED (to come into force on 1/1/2008). An early conclusion of the EP A will therefore also allow an early agreement on appropriate cooperation areas, as
funded from regional funds, for the period 2008-2013.
2) Intra-ACP funds for Disaster Risk Reduction: at the request of the ACP
countries the Commission is developing a strategy for the financing out of the intra-ACP funds of DRR and Risk management instruments. Clearly the Caribbean region should be the first on eto benefit from such a programme.
3) Our support to commodity chains
Last December we launched a 45 M€ programme to improve competitiveness of ACP commodity chains. Many of its components are in line with the priorities of the Regional Programme for Food Security as it includes, for instance, support through the FAO for policy/strategy development, capacity building, institutional development and information as well as piloting of price risk management instruments. A Regional seminar will be held later this year to identify priority sectors and countries for the programme.
4) Finally: The food security thematic programme
The thematic programme for Food Security financed from the Commission budget has been financing the design and implementation of food security strategies since the 1990ies. Through this programme, in collaboration with FAO we have financed the development and the harmonisation of Early Warning Systems in Africa. As FAO has indicated it could be envisaged to expand the programme's operations to cover the most food insecure Caribbean countries.
Therefore as you see there is ample room for collaboration on the initiatives proposed in your strategy. Certainly we are interested in looking at reinforcing the regional programming dimension and, as I said previously, the opportunity of the
of the regional lOth EDF funds should not be missed. But you
know how complex and extensive dialogue is with us, time was too short to come out with confirmed pledges at this conference on specific projects,
however there is ample room for financing many of the regional programmes identified that we will have to explore in the months to come. The challenge will be for the Caribbean Community and its Member States to maintain the strategic focus and the sense of direction in the wide variety of projects proposed and avoid that uncoordinated implementation fails to reach the agreed objectives.
Coming to the close of my address, I would like to sum up three of our thoughts on to the future of our cooperation in Agriculture:
(1) Up to now agricultural production has been mainly restricted to primary commodities. In order to remain competitive, the future lies in a move to higher value added products. This is particularly true in the sugar sector. It requires dynamism and investment and an appropriate national and regional incentive framework
(2) There is scope for the further development of linkages between agriculture and other sectors, inter alia, tourism. Too many imported food items are served to tourists. For this the regional market must be seen as an opportunity but greater attention must be paid to products' quality standards and infrastructure.
(3) Lastly, the Economic Partnership Agreement which offers totally free access to the ED markets for agricultural products (with transitional periods for sugar and rice) also means vast opportunities for the agricultural sector. It is very important that the private and public sector work together dynamically to seize these. In conclusion, I would again like to thank you for organising this conference, which allows for a thorough discussion on the future of agriculture in the Caribbean. As indicated throughout my speech, the ED has been an important partner in agricultural development for the Caribbean, is presently deeply engaged in cooperation and will remain a key partner for the foreseeable future. I look forward to continued strong cooperation and we stand ready to support your efforts.
Thank you for your attention ...