NOT SO SWEET

THE price of bread, biscuits, buns, and drinks could come under fresh pressure as Jamaican manufacturers face the prospect of paying more for refined sugar once a new refinery in Belize begins supplying the Caribbean market. Major food and beverage producers, including Wisynco, Lasco and ice-cream maker Caribbean Cream, have raised concerns that changes to regional import arrangements could make it more expensive to buy the sugar used in products consumed by Jamaicans every day. Manufacturers fear that once the Belize refinery begins supplying the region, they could lose the duty waivers that allow them to buy refined sugar from outside Caricom at world market prices. They would then have to weigh the Belize supplier’s price against the cost of overseas sugar carrying a 40 per cent import tariff.

Wisynco Group Chairman William Mahfood said the potential increase would affect businesses across food manufacturing, with consequences for consumer prices. Food and beverage manufacturers fear changes to regional sugar sourcing arrangements could raise production costs. “Legally, we can’t really challenge it, so the only thing I think we can do is push the Government to lobby for a reduction in the CET,” Mahfood told the Jamaica Observer , referring to Caricom’s common external tariff. He said Belizean suppliers had indicated that they were proposing a 40 per cent increase in refined sugar prices, arguing that the tariff protection would leave Jamaican manufacturers with little room to find a cheaper alternative. “These trade regimes were not intended to have, you know, penalties, which is really what it is… ,” Mahfood said. “It’s effectively like Jamaicans are being penalised so that an investor can put a refinery in Belize. ” Mahfood argued that reducing the tariff would…