Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

St. George's Grenada -- The negotiations between Antigua and Barbuda, St. Vincent and the Grenadines and Grenada on support for placing wheat flour on Article 164 list of industries within the Less Developed Countries (LDCs) to receive protection from like industries in the More Developed Countries (MDCs), failed to reach a comprehensive agreement on all the issues.

Reporting on the discussions and tour of the flour mills in St. Vincent and the Grenadines and Grenada, Ambassador Dr. Clarence Henry said St. Vincent and the Grenadines and Grenada were not in support of "our proposal of allocating 25 percent of our market for packaged flour to the MDCs, while OECS mills control the remaining 75 percent".

They maintained the claim that granting such a request would destroy their industry, according to Ambassador Henry, who was accompanied by Kariyma Baltimore, Research Officer within the Ministry of Finance and Economy (Industry & Commerce).

According to Ambassador Henry, St. Vincent and the Grenadines and Grenada are seeking the same level of protection their industries enjoyed under Article 56. "Consequently, our positions were far apart", he said.

"Our proposal is a good one, providing a significant level of protection for the industry. Three thirds of a loaf is better than no loaf at all. At present flour is not protected and the hawkish stance of St. Vincent and the Grenadines and Grenada is threatening the very survival of their own industry. We can wait. But I doubt they can", according to the Trade Coordinator.

On the matter of Antigua and Barbuda's other concerns, Ambassador Henry explained that it appears that St. Vincent and the Grenadines and Grenada along with the mills are seeking to actively address the issues of over pricing, frequent flour shortages, and quality of the 100 pound flour sacks, and in the main, June 1st 2006 has been given as the date when they would be comprehensively resolved.

At the conclusion of the two day series of meetings a document reflecting the agreed positions and areas of disagreement was signed by Ambassador Henry representing Antigua and Barbuda and Ambassador Dr. Patrick Antoine representing St. Vincent and the Grenadines and Grenada.

Prime Minister, Baldwin Spencer of Antigua and Barbuda speaking following a meeting with Ambassador Henry said the document represents a clear desire and determination of the Government to tangibly demonstrate support for OECS flour mills.

"We have genuine concerns and once these are addressed and a system of verification is established to ensure full compliance/implementation of those matters, Antigua and Barbuda would have no difficulty in signaling to my colleagues our unequivocal support for placing wheat flour on the Article 164 list, he said.

According to Prime Minister Spencer it appears that there has been some measure of movement, "and I hope that my colleagues will agree to allow the importation of 25 percent of package flour from the MDCs".

"Our consumers require more choices and better prices. Our proposal responds to this reality. However, it is a matter that will be discussed further within a month, at which time; I hope that my colleague Prime Ministers of St. Vincent and the Grenadines and Grenada will agree on the proposal which is most reasonable", he remarked.

The Seventeenth Inter-Sessional Meeting of the Conference of CARICOM Heads of Government, Port-of-Spain 9-10 February 2006, recommended that the parties meet within one month to negotiate and agree on modalities including price to allow wheat flour to receive Article 164 treatment.

Following is the document signed by representatives of the governments of Antigua and Barbuda, St. Vincent and the Grenadines and Grenada at the end of their meeting in St. George's:

Parties have agreed that:

(1). There is no divergence of views on the 100-pound bags or sack size, meaning parties agree that OECS producers/mills will have 100 percent of Antigua and Barbuda market.

(2). There is a divergence of views on the treatment of packaged flour, in package sizes 5-pounds or less.

(3). The position of Antigua and Barbuda is that OECS producers/mills be granted 75 percent of the Antigua and Barbuda market for the above mentioned (item 2).
Position of St. Vincent and the Grenadines and Grenada is that OECS producers/mills be granted 100 percent of the Antigua and Barbuda market as it relates to the above mentioned. (Item 2).

(4). The parties agree that whatever the outcome related to item 2 (packaged flour 5 pounds or less), that a monitoring system be established involving customs and excise of Trinidad and Tobago (export license); customs and excise of Antigua and Barbuda (import license); and the customs and excise divisions of St. Vincent and the Grenadines and Grenada (monitoring and verification).
This institutional arrangement is to ensure that the amount agreed at item 2 is not exceeded. Said institutional arrangement will also operate in item 1.

(5). The parties agree that a management committee involving a representative of the OECS Secretariat, the Government of Antigua and Barbuda, the Government of St. Vincent and the Grenadines, and the Government of Grenada be established to monitor and ensure the integrity of the arrangement at items 1and 2. Applicable at items 6,7 and 8, which follows.

(6). The Governments of St. Vincent and the Grenadines and Grenada agree to introduce bags of a specification as provided to the delegation of Antigua and Barbuda (St. Vincent and the Grenadines), and as is currently being used by exporters from the Republic of Trinidad and Tobago (Grenada) by June 1st 2006.

(7). The producers/mills of St. Vincent and Grenadines and Grenada undertake to work with their distributors in Antigua and Barbuda to realize price reductions by June 1st 2006. This in no way binds producers/mills to any particular percentage reductions.

(8). The producers/mills in St. Vincent and the Grenadines and Grenada undertake to establish a buffer stock in Antigua and Barbuda effective May 1st 2006.

(9). The parties agree to confer with their respective Heads of Government, and to ensure that Heads of Government establish a teleconference aimed at resolving outstanding issues on or before April 30th 2006.