BAS CEO knocks ‘unfair trading practices’

Chief executive officer of the Barbados Agricultural Society (BAS) James Paul has criticised the Government for not doing enough to “defend” the agriculture sector from imports.

In fact, he asserted that this will be a major challenge for Barbados and other Caribbean countries as Heads of Government seek to reduce the region’s food import bill by 25 per cent by 2025, which is also known as the 25 by 25 Initiative.

In a recent interview, Paul told Barbados TODAY that despite the challenges being faced in the industry, the poultry sector especially had the capacity to increase production and satisfy the local market.

However, he said, farmers had reservations about building out the industry only for their investments to be threatened by imports such as chicken wings and chicken by-products.

The BAS CEO said that over the years, chicken imports by the  Barbados Agricultural Development and Marketing Corporation (BADMC) and retailers have undermined the industry significantly and only served to inhibit the industry from advancing.

He added that for far too long, politicians have been using certain stipulations outlined by the World Trade Organisation (WTO) as an “excuse” to condone “unfair trading practices” which jeopardise local industries.

“We have always taken the position that when it comes to the importation of chicken wings by the BADMC, it is not something that has a positive impact on the production of local poultry. As a matter of fact, it occupies space that they [chicken farmers] can actually use. And it is not only the BADMC involved in the importation of foreign poultry products; we also have other companies who have been able to import poultry to compete with local producers,” Paul said.

“We think it is very unfortunate that we have a situation where we have other members of our private sector seeking to exploit loopholes in terms of our current trading arrangements to bring in products from places that do not have the level of cost to bear that local poultry producers do, and this product is competing with our local producers. Therefore, our local poultry producers are operating at a disadvantage.”

The BAS boss said that by doing so, the Government was supporting and facilitating “unfair trade practices” under the guise that it was a stipulation of the WTO.

“We keep on using the WTO as an excuse for unfair trade practices. But from what I recall in terms of the WTO arrangements, it was not meant to facilitate and permit unfair trade practices.

“The special and differential agreement was designed to help those countries that felt there were unfair trade practices, that they would be able to implement measures in order for their local producers to mitigate those unfair trade practices. Even under the WTO rules, there are provisions that permit countries where they see that an industry is suffering damage as a result of imports, they impose restrictions and policies that would at least mitigate those.

“This is a right of countries and I believe that [for] underdeveloped countries such as ours, it is a right that we need to utilise in order to defend our local poultry industry and the larger agriculture sector from those imports that cause harm,” Paul asserted.

He added that in order for the 25 by 25 Initiative to be successful, frank discussions about these matters were needed.

“How do you encourage investment in agriculture when you have a situation where we are permitting the importation of products that compete unfairly with local producers and that local producers are at a disadvantage in?” the BAS official questioned.

Paul contended that local poultry products were fresher and more nutritious and there was no doubt that farmers could satisfy the demand.

“I believe strongly that our local poultry industry can actually satisfy and make the targets set in terms of the 25 by 25 Initiative; it can be done. Local producers have shown that where they are offered the opportunity, they would respond to the market and increase production. But we cannot expect local investors in the agriculture sector to increase production when they are not assured they would not be victims of unfair competition and that the investment they would be making would be able to make returns,” he said.

sheriabrathwaite@barbadostoday.bb