The Protocol has an indefinite duration, and guarantees prices, which are linked to the EU intervention sugar price, for agreed quantities of sugar. Zimbabwe also enjoys the benefits of an SPS, Special Preferential Sugars quota. This allocation arose through our historical role as a supplier to the Portuguese refiners prior to their accession to the EU, and is shared with the other 3 traditional suppliers namely. Ivory Coast, Malawi and Swaziland. The agreement is subject to renewal, and in the first instance, is due to expire at the end of June next year.
Consultations aimed at renewing the agreement are at an advanced stage.
They have thus made an enormous contribution towards the development of the Lowveld and our sugar industry in particular. Looking to the future, pressure to reform the EU sugar regime is mounting. Contributionary elements include WTO commitments for a reduction in tariffs and subsidies, projected budgetary restrictions and a probable expansion to EU membership. Reform will possibly lead to a reduction of support prices and production quotas and is likely to occur over the next decade. Given Zimbabwe's' current harsh economic environment, the knock on effects of quota or price reductions will have severe repercussions for our industry.