The Rt. Honorable Dr. Denzil Douglas, Prime Minister of St. Kitts and Nevis
The Honorable Cedric Liburd, Minister of Agriculture, Fisheries and Community Affairs, St. Kitts and Nevis
The Honorable Roger Clarke, Minister of Agriculture, Jamaica
Dr. Chelston Brathwaite, Director General, Inter-American Institute for Cooperation on Agriculture (IICA)
Dr. Jerome Thomas, Co-Chairman, Organizing Committee
Distinguished Ministers of Agriculture of Caribbean States
Distinguished Representatives of the Diplomatic Corps
Representatives of International and Regional Organizations
Ladies and Gentlemen:

I am pleased to join you today at the opening of the 5th Caribbean Week of Agriculture. Let me extend my thanks to the government and people of St. Kitts and Nevis for their warm hospitality and for hosting this important meeting. Let me also congratulate St. Kitts and Nevis on the assumption of the chairmanship of the Permanent Council of the Organization of American States on October 1st. I am convinced that St. Kitts and Nevis will be well-represented through the efforts and leadership of Ambassador Izben Williams as he presides over that body for the next three months.

Mr. Chairman, when I received this invitation, I was particularly intrigued by the theme of the week, “Exploring and Enhancing Opportunities for the New Agriculture.” Implicit in that terminology of newness is the concept of change and a call for innovation, entrepreneurship, rethinking and restrategizing.

The “new” agriculture which you will be addressing over the next several days addresses this reality. Agriculture in the current context is more than farming. It encompasses the broad spectrum of activity from farm to table, and beyond.

The way in which agriculture is conceptualized, practiced and marketed in the 21st century will be radically different from the past. I agree with you that many of the issues on this week’s agenda such as agro-energy, agro-biotechnology, agro-biodiversity, agro-tourism and food security are important areas for development that should be fully explored. As you consider these areas for the “new” agriculture, I would suggest, Ladies and Gentlemen, that the time for action is now.

At the Organization of American States, we too are going through a period of change. We have new leadership. The Secretary General Jose Miguel Insulza and I both assumed office a few months ago. This parallel assumption of duties is unprecedented for the OAS and we have looked at this as an opportunity for constructive change. The Secretary General and I are united in our commitment to strengthen the three fundamental pillars of the OAS – democracy, security and development – with a new, invigorated approach that emphasizes cooperation, action and results. I believe that understanding today’s challenges can help in preparing adequate responses and identifying opportunities for the future.

The issue of development is at the base of why we are all assembled here this week. I believe that the ability of countries to provide opportunities for its citizens to realize their full human potential lies at the root of development.

I believe in an integral and integrated approach to development that combines governance, economic, cultural, social and environmental issues. However, it is clear that for all sectors and groups to reap noticeable gains from the fruits of development and democracy, there must be significant improvement in the ability of states, especially small states, to benefit from market reform and economic liberalization policies and to deliver those benefits to their people.

Exactly one month from now, Heads of Government from 34 countries in the Western Hemisphere will meet in Argentina for the IV Summit of the Americas. The leaders of the Americas, with the input of civil society and the private sector, will focus on “Creating Jobs to Fight Poverty and Strengthen Democratic Governance.”

These are lofty goals indeed. However, let me state clearly that these are not empty promises, devoid of intent or a plan of action. The OAS and its Member States firmly believe that movement toward the realization of the Summit objectives is both necessary and urgent.

As we develop concrete strategies for realizing these goals, we recognize that we need partners. The new leadership of the OAS intends to work with public and private entities that share common objectives and a commitment to improving the lives and livelihoods of the people of the Americas.

IICA is one such partner. I was therefore pleased to have the opportunity to address Ministers of Agriculture from our 34 Member States at the Third Agricultural Ministerial in Ecuador a few weeks ago that focused specifically on agriculture and rural life. That meeting brought forth important recommendations on enhancing the productive capacities of rural populations, and creating employment and income generating activities in a manner consistent with sustainable development goals.

I am fully aware that agriculture must be an important component of an integrated development agenda, particularly for the Caribbean and our neighbors in Latin America. Agriculture and rural economic activities account for over 30% of the labor force. The “new” agriculture therefore is key for a rural development strategy and for poverty reduction, as well as for existing income generating sectors such as tourism.

Importance of Agriculture in Caribbean Development

For the Caribbean region, agriculture remains central to national economies, the social infrastructure and environmental stability. Despite decades of diversification, agriculture is a significant contributor to the gross domestic product of Caribbean countries. World Bank/IMF statistics show that in 2002, agriculture created significant value added as a percentage of GDP in almost all Caribbean countries. For example, in Dominica agriculture accounted for 18.58% of value added to the GDP, Grenada 7.5%, Guyana 30.8%, Haiti 27.9%, Jamaica 5.5%, St. Kitts and Nevis 3.3%, St. Lucia 6.4%, St. Vincent and the Grenadines 10.3%, and Suriname 11.1%.

These are significant percentages. Yet we know that these statistics do not present the whole picture. IICA’s own research shows that when all the backward and forward linkages with agriculture including transportation, shipping, and agribusiness are taken into account, the contribution of agriculture to countries’ Gross Domestic Product is even higher than national statistics would suggest.

Indeed, agriculture is of such importance for Haiti as it attempts to get on the road to economic, political and social recovery that the OAS through the Pan American Development Foundation has launched a five-year Hillside Agricultural Program to improve hillside farm management, production, processing, and the marketing of high-income regenerative crops such as mangoes, coffee and cocoa.

It is therefore incumbent upon those assembled here today and the broader network of public and private stakeholders throughout the region to ensure that innovative strategies for developing a new and competitive agricultural sector are fully explored.

In today’s global marketplace, policymakers, farmers, investors and businesses must become willing partners in the creation and realization of a new agriculture. Educational institutions also have an important role to play in educating the next generation of agricultural entrepreneurs, land-use planners and conservation engineers – a cadre of Caribbean professionals equipped with the tools to embrace and implement a new vision of agriculture in the 21st century.

This new vision of agriculture will include a broader range of linkages between production and trade competitiveness. It must embrace a balance between an export-based development model, sustainable rural development and food security. It must include a comprehensive analysis and willingness to revitalize the available stock and quality of agricultural trade services including research, technology, financing, marketing and food safety policies.

As I have said on previous occasions, the new agriculture must also develop the necessary public and private capacity to incorporate modern concepts of management associated with new farming technologies in order to improve efficiency and product quality. IICA continues to play an important leading role in this process of modernization and adjustment and I applaud the Director General, Dr. Chelston Brathwaite and his staff, for their outstanding work in this area.

Confronting Challenge

We are all fully aware that Caribbean economies are facing huge challenges to their agricultural sector and, by extension, their entire economies. The phasing out of preferential agreements with respect to bananas, sugar and other commodities has seriously impacted agro-based economies such as those of the Windward Islands.

Over the last decade, some Caribbean countries have seen a decline or, at best, marginal growth in traditional agricultural products. Here in St. Kitts, the centuries old tradition of sugar cane cultivation has been brought to an end. This was clearly a difficult decision but one which the government of St. Kitts and Nevis considered to be necessary given the existing realities.

But now, Barbados, Belize, Guyana, Jamaica and Trinidad and Tobago are facing a potentially devastating cut of 39%, over four years, from 2006, in the price paid for their raw sugar exports to the EU. In Belize, Guyana and Jamaica, in particular, the multifunctional contribution of the sugar industry to the national socio-economic fabric is incalculable and goes beyond foreign exchange earnings and GDP indicators. The OAS is naturally concerned about the implications of EU sugar sector reform for the social, economic and political stability of the Caribbean and the negative effects on democracy, security and development in the region. And we are, above all, concerned about the livelihoods of thousands of cane farmers and their dependants and the spread of poverty.

We note that one of the reasons given by the EU Agriculture Commissioner to justify the European Commission’s radical reform proposals is the need to respond to the WTO panel ruling on the illegality of EU export subsidies in the case brought by three countries, including an OAS member, Brazil. It is our understanding, however, that the Government of Brazil sought from the beginning of the dispute to disassociate its complaint in the WTO from any initiative which might represent a threat to the preferential access of African, Caribbean and Pacific (ACP) countries to the EU and has supported the ruling of the WTO Appellate Body that the EU should respect its commitments to the developing countries of the Caribbean and the rest of the ACP Group.

We at the OAS acknowledge that the proposed reform of the EU sugar sector is linked to the broader objective of international trade liberalization. We however consider it unfortunate that this policy objective is often confused with measures for reducing world poverty, when, in the specific case of the Caribbean, the reforms are in grave danger of perversely producing the opposite result.

The OAS is pleased to note, nevertheless, that Caribbean sugar industries, in recognition of the new realities, have been developing and implementing plans to modernize, diversify and add value within the industry, reduce production costs, enhance competitiveness and ensure long-term financial viability and economic sustainability. We would be interested to hear more of these plans in the event that we might facilitate appropriate technical assistance to industries through IICA and the Inter-American Council for Integral Development. It goes without saying that we will maintain a keen interest in developments in Europe regarding the final outcome of sugar reform and the impact on the Caribbean.

In addition, each year Caribbean farmers confront the threat of natural disasters. Major hurricanes over the past decade have dealt devastating blows to the agricultural sector and indeed, to the national economies of Caribbean states. Ladies and Gentlemen, Caribbean countries have arrived at a point where functional mechanisms must be put in place to assist with the full spectrum of risk mitigation, management and response.

A few weeks ago, my office organized a joint meeting of many of the inter-American agencies and organizations that work in the area of natural disasters. The newly established Joint Consultative Body on natural disasters which grew out of a mandate from the General Assembly in Fort Lauderdale has been tasked by the OAS with streamlining guidelines, coordinating policies and functions of different entities and making concrete recommendations for our work in the future. By developing this proactive and coordinated approach, the international community will be able to work with governments, financial institutions, insurance companies, builders, farmers, telecommunications companies, energy providers and others to incorporate disaster mitigation, preparedness and response into their business plan. This new comprehensive approach will:
• help with reducing risk by building long-term capacity and expertise;
• ensure quicker and more effective responses when disaster strikes; and
• reduce recovery time for affected sectors, including agriculture.

Agriculture and Tourism

Within the Caribbean region, the tourism sector remains a major source of economic growth. In 1998, the sector provided 2.9 million jobs in the region, generated US$32.5 billion in economic activity and was responsible for 31% of the region’s GDP. By the year 2010, it is expected to produce US$77.5 billion dollars in economic activity.

Caribbean agriculture has much to gain from developing stronger linkages with the region’s leading industry – tourism. As the top industry in many countries, the tourism sector offers growth and business development opportunities within a sustainable development context. The travel interests of the global tourism market are changing in ways that are advantageous to small and medium-sized enterprises in the region. A greater orientation toward experiential tourism -- the desire to learn about and experience a destination’s culture, foods and all things indigenous -- provides Caribbean agricultural producers with an excellent opportunity to expand their market in ways that could not have been anticipated a mere decade ago.

Recognizing these important linkages, the OAS tourism division has been working with hotels in the Caribbean to create a local cuisine development program to boost the linkage with agriculture. The benefits to be derived from such linkages are many.
• Farmers gain access to a local market with international reach;
• Hotels reduce their level of dependency on food imports and augment their locally produced offerings;
• Additional revenue is expended in the local economy creating an important multiplier effect; and
• Countries develop product awareness among an international clientele with the potential for creating future export demand.

Additional possibilities for collaboration might include trade in manufactured goods, processed foods, signature craft items, and private labeling bottled water; farm and nature tours; and recreational activities such as adventure fishing.

All of the above combined with the inherent strengths of the region’s tourism product provide the impetus to establish a permanent and sustainable relationship between agriculture and tourism.

Partnering for Development

As we all know, a strong agriculture sector is important for Caribbean development and for food security. This sector creates numerous employment opportunities for youth, rural communities, women, and individuals involved in the informal economy.

The Jagdeo Initiative has rightly gained coinage throughout the Caribbean for its thorough analysis of the state of agriculture, its hard look at internal and external factors, and for deepening the discussion of fundamental areas that need improvement, reform and/or initiation as the Caribbean prepares to navigate the global marketplace of the 21st century.

I believe that Caricom countries, with dedicated efforts and in the context of the Caribbean Single Market and Economy (CSME), can cover a significant portion of the sub-region’s food needs by strengthening productivity in the agricultural sector. Securing the food supply must be one of the sub-region’s strategic objectives – now and in the future!

The OAS will seek to enhance its support for Member States in building capacity in a variety of areas. OAS offices and specialized agencies have a strong record in providing training for youth, women, indigenous groups, entrepreneurs, educators and other members of civil society.

IICA, the OAS Office of Sustainable Development (OSDE), the Office of Trade Growth and Competitiveness, and the Tourism Division, among others, can be key partners in this regard.

The new leadership of the OAS will give increased prominence to education as a key tool for achieving equity and providing citizens with access to development opportunities. New opportunities in agriculture will require different types of training, education that stresses a culture of entrepreneurship, and the integration and use of technological systems that will allow small producers to compete in a cost-effective way.

Mr. Prime Minister, in announcing the end of the sugar industry, you declared that this milestone marked “the end of one chapter and one era in our development as a people” and “the beginning of a new chapter that is brighter than the one of yesterday.” In addition, you called on the people of St. Kitts and Nevis to stand with your government during this transition in order to succeed in a national economic transformation plan.

Ladies and Gentlemen, change and transformation are everywhere present. A new era of trade demands new and innovative responses if Caribbean agriculture is going to survive, thrive and be competitive. The strategizing that is occurring here today will have implications for Caribbean economies and the way they interface with the global economy. The development of new approaches will also have tremendous importance at a national and regional level as countries and businesses prepare for the Caribbean Single Market and Economy to go into full effect.

Conclusion

The ability to respond to and manage change will be determining factors for success. The trading regimes of the last century will not return. Business as usual is not an option. This movement toward developing a new agriculture reflects that recognition.

The OAS stands ready to support Member States in realizing their development goals within the context of a changing global environment. With a clear vision; appropriate educational and technical tools; adequate financing; a supportive infrastructure; the ability to adapt to change and the leadership of those assembled here today, I believe that sustainable development, with a thriving agricultural sector, is attainable.

I wish you every success with this meeting and look forward to hearing the results of this strategy session for a new agriculture in support of Caribeban development.

Thank you.