Does BREXIT Spell Trouble on the Horizon for Belizean Sugars?

Another matter discussed at today’s press conference is one that Santander says will deliver a hit on Belize’s sugar producers.  According to the company, Brexit – the official departure of the UK from the European Union – has never been adequately addressed regarding the impacts on sugar producers.  The principals at Santander say that the UK made some trade decisions that will see larger sugar producers sending their tax-free sugar to that region this year.  This move, according to Santander, spells trouble for the smaller producers from a country like Belize.  Presently, Santander sends seventy percent of its production to the UK and E.U. markets, while thirty percent is for CARICOM.  C.E.O. Jose Rodriguez says that decision is not a permanent one yet and for that reason, negotiations are critical going forward.

David Rodriguez, C.F.O., Santander

“This year, I think it is important to mention that the past administration didn’t help a lot in helping the region in terms of the Brexit — they authorized last October two hundred and sixty thousand metric tonnes of sugar that can enter the UK. That impact was very strong in the CARICOM market because it reduced the amount of sugar that comes from this region that goes into the UK. Right now we have been working with new authorities as they are helping us to do the necessary lobbying for 2022.”

Jose Rodriguez, C.E.O., Santander

“This is a very important aspect for all the sugar industry in Belize because more than eighty percent of the sugar production of the sugar mills in Belize goes to the UK. And with them authorizing tax free sugar from other countries like Brazil and other countries that are basically dumping the sugar over there is something that will affect us strong and we will have to work together along with the government and the other sugar mill to stand against those because it will affect us a lot and the sugar industry will have to receive that hit this year.”