B.S.I. and G.O.B. Reach Agreement on Sugar Industry Regulation, 2023

Several weeks ago the Belize Sugar Industries Limited filed a claim challenging certain aspects of the Sugar Industry Regulations, 2023. An emergency injunction hearing was scheduled to take place on July twenty-first. But, the government’s legal team and B.S.I. have reached an agreement to maintain the status-quo until the substantive case is concluded. In other words, the areas of the regulations being contested will not apply to B.S.I. until and unless a judge decides they are lawful. One portion of the regulation being challenged is the stipulation that B.S.I. must pay Fairtrade premiums directly to associations for them to obtain their export license. Shawn Chavarria, the Director of Finance at B.S.I. spoke with reporters this evening.

Shawn Chavarria

Shawn Chavarria, Director of Finance, B.S.I.

“What has occurred is that at the time when the new regulations were introduced we had some very serious concerns with the new regulations. We felt that there were some different aspects that violate our rights and we would have had a negative impact on our business which could have impacted our operations and even how we pay for cane. To avoid any adverse impacts we applied for an emergency injunction so that a judge can review in particular the sections of the new regulations that we had challenged. So that emergency injunction was going to take place on the twenty-first of July but we have come to agreement with the attorneys of the government to essentially leave the status-qou whereby the sections of the law we have challenge will in effect not applied until the substantive matter is heard by a judge. We know that will take some months, perhaps a ruling until next year to be received. So, those aspects of the regulation that we have challenged, those will in effect be put on hold while the matter is heard. For us it is the outcome we would have wanted whereby our business can continue to operate without any adverse impact until we get a ruling from the judge. So we are not expecting any impact on getting licenses for exporting sugar permits, which could have had a negative impact on our business. The impact it could have had, there were certain section of the regulation we could not comply with from a technical and legal standpoint and if we don’t comply, it gives the power to the minister and sugar industry control board, price control unit to not issue a license to export sugar. So if we are unable to export sugar, it means we cannot function as a business.”