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Sugar cubes - Source: ONE News -
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European nations have cancelled lucrative sugar subsidies for
Fiji after the Pacific island's military government refused to hold
post-coup elections this year and extended a crackdown on media and
critics.
The European Commission said it had cancelled subsidies worth 24
million euros ($55.17 million) in the absence of any commitment to
elections in 2009, as promised by military chief and interim Prime
Minister Frank Bainimarama.
"I encourage the government of Fiji to fulfil its commitments to
the EU so that we are able to reinstate sugar reform payments in
the future," European Commissioner for Development and Humanitarian
Aid Louis Michel said in a statement on Monday.
Fiji was plunged into fresh crisis last month after the president
reappointed Bainimarama as interim prime minister, less than two
days after a court ruled his 2006 coup and subsequent government
was illegal.
The Pacific Islands Forum this month suspended Fiji from the
16-nation grouping with immediate effect after Bainimarama extended
emergency laws and said there would be no election until 2014 at
the earliest.
Fiji's economy is largely reliant on sugar and tourism, and both
have been battered by the hard line adopted by the government, with
foreign tourists increasingly staying away.
Sugar is an important source of grassroots income and foreign
exchange, with around 31% of the country's population reliant on
the industry for their livelihoods.
High prices paid by the EC to counter the fall in the price of
sugar sold to the EU amid industry reform has helped keep Fiji's
industry competitive.
