GEORGETOWN, Guyana (AP) – The Caribbean will suffer an economic catastrophe if the European Union does not revise its current plan to reform sugar tariffs, an official said yesterday.

The EU proposed a 39 per cent price cut, beginning next year.

But sugar producers in the 78-nation African, Caribbean and Pacific trade group last week presented a counter-proposal for a reduction of no more than 19 per cent, to the EU agricultural council, which will meet in Brussels from today to Thursday.

If the EU proposal is adopted, it “would have devastating consequences for vulnerable economies and lead to severe social and economic dislocation and an increase in poverty,” said Nand Barbouille, a negotiator for the 15-member Caribbean Community.

The World Trade Organisation last month ruled that EU subsidies make it impossible for producers in other countries to compete. If the EU doesn’t end its illegal handouts by May 22, it could face billions of dollars (euros) in retaliation, the WTO said.