© PHILIPPE LOPEZ/AFP
– Rodrigue Petitot, leader of the RPPRAC, during the seventh negotiation.
An agreement reached. After the mobilization of the RPPRAC collective, a reduction of 20% on average on a selection of products was implemented on Wednesday October 16 to fight against the high cost of living in Martinique. Since September 1, the movement has been putting pressure on local elected officials and state services to obtain concrete measures on the cost of living on the island. In Martinique, 87% of food is imported and food prices are on average 40% higher than in mainland France according to INSEE (2023).
The RPPRAC slammed the door on the seventh round of negotiations which was held on October 16 in Fort-de-France. The collective calls for “continue the movement” and considers itself dissatisfied with the agreement signed by all the other participants in the negotiations, namely the local prefecture, the Territorial Collectivity of Martinique, parliamentarians, distributors, wholesalers, the Grand Maritime Port, the carrier CMA- CGM, representatives of the economic world as well as the Observatory of prices, margins and income.
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Price reductions on a list of 54 product families in Martinique
“The accumulation of collective efforts provided for in the protocol will allow hypermarkets to make a reduction of 20% on average in the sales prices currently applied on a list of 54 product families corresponding to the most consumed food products in Martinique”indicated the prefect of the island, Jean-Christophe Bouvier. In parallel “five major measures for structural reductions in the costs of purchasing and transporting the 6,000 imported food products most consumed in Martinique”will be put in place to encourage “the lasting drop in food prices”specifies the prefect in a press release published on October 16. The prefecture also wishes to obtain a “firm and obligatory commitment from major distributors to significantly reduce their margins on the sale of these products”.
In detail, the prefect announced the reduction to “zero rate” VAT and dock dues. This is the tax collected by local authorities on goods brought into Martinique, particularly from mainland France. 54 product families including pasta, milk, butter, red beans and even cheese are affected by these tax cuts. The measure will extend to 69 product families including apples, organs and rusks with regard to zero-rate VAT.
And “approach cost compensation mechanism” will be put in place for “these everyday consumer products” added the prefecture. These are costs related to “the act of bringing goods back to its territory, namely mainly maritime transport and dock dues, but also various taxes, the cost of import service providers”defines the National Consumer Institute. The prefecture estimates that 67% of the price differential between France and Martinique is attributed to approach costs.
Private actors and the State, which should soon specify the conditions of its financial participation, will take part in reducing the costs of transporting foodstuffs to the West Indian island. The prefecture specifies that large-scale distribution is committed to “reinforce transparency around price formation” in particular via an increase in controls carried out by the Competition Authority. The prefecture wishes to encourage food autonomy and local production. For this, 2 million euros will be paid from 2025 to finance a three-year experiment to support local agriculture.
The RPPRAC calls for continued mobilization against the high cost of living in Martinique
“The people in total disagreement (with the protocol) decided to continue the movement”reacted immediately after the announcement the RPPRAC. “We are asking that the Minister (for Overseas Territories, François-Noël Buffet) travel to Martinique. As long as the minister does not travel, no one will be able to move around” on the island, added Rodrigue Petitot, leader of the collective, reports AFP. Over the past month, filter roadblocks manned by RPPRAC activists have multiplied in Martinique. Local authorities have extended a nighttime curfew until October 21 in light of the urban violence that has taken place over the past few weeks.
For the collective, the agreement signed on Wednesday is insufficient. “We are talking about 6,000 products out of 40,000. (…) Everyone agrees except the RPPRAC”justified Rodrigue Petitot. “We are extremely determined. We maintain the blockages, we maintain everything. The fight is until you win your case” insisted the leader of the movement. The Minister for Overseas Territories, François-Noël Buffet, for his part, welcomed a “very, very strong progress against the high cost of living in Martinique, with a significant budgetary commitment”. «The work will continue, because we will in any case have structural reforms to make to lower the cost of living in our overseas territories”he continued, while traveling in New Caledonia. The minister said he would soon travel to Martinique but said he did not approve “putting under pressure”.
