Caribbean farmers will struggle to survive in an increasingly challenging global market during the outlook period, as they are faced with reductions to the EU sugar price and increasing competition from South and Central American-based banana producers. The future of the region's sugar industry will continue to face uncertainty, with EU price guarantees likely to be phased out in the near term. To lessen the economic impact of cuts in the guaranteed price, the EU is providing adjustment assistance. The Caribbean banana industry will also face steeper competition in the wake of a loss of preferences following a decision in early 2011 by the EU-the region's main banana export market-to cut import duties on bananas produced in Latin America by 35% over six years, thus eroding the Caribbean's historic advantage (bananas from the Caribbean currently enjoy quota- and duty-free access to the EU, whereas Latin American producers pay a duty of EUR176-US$224-per tonne; this is set to fall to EUR114 per tonne by 2017). Although Caribbean bananas will continue to enjoy quota-and duty-free access to the EU market, without some additional form of protection the industry is unlikely to survive.