| Author (Person) | Ferguson, David |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.9, No.35, 23.10.03, p32 |
| Publication Date | 23/10/2003 |
| Content Type | News |
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By David Ferguson Date: 23/10/03 AGRICULTURE Commissioner Franz Fischler's communication on sugar, left untouched by June's agreement on the Common Agricultural Policy, is getting a mixed reaction from stakeholders. The European Commission proposed three main options for reform in the 23 September communication. Option one maintains flexible quotas and price intervention beyond 2006. Option two reduces EU sugar prices with a sector bailout. Option three is full liberalization with support for sugar producers. EU-15 sugar production fluctuates between 15 and 18 million tonnes. Ten new member states will increase this by 15%. MEPs would have preferred to have a clear legislative proposal from the European Commission. In the absence of this, they have not appointed a rapporteur for sugar. At the European consumers' union, BEUC, economist Dominique Forest still fears consumers will pay three times world levels. EU intervention prices have been frozen since 1984 at €631.90 per tonne for white sugar and €523.70 per tonne for raw sugar. "This unfair policy is not working. Member states should reject the Commission's soft option of partial liberalization and continued guaranteed prices," said Forest. Alain Beaumont, the secretary-general of the Committee of Industrial Users of Sugar, is more positive. He favours option two or three: "The sugar processing industry must be more competitive. But price is not the only thing; we need service, choice and a sustainable relationship with suppliers." Jean-Louis Barjol, secretary-general of the European sugar manufacturers and refiners committee, is disappointed. "We are not happy with the communication, but the real debate is just beginning. The status quo - under current procurement policy - is unsustainable due to Everything But Arms." This policy, giving the world's 50 poorest countries EU market access, has to be redesigned: "In 2005 the Commission will report to Parliament on implementation. That's the time for a rethink." Barjol dismissed claims that EU consumers pay through their teeth for sugar. "Europe is a rich region. People are paying a similar proportion in terms of purchasing power capacity. Sugar is minimal in any product." Negotiations between member states will be difficult as the complicated sugar regime has never been reformed before. Sources at the Council of Ministers expect a quiet working group on sugar on 17-18 November. The real discussion comes next year, pitching southern Europeans and Finland against more reform-minded northerners. In the meantime, Danish officials are backing down from radical calls, made at the end of August, for full liberalization. "The Danish position paper is too forward-thinking. But reform will come," says Danish EU diplomat Anders Kristensen. Implementation of Everything But Arms, general reform for olive oil, cotton and tobacco, and now a World Trade Organization case brought by Australia and Brazil against the EU's 35-year old sugar scheme, puts ever-greater pressure on the status quo.
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