The EU Sugar Regime: Proposals for reform, July 2004

The European Commission tabled a Communication in September 2003 setting out the implications of three possible reform scenarios for the EU's sugar sector. Following a period of consultation with interested parties, the Commission published a Communication in July 2004 (COM 2004)499) proposing reform of the EU sugar regime. The current system has come under fierce criticism for misallocating resources, hampering competition, harming developing countries and giving consumers, taxpayers and the environment a raw deal. The Commission proposes to substantially cut back sugar exports and export refunds, abolish intervention, reduce EU production and the internal sugar price and grant a de-coupled payment to sugar beet farmers. The reform process will start in July 2005. To give all parties time to adjust, the changes should be implemented over four years. In view of the uncertainties in the international field, a review is foreseen in 2008.

The proposals have been attacked by some of the major commercial players in the sugar industry, but supported by other stakeholders (see the hyperlinks under 'Stakeholders').

Subsequently, the World Trade Organization (WTO) on 15 October 2004 circulated and made public the panel reports in the dispute brought by Australia, Brazil and Thailand against aspects of the EU sugar regime. In response, the Commission announced that it would appeal the ruling.

This In Focus brings together a structured listing of information sources on the July 2004 sugar regime reform proposals. The link at the bottom of the In Focus will allow you to find further and subsequent information sources on this subject. To follow the progress of the formal proposal to reform the EU sugar regime you can also click on the PRELEX hyperlink under 'EU: Legislation and Policy-Making'.

EU: Legislation and Policy Making

	European Commission: COM, (2003) 554 final (23.9.03): Communication: Accomplishing a sustainable agricultural model for Europe through the reformed CAP
	European Commission: COM (2004)499 final (14.7.04: Communication: Accomplishing a sustainable agricultural model for Europe through the reformed CAP - sugar sector reform
	PRELEX: Follow the progress of COM (2004)499

EU: Report

European Commission: DG Agriculture: A description of the common organisation of the market in sugar, September 2004

EU: Background

	European Commission: SPEECH/04/363: The reform of the EU sugar sector
	European Commission: IP/04/1237: Commission appeals against WTO sugar ruling
	European Commission: IP/04/915: Sugar: Commission proposes more market-, consumer- and trade-friendly regime
	European Commission: MEMO/04/177: EU sugar sector: Facts and figures
	European Commission: DG Agriculture: Agricultural markets: Sugar

International Organisation

	WTO: Dispute Panel: European Communities: Export subsidies on sugar. Complaint by Thailand. Result of the Panel, WT/DS267/R, 15 October 2004
	WTO: Dispute Panel: European Communities: Export subsidies on sugar. Complaint by Brazil. Result of the Panel, WT/DS266/R, 15 October 2004
	WTO: Dispute Panel: European Communities: Export subsidies on sugar. Complaint by Australia. Result of the Panel, WT/DS265/R, 15 October 2004

National/regional/local official organisation

	United Kingdom, House of Commons: Environment, Food and Rural Affairs Committee: Reform of the sugar regime: Government reply to the Committee's report, 2004
	Ireland: Department of Enterprise, Trade and Employment: Press Release, 26.7.04: Trade Minister Ahern alarmed at sugar reform proposals
	Ireland: Department of Agriculture and Food: Press Release, 14.7.04: Walsh totally opposed to Commission proposals on sugar
	United Kingdom: DEFRA: Farming: Arable Crops: Sugar: European Union - Regime
	United Kingdom, House of Commons: Environment, Food and Rural Affairs Committee: Reform of the sugar regime. 2 vols, 2004

Stakeholder organisation

	LDC Sugar Group: Press Release, 13.9.04: Response to the Commission Communication of July 2004
	National Farmers Union: Press Release, 8.11.04: Campaign for your future - Sugar producers are urged
	CEFS: Press Release, 14.7.04: First reactions of CEFS to the Commission communication on sugar reform (scroll down to date)
	British Sugar: Position Paper: European Commission's Proposals on Sugar Sector Reform - the UK Beet Sugar Industry Position, September 2004
	National Farmers Union: Policy Statement: DEFRA Consultation: Review of the EU Sugar Sector, January 2004
	Danisco: Reform of the sugar regime
	ACP Group: Secretariat: ACP response on EU sugar regime proposal, 2004
	British Sugar: Links to further information on the EU sugar regime reform proposals
	OXFAM: Briefing Paper, No.61: Dumping on the world. How EU sugar policies hurt poor countries, April 2004
	Danisco: Press Release, 15.7.04: EU sugar reform outline with content as anticipated
	National Farmers Union: Press Release, 14.7.04: Future opportunities and challenges for UK sugar

Commercial publisher and media

	The Economist, No.8371, 17 April 2004: Trade. Oh, sweet reason
	European Voice, Vol.9, No.35, 23.10.03: Stakeholders deliver mixed reaction to sugar reform plans
	European Voice, Vol.10, No.8, 4.3.04: Relax trade limits on sugar, poor countries tell EU
	European Voice, Vol.10, No.25, 8.7.04: Reform of the Union's 'unfair' sugar regime would stir up more than a storm in a teacup
	Financial Times, 14.4.04: Oxfam says EU sugar trade is hurting the poor
	Financial Times, 21.5.04: Sickly sugar
	Financial Times, 24.6.04: Farm chief saves toughest move for last
	Financial Times: 15.7.04: Brussels set to cut sugar output and dumping
	EUobserver.com, 14.7.04: Sugar industry to get 'radical overhaul'
	Financial Times, 16.7.04: Bitter taste of EU sugar reform
	Financial Times, 5.8.04: EU sugar subsidies criticised by WTO
	Financial Times, 6.8.04: Sweet justice for EU sugar (editorial)
	Financial Times, 9.9.04: WTO confirms farm subsidy rulings
	Financial Times, 16.10.04: EU to appeal over WTO sugar ruling
	Financial Times, 24.6.04: EU faces bitter battle over sugar subsidies

Related Topic Guides / In Focus

ESO: In Focus: CAP reform - the cotton, olive oil, sugar and tobacco sectors, September 2003

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