Brussels, 26/06/2013 (Agence Europe) - The political agreement reached in trialogue on Wednesday 26 June on the reform of the common agricultural policy which provides for the end of sugar quotas in 2017 (see other article) took little heed of the concerns of the ACP (Africa, Caribbean, Pacific) countries. The ACP countries were requesting that the current regime be extended until 2020 so as to allow for the completion of the action plans defined jointly with the EU to carry out the modernisation and diversification of the ACP sugar industries and improve their efficiency.
On Tuesday, the ACP group warned the Council, in a final appeal, about market instability and a serious risk for its developing economies if the EU proposal to abolish sugar quotas before 2020 was adopted. Drawing a comparison with the likely renewal of the US sugar policy - which provides for limits for national production and a 15% share of the market reserved for developing countries - the ACP Sugar Group had called on Europe to honour the principles stipulated in the Cotonu Agreement, in the economic partnership agreements (EPAs), and in the Everything but Arms Initiative, which aim to protect the EU's small and vulnerable trading partners.
At the ACP-EU Joint Parliamentary Assembly in Brussels last week, the ACP countries were alarmed at the lack of clarity from the European Commission regarding the market instruments that were called for to replace the quotas system so as to ensure market regulation and the safeguard of public interests. Speaking on behalf of the ACP sugar producing states, Satya V. Faugoo, Minister of Agro Industry and Food Security of Mauritius, stated: “Both independent and the European Commission's own studies conclude that the expiry of the sugar quota will lead to a reduction of the domestic price of sugar, making imports - including [those from ACP countries with] preferential access - less attractive. This eventually will make duty-free quota-free access of sugar from ACP meaningless and will potentially eradicate ACP sugar from the EU market”. According to some studies, the ending of quotas will result in an estimated loss of income of €850 million up to 2020 for ACP sugar producers - including for five least developed countries (LDCs). (AN/transl.fl)