Brussels, 31/10/2014 (Agence Europe) - Faced with the continuing increase in EU sugar stocks, European sugar beet growers recently called on the European Commission to take export measures and to oppose any further imports. They say that there is a high risk of sugar sector companies having to shut up shop.
In a letter sent to the Commission on 24 October and focusing on 2014-2015 sugar marketing year, the International Confederation of European Beet Growers (CIBE) highlights the threat that the continuous increase in sugar stocks from 2009-2010 poses to the sugar sector. The increase is due, it argues, to the exceptional measures put in place and especially the import measures decided on in 2012-2013, which, the organisation says, were clearly inappropriate.
Severely depressed market
Sugar consumption in the EU remains stable and 600,000 tonnes of exceptional imports in 2012-2013 directly increased stocks, CIBE states. The stocks, representing more than 15% of food consumption that year, have severely depressed the European market since 2013 and the excellent harvest forecast for 2014-2015 is unlikely to ease the pressure.
With an estimated historic level of 2.4 million tonnes of end-of-year stocks, European beet growers will face a decision on deferring significant quantities of beets to 2015-2016 and considerably reducing the land planted for this marketing year, with the risk of uncertainties in the next few years, CIBE says. It argues that there is now a high risk of sugar manufacturers having to close and job losses in the EU.
Export licences, caps on imports. Against this backdrop, CIBE calls on the Commission to have the EU management committee pass the opening of the second tranche of export licences for out-of-quota sugar for 2014-2015 and to consider all options to facilitate additional exports (early opening the first tranche of 2015-2016 licences in 2014-2015) to reduce the pressure on this sugar and to avoid too great an adjustment of the area under sugar beet in 2015-2016.
European beet growers also call on the Commission to reject any proposal to reduce current import duties and, above all, to suspend the reduced tariff of €98/tonne which applies to cane sugar quotas for refining. They are of the view that the Commission should, equally, oppose any increase in preferential imports. They say that sugar imports must begin to fall in 2014-2015 in order to stabilise the EU market. Furthermore, the possible entry into force of free-trade agreements already concluded (with Ecuador, economic partnership agreement with Southern Africa) before 1 October 2017, the date on which the Community quotas regime expires, is totally inappropriate and dangerous for the sustainability of the sector.
Worrying trade policy
In its letter to the Commission, CIBE says that it is particularly worried by the EU trade policy on sugar, by the cumulative effect of concessions and exceptional imports accepted since 2006, by new developments on the world market, and by the increase in support measures and trade-distorting measures put in place by third countries in breach of WTO rules.
At the same time, European beet growers complain, the EU is constantly blamed: its sugar exports are not only strictly limited by the WTO, they are further penalised by partners. Thus, CIBE says, the increased number of countervailing and antidumping duties being applied since 5 September 2014 to certain exports of sugar and sugar-based EU specialities to Canada, a country to which the EU has just opened its market under the terms of a free-trade agreement, raises concerns over the way in which the Commission integrates agriculture and sugar issues into trade negotiations. (LC)