Brussels, 30/10/2003 (Agence Europe) - Representatives of the Member States to the Special Committee on Agriculture (SCA) held an initial exchange of views on Monday on the three proposed options to reform the common market organisation (CMO) for sugar (the status quo, reduction in prices or liberalisation of the regime). However, many delegations, including France, Spain, Greece, Italy, the United Kingdom and Germany showed caution by declining to pronounce themselves in favour of any particular option at this stage. The Agriculture Council of 17 and 18 November will come back to this dossier.
During the SCA meeting, Denmark reiterated its willingness to liberalise this CMO gradually (which fits in with the third option, aiming to remove quotas and individual prices), and provide compensation for Community and ACP producers. The Netherlands expressed a preference for the second option (price reduction), as did Sweden, for the want of anything better. Sweden favoured the Danish suggestion, but acknowledged that it would not come to fruition, given the force ratio in Council. Belgium, Finland and Portugal stated their preference for keeping the current regime (status quo option). Two delegations (Finland and Sweden) asked for partial decoupling to be applied to aid in this sector.
Among the undecided, Germany said that it had no position at this stage but that reform of the sector was "important". The British delegation said that the status quo was no longer tenable. Ireland, without pronouncing itself in favour of keeping the regime unchanged, criticised the two other scenarios. France said it was aware of the need for reform related to external pressures (WTO, least developed countries...), but felt time should be taken to look into each of the options and take account of the interests of the ACP countries and the extremely remote regions. It feels that it is most likely that the final decision will stem from a compromise between several solutions. Spain pointed out that reform is not a matter of urgency, given that the regime does not expire until 30 June 2006. Italy stressed the need to take time to think the subject over carefully.
The Commission representative stated that support, both internal (guaranteed prices) and external (export refunds) should be reduced, to come into line with commitments taken at the WTO regarding least developed countries. The Commission repeated the request by the dispute panel brought by Brazil, Thailand and Australia on various aspects of sugar policy.