Brussels, 03/06/2004 (Agence Europe) - On 14 July, the European Commission may adopt a communication on reform of the Community sugar regime according to a timetable that is still provisional. Legislative proposals are not expected until early 2005. Commissioner Franz Fischler has already stated his preference for the second of three reform scenarios presented in September 2003 by the European Commission (status quo, price reduction or liberalisation of the regime). He is therefore in favour of reducing the price of white sugar by around 40% (i.e. from EUR 725 per tonne to EUR 450/tonne).
Member State representatives within the Special Agriculture Committee (SAC), responsible for preparing ministerial discussions, will discuss this dossier next Monday in the light of a report by the relevant Council working group (sugar and corn syrups). The Irish Presidency is to announce on Friday whether it plans to include the issue on the agenda of the next Agriculture Council, scheduled for 21 June in Luxembourg.
The report of the sugar and corn syrup group confirms the position of Denmark, Sweden and the United Kingdom in favour of a highly ambitious reform and reveals that Estonia, Slovenia and Cyprus join this group of countries. On the other hand, four Member States (Spain, Finland, Poland and the Czech Republic) prefer to keep the current regime. Many delegations could agree to a gentle change in the regime: - Spain, Italy, Lithuania and Finland stress the need for gradual changes to be made in order to keep a competitive sector; - Austria, Greece and Finland call for the production quota system to be kept; - Germany suggests first of all keeping the quota system with an increase in preferential imports accompanied by gradual phasing out of export refunds; - and Austria insists that intervention prices should be maintained.
Most delegations show caution and recognise that the future of the sector depends on many external factors: - the result of the WTO panel launched by Brazil, Thailand and Australia against a number of aspects of Community policy (first indications on this subject should be known during July and the final verdict is expected this coming September); - the results of the Doha Round talks at the WTO and the agreement with Mercosur countries; - the position of the developing countries in March which call for a ten-year postponement for gradual liberalisation of import duties and an additional import quota (EUROPE of 5 March).
The Commission, for its part, explains that the legislative proposals will be presented in 2005 once the Council has knowledge of: - the impact that the June 2003 reform of Common Agricultural Policy (CAP) will have; - the new financial framework; - and the possible results of WTO talks.