Brussels, 28/06/2004 (Agence Europe) - Ahead of the imminent Commission plans to review the EU's sugar system (expected to be unveiled on 14 July), heads of state from the ACP countries (Africa, Caribbean and the Pacific) are urging the European Union to keep the special conditions for the ACP producers under the Sugar Protocol, particularly the level of guaranteed prices.
The Fourth ACP Summit in Maputo last week (see EUROPE of 25 June, pages 12 and 13) expressed huge fear about this, and adopted a resolution expressing the concerns of Nandcommor Bodha, Mauritius Island's Agriculture, Food Technology and Natural Resources Minister. Speaking before the highest body of the group of 79 ACP countries, the Mauritius minister (his country was a particular beneficiary of the Sugar Protocol) make a moving argument in favour of keeping the ACP-EU Sugar Protocol, as an undeniable tool for sustained development for all sugar growing countries, thanks to its guarantee of adequate, stable and predictable income.
He said that the European Commission's proposal would lead to a 40% cut in the price of sugar, which would have a catastrophic impact on the economy of Mauritius Island. The Sugar Protocol, he explained, was a development tool which helped Mauritius develop both socially and in rural areas and he called on ACP states to adopt a statement for the EU expressing his concerns.
His message was received loud and clear. In their resolution, supported by all the less developed countries, the ACP heads of state urged the EU and the European Commission to ensure that any planned review of the Community's sugar system guarantees ACP and less developed sugar growers treatment at least at an equivalent level as that enjoyed by ultra-peripheral EU areas and prevents any form of discrimination in terms of sugar prices and revenue since this would run counter to the letter and the law of ACP-EU cooperation.
The ACP heads of state recognised that the 'All but Arms' initiative had helped the least developed countries (whether ACP states or not) by providing them with an opportunity to export sugar to the EU under preferential conditions, including guaranteed sugar prices. But they point out that such a price and access to the market system, free of duty and quotas, would be pointless from the economic point of view if it did not come with adequate guaranteed prices. Without guaranteed prices, it would put ACP and least developed countries which grow sugar in the same unenviable position as coffee and cocoa producers.
For this reason, the ACP states urged the EU to grant ACP and least developed country sugar producers with increased, accelerated access to the EU market for sugar, at adequate priced which will enable them to develop the capacities they will need to ensure the future as major sugar suppliers to the EU. Should there be a reduction in sugar prices, they urge that ACP states benefiting from the Sugar Protocol and least developed countries benefitting from the All but Arms initiative to be given compensation similar to that provided to EU producers from the EAGGF. They point out in this connection that such compensation should not come from the European Development Fund (which is intended for longer-term development).
To support their demands, the ACP heads of state note that Article 36 of the Cotonou Agreement recognises the need to safeguards the benefits provided to ACP less developed countries, enclave states, and islands with vulnerable economies relying on a single commodity. They stress that the Sugar Protocol between the EU and ACP states is a long-term intergovernmental agreement for an indefinite period, established as part of the European Community's sugar regime.
The resolution from the Fourth ACP Summit will be submitted to the President of the European Commission, the President of the Council of the EU, EU Member States and the President of the European Parliament.