Brussels, 05/10/2004 (Agence Europe) - Three blocks of Member States will be facing each other in negotiations over reform of the sugar sector. Reform is on the cards following the meeting on Monday afternoon at the Special Agriculture Committee (SAC) on the 14 July communication related to changes to introduce to the Common Markets Organisation (CMO) on sugar (EUROPE 15 July 2004 p 11). Most countries are requesting a postponement of the date for implementing the reform (1 July 2006 instead of 1 July 2005 as proposed by the European Commission). This involves the following groups:
The "moderates": Germany, France, Netherlands, Austria, Belgium. These are Member States whose sugar is competitive and whose producers can easily assume price deductions or quotas or the non-producer countries. They agree in principle to reform but most of them want implementation to begin on 1 July 2006, mainly because of doubts about the final verdict of the WTO panel. The Netherlands delegation has called for implementation of reform in 2009. These countries want very gradual reform staggered until 2012-13 (end of next financial perspectives).
The "conservatives": Spain, Italy, Greece, Portugal, Ireland, Finland, Poland, Hungary, Czech Republic, Lithuania, Latvia. These countries are requesting the maintaining of production in all Member States and are opposed to price reductions, quotas and the merging of A and B quotas. These countries are less competitive, less powerful and suffer from high production costs. Spain describes the Commission's approach as "unacceptable" and together with Hungary is demanding 100% compensation for lost income for producers (in the event of lower prices or quotas), whereas the Commission has proposed 60%.
The "ultra-liberals": United Kingdom, Denmark, Sweden, Estonia and Malta. These countries (few of them or not at all producer countries or importers of low price sugar cane for processing) favour lower prices and quotas, often without compensation. These countries support the Commission. Only Sweden is appealing for more radical reform.