Brussels, 09/02/2005 (Agence Europe) - The Member States of the EU on 7 February reached an agreement in the Special Committee on Agriculture (SCA) on the proposal to replace the free access system to the single market for sugar exports from Albania, Bosnia-Herzegovina, Serbia and Montenegro (including Kosovo) with a zero-duty quota system by means of an association stabilisation process linking the EU to these countries. The proposal is due to be adopted without discussion at the Agriculture and Fisheries Council on 28 February.
The draft regulation sets the following sugar import quotas: 1000 tonnes for Albania, 12 000 for Bosnia-Herzegovina and 180 000 for Serbia and Montenegro (instead of the Commission's initial proposal of 150 000). The Commission proposed 30 000 tonnes for Serbia and Montenegro. In exchange, it receives: - a commitment from Serbia and Montenegro to give tariff preferences to exports of Community sugar (for cases where the country lacks beet to process, to prevent imports of sugar from Brazil); - a reduction of the quota for Serbia and Montenegro to 150 000 tonnes if it does not fulfil its commitments. The Commission is also committed to fight fraudulent practices consisting of re-exporting European sugar which had previously been sold in the Balkans. Additionally, customs controls will be stepped up to guarantee the provenance of sugar from the Balkans (with certificates of origin).
At the SCA, the proposal was welcomed by the majority f Member States. Only Malta and Sweden openly opposed the text. The UK is also considering voting against it. These three countries think that setting import quotas is incompatible with the principles of free trade and that this decision is premature with a view to the reform of the sector in the EU.
In its proposal of November 2004, the Commission explained its objective as to institute a sustainable sugar import system for the Western Balkans. The quota system takes account of the following elements: - the development in these countries of an artificial production potential as a result of the high Community prices; - the price-drop which will result from the anticipated reform of the common organisation of the markets (COM) for sugar; - the prospect of EU accession for some of these countries.