Echternach, 09/05/2005 (Agence Europe) - European Commissioner for agriculture, Mariann Fischer Boel said that she still hoped to get an agreement on reform of the Community sugar system by November, which had recently been condemned by the WTO. Quoted by Agence France Press, shortly before the opening of the informal agriculture ministers' meeting in Echternach (EUROPE 8942), on Sunday, she informed journalists that, “I hope but it will be difficult. It is not an easy negotiation”. Ms Fischer Boel underlined that the WTO's appeal body had not changed things by confirming an initial judgement against significant elements in the European Union's sugar subsidy system in November 2004 by the organisation's arbitration's body. She said that, “Nothing has changed, that's why we have to take into account what needs changing in future reform”. The Commissioner, who is expected to present her definitive reform proposal by the summer, did not rule out going further in price reductions and production quotas as put forward in July 2004 by her predecessor Franz Fischler in an initial draft which froze the WTO' procedure time. Fischler had suggested a gradual reduction of guaranteed European prices by a third by the end of 2007, which are currently three times above world rates and a reduction in European production to 14.6 million tonnes a year in 2008/09, as opposed to the 17.4 million tonnes today. Fischer Boel explained that this reduction could be increased.
Member States divided over chances of reaching agreement by November
According to the Dutch minister of agriculture, Cees Veerman, the “severe” verdict of the WTO is not going to help the EU25 reach an agreement in November. He said that, “We don't intend to help sugar production in Brazil; we want a fair agreement for European farmers and to help East African countries”. According to Veerman, an agreement in November would be “very difficult”. He considers that if prices and quotas are reduced by 30%, for example, it would be necessary to authorise the transfer of quotas between Member States. He also appealed for gradual implementation of reform. According to French minister, Dominique Bussereau, “the EU now needs to speed up the process so that we can provide a collective response to the difficulties faced, particularly for sugar C”. He added that now that the WTO decision is known, “there is no point in delaying reform implementation”. He indicated that France was not hostile to the basic Commission proposals but that two problems had to be taken into account: social consequences for certain companies and sugar can in the Antilles. According to Spanish minister Elena Espinosa, reform would be tough but she hoped that results would not be too hard on Spanish farmers. She pointed out Spain's position: no reduction in prices or quotas and no quota transfers. In the event of price or quota reductions, sufficient compensation should be planned for farmers who are hit hardest. Renate Künast, the German minister said that pressure on prices was stronger following the WTO verdict. She indicated that the position of her country was for more competitiveness in the market and for compensation for the sugar industries that had to stop their activities due to the reform. She said that restructuring funds for farmers hit by reform should be financed by producers (and not out of the Community budget). She also hoped that an agreement in November but that this should be gradual.