Brussels, 10/05/2005 (Agence Europe) - ACP countries (Africa/Caribbean/Pacific) linked to the EU through the Cotonou Agreement, say they are extremely disappointed by the WTO's appellate body ruling, which confirms condemnation of the Community sugar regime (EUROPE 8938). The ACP group thinks that this decision completely fails to take into account the ACP's arguments that are so crucial about the protection of small vulnerable economies. The ACP does say, however, that it is confident that the EU will defend the legitimate interests of the ACP in respect of the commitments it has made.
This is the message of the ACP declaration made at a working meeting last week in Brussels following the decision of the appeals panel announced on 29 April. The ACP says that the panel's decision upholding the claims of the complainants would have “serious adverse consequences on the trade and economic benefits” which ACP countries derived from the export of sugar to the EC under the Sugar Protocol. ACP countries say that this decision could have repercussions on the three pillars which underpin the Agreement on Agriculture and “introduces an element of uncertainty which now needs to be addressed in the ongoing Doha Round” at the WTO.
The declaration explains that, “In our view the Appellate Body findings and recommendations, when taken into consideration with the WTO July 2004 framework agreement, may not require the drastic cut in prices which the Commission has proposed for the reform of the EC Sugar Regime”. The ACP points out that it is not against reform of the EC Sugar regime but “wants a reform which is fair and equitable to all stakeholders and one which complies fully with the legal and political commitments of the EU vis-à-vis the ACP sugar supplying states, particularly under the ACP-EU Sugar Protocol and Article 36[4] of the Cotonou Agreement”.
The ACP Group said it did, nonetheless, welcome the decision by the Appellate Body not to make a ruling on the complainants' claims under the SCM Agreement. It also points out that the statement made by the EC on 14 July 2004 that the European Communities “fully stands by its commitments to ACP countries and India” and that with the reform of its sugar regime, the ACP countries and India will “get a clear perspective, keep their import preferences and retain an attractive export market” .
The ACP Group said it is convinced that the Commission would take the above points into account when they finalize the reform proposals and that it is “indeed encouraged” by Mariann Fischer Boel's statement that the Commission will continue to defend the valid interest of sugar producers and consumers in both the EU and ACP countries. Furthermore, the assurance by the Commission that the ACP farmers won't be out of pocket is heartening,” the ACP Group statement said.