Brussels, 12/07/2005 (Agence Europe) - During the meeting of the Special Agricultural Committee (SAC) on Monday, the majority of Member States supported a reform of the sugar sector proposed by the European Commission on 22 June (EUROPE 8972). Several countries acknowledged that progress had been made in the proposal compared to the communication of July 2004, such as the removal of the measure to transfer quotas between the Member States, the increase of the isoglucose quota, and the fact that the quota system had been kept in place with the creation of a voluntary regime to restructure the sector. Opposing, several countries including Italy, Spain, Greece and Portugal, maintained their opposition to such a radical change to the sector. The Agriculture ministers will return to this dossier at their meeting next Monday.
The Commission's proposal provides for a reduction of 39% in the sugar price over two years, compensation of 60% to sugar beet growers (in the form of a payment decoupled from production), the creation of a voluntary restructuring regime over four years and the removal of intervention, an aid plan in favour of the traditional sugar-supplying countries of Africa, the Caribbean and the Pacific (ACP) (40 million EUR from 2006, and assistance will continue to be provided over the period 2007-2013). The regime will be kept in this form until the end of the marketing year 2014-2015, including the extension of the sugar quota system, without revision of the new prices and quotas.
At Monday's SAC meeting, the Member States answered three questions on the following elements of the proposal:
Voluntary structuring system combined with significant price reductions: the Commission proposal was supported by Germany, United Kingdom, France the Czech Republic. Some countries (Sweden, Denmark) requested more ambitious reform. Sweden also asked for an examination of ways for commercialising quotas between Member States following the restructuring period of the sector (to finish in 2010). Countries that were hostile to the reformer included Italy, Greece (which referred to a “disastrous proposal”), Portugal and Spain.
Reform up to 2014/2015: Germany, United Kingdom, Denmark and France supported the proposal, while Sweden called or a shorter period of reformer. Some Member States like Italy and Spain underlined that it was useless to mention perspectives in the long term if production disappeared in a few years time.
Compensation for sugar cane producers: the percentage of 60% proposed by the Commission and jugged satisfactory by many countries (Germany, United Kingdom, France, notably). Other Member States called for less compensation (Netherlands, Sweden, Denmark). At the other end of the spectrum, some countries called for more compensation, like Spain, Hungary (100% demanded) and Italy (80%). Certain new Member States of the EU called for the decoupled compensatory payment granted to sugar cane producers take the area into account as well.