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Europe Daily Bulletin No. 9036
Contents Publication in full By article 13 / 30
GENERAL NEWS / (eu) acp/eu/sugar/reform

ACP and LDC adopt action plan to promote sustainable development in ACP sugar sector - Calls for emergency tripartite meeting at highest level to break deadlock

Brussels, 27/09/2005 (Agence Europe) - The sugar-producing ACP countries which are signatories to the ACP/EU Sugar Protocol and the Least Developed Countries (LDC) which produced sugar with free access to the EU market under the "Everything but Arms" initiative, have decided to take action to modify the proposed reform of the Community sugar regime to move it closer to their legitimate interests. Having met the European partners at an informal ministerial session in Brussels (see EUROPE 9031), they met again in Kisumu (Kenya) from 22 to 26 September for their ninth special ACP ministerial conference. The ACP and LCD ministers have set themselves the objective of examining strategies to promote the sustainable development of their sugar industries, "particularly in light of the radical proposals of the European Commission". Their work, which was chaired by Arvin Boolel, the Minister for the agro-food and fishing industries of Mauritius and spokesperson for the ACP group on sugar, led to a statement formalising their position, and an action plan to implement it.

In a statement, the ministers "regret the fact that so far, the concerns of the ACP and LCD states have not been taken into account". They recognise that the ACP/LDC sugar industries must be reformed in order to become more competitive, but feel that the EU's proposed reform is "unbalanced and discriminatory towards the ACPs", given that the "lack of coherence in Community policies compromises the capacity of these countries to use trade as a means of achieving the Millennium Development Objectives".

The ministers feel that various aspects of the Commission's proposal are incompatible with the provisions of the Sugar Protocol and call on the Commission to guarantee that these provisions will be respected. They consider that the offer of 40 million EUR to pay for the first year's accompanying measures (the sum total has not been laid down for the following years) is not enough to allow the ACP States to modernise, restructure and improve their competitiveness. The ministers noted that according to the UK Presidency, 100 million EUR will be needed in the first year, and 500 million each year for the following years. They reject the Commission's argument that the opening up of the Community market to the LDC States as part of the "Everything but Arms" initiative would bring about a drastic reduction in the prices it offers. They feel that such a large price reduction goes well beyond what is required of the EU in order to honour the commitments it is likely to be called upon to make in the context of the WTO. They reiterate their concern in the absence of specific accompanying measures in favour of the LDCs as part of the "Everything but Arms" initiative. They regret the fact that the mini-Summit on sugar, which the President of Mozambique called for in New York in his capacity as President of the ACP Summit, did not take place. However, they welcomed the solidarity and support manifested by a great many members of the European Parliament, certain Member States of the EU, NGOs and civil society, which have also vigorously opposed the Commission's proposed reform.

The ministers noted that St-Kitts-and-Nevis, and ACP State which is a signatory of the Sugar Protocol, has been obliged to stop its production of sugar for export, given that the reduction of 39% in the sugar price proposed by the Commission would render it unviable, and call on the European Commission immediately to provide St-Kitts-and-Nevis with budgetary support for the financial year 2006, which is necessary both to accompany the transition process and to ensure broader diversification and adaptation. They recognise the need to restructure their sugar industries, but at their own pace and taking their own decisions sovereignly. Therefore, they call on the EU to give its national delegations a clear mandate to play a supporting role in the spirit of the ACP/EU are partnership. They reiterate their commitment to support intra-ACP cooperation for the restructuring and development of their sugar industries. The ministers gave a mandate to the consultative group to examine the proposal by the Commissioner for Development, Louis Michel, on the appointment of a consultant to review the ACP proposals on intra-ACP cooperation in the field of Research and Development.

The ministers feel that the best option would be to reach agreement on reform of the EU sugar sector after the Hong Kong ministerial conference next December. The ACP and LDC States will take an active and efficient part in the negotiations at the WTO before and after the Hong Kong ministerial conference, will pursue an active strategy of building alliances within the WTO and will work with the interested parties to reactivate the G90, the declaration reads. The ministers unanimously stressed the need for an emergency meeting at the highest level between the ACP and LDC Heads of State, José Manuel Barroso, Tony Blair and Josep Borrell, "in order to reach a solution which is acceptable to all concerned".

On the basis of this declaration, which is known as the Kisumu declaration, consultations will be started with the President of the ACP Council and all the ACP and LCP Heads of State in order to facilitate immediate dialogue at the highest level.

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