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Europe Daily Bulletin No. 9072
Contents Publication in full By article 19 / 39
GENERAL NEWS / (eu) eu/agriculture and fisheries council

Ministers hope to agree on sugar reform Wednesday or Thursday - WTO and Baltic Sea fisheries also on agenda

Brussels, 21/11/2005 (Agence Europe) - At their meeting starting 22 November, the EU farm ministers, chaired by UK minister Margaret Beckett, will try to reach agreement in principle on the tricky subject of reforming the EU's sugar market. On Tuesday morning, the British Presidency will unveil a first draft compromise on the sugar market and then move on to the other issues on the agenda, namely fisheries (political agreement is expected on Baltic Sea fisheries) and bird flu. Talks on the sugar regime will start on Tuesday afternoon and continue into the next day (and even on into Thursday) to reach agreement on a general approach rather than political agreement - the change in terminology reflect the fact the European Parliament has yet to give its advisory opinion on the matter. Horst Seehofer, Germany's new farm minister, is expected to attend the Council on 23 November onwards. On Wednesday, the EU's farm ministers will discuss progress in WTO talks.

Sugar reform. All Member States acknowledge that changes are needed. Italy, Spain, Portugal, Greece, Ireland and Finland are basically hostile to the European Commission's draft reform. Poland, Latvia, Lithuania, Slovakia, Slovenia, Hungary and, to a lesser extent, Austria, the Netherlands and Belgium disagree with some areas, while France, Germany, the UK, Sweden, Denmark and the Czech Republic back the Commission's ideas, with a few tweakings around the edges. The Member States that do not grow sugar (Malta, Luxembourg, Estonia and Cyprus) agree with the Commission's ideas. During the preparatory talks at the high-level group of experts from EU Member States, several countries (including the most competitive like France, Germany and Belgium) called for a safety net for the EU sugar market in the first phase of reform (see EUROPE 9069). Several countries recommended a rapid reaction system for reacting in the event of a huge rise in preferential sugar imports from developing countries (under the All But Arms initiative). Regarding the restructuring fund, a high level group decided sugar beet farmers will be eligible. Consensus is being reached on the option of providing aid for factories forced to close or partially close to help them convert to produce ethanol. Several Member States want restructuring aid to be kept at its maximum in the second year the reforms are implemented (2007/08). Given the time it will take industry to adapt to the restructuring plan, most of the first year might be lost, explain the delegations.

Fisheries. The Council is expected to reach political agreement on technical measures for preserving fishery resources in the Baltic Sea. The main part of the plan - a ban on fishing for salmon in the Baltic Sea using drifting gillnets - has not been challenged by the countries concerned (Germany, Sweden, Finland, Denmark, Poland and the Baltic States). Poland, with the backing of some other countries, wants 40% of the fleet to be able to use drifting gillnets before the ban comes into force (the Commission suggested 20%).

The Council will exchange views on total allowable catches (TACs) and quotas for 2006 to prepare for December's talks setting TACs for next year. Negotiations will focus on how to gradually reduce the fishing morality, combined with a management system that could include seasonal closure of cod fisheries. European Fisheries Commissioner Joe Borg will brief ministers on the outcome of the first round of EU-Norway bilateral negotiations. The second series of talks with Norway will take place from 28 November to 2 December this year.

Rural development and other business. The ministers are expected to reach a general approach on a Council Decision on Community Strategic Guidelines for rural development for 2007-2013, and discuss various points of other business raised by different countries. The Estonian, Latvian, Lithuanian and Hungarian delegations will draw the attention of the Council to problems with implementing the Single Area Payment System (problems faced by new Member States adjusting this system to adapt to the CAP Single Payment System). Cyprus wants authorisation of a national aid system for farmers repaying farm debt. France wants a safeguard clause to curb imports of low cost apples from the Southern hemisphere. Poland will protest about Russia's recent ban on imports of meat and meat products (beef, pork and poultry) and products based on fresh meat from Poland. The import of plant products from Poland has also been banned.

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