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Europe Daily Bulletin No. 9073
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GENERAL NEWS / (eu) eu/ep/acp/sugar

Assembly alerts Agriculture Council -Drastic reduction in guaranteed price would have devastating consequences for ACPs

Edinburgh, 22/11/2005 (Agence Europe) - The EU/ACP Joint Parliamentary Assembly is seriously concerned by the threat posed by the reform of the Community sugar regime for the future of this essential product for the economy of the ACP (Africa/Caribbean/Pacific) producing countries. From a lively debate held by the MEPs and their ACP partners on a draft resolution on agricultural and mining raw materials (rapporteurs: Louis Claude Nyassa, Cameroon, and Nirj Deva, (British Conservative member), there emerged a request for a strong initiative on the part of both co-presidents of the JPA to speak to the Commission and the agriculture ministers of the EU, during their talks in Brussels (see other article). Jacques Vergès (GUE/France) was behind this formal initiative.

Sharon Hay Webster, Jamaican co-president of the JPA, pointed out that the Cotonou agreement recognised the importance of agricultural and mining raw materials for the ACP countries, and that the reform of the EU sugar regime would be the piéce de résistance in the agricultural negotiations of the ministerial meeting of the WTO in Hong Kong (13-18 December). She confirmed that the JPA would draw up an "appropriate letter" signed by her and her co-president Glenys Kinnock (UK Labour member), to voice its concerns and ask for the interests of the sugar producing ACP countries to be taken into account. The MEPs called for an attenuation of the drastic reduction in the guaranteed price (-39%) and for the date of application of the reform to be postponed, in order to give the ACP countries enough time to adapt to the new system. All felt that if the reform is adopted in its current state, it would have disastrous effects on the economy of already vulnerable poor countries. Pointing out that sugar has been "one of the historical links between Europe and the Caribbean for 350 years", Donald Ramotar (Guyana) stressed that the restructuring of the sugar sector was underway in his country, adding: "morally, Europe should give us the time to develop a stronger, more competition-based industry. This is not a lot to ask". He explained that "drastic cuts in Guyana's largest source of income from external trade" would not only compromise the fight against poverty, but would also be "a threat to the developed countries, in terms of immigration ". Marie-Hélène Aubert (French Green) criticised the "forced pace of liberalisation, which is harmful to the ACPs and to Europe". Criticising the "unacceptable drastic cut in the guaranteed price, which will ruin many countries", she called for the very logic of the reform to be called into question. She feels that it would be "better to return to quotas". Sugar is not just a product like any other, said Bernard Lehideux (ALDE, France), emphasising its cultural and ecological role ("ripping out of sugar cane would be just as serious as deforestation elsewhere"), criticising the fact that the budgetary committee of the EP had not gone along with the request of the committee on development to raise the initial compensatory envelope for the ACPs to a level of 80 million EUR. He added that "we have concluded agreements with the ACPs. On this basis, a sugar industry was created. We have a fight on our hands, because the WTO panel did not call for a price reduction of 39%". Comparing the price reduction of 39% proposed by the EU with the 19% called for by the ACPs and which is "compatible with WTO rules", Ms Deerpolsing (Mauritius), a mathematician by training, questioned the validity of accounting hypotheses on which the Commission is basing its calculations. "Models are based on mathematical hypotheses. When these hypotheses are wrong, should we take risks when the future of millions of people is in danger?", she asked. Linda Mc Avan (PES, United Kingdom) said that it is unfair to provide "5 billion in aid for European farmers", and then claim "there is no money left for the few million EUR promised to the ACP. The MEPs will defend you here, but not at the European Parliament". In the view of Max van den Berg (PES, Netherlands), "that is where the problem lies". Maria Josefa Miguel (Mozambique, a country where "over 80% of the population depends on agriculture") voiced her alarm at the likely effect of the reform on the sustainability of the sector, and pleaded in favour of a "gradual reform".

Mr Akpovi (Benin) talked of a "silent tsunami", threatening the ACP cotton producing countries. "If no timetable is set to remove the rich countries' subsidies, and if no financial aid is in the pipeline, the ACPs will not be to blame if negotiations break down in Hong Kong", he warned. "If we have no more sugar, or bananas, are we supposed to concentrate on growing marijuana?", said the Jamaican ambassador ironically (the Jamaican member of Parliament who co-chairs the JPA was not allowed to speak on behalf of her country). The draft report on agricultural and mining raw materials was adopted by both colleges, but Astrid Lulling (EPP, Luxembourg) took pains to "distance herself from certain demands" ahead of New York. "Instead of it using the EU, which is the largest importer of food products from the poorest developing countries, our ACP associates would do better to ask the other industrialised countries and the emerging countries to take similar commitments". The co-rapporteur Louis Claude Nyassa of Cameroon said that "there is no question of calling ACP/EU cooperation into question, but we would like to ensure that the EU and the ACPs work together, within the framework of the Cotonou agreement, but also going beyond it, at the WTO, to defend joint positions". The vote on the resolution will take place on Thursday.

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