Brussels, 19/12/2006 (Agence Europe) - On Tuesday the European Commission approved a €45 million programme to help African, Caribbean and Pacific (ACP) countries which rely heavily on exports of cotton, cocoa, sugar, coffee, bananas and other commodities. The programme will help these countries withstand changes in world prices and become more competitive by producing commodities more efficiently and diversifying their economies.
Internationally traded agricultural products such as cotton, sugar and cocoa provide jobs and incomes for millions in developing countries, as well as revenue for governments. Currently 54 commodity dependent developing countries (CDDCs) generate over 20% of their total export earnings from three or less agricultural commodities. Between 1970 and 2000, prices for developing countries' main agricultural exports, such as sugar, cotton, cocoa and coffee, fell by 30 to 60 percent in real terms. This has required producing countries to make their commodities more competitive, but they have limited resources with which to do so. In 2004, the EU had already announced an action plan to face these challenges, and a new partnership specifically to support cotton production in Africa, as a concrete expression of that commitment. It enables ACP producers and the EU to coordinate more closely and exchange information about output, markets, prices, technology and trade rules.