Brussels, 07/05/2007 (Agence Europe) - On Monday 7 May, the Commission adopted its proposals to make the sugar restructuring scheme more effective (see EUROPE 9418 on last week's postponement of the decision). On the same day, Agriculture Commissioner Mariann Fischer-Boel presented her proposal to member states who received them very well.
The changes proposed by the Commission aim to encourage EU companies and producers to give up almost 3.8 million tonnes of sugar quota by 2010, in addition to the 2.2 million tonnes already removed from the market in 2006 and 2007. The Commission is calling on member states to adopt these changes by October of next year. The proposed changes are:
Aid to producers: the percentage of the aid to be given to growers and machinery contractors to be fixed at 10%, with a special top-up for growers, payable retroactively so as not to penalise those who have already given up their quotas. For the 2008/2009 marketing year, growers will receive an additional payment of €237.5 per tonne of quota given up.
In addition, beet growers to be allowed to ask directly to give up quotas, up to 10% of a factory's quota. Currently, only industrialists can use a restructuring plan.
The Commission promises that the final compulsory quota cut (in the event of the restructuring scheme not achieving its objectives) will take account of each member state's success in reducing national quota under the restructuring scheme.
Quota reductions: if not enough quotas are given up by 2010, the Commission will be able to make a final change in EU production by a linear reduction of quotas. It promises, however, to compensate those member states which have made best use of the restructuring scheme by imposing smaller reductions.
Sugar withdrawal: the Commission proposes to improve the way the sugar withdrawal scheme works for the period until the marketing year 2009-2010. In particular, withdrawal will not mean a reduction in the traditional supply needs for refiners.
Given the short amount of time between the publication of the Council Regulation and the application deadline, a communication will be published in the Official Journal to inform interested parties in detail and to allow them to prepare their applications in advance.
In addition, at the Agriculture Council, France, supported by Spain, Austria, Poland and Belgium in particular, noted its “great incomprehension” at the Commission stance on Economic Partnership Agreements (EPA) with ACP (Africa, Caribbean, Pacific) countries. The Commission proposes opening the Community market to all products from ACP countries, with no customs duties or quotas with effect from 1 January 2008. The only exceptions to this will be sugar and rice, which will have transition periods. Even with this, however, the Commission's initiative is likely to cause considerable disturbance of the reform and endanger the very future of sugar production in the EU, said French Minister Dominique Bussereau, in a press release. (lc)