EU Agriculture Commissioner Mariann Fischer Boel published, on 22 June 2005, a proposal for a far-reaching shift in EU sugar funding.
The core of the proposal is a 39% price cut over two years, starting in 2006-2007. European farmers will receive a 60% compensation for the losses incurred in exchange for the cuts. This regime will remain valid, with no possibility of a review, for the next nine years.
The Committee of Industrial Users of Sugar praised the proposal, claiming that “the price cut is vital for the thousands of European small and medium sized companies producing chocolate, biscuits and other confectionery”.
The European Committee of Sugar Producers criticised the Commission’s proposal for “falling short of meeting the objectives of sustainability and competitiveness of the European sugar sector”, among other things because “the external policy pillar is completely missing (…) and therefore no market equilibrium can be achieved.”
The World Wildlife Foundation calculated that “under the proposed reforms, the EU will still spend €30 million dumping sugar on world markets and the severe restrictions on the import of sugar from developing countries will remain in place until 2009”.
Politicians from ACP countries dependent on sugar production commented in similar vein. Roger Clarke, agriculture minister of Jamaica, said: “It’s going to be devastating. We have to be super-efficient to survive.”
Further Reading
EU official documents
- Commission:Sugar Reform will offer EU producers long-term competitive future (Press release, 22 June 2005) [FR] [FR] [DE]
- Commission:EU sugar sector: Facts and figures
- Commission:Communication on accomplishing a sustainable agricultural model for Europe through the reformed CAP – sugar sector reform [FR] [FR] [DE]
Political Groups
- Greens / EFA:Das EU-Budget entlasten: Weniger Zucker für mehr Entwicklung in Süd und Nord (22 June 2005)
Business & Industry
- Comité européen des fabricants de sucreCommission’s proposal contains a long-term perspective (22 June 2005)
- Committee of Industrial Users of Sugar (CIUS):European sugar users are encouraged by the Commission's proposal (22 June 2005) Background
- European Federation of Food, Agriculture and Tourism Trade Unions:Reform of the sugar market organisation : A reform which does not open job perspectives is not sustainable (23 June 2005)
- LDC Sugar Group:EU Sugar Reform (25 April 2005) [FR]
NGOs and Think-Tanks
- Bureau européen de Consommateurs (BEUC):Reform of the EU Sugar Regime: not to consumers’ taste! (22 June 2005) [FR]
- European Public Health AllianceEU sugar reform
- Oxfam:Growing opposition to current EU sugar reform proposals (6 June 2005) Background Background Summary
- WWF and Oxfam:Critique of the EC’s Action Plan for ACP countries affected by EU sugar reform
- WWF:EU sugar regime not so sweet for the poor and the environment (22 June 2005)
Press articles
- BBC:Sugar firms at risk as EU subsidies shrink
- Business World:EU sugar reform proposals out today
- Business Week:Caribbean sugar producers condemn proposal
- Carib Pundit:The EU, Sugar, and the Dissolution of the Caribbean Sugar Industry
- Financial Times:Brussels proposes cut in EU sugar price
- Financial Times:A spoonful of sugar
- Food Navigator:Sugar reform radar issue for new EU farm chief
- Forbes:EU Commission confirms plan adopted to cut sugar prices by 39 pct
- International Herald Tribune:A bittersweet reversal on subsidies
- The Age:EU to cut sugar prices
- The Independent:Winners and losers: how our taxes stop the poor making a living
- Nouvel Observateur:Les producteurs de sucre des Caraïbes condamnent la baisse des aides européennes
- Spiegel:Angriff auf Subventionen - Brüssel will Zuckerpreise um 39 Prozent kürzen
- Süddeutsche Zeitung:Europas Zuckerindustrie vor harter Reform - Bauern-Proteste
- EURACTIV.cz:Komise navrhla razantní reformu na trhu s cukrem (in Czech)