22/06/2005– The European
Commission has missed a golden opportunity
to help some of the poorest people in the
world raise themselves out of poverty sustainably
said WWF, following the release of the EC’s
proposals for the reform of its sugar regime.
In its proposals, the Commission has done
the bare minimum to comply with the World
Trade Organization’s recent ruling that the
EU has been producing too much sugar and illegally
dumping the excess on world markets.
According to the proposal, a whole range
of support for EU sugar producers will still
be more than generous, including: the creation
of more than one million tonnes in total of
sweetener quotas; grants for sugar storage;
sugar production exemptions for certain industries
like pharmaceuticals from quotas; and compensation
for farmers and processors adversely affected
by the reform.
But if the EU has looked after the interests
of its own industry, it has turned a blind
eye to the needs of some of the world’s poorest
people.
Under the current regime, impoverished sugar
farmers around the world have been undercut
by subsidized EU sugar and locked out of the
European market for decades. This in turn
has made it impossible for them to invest
in reducing the environmental impacts of their
crop by using efficient irrigation systems,
or implementing techniques to reduce soil
erosion and pollution.
"Sugar is a far more important crop
for poverty reduction and the environment
in developing countries than it will ever
be in Europe," said Elizabeth Guttenstein,
Head of European Agriculture at WWF.
"WWF is asking the EU to provide sufficient
aid to all developing countries which could
use sugar to trade themselves out of poverty,
to help them develop their industries, and
make them more environmentally sustainable."
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.
The developing countries which currently
have preferential access to EU markets (African,
Carribbean and Pacific countries) have been
offered a mere €40 million a year to adjust
to the reforms compared to the €1.5 billion
ear-marked to compensate European farmers.
Other developing countries (the Least Developed
Countries), for whom sugar represents one
of their only opportunities to generate income,
will receive nothing.
WWF is calling for a minimum of €500 million
a year in adjustment for the ACPs and at least
as much for the LDCs.
"The EU is constantly repeating its
commitment to sustainable development, yet
with this proposal it has passed up an excellent
opportunity to help create a more just and
sustainable world," commented Guttenstein.
"These reforms are a good deal for Europe,
but a bad deal for the poor and the environment."
END NOTES:
On 28 April, the World Trade Organization
ruled that the EU’s sugar regime was illegal.
The European Commission’s proposal will now
be discussed and voted on by the Council of
Ministers. A final decision is expected during
the November meeting of the Agriculture Ministers,
in advance of the WTO Ministerial Meeting
in Hong Kong in December 2005.
The European Commission legal proposals for
reform include the following:
• A 39 per cent reduction of the price paid
to European growers and those exporting to
the EU;
• €1.5 billion to compensate growers in Europe
for 60 per cent of the value of the price
cut;
• The creation of more than one million tonnes
of new quota;
• The removal of substantial volumes of some
types of sugar from the existing quota system
– effectively creating even more demand for
excess production.
• Generous aid for factories that close and
give up their quota with a top-up payment
to sugar growers.
• The continuation of market management policies
and refunds for the use and export of sugar
in Europe.
• Only €40 million investment in Action Plans
to help ACP countries currently exporting
to Europe to adjust.
• No help to the Least Developed Countries.
