EU sugar reforms not so sweet

EU plans to reform its sugar sector met with criticism from countries who depend on the favourable trade regime to sustain their economies.

The plans, released in Brussels on Monday set out how the EU aims to help out countries who will suffer as a result of the EU price cut reforms.

At present many African, Caribbean and Pacific (ACP) countries who produce sugar have a preferential trade regime with the EU.

Marianne Fischer Boel, EU agriculture chief, following the talks said that with prices three times as high as the world market, the status quo was no longer sustainable.

Both she and development commissioner Louis Michel stressed the importance of diversifying the economies of the ACPs and other less developed countries (LDCs) whose economies rely strongly on sugar production.

“We are very aware of both the social and economic consequences that this will have for our ACP and LDC partners,” Fischer Boel said.

“The action plan is quite general,” said Michel after the talks, “we want to leave plenty of space for debate.”

But criticism of the reforms has been swift and fierce.

ACP spokesman Nandcoomar Bodha agriculture minister of Mauritius said after the talks that “we don’t agree with many of the arguments that have been presented to us.”

“We agree that there is a need for reform…but the reform process should not cripple the sugar industry in the ACP developing countries.”

“These economies are very vulnerable,” he argued, “sugar is not a commodity only, it is the cohesive factor in our social fabric.”

Oxfam international reported that the proposed price cuts would have a “devastating impact” on some countries: in Jamaica 32,000 people could lose their jobs and in Trinidad as many as 20,000.

The ACP and LDC countries are urging for a longer transition period to allow their economies to adjust and for lesser cuts in prices.

The EU is currently in the midst of a WTO trade dispute over its sugar regime following a complaint from Brazil and other sugar producers.

The EU is now appealing a WTO ruling which found large parts its sugar regime illegal.

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