Bridges Trade BioRes • Volume 2 • Number 16 • 24th October 2002
EU Plans Sugar Policy Reforms in Light of New Report
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A recent report commissioned by the Agriculture Directorate-General of the European Commission states that the EU’s sugar production subsidisation and pricing system have contributed to intensive farming practices that can lead to environmental degradation. “In the absence of price support and production quotas, the EU would probably devote a smaller area of land to sugar production and this could bring benefits of lower input use, reduced water use and/or reduced soil erosion in some areas,” said the report compiled by the London-based Institute for European Policy. The report comes at a time that Australia and Brazil, which are the world’s biggest producers of sugar cane — claim that the EU is providing export subsidies to its sugar producers in excess of its WTO commitments, distorting world prices. The European Union, which has defended its pricing system in the past, has found the ACP (African, Caribbean and Pacific group) to be an ally against the Australian and Brazilian criticism (see BRIDGES Weekly, 2 October 2002). While the EC believes that the scheme is of assistance to ACP countries, it is now aware of difficulties associated with their policies and is reportedly prepared to make reforms, for which discussions will begin early in 2003.
“Lamy Says Appeal Against EU Sugar Regime Is Bad For The ACP,” EUROSTEP PAF, 11 October 2002; “EU Rounds Up Developing Trade Partners To Ward Off WTO Attack on Sugar Subsidies,” WTO REPORTER, 15 October 2002; “News from the DG Trade,” EU TRADE NEWS WEEKLY DIGEST, 11 October 2002; “EU’s sugar policy not best for environment - report,” World Environment News, 21 October 2002.
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