Options for the sugar sector reform are outlined
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CTA. 2003. Options for the sugar sector reform are outlined. Agritrade, November 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52787
As a prelude to the tabling of formal proposals for reform of the ...
As a prelude to the tabling of formal proposals for reform of the EU sugar regime the European Commission on September 23rd set out three possible scenarios for reform, based on the information provided in the 'Extended Impact Assessment: Sugar Sector' carried out internally by the Commission services: Option 1 is 'extension of the current regime' beyond 2006. Any reductions in quotas prices and tariffs would be made within the current framework for the common organisation of the market. Option 2 is a 'price-reduction scenario'. This would involve the phasing-out of production quotas, with the EU price being allowed to adjust itself to the price of non-preferential imports. This scenario looks at the impact of such measures on trade patterns and includes the possibility of allowing sugar producers to benefit from the new system of decoupled farm payments. Option 3 is the 'complete liberalisation' option. In this scenario producers would be integrated into the single farm payment system while there would be a complete removal of import tariffs and quantitative restrictions on imports. In the extended impact assessment the implications of the various options are assessed' including their impact on third countries. As of September 30th 2003, the document was only available in French and German. Comment: These three options resemble three of the four options outlined in the UK Sugar Traders' website in March 2003 based on an internal Commission note (they were then referred to as the 'status quo option', the 'fall in price option', and the 'liberalisation option'). At this time the assessment was that under both the 'fall in price option' (now called the 'price reduction scenario') and the liberalisation option, traditional ACP suppliers would suffer considerable income losses, with the liberalisation option posing the greatest threat, with Brazil becoming virtually a monopoly supplier of cane sugar.