USDA summary analysis of EU sugar-sector reform options
MetadataShow full item record
CTA. 2003. USDA summary analysis of EU sugar-sector reform options. Agritrade, December 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52832
Reflecting on the release of the Commission staff working paper...
Reflecting on the release of the Commission staff working paper on the sugar sector the United States Department of Agriculture's Foreign Agricultural Service maintains that the document is intended to 'test reactions to reforming the EU sugar regime, without yet specifying concrete proposals'. This FAS report notes three reasons put forward by the Commission for reforming the sugar regime now: the increasing market orientation of the CAP; the potential market imbalances which will be created by full duty-free access for LDC sugar exports from 2009; the potential outcome of the WTO challenge to the EU sugar regime. The report argues that the Commission's presentation of the options indicates that 'the Commission is clearly thinking along the lines of price cuts, income compensation and removing the quota system' but 'it is unlikely that any reform package can be finalised and approved before the end of 2004'. This suggests that 'the new sugar regime, should agreement be reached, is likely to enter into force in 2006'. This however assumes that 'the new European Parliament, the new Agriculture Commissioner who will replace Fischler in 2005 as well as the ten new member state governments, are all amenable'. The current sugar regime ends in mid-2006, although the EU Council can temporarily extend it should this prove necessary. Comment: This analysis indicates the timeframe within which ACP sugar exporters will need to get to grips with the challenges posed by EU sugar-sector reform.