“The EU owes nobody anything.” This condescending statement of European Union (EU) commissioner for Development, Louis Michel, has shocked many. Although he explained the reform more calmly a few days later, the result remains the same: the EU is rejecting any possibility of compensation for African Caribbean Pacific (ACP) countries to cover the proposed fall in sugar prices.

Speaking to the press, Louis Michel made it clear that any financial compensation or delay in the implementation of the reform was out of the question. Perhaps we should say that at least he has been honest and not held out the prospect of a hypothetical compensation to ACP countries.

Jean-Noël Humbert, secretary of the Chamber of Agriculture, in an interview given to l’express, a few weeks ago summed up the expectations of ACP countries; “The sugar protocol is attached to the Cotonou convention – and the Lomé convention before it – and the EU has committed itself to granting the ACP countries this protocol. Given the EU commitments, we expect member-states to support the protocol.”

The possibility of financial help – even if it is not compensation – is not however, totally ruled out. The EU commissioner even said that the EU has planned a substantial sum to help ACP countries and reduce negative shortfalls of this proposed drop – the 37% reduction in sugar import prices contained in the initial Fischler proposal. “An action plan will be proposed: soft and open to allow partner states to find their own answers and economic and social response”, he says.

<B>Confident about Mauritius</B>

However, Jean-Noël Humbert again disagrees: “In view of the importance of the price reduction, it’s very hard to consider that specific measures of restructuring or reform will bring sufficient results to compensate for the decrease proposed. These specific measures will be useful only if the price drop is lower and less brutal than that proposed.”

But the EU commissioner does not think a delay in the reform implementation will change much for ACP countries. On the contrary, he advocates its application as from 2006 so that ACP countries can benefit the most from the measures contained in the action plan – diversification, complementary projects, added value from sugar products like ethanol, etc.

He is confident about the future of Mauritius. “Mauritius is integrating the action plan more easily since the country has already started its reform. The country is in a good position to succeed.”

According to Louis Michel, the EU seems to have to stand the pressure from the World Trade Organisation (WTO), which really wants this reform to start as early as possible. “The EU can’t afford to be condemned by the WTO.” Moreover, he considers that compensation would mean that the EU feels it owes something to ACP countries. If it is financial help, it has to be voluntary. Hence, the EU can give the amount it wishes and not the amount it is asked to give…