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Relentless lobby to minimise the drop in sugar prices
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Relentless lobby to minimise the drop in sugar prices
“Cautious optimism”: this is the key word of all stakeholders in the fight to obtain a less dramatic reduction of sugar export prices. Even though the European Commission looks more determined than ever to implement the 39% drop in the guaranteed price, there are still hopes from European MPs. As the leader of the EU delegation in Mauritius states, “until any final decision is officially made, anything is possible.” It is exactly with this state of mind that the African Caribbean and Pacific (ACP) countries, led by the Mauritian minister of Agro-industry, Arvin Boolell, intend to continue their lobbying.
After the severe and cold approach of the EU at the ACP conference in Kenya last week – Russell Mildon, who was representing the EU commissioner for Agriculture, Mariann Fischer Boel, stated that the “reform schedule would take place as initially planned with no regard to the tumult” – Jean-Claude Fruteau’s proposal was like a consolation to the ACP countries. The EU MP, from Reunion Island, proposed a 25% reduction instead of the feared 39%.
According to him, this drop is “less brutal than the one proposed by the Commission and will at the same time be in accordance with the objectives of the reform without having a too negative impact on the living standard of planters and the perspectives of the sector’s production.” Jean-Claude Fruteau also took the EU commitments with ACP countries into consideration: “The 25% drop would allow ACP and less developed countries, which export a part of their production to Europe, to keep remunerative prices.” The EU parliament also insists that this essential reform should be “fair and efficient”.
End of EU budget</B>
If European MPs were the ones to make the final decision, Mauritius and ACP countries would no longer have to worry about the end of the sugar protocol. However, the final decision goes to the European Commission, which has always shown much severity and intransigence towards the ACP countries’ lot.
After the conference in Kenya, the ACP countries said they felt “ignored” by the EU. The drop and the accompanying measures have remained the same – at least for the moment. The EU intends to give 40 million euros as compensation to ACP countries as soon as the protocol comes to an end. However, these countries made it clear this was highly insufficient to compensate their losses. On this particular issue, Russell Mildon appeared quite reassuring saying that this amount should in no way be considered as final as negotiations are still on for the ACP to obtain more financial help.
But Juan Carlos Rey explained that the EU “has come to the end of its budget that will end in 2006 (…). We proposed 40 million euros because this is all we could find. Although we don’t have much money left, the commission has made a great effort. But things might change with the 2007-2013 budget.” This seems the last hope.
The ACP countries will in any case continue their lobbying until the end of October when the European council of Agriculture ministers meets… and gives its final decision.
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