§ Mr. GummerTo ask the Secretary of State for International Development what plans he has to ensure that the needs of smaller developing sugar producing countries are taken into account when his right hon. Friend negotiates reform of the Common Agricultural Policy. [160766]
§ Hilary BennThe European Union (EU) Common Market Organisation for sugar is highly distorted and discriminatory and is unsustainable in its current form. Using a system of quotas and prohibitively high tariffs access has been denied to the EU market for all but a handful of developing country suppliers for more than 30 years. In addition, those developing countries without preferential access to the EU sugar market196W struggle to compete in third markets with the highly subsidised EU sugar exports. The price of sugar on the EU market is kept artificially high with the consumer ultimately paying through the high end price for sugar and products containing sugar. Estimates vary but put the cost to taxpayers at approximately $2 billion each year. Reform is much needed and long overdue.
The European Commission has not yet tabled any proposals but has set out three options for reform. The Government are still considering which of these specific options represents the best way ahead. Any change to such a highly distorted regime will bring some losers as well as winners. Some of the less efficient traditional preferential suppliers will be affected and may need some sort of transitional assistance to help them adapt. The precise nature and scale of this assistance will depend on the nature and scale of the reform itself. DFID is working closely with other Government Departments to look at the implications of these options for developing countries and identify what assistance might be necessary.