§ Tony CunninghamTo ask the Secretary of State for International Development whether under Common Agricultural Policy reform of the sugar protocol there are mechanisms in place to prevent short-term dumping on developing countries. [186323]
Mr. Gareth ThomasThe European Commission presented a communication to the Agriculture Council on 19 July that set out their preferred option for reform. The communication proposes to substantially reduce sugar exports and export refunds, abolish intervention, reduce ELI production and the internal sugar price and grant a de-coupled payment to sugar beet farmers. The reform process will start in July 2005. This should make the regime more market oriented and reduce the quantity of EU sugar exported to third markets. If the option were to be agreed, the Commission estimate that the combined, aggregate effect of the proposals on support price and quota reduction would be a significant reduction in the level of EU production under quota, from 17.3 million to 14.5 million tonnes per year. In turn, as a consequence of the substantial reduction in the overall level of EU production, EU subsidised sugar exports dumping are projected to fall by around 2 million tonnes. The Commission communication will be the subject of discussion between the EU Member States over the coming months.
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§ Tony CunninghamTo ask the Secretary of State for International Development whether under Common Agricultural Policy reform of the sugar protocol there are transitional arrangements for African, Caribbean and Pacific countries. [186324]
Mr. Gareth ThomasThe European Commission (EC) presented a Communication to the Agriculture Council on 19 July that set out their preferred option for reform. To address the impact on the African, Caribbean and Pacific countries (ACP)s, the European Commission will work with affected countries on the basis of an action plan to be produced by the end of 2004 to define appropriate trade and development measures. Tailor made programmes should help ACPs adapt and improve the competitiveness of their sugar industry where viable or help to support their diversification out of sugar. DFID welcomes this commitment in the Communication and are keen to help facilitate the dialogue between the EC and the ACP on this action plan. DFID is commissioning a study from the Overseas Development Institute that should help those countries affected determine their priorities for a transitional package.
§ Tony CunninghamTo ask the Secretary of State for International Development whether the Department is funding research into alternative uses for sugar, with particular reference to developing countries, in the light of Common Agricultural Policy reform of the sugar protocol. [186325]
Mr. Gareth ThomasDFID has always stressed the need#to take account of the impact that reform of the EU sugar regime will have on our developing country preferential suppliers. DFID is conscious that substantial reform will give rise to transitional problems for the African, Caribbean and Pacific countries (ACP)s that currently benefit from preferential access to the EU market at existing price levels and for the Least Developed Countries (LDC)s seeking to develop an export trade to Europe under the EBA initiative.
In order to help inform the debate and ensure the impact on developing countries is taken sufficiently into consideration, DFID commissioned a study last year with LMC International and Oxford Policy Management, 'Addressing the Impact of Preference Erosion in Sugar on Developing Countries'. The study is divided into two sections. The first part assesses the economic and social impact on the ACP Sugar Protocol countries of the various reform scenarios suggested by the European Commission. The latter part of the study assesses alternative options for addressing the impact of preference erosion in sugar. The purpose of this analysis was to identify various options for debate by the ACP and the EU.
DFID has recently commissioned two further pieces of work on this issue. The first report has been commissioned with LMC International, 'EU Sugar Reform: the Implications for the Development of LDCs and should be finalised early next month. The second report has been commissioned from the Overseas Development Institute, 'Forthcoming changes in EU sugar/banana markets: a menu of options for an effective EU transitional assistance package' and should also he finalised next month. This report should help 948W those countries affected by reform determine their priorities for a transitional package. This report will include some analysis of alternative uses for sugar.