Reform of the Sugar Regime: An ACP Perspective

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Reform of the Sugar Regime An ACP Perspective

• Jean Noel HUMBERT
• CEO, Mauritius Sugar Syndicate

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EU Sugar Reform An ACP Perspective

• The Mauritius Sugar Syndicate
• Private sector organization
• Commercializes all sugars produced
• 550,000 to 600,000 metric tons
• Turnover USD 330 Mn annually

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EU Sugar Reform An ACP Perspective

• 507,000 exported annually to EU
• Representing 94 of total exports
• And about 90 of total production

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EU Sugar Reform An ACP Perspective

• Mauritius
• Island Developing State
• Independent Republic
• Multilateral member of WTO
• Regional SADC and COMESA
• Bilateral ACP-EU Partnership Agreement (Cotonou)

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EU Sugar Reform An ACP Perspective

• ACP-EU Sugar Protocol (Background)
• Longstanding preference
• Reflects deep rooted ties
• Embodies EU obligations
• - Act of UK Accession
• - Cotonou Agreement

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EU Sugar Reform An ACP Perspective

• ACP-EU Sugar Protocol (Undertakings)
• Indefinite duration
• Guaranteed prices
• Agreed quantities
• Strong legal persona

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EU Sugar Reform An ACP Perspective

• Embedded in EU Sugar Regime
• Guaranteed price for raw sugar
• Intervention on unsold quantities
• Adjustment aid for refiners
• Import management mechanism

Essential hooks for the SP
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EU Sugar Reform An ACP Perspective

• To implement SP undertakings of
• A guaranteed price negotiated annually
• within the price range obtaining in the EU
• Purchasing unsold quantities through
• intervention
• Marketing white or raw sugar at prices freely
  negotiated
  
• SP forms an integral part of the Sugar Regime

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EU Sugar Reform An ACP Perspective

• Benefits of the System
• Reliable supplies of raw sugar
• Stable quantities
• Development of refining activity
• Promotion of ACP socio economic development
• The fit has worked perfectly well !

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EU Sugar Reform An ACP Perspective

• New EU Sugar Regime (time line)
• (24 Nov 2005) EU Council Agreement
• (19 Jan 2006) EU Parliament Opinion
• (on going) Drafting of new regulations
• (20 Feb 2006) Adoption of new regulations
• (Mar-May 2006) Drafting of Implementation regs
• (01 Jul 2006) Implementation of new Regime
• Process on its way to completion

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EU Sugar Reform An ACP Perspective

• New EU Sugar Regime
• Central Question
• Is the new Regime preserving the position and
  role of ACP as privileged longstanding partners
  in the EU market ?
  
• Answer is no ! Why ?

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EU Sugar Reform An ACP Perspective

• Why new Regime not ACP friendly ?
• Discriminatory and Inequitable application of
  CAP reform principles
  
• Depth and quickness of the price cut
• Replacement of Guaranteed price by Reference
  Price
  
• Phasing out of Intervention

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EU Sugar Reform An ACP Perspective

• Why new Regime not ACP friendly ?
• Elimination of refiners aid and transfer of cost
  to ACP
  
• Freedom to sell to buyers other than refiners
• Inadequate and uncertain accompanying measures
  for ACP

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EU Sugar Reform An ACP Perspective

• To conclude
• Questions on how EU will honor its commitments
  under new regime
  
• Clarification and comfort needed