On 22 November, the EU Agriculture Council met to address, among other topics, the reform of the EU sugar scheme. Incoming EU Agriculture Commissioner Mariann Fischer Boel commented that the reform plan issued by the European Commission in July (see BRIDGES Weekly, 21 July 2004) formed a good basis for further discussion. On timing, she said she would provide a new draft in May or June 2005, and that the Council should aim for political agreement on a final draft before the WTO Hong Kong ministerial meeting in December 2005. Under this schedule, the reform would be implemented later than originally planned.

Commissioner Fischer Boel noted that the reform plan would have to be responsive to international developments, not least the final outcome of the WTO case brought by Brazil against the EU sugar regime (see BRIDGES Weekly, 1 September 2004). Among three options for the EU sugar regime -- i.e. status quo, price reduction, and full liberalisation -- she noted full agreement on the fact that retaining the status quo was not possible. Several speakers made reference to the need to consult with African, Caribbean and Pacific (ACP) and least developed countries on the reform.

The EU currently maintains a sugar scheme characterised by subsidies, high internal prices, and imports from ACP countries on favourable terms under certain quotas. The EU also is a significant sugar exporter, affecting the world market price for the commodity.

WWF, Oxfam release reports on sugar

Timed to coincide with the EU Agriculture Council meeting, environmental organisation WWF released a report entitled "Sugar and the Environment: Encouraging Better Management Practices in Sugar Production and Processing". The report highlights the biodiversity loss caused by sugar production through habitat loss, intensive use of water for irrigation, heavy use of agro-chemicals, as well as discharge and runoff of polluted effluents associated with the industry. For example, sugar beet production in Andalucia in Spain lowered water levels in the Guadalquivir River. To help prevent problems related to sugar production, WWF outlines better management practices. However, according to WWF, the EU sugar regime does not necessarily support good practices because it supports the overproduction of sugar beets in Europe, allowing excess production to be dumped on world markets. "Industry, consumers, and policy makers must work together to make sure that in the future sugar is produced in ways that least harm the environment," commented Elizabeth Guttenstein, WWF's European agriculture and rural development officer.

Also on 22 November, Oxfam released a report on sugar focusing on poverty alleviation, entitled "A Sweeter Future? The potential for EU sugar reform to contribute to poverty reduction in southern Africa". The report highlights potentially significant benefits in terms of employment and poverty reduction that could be spurred through reformed trade in sugar. Highlighting case studies in Mozambique and Zambia, Phil Bloomer, Head of Oxfam International's Make Trade Fair Campaign, criticised the EU reform efforts and said "These countries are some of the poorest in the world. The people have next to nothing and yet they are being pitted against a bloc of rich countries that spend €30 billion a year on agricultural support alone. It is bitterly unfair. Sugar is the one spark of hope but even this is now being extinguished by the intransigence of European governments".

Access "Sugar and the Environment" here.

Access "A Sweeter Future?" here.

"Outcome of Agriculture/Fisheries Council of November 2004," EC RELEASE, 23 November 2004; "European sugar leaves environment with bitter taste," WWF RELEASE, 22 November 2004; "Europe's sweet tooth rots developing country hopes," OXFAM RELEASE, 22 November 2004.