EU sugar deal 'scandalous betrayal' of poor countries
25 Nov 2005
The final sugar deal agreed yesterday by EU Agriculture Ministers is the worst possible result for developing countries and the environment, said WWF and Oxfam today.
It will destroy industries and livelihoods, will not guarantee an end to dumping, and is a betrayal of promises to give the poorest countries unlimited access to Europe's markets.
Millions of poor farmers and the environment will suffer as a result of the harsh reform unless a comprehensive compensation package can be agreed before the end of the year, the organisations warned.
"Developing countries have been sacrificed in order for Europe to reach a deal," said Andrew Hewett, Executive Director of Oxfam Australia. "The Commission has hurled money at its Member States to convince them to sign up but has abandoned some of the world's poorest countries to destitution.
"In a year that was meant to focus on Africa and just days before the WTO Ministerial in Hong Kong, this is a particularly bitter blow especially when the European Union is apparently pushing a pro-development deal.
At the very least, Ministers must agree adequate long-term compensation to ameliorate the effects of this harsh reform at their Heads of State meeting next month" said Hewett.
The European Commission today confirmed plans to radically cut its internal sugar price by 36% over a period of four years - a steep, sharp reform that will damage the economies of many sugar dependent developing countries.
Yesterday's deal will also allow Europe to restrict imports from Least Developed Countries (LDCs) if they increase by more than 25% each year. This is a direct betrayal of promises to grant full duty and quota free access for LDCs to Europe from 2009, under the Everything But Arms Initiative.
As a result, full access could be delayed for another 11 years - until 2020. Oxfam and WWF estimate that the losses to the LDCs from the potential limit on exports could be up to €1 billion annually.
In another blow to campaigners and poor countries, yesterday's deal does not even guarantee an end to dumping. Some European compensation payments will be linked to production and this may mean the incentive to overproduce is not removed. This could mean the EU will struggle to comply with a recent WTO ruling against subsidised exports.
"It is about as bad as it could be," said Adam Harrison of WWF in Europe. "Many developing countries have the potential to meet Europe's demand with sugar grown to the highest environmental standards but this deal seriously undermines that potential. Unless Europe comes up with much more money to help both traditional suppliers and the Least Developed Countries to adjust, they will be condemning developing countries to a bleak future."
Europe is currently offering a meagre €40 million in compensation in 2006 to its ex-colonies (known as the ACP), and nothing to the world's poorest countries (the LDCs). In contrast, compensation offers to European industry and producers have been raised above €7 billion to convince reluctant member states to sign up.
For more information
Carly Hammond, Oxfam Australia
Phone: 03 9289 9413
Mobile: 0409 181 454
Catherine Brett, WWF Agriculture Communications Officer
Phone: 0011 +32 2 740 0936
Email: cbrett@wwfepo.org
