1
00:00:00,000 --> 00:00:12,880
The EU's Common Agricultural Policy, in short, the CAP, has undergone dramatic changes in

2
00:00:12,880 --> 00:00:17,960
the last few years. The reforms are creating a market-oriented, environmentally friendly

3
00:00:17,960 --> 00:00:23,320
CAP geared to efficient and sustainable farming. Guaranteed prices are being reduced while

4
00:00:23,320 --> 00:00:29,640
farmers receive support for their contribution to society's quality of life.

5
00:00:29,640 --> 00:00:33,400
The EU's Common Agricultural Policy has been greatly simplified by breaking the link between

6
00:00:33,400 --> 00:00:38,880
subsidies and production. CAP support now depends on meeting quality, environmental

7
00:00:38,880 --> 00:00:44,240
and food safety requirements in line with the priorities of the European public.

8
00:00:44,240 --> 00:00:50,040
Following key reforms to the CAP in 2003 and 2004, the European Commission has decided

9
00:00:50,040 --> 00:00:55,000
to continue this process and bring the sugar sector into line with the rest of the CAP.

10
00:00:55,000 --> 00:00:59,560
This will give the EU sugar industry a viable future.

11
00:00:59,560 --> 00:01:03,920
Over the last 40 years, EU sugar production has been maintained in almost every Member

12
00:01:03,920 --> 00:01:09,760
State. But the current rules distort competition and some factories with low productivity survive

13
00:01:09,760 --> 00:01:15,000
at the expense of the most competitive. Sugar users now pay three times the world

14
00:01:15,000 --> 00:01:20,420
market price, even though supply is greater than demand. After reform, non-competitive

15
00:01:20,420 --> 00:01:25,440
producers will be given incentives to leave the sector. Diversification and innovation

16
00:01:25,480 --> 00:01:29,600
will be encouraged. Sugar is a vital commodity and real market

17
00:01:29,600 --> 00:01:36,600
opportunity. By reducing market intervention, it can be produced more competitively.

18
00:01:37,320 --> 00:01:42,280
European citizens consume an average of 35 kilos of sugar every year. Sugar not only

19
00:01:42,280 --> 00:01:47,000
sweetens your morning coffee, but also many processed foods.

20
00:01:47,000 --> 00:01:52,200
More competitive sugar production will allow growth and employment in sugar-intensive industries,

21
00:01:52,320 --> 00:01:57,520
like for example chocolate producers. Non-competitive sugar producers will receive incentives to

22
00:01:57,520 --> 00:02:01,240
restructure their businesses and move into other sectors.

23
00:02:01,240 --> 00:02:08,240
Only with a successful outcome of the negotiations to reach a reform on the sugar sector in the

24
00:02:08,800 --> 00:02:15,760
autumn, I think that we will be able to guarantee a sustainable sugar sector within the European

25
00:02:15,760 --> 00:02:20,120
area. Sugar has many uses beyond the food industry.

26
00:02:20,120 --> 00:02:25,120
It can be used in the production of alternative fuels or for chemical or pharmaceutical industry

27
00:02:25,120 --> 00:02:31,520
products like penicillin. EU sugar is only part of the story. Worldwide,

28
00:02:31,520 --> 00:02:36,520
production and consumption have doubled in the last 40 years. This trend is continuing.

29
00:02:36,520 --> 00:02:43,520
For example, Brazil became a giant sugar exporter in the 1990s.

30
00:02:44,520 --> 00:02:51,520
Russia, the United States and some Arab states are the biggest sugar importers and buyers.

31
00:02:54,520 --> 00:02:59,520
Meanwhile, the EU system has remained stuck in the past, because it failed to adapt to

32
00:02:59,520 --> 00:03:05,320
the new situation on the world market. If the EU does not reform its market now, it

33
00:03:05,320 --> 00:03:10,840
will rapidly be driven out. Worldwide, the majority of sugar is extracted

34
00:03:10,840 --> 00:03:16,640
from sugar cane. Producing sugar is very labour-intensive. Sugar-producing countries

35
00:03:16,640 --> 00:03:21,560
include a number of developing countries and many of the least developed countries. The

36
00:03:21,560 --> 00:03:26,440
EU has always given these nations a helping hand.

37
00:03:26,440 --> 00:03:31,920
The ACP countries have preferential market access at guaranteed prices. This will be

38
00:03:31,920 --> 00:03:38,080
maintained. With the Everything But Arms Agreement, the 49 least developed countries will gain

39
00:03:38,080 --> 00:03:44,880
totally free access to the EU market. Even after reform, the EU will remain an attractive

40
00:03:44,880 --> 00:03:51,200
market as prices will remain above world market levels. For those countries that will be affected

41
00:03:51,200 --> 00:03:56,720
by the reform, the EU will offer tailor-made assistance.

42
00:03:56,720 --> 00:04:00,720
Sugar production will be restructured and reinforced in the most suitable areas for

43
00:04:00,720 --> 00:04:06,760
growing sugar. Only by reforming the EU sugar industry now can it be guaranteed a viable

44
00:04:06,760 --> 00:04:08,040
long-term future.

45
00:04:36,760 --> 00:04:43,760
Transcription by ESO. Translation by —

46
00:05:06,760 --> 00:05:14,760
Transcription by —

47
00:05:36,760 --> 00:05:44,760
Transcription by —

48
00:06:06,760 --> 00:06:16,760
Transcription by —

49
00:06:36,760 --> 00:06:46,760
Transcription by —

50
00:06:46,760 --> 00:06:56,760
Transcription by —

51
00:06:56,760 --> 00:07:06,760
Transcription by —

52
00:07:26,760 --> 00:07:36,760
Transcription by —

53
00:07:36,760 --> 00:07:46,760
Transcription by —

54
00:07:46,760 --> 00:07:56,760
Transcription by —

55
00:07:56,760 --> 00:08:06,760
Transcription by —