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The Reform of the Common Market Organisation for Sugar
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The European Commission today proposed far-reaching reforms to the Common Market Organisation for sugar. The changes will enhance the competitiveness and market-orientation of the European Union sugar sector, guarantee it a viable long-term future and strengthen the EU's negotiating position in the current round of world trade talks. They will modernise the current system, which has remained largely unchanged for around 40 years.
The EU's Common Agricultural Policy, in short, the CAP, has undergone dramatic changes in
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the last few years. The reforms are creating a market-oriented, environmentally friendly
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CAP geared to efficient and sustainable farming. Guaranteed prices are being reduced while
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farmers receive support for their contribution to society's quality of life.
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The EU's Common Agricultural Policy has been greatly simplified by breaking the link between
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subsidies and production. CAP support now depends on meeting quality, environmental
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and food safety requirements in line with the priorities of the European public.
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Following key reforms to the CAP in 2003 and 2004, the European Commission has decided
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to continue this process and bring the sugar sector into line with the rest of the CAP.
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This will give the EU sugar industry a viable future.
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Over the last 40 years, EU sugar production has been maintained in almost every Member
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State. But the current rules distort competition and some factories with low productivity survive
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at the expense of the most competitive. Sugar users now pay three times the world
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market price, even though supply is greater than demand. After reform, non-competitive
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producers will be given incentives to leave the sector. Diversification and innovation
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will be encouraged. Sugar is a vital commodity and real market
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opportunity. By reducing market intervention, it can be produced more competitively.
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European citizens consume an average of 35 kilos of sugar every year. Sugar not only
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sweetens your morning coffee, but also many processed foods.
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More competitive sugar production will allow growth and employment in sugar-intensive industries,
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like for example chocolate producers. Non-competitive sugar producers will receive incentives to
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restructure their businesses and move into other sectors.
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Only with a successful outcome of the negotiations to reach a reform on the sugar sector in the
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autumn, I think that we will be able to guarantee a sustainable sugar sector within the European
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area. Sugar has many uses beyond the food industry.
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It can be used in the production of alternative fuels or for chemical or pharmaceutical industry
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products like penicillin. EU sugar is only part of the story. Worldwide,
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production and consumption have doubled in the last 40 years. This trend is continuing.
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For example, Brazil became a giant sugar exporter in the 1990s.
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Russia, the United States and some Arab states are the biggest sugar importers and buyers.
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Meanwhile, the EU system has remained stuck in the past, because it failed to adapt to
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the new situation on the world market. If the EU does not reform its market now, it
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will rapidly be driven out. Worldwide, the majority of sugar is extracted
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from sugar cane. Producing sugar is very labour-intensive. Sugar-producing countries
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include a number of developing countries and many of the least developed countries. The
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EU has always given these nations a helping hand.
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The ACP countries have preferential market access at guaranteed prices. This will be
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maintained. With the Everything But Arms Agreement, the 49 least developed countries will gain
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totally free access to the EU market. Even after reform, the EU will remain an attractive
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market as prices will remain above world market levels. For those countries that will be affected
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by the reform, the EU will offer tailor-made assistance.
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Sugar production will be restructured and reinforced in the most suitable areas for
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growing sugar. Only by reforming the EU sugar industry now can it be guaranteed a viable
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long-term future.
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- Idioma/s:
- Niveles educativos:
- ▼ Mostrar / ocultar niveles
- Nivel Intermedio
- Autor/es:
- The European Union
- Subido por:
- EducaMadrid
- Licencia:
- Reconocimiento - No comercial - Sin obra derivada
- Visualizaciones:
- 1422
- Fecha:
- 16 de julio de 2007 - 10:54
- Visibilidad:
- Público
- Enlace Relacionado:
- European Commission
- Duración:
- 08′ 07″
- Relación de aspecto:
- 1.45:1
- Resolución:
- 488x336 píxeles
- Tamaño:
- 40.55 MBytes