Local view for "http://purl.org/linkedpolitics/eu/plenary/2003-04-10-Speech-4-037"
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"en.20030410.3.4-037"2
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". – Mr President, the Commission is well aware of the difficulties posed by the fall in world coffee prices for the many farmers in the developing world who rely on coffee for their livelihoods. They have received proposals from Member States and NGOs for action to deal with this crisis.
The Commission remains open to proposals for action from all actors. We will attend the forthcoming ICO/World Bank round table and the subsequent ICO/Council meeting in London, and look forward to a positive and constructive discussion that will improve the situation of coffee farmers and labourers in developing countries.
We are currently supporting initiatives in the context of the International Coffee Organisation, the platform for dialogue between the coffee-exporting and -importing countries, in both the public and the private sectors. We are supporting the ICO coffee resolution 407 and requested the European Coffee Federation to conduct independent monitoring.
We have also taken up the issue of ICO membership with the United States. As proposed by the General Affairs and External Relations Council on 19 November 2002, we have requested the ICO to undertake a worldwide comparative analysis of coffee growing areas. In the ICO, this initiative is greatly supported by the coffee producing countries.
In fact the problem is not just coffee. It concerns many other commodities and commodity-dependent countries. We should therefore not look at coffee as a stand-alone issue. We are in favour of a long-term and coherent strategy to address the problems of commodity-dependent countries, building on extensive ongoing efforts. Falling and volatile prices are indeed a major threat to the sustainable development of some of the poorest countries in the world.
The long-term solution is twofold: since traditional commodities remain the major source of employment, income and foreign exchange for many developing countries, efforts must include making the traditional commodity sectors more competitive. On the other hand, alternative non-traditional product chains must also be developed.
Two recent communications from the Commission, on rural development and on trade and development, provide a clear policy framework to address the problem of commodity dependence. In view of this we are not yet convinced that there is a need for a separate communication on the issue, as some have been suggesting. We are currently finalising an analytical working document on the major challenges relating to commodities. Several of the issues in the European Parliament resolution are being analysed. Following discussions on this analytical working document, we will judge the need for a separate communication.
There have been calls for action on trade policy. However, there is limited room for manoeuvre. Most coffee-dependent countries are least developed countries or part of the ACP group. With the Everything But Arms initiative, the Community has opened up all markets to the least developed countries, and we will seek to get other countries – developed and developing – to follow our example. ACP countries also have very high levels of access to the EU market under existing agreements, and access will increase under the Cotonou Agreement.
However, market access alone is not enough. To improve the competitiveness of the coffee sector and broaden the export base in developing countries, we also need to support the full integration of commodity issues into the long-term development strategies of the developing countries. As mentioned in the EP resolution, efforts should include support to producer efforts in diversification, organisational strengthening and tapping into niche markets. Future economic partnership agreements with the ACP, as well as comprehensive and coherent development assistance, would be very helpful in supporting the implementation of the strategies.
Direct intervention in commodity markets through price support or stock destruction does not offer a sustainable solution. Furthermore, the Cotonou Agreement includes a facility which can be used to mitigate the adverse effects of fluctuations of ACP countries' export earnings – the FLEX system. Countries whose export earnings are being hit by falling prices of coffee or other commodities can apply for compensatory financing under this measure, and some have already done so."@en1
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