Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-01-17-Speech-2-286"
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"en.20060117.22.2-286"2
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"Ladies and gentlemen, the cost of sugar, currently Europe’s most subsidised agricultural product, is three times higher than the world price – an unfair and unacceptable situation indeed, and the reason why I think that sweeping reform was, and is, inevitable.
One question that arises is whether the Commission proposals go far enough. In my view, what is being overlooked is the sugar sector’s structural problem, namely a general overproduction. Far more sugar is already being produced than consumed. This situation will get worse as the price drops, which will only benefit major producers and distributors. In the final analysis, it is the agricultural industry that pockets the savings, while the small farmers receive less for their yields from sugar beet. Ultimately, the consumer ends up paying the same price for a kilo of sugar.
It is, in particular, the poorest countries that are at risk of being the victims of this reform. Preferential treatment has created local sugar crops, often small-scale with a minimum outlay, in various ACP countries. Those countries cannot possibly compete without further European support. Hence the importance of the Kinnock amendment to free up an annual amount of EUR 200 million for the ACP countries. In fact, Mrs Kinnock’s other amendments also deserve our support.
Failure to deliver on the commitments in the framework of the ‘Everything but Arms’ programme will seriously damage our credibility in respect of the LDCs. Moreover, this reform invites a discussion about a general abolition of all export subsidies, as recently promised in Hong Kong. I will conclude by summing up that sugar reform is necessary, but not if it is sweet for major producers while leaving poor farmers with indigestion."@en1
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