EU seeks to break sugar deadlock

BRUSSELS – The European Union kicked off marathon talks yesterday on sugar sector reforms with Britain seeking to win over other reluctant member states with a sweeter offer on implementing the changes.

The EU is struggling to overcome deadlock on the reforms, which the World Trade Organisation (WTO) has ruled illegal following a complaint from Australia, Brazil and Thailand. In the face of resistance to the reforms from 11 member states, the EU’s British presidency proposed that the changes be carried out more slowly than originally planned so EU sugar producers would have more time to adapt.At the moment, the EU offers a guaranteed price for sugar that is paid for, in effect, by consumers, with Brussels buying from producers at about three times the average world market price.Britain’s proposal would keep the proposed cut in the guaranteed price at 39 per cent but would give sugar-beet producers four years to adjust rather than two years suggested by an earlier plan from the European Commission.The new offer would also increase a voluntary compensation scheme for producers forced out of business by the price cut.-Nampa-AFPIn the face of resistance to the reforms from 11 member states, the EU’s British presidency proposed that the changes be carried out more slowly than originally planned so EU sugar producers would have more time to adapt.At the moment, the EU offers a guaranteed price for sugar that is paid for, in effect, by consumers, with Brussels buying from producers at about three times the average world market price.Britain’s proposal would keep the proposed cut in the guaranteed price at 39 per cent but would give sugar-beet producers four years to adjust rather than two years suggested by an earlier plan from the European Commission.The new offer would also increase a voluntary compensation scheme for producers forced out of business by the price cut.-Nampa-AFP