Trade Agreements: Main challenges the EU sugar sector Plenary Meeting-Sectoral Social Dialogue Committee on Sugar - 28.2.2011 Patrick PAGANI.

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Presentation transcript:

Trade Agreements: Main challenges the EU sugar sector Plenary Meeting-Sectoral Social Dialogue Committee on Sugar Patrick PAGANI

OVERVIEW  Commission Communication on “Future Trade Policy”: CEFS open letter  Bilateral trade agreements  WTO negotiations

Future of Trade Policy : EU 2020 strategy On the Commission issued the Communication "Trade, Growth and World Affairs" Ambitious trade policy for next five years Main focus on completing: 1) WTO (World Trade Organization) negotiations 2)Trade agreements with major trading partners such as India and Mercosur. Trade continue to support development (trade preferences).

Future of Trade Policy : EU 2020 strategy On CEFS has issued an open letter addressed to EU decision makers Open letter annexed to CSR Report: 3 Main requests: 1.Trade policy consistent with its agreed CAP commitments in the sugar sector 2.European market continues to be supplied by a stable domestic production (no less than 85% of EU consumption). Balance being supplied by ACP,LDC, traditional suppliers 3.Current constraints on exports be lifted.

Bilateral Trade Agreements

Countries with which the EU: 1.Concluded preferential trade agreements (Central America, Colombia/Peru....) 2.Is negotiating preferential trade agreements (Mercosur, South Africa, Ukraine, India....) 3. Is considering opening preferential trade agreements (Thailand, Philippines....)

Bilateral Trade Agreements Countries with which the EU: 1.Concluded preferential trade agreements: Central America, Colombia/Peru: Additional concession on sugar (and sugar products): t of sugar + (7 380 t annual increase) EP consent expected in 2012 and enter into force (?) 2.Is negotiating preferential trade agreements: Mercosur: Brazil 1 st sugar exporter of the world. Possible conclusion in autumn Is considering opening preferential trade agreements: Thailand: 2 nd largest sugar net exporter (ISO)

WTO: Tight calendar realistic? Renewed political will to conclude negotiations (G 20 South Korea, Davos). Experts say it is now or never!! New planned calendar (?): Revised draft modalities texts by Easter Agreement on the texts concluded by July-Ministers Time for preparing the schedules. December usual WTO Ministerial meeting already planned. Could be the event to officially close the deal? Risk of further concessions on agriculture to obtain more on Industry and Services. Brazil already asking more!!

Main Concerns for EU sugar sector After all the efforts done by the sector it is necessary to maintain the new EU quota sugar market equilibrium put in place as a consequence of the reform. Any additional concession granted, through bilateral, regional or multilateral negotiation – might endanger the sustainability of the sugar CMO and have substantial impact on production and therefore employment. Any additional concession would damage the EU development goals already perused with the Economic Partnership Agreements (EPAs) and EBA provisions which give preferential access to ACPs and LDCs

Possible future action EU-Mercosur negotiations and WTO main challenges!!! CEFS and EFFAT reply to Commission consultation of July 2010 on EU-Mercosur. Common messages on sugar. If needed in the coming months, common CEFS-EFFAT action on Trade Policy

Thank you for your attention