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Trade Agreements: Main challenges the EU sugar sector

This article discusses the main challenges faced by the EU sugar sector in its trade agreements, including bilateral trade agreements and WTO negotiations. It emphasizes the importance of maintaining market equilibrium and protecting the sector's sustainability and development goals. Possible future actions and common messages on sugar are also highlighted.

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Trade Agreements: Main challenges the EU sugar sector

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

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

  3. Future of Trade Policy : EU 2020 strategy • On 9.11.2010 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 partnerssuch as India and Mercosur. • Trade continue to support development (trade preferences).

  4. Future of Trade Policy : EU 2020 strategy • On 9.11.2010 CEFS has issued an open letter addressed to EU decision makers Open letter annexed to CSR Report: 3 Main requests: • Trade policy consistent with its agreed CAP commitments in the sugar sector • 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 • Current constraints on exports be lifted.

  5. Bilateral Trade Agreements

  6. Bilateral Trade Agreements Countries with which the EU: • Concluded preferential trade agreements (Central America, Colombia/Peru....) • Is negotiating preferential trade agreements (Mercosur, South Africa, Ukraine, India....) • Is considering opening preferential trade agreements (Thailand, Philippines....)

  7. Bilateral Trade Agreements Countries with which the EU: • Concluded preferential trade agreements: Central America, Colombia/Peru: • Additional concession on sugar (and sugar products): 246 000 t of sugar + (7 380 t annual increase) • EP consent expected in 2012 and enter into force (?) • Is negotiating preferential trade agreements: • Mercosur: Brazil 1st sugar exporter of the world. Possible conclusion in autumn 2011 • Is considering opening preferential trade agreements: • Thailand: 2nd largest sugar net exporter (ISO)

  8. 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!!

  9. 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

  10. 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

  11. Thank you for your attention

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