CAOBISCO Press Release

CAOBISCO responds to Oxfam’s study on EU sugar reform impact on Southern Africa

Added: 22 November 2004

CAOBISCO is supportive of many of the concerns raised in this new Oxfam report issued today.

We share Oxfam’s desire to see an end to the dumping of EU sugar onto the world market, which would raise the world price and stop European exporters unfairly taking the local market of Southern African producers. Like Oxfam, we also consider that, in parallel with the reform of its sugar regime, the EU should assist the small number of high-cost ACP producers to adjust to more competitive market conditions in the global sugar economy.

But the EU and LDC governments should avoid fixing price levels that artificially stimulate investments aimed at exporting to an already oversupplied European market. This would not serve the objective of building up a viable industry, in the region, which is sustainable in the long term and would contribute to poverty reduction.

David Zimmer, Secretary General of CAOBISCO, said: “The foremost priority is reforming the EU sugar regime, which currently protects uncompetitive European producers while denying market access to LDC producers. Ending subsidized and cross-subsidized EU sugar exports, which are dumped on the international market, integrating domestic markets in the region and granting duty- and tariff- free access to LDCs under Everything But Arms would bring immediate, unambiguous benefits to Southern Africa”.