14.6.93 OfficialJournaloftheEuropeanCommunities NoC161/13
OpinionontheproposalforaCouncilRegulation (EEC)amendingRegulation (EEC)
No1785/81onthecommonorganizationofthemarketsinthesugarsector(^
(93/C161/04)
On26February1993theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity ,onthe
abovementioned proposal.
TheSectionforAgricultureandFisheries,whichwasresponsibleforpreparingtheCom­
mittee'sworkonthesubject,adopteditsOpinionon1April1993.TheRapporteurwas
MrCharlesPelletier.
Atits305thPlenarySession(meetingof28April1993),theEconomicandSocialCommittee
unanimouslyadoptedthefollowingOpinion.
Sincethenewmarketingyearisabouttostart,the
Committeeapprovestheproposaltoextendtheexisting
sugarRegulation,subjecttothecommentswhichfol­
low.TheCommitteemakesnocommentfororagainst
thefuturesugarsystem,whichhasyettobedefined.—theneedforanoverallexaminationofthearrange­
mentsforsupplyingtherefiningindustrywithraw
sugar;
—theinstabilityoftheworldmarket.
1.5.1.Theone-yearextensionproposedbytheCom­
missionmainlyconcernstheprovisionsonquotas,self­
financing,andrefining(coveredbyRegulation (EEC)
No3484/92),andtherulesgoverningnationalandEC
aid.
1.6.TheCommissionalsoproposesthattheCouncil
bringinulinproductionunderthesugar/isoglucose
Regulation .Itspecifiestheparameterswhichshouldbe
usedforestablishingtheleveloftheinulinsyrupquota,
ifaquotasystemisretained.1.Introduction
1.1.Theproductionquotasysteminthesugarand
isoglucosesector,laiddowninRegulation (EEC)No.
1785/81,wasextendedforthe1991/92and1992/93
marketingyearsbyRegulation (EEC)No305/91.
1.2.Article23(4)ofRegulation (EEC)No305/91
statesthat'theCouncil,actinginaccordancewiththe
procedurelaiddowninArticle43(2)oftheTreaty,
shalldetermine,before1January1993,thesystemto
beappliedfrom1July1993'.
1.3.TheCommissionproposestocontinuetheexist­
ingprovisionsforthe1993/1994marketingyear.
1.4.Injustifyingthismove,itcitestheshorttime
remaininguntilthenewmarketingyearbeginsandthe
needtoconductathoroughanalysisoftheimpactof
certainfactorsbeforedecidingwhetherthesector
shouldbereformed .
1.5.Thesefactorsinclude:
—thereformoftheCommonAgriculturalPolicy
(CAP),andinparticulartheproductionsystemfor
cereals;
—thefirststageoftheimplementation oftheSingle
Market;
—theproductionofinulinsyrup,anewsweetener
thatcompeteswithsugarandisoglucose;2.Generalcomments
2.1.Sinceitsadoptionin1981,Regulation (EEC)
No1785/81hasundergonethreeextensionsandadap­
tationswithregardtoitsself-financingarrangements ,
forperiodsoftwo,threeandtwoyearsrespectively .
Morerecentlytheprovisionsgoverningsugarrefining
inPortugalwereextendedforsixmonths.
2.1.1.Afurtherone-yearextensionisnowbeing
proposed.
2.1.1.1.Theseshortperiodscreateaclimateof
uncertaintyforfarmersandprocessors,makingitdiffi­
cultforthemtotakeinvestmentandotherdecisions.
2.1.2.TheCommitteeconsidersitdesirablethat
whentheCommissionissuesitsproposalsforthenew
sugarRegulation,itshouldestablishasufficientlylong­
termsystem,aswasoriginallydoneforRegulation
(EEC)No1009/67andmorerecentlyforthemilk
Regulation .
2.2.TheCommitteeaskstheCommissiontopresent
itsproposalforthenewsystemassoonaspossible. (i)OJNoC30,3.2.1993,p.12.

NoC161/14 OfficialJournaloftheEuropeanCommunities 14.6.93
sector;theECsugarsectorhasnotexperiencedthe
economic,commercialandbudgetarydifficultiesbeset­
tingcereals.Moreover,itwilltakeatleastthreeyears
togaugetheeffectsofthecerealsreforms.TheCom­
mitteeisalsoconcernedattheconsiderableuncertainty
raisedbythefactthattheGeneralAgreementonTariffs
andTrade(GATT)negotiationsremainunconcluded .
3.1.1.Forthesereasons,theCommitteeasksthe
CommissionandtheCounciltowithdraworatleast
qualifythereferencetothecerealssector,soasnotto
prejudgethecoursetakenbythesugarsectorreform.
3.2.Asregardstheconditionsgoverningthesupply
ofrawsugartotherefiningindustry,theCommittee
recallsitsOpinionof25November1992(1).
3.3.TheCommitteeconsidersthatinulinsyrup,
whichcompeteswithsugarandisoglucose,shouldbe
governedassoonaspossible,andnolaterthan1July
1994,bythesamerulesforproduction,leviesandinter­
traderelationsassugar.
3.3.1.IntheCommittee'sview,onlyactualpro­
ductionovertheperiod1992/1993shouldbetakeninto
considerationforallocatinginulinsyrupquotasanda
linkshouldbeestablishedwithagriculturalproduction.
TheCommitteealsothinksthattheconceptofhydroly­
siscapacityrequiresclarification .
3.3.2.TheCommitteealsoconsidersthat,when
establishinganyinulinsyrupquotasandcorresponding
levies,calculationsshouldbemadeinsucroseequiva­
lent,soastotakeaccountofthetonnageofsugar
whichinulinsyrupmaydivertontotheworldmarket.
3.3.3.TheCommitteewillmakenocommentabout
whetherinulinsyrupquotasshouldbetotallyorpartly
deductedfromexistingsugarorisoglucosequotas.It
wouldhoweveraskforaclearbanonquotatransfers
betweendifferentsweeteners .2.3.Theoperationofthequotassystemandthe
financingprovidedbyproductionlevieshavemadeit
possibletofullysatisfyinternaldemandandtomaintain
exports.
2.4.Theoperationofthepricesystemandthemech­
anismsfortradewiththirdcountrieshaveassureda
decentincomeforECandAfrican,Caribbeanand
PacificStates(ACP)farmproducersandanadequate
levelofactivityforthesugarindustry.
2.4.1.Pricepolicyhasbeenextremelystableoverthe
lastfewyears,andhaskeptsugarpricesatanacceptable
levelwhichbearscomparisonwiththelevelinother
developedcountries.
2.4.2.TheCommunitymarkethasbeenshielded
fromthedramaticfluctuationsinworldprices,and
farmersandsugarmanufacturers havebeensparedthe
serioussocialandeconomicconsequenceswhichcould
haveresultedfromcheapimportsfromcertainthird
countries .
2.4.3.TheECsugarsystemoffersthedeveloping
ACPStatesapermanentoutletataguaranteedEuro­
peanpricefor1300000tonnesofsugarwhichsup­
plementECproduction .
2.5.Withouttakingastanceonthefuturesystem,
theCommitteeurgestheCommissionnottoembark
onapolicythatwoulddestabilizethishigh-investment
sectorandwouldleadtodemandsforfinancialcompen­
sationnecessitating ariseintheECbudget,whilealso
creatinganexcessofredtape.
3.Specificcomments
3.1.TheCommitteehastakenduenoteofthe
reasonsgivenbytheCommissioninthepreamblefor
postponingthereformofthesugarsector.However,it
questionsthereferencetothereformofthecereals (!)OJNoC19,25.1.1993.
DoneatBrussels,28April1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN