Special Report No 06/2010: Has the reform of the sugar market achieved its main objectives?

Abstract:

The EU launched a major reform of its sugar sector in 2006, to ensure its competitiveness and to stabilise the market while complying with international commitments. This involved a price decrease as well as a 30 % reduction in production quotas, resulting in the closure of 80 factories.

A restructuring fund and aid for diversification were to mitigate the social and economic impact of these measures, the Court conducted an audit of the reform and concluded that some of the most efficient producers were forced to renounce quotas and rigidities linked to the quota system are still present.

There is an increased dependence on imports while there are doubts as to the decrease in prices being passed on to the final consumers and delays persist in implementing diversification and environmental measures.

• Primary Source

ECA: Press Release, 10.11.10: Special Report: Has the reform of the sugar market achieved its main objectives? http://www.eca.europa.eu/Lists/ECADocuments/INSR10_06/INSR10_06_EN.PDF

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