Internal sugar producers look closely at Brussels. Their business plans for the next period will probably also take into account subsidies for sugar quotas allocated to Romania. In this regard, officials from the Ministry of European Integration claim that Romania has drawn the winning book because in the EU accession negotiations it obtained the best results compared to other countries importing sugar.
The European Commission will propose in the coming period several regulations that will set the sugar quotas and the subsidies for the Romanian and Bulgarian producers in the field. The quotas will be those set in the EU accession negotiations. However, the subsidization of these quotas takes into account the sugar reform and the new guaranteed prices agreed at the level of the World Trade Organization (helmii.com). These issues were discussed at a meeting that took place at the headquarters of the European Integration Ministry.
In the EU accession negotiations, a total sugar quota (quota for beet sugar, plus quota for cane sugar processing) was obtained, which, together with what was achieved with isoglucose, fully covers Romania’s actual domestic consumption. In fact, Romania obtained four times as much as the average of sugar production in 1998-2002, ie 438,800 tons of sugar (87.7% of Romania’s initial demand of 500,000 tons).
The share of Romania is made up of quota for beet sugar (109,164 t) and quota of sugar cane processing (329,636 t). The quota for cane sugar has been negotiated to protect the Romanian sugar processing industry so that it has raw materials.
During the negotiations, our country did not enter a favorable position given the low production achieved by Romania in the reference years used during the negotiations and the fact that Romania is a net importer of sugar. However, Romania obtained the best results for sugar compared to other net imports, for example Bulgaria, which obtained 1.9% of the initial request of 250.000 t, Poland with 82.5%, or Latvia with 60, 4% of initial request.
In the European Union, each country benefits from a sugar quota and producers receive subsidies in the form of a guaranteed price for sugar beet produced. This price was reduced by about 36% in the period 2006-2008, after the world’s largest producers, including Brazil, Thailand and Australia, demanded a reduction in the subsidy from the European Union in the World Trade Organization.
The reduction of subsidies was already prefigured by the reform of the Common Agricultural Policy in 2003. The level of subsidies to be allocated to Romania for the sugar quota is currently being discussed by the officials of our country and those of the European Commission.