African,
Caribbean and Pacific
Sugar Group
Sugar Myths
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Myth
- EU price 3 times world price EU price 3 times world price
- Price cuts will bring down market price
- Price cuts will benefit EU consumers
The Truth...
- UK consumers pay 68 pence per kilo
- Australian consumers pay 62 pence per kilo
- Savings not passed on to consumers
- “World price” – market of last resort for the disposal of surplus production
- “World price” – unrealistic benchmark
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Myth
- Reform will reduce burden on EU taxpayer
The Truth...
- Cost of compensation to beet growers will be far higher than net reduction in export subsidies arising from proposed cuts – increased tax burden
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Myth
- Reform will benefit developing countries and LDCs
The Truth...
- ACP developing countries and are vehemently protesting the proposals
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Myth
- The reform will cause temporary hardship but accompanying measures will make up for this
The Truth...
- Assistance handed out never can make up for trading value removed
- ACP want trade, not aid
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Myth
- The reform is essential because of the WTO
The Truth...
- Neither July 2004 Framework Agreement on Agriculture nor WTO challenges by Australia, Brazil and Thailand requires such deep price cuts
- The reform is not pro development
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Copyright 2005 ACP