EU Increases Offer for Sugar

The new offer increases the quota for sugar from Central America that can enter the European Union without tariffs to 100,000 tons.

Monday, June 8, 2009

According to La Prensa Gráfica, the president of the Sugar Association of El Salvador, Armando Arias, indicated that "the Minister of the Economy said publicly that he knew–off the record-that the EU might offer up to 100,000 tons to Central America.”

The EU offer for sugar, which is an essential product for the Central American region, initially was 35,000 tons for the entire isthmus, which later was increased to 60,000 and now could be raised to 100,000.

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The negotiation will begin with considerable differences in what each side has conceded so far.

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The EU conditioned increasing sugar quotas on a wide list of benefits for dairy products, passing over ceramics and even services.

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EU to Buy Up to 60 Tons of Sugar

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Europe would admit up to 60,000 tons of Central American sugar, 5% of the deficit in its annual consumption.

In the last round of negotiations of the Association Agreement between Central America and Europe, it was agreed to open the market at 35,000 tons, but the Europeans have given in more in recent mini-rounds, according to an article in La Prensa Grafica of El Salvador: "According to negotiation sources, they have given in a little bit more during the mini-rounds. In the last round, the proposal went up 60,000 tons.

VI Round of Negotiations with EU in final phase

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The negotiations are entering the final phase after yesterday's presentation of the sugar and banana offer by the EU.

Nacion.com reports: "This has do with a quota which did not surpass, nor meet, the aspirations of Central America.

Ocampo highlighted, however, that with yesterday's presentation of the sugar offer and the banana offer on Monday, almost all of the Isthmus' interests have been put on the table."

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