1. CIUS - Committee of Industrial Users of Sugar CIUS Committee of Industrial Users of Sugar

2. CIUS - Committee of Industrial Users of Sugar I. Who are we?

3. CIUS - Committee of Industrial Users of Sugar CIUS Members 70 billion € 3,000 businesses National CIUS: UK, Germany, Netherlands, Spain, Ireland, Denmark

4. CIUS - Committee of Industrial Users of Sugar 2001 Sugar % Consumption Split Source - ED&F Mann

5. CIUS - Committee of Industrial Users of Sugar Sugar Exported From EU Source - Commission 2003

6. CIUS - Committee of Industrial Users of Sugar Employment Source - Eurocare

7. CIUS - Committee of Industrial Users of Sugar CIUS members have bought : 500,000,000 Tonnes 360,000,000,000 Euros 36 years of expertise in buying sugar and dealing with the EU Sugar Regime

8. CIUS - Committee of Industrial Users of Sugar II. Current Situation

9. CIUS - Committee of Industrial Users of Sugar CURRENT SITUATION 3 major obstacles to competition: 1. The lack of competition between sugar processors - Tacit collusion between processors - Price fixing - Several case of cartel during last 15 years The goal: Market Forces must come into play!

10. CIUS - Committee of Industrial Users of Sugar CURRENT SITUATION 3 major obstacles to competition: 2. Obstacles to competition between natural sweeteners - Isoglucose maximum quota equal 4% of sugar quota... - No competition between HFS suppliers - Artificially high price for this raw material The goal: Market Forces must come into play!

11. CIUS - Committee of Industrial Users of Sugar CURRENT SITUATION 3 major obstacles to competition: 3. Disruption of of the value chain - All efficiency gains done at beet farming and sugar processing have been kept at sugar processor’s benefit The goal: Market Forces must come into play!

12. CIUS - Committee of Industrial Users of Sugar Therefore, since many years, and at many occasion, CIUS repeatedly asked for a deep market organization reform REFORM

13. CIUS - Committee of Industrial Users of Sugar II. Commission Proposals

14. CIUS - Committee of Industrial Users of Sugar On September 23, the EU Commission presented a communication and puts forward three options for reforming the EU sugar regime: 1. Status-quo, 2. Price reductions and quota elimination (preferred option) 3. Full liberalisation COMMISSION PROPOSAL

15. CIUS - Committee of Industrial Users of Sugar III. CIUS vision for the future

16. CIUS - Committee of Industrial Users of Sugar 1/ Future WTO negotiation will put an end to: export restitution and abusive import duties. 2/ There are many political discussion between EU and trade partners that will influence the import of sugar in the short future: EBA, new ACP negotiation, Balkan free trade, Mercosur free trade,... CIUS VISION

17. CIUS - Committee of Industrial Users of Sugar Therefore: Current system is obsolete, and leaving it unchanged will damage all stakeholder, in Europe and abroad Option 2 from the Commission is the only viable option. Transition MUST be as quick as possible CIUS VISION

18. CIUS - Committee of Industrial Users of Sugar TOMORROW: 1/ Sugar supply in Europe based on efficiency, competitiveness, and specialisation 2/ Beet farmers revenue part of the new CAP system 3/ Quota abolished to guaranty a fair internal competition 4/ Minimum price for sugar reduced to a equilibrium level - balancing internal and external supply, - in line with phased reduced tariffs CIUS VISION

19. CIUS - Committee of Industrial Users of Sugar The transition period to this new market situation must: 1. Be as quick as possible 2. Have the best technical instrument to help all stakeholder to adapt Let’s together work on the instruments to get there quickly Quota dismantling is the key issue to agree on as soon as possible CIUS VISION

20. CIUS - Committee of Industrial Users of Sugar TIMING OF REFORM