PLENARY MEETING OF THE
SECTORAL DIALOGUE COMMITTE ON SUGAR
28.2.2011
CSR CODE OF CONDUCT OF THE SUGAR
INDUSTRY
EIGHTH IMPLEMENTATION REPORT
CSR CODE OF CONDUCT
EIGHTH IMPLEMENTATION REPORT
• I – ECONOMIC AND POLITICAL CONTEXT
• II – RESTRUCTURING AND CRISIS
SOCIAL IMPACT
• III – IMPLEMENTATION OF THE
CODE OF CONDUCT
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I – ECONOMIC AND POLITICAL CONTEXT
From being a net leading exporter the EU has
become the 2nd world largest importer :
• 15 % of domestic needs are supplied from third countries
• ACP/LDC imports completely liberalized (EBA/EPA)
• EU offers developing countries a stable outlet...
This preferential access should not be eroded by
new concessions granted to third countries through
FTA negotiations or at WTO (Mercosur, Central America,
South Africa, Canada, Singapore...)
See presentation bilateral/multilateral negotiations in the afternoon ...
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I - ECONOMIC
AND POLITICAL CONTEXT
HIGH VOLATILITY OF WORLD PRICES VERSUS FOOD SECURITY
Before the sugar reform the price on the domestic market was
much higher than the World Market Price (WMP).
The situation is now opposite !
 Substantial changes in supply due to unpredictable climatic conditions
 Brazil for inst. can considerably influence WMP through export volumes
 FOOD SECURITY SHOULD BE ENSURED THROUGH ADEQUATE IMPORT MANAGEMENT
POLICY
EXTREME VOLATILITY
ON WORLDAFTER
MARKET
BEFORE SUGAR
SUGAR
REFORM (2005/06)
REFORM (Now)
Intervention
price(2005)
Reference price
(as from 2006)
Intervention price
631.9 Euros/t
Reference price
404.4 Euros/t
World Market Price
About 400 Euros/t
Up to 750 Euros/t
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I – ECONOMIC AND POLITICAL CONTEXT
EXPORT OF NON QUOTA SUGAR AND WTO COMMITMENTS
• Following to WTO sugar panel, exports of out of quota sugar
limited to 1,37 million tons.
• Report of the Court of Auditors : Commission underlines that
not all sugar exports should be kept within WTO limits,
but only subsidised exports.
• Request : the Commission should re examine the 2005 panel
conditions and lift the WTO export limit,
so that EU has the same freedom to export
as any other trading region in the world.
CURRENT SITUATION WITH RESTRICTIONS ON EXPORT AND CONTINUOUSLY
NEW ADDITIONAL DUTY FREE IMPORTS IS NOT SUSTAINABLE...
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ECONOMIC AND POLITICAL CONTEXT
OTHER REGULATORY TOPICS
Situation of potential EU undersupply
Report of the Court of Auditors : Commission underlines that the sugar
regime incorporates the necessary instruments to deal with potential EU
undersupply :
 priority should be given to such market instruments over the constant
granting of additional TRQs.
Restructuring fund
About 640 Millions remain in the restructuring fund and
should be paid back to the general CAP budget
although entirely funded by the sugar profession
 Commission should re examine this issue...
The success of the sugar reform can only be analysed in time depending of economic
and social impact... See presentation in the afternoon...
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II – RESTRUCTURING AND ECONOMIC CRISIS
SOCIAL IMPACT
Restructuration resulted in :
• The closure of about 80 factories (i.e. 45 % of factories since 2005/06)
• The loss of some 20,000 direct jobs
• Impacting about 100,000 indirect jobs
• Five countries completely shut down production
(Bulgaria, Ireland, Latvia, Portugal, Slovenia)
A number of companies are reorienting their activities (biomass or ethanol
production, diversification, agro-food, retail...)
Report of the Court of Auditors raises questions about the follow up of the
social consequences of restructuring...
Commission highlights the works of the European social partners,
the existence of a Code of Conduct, and the SSDC on sugar....
See presentation in the afternoon ...
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III – IMPLEMENTATION OF THE CODE OF CONDUCT
EIGHTH CSR REPORT
EMPLOYABILITY WEB BASED TOOL
Now available into 6 languages
on www.eurosugar.org
=> DE – EN – FR : Employability tab
=> ITA – POL – SPA : CSR tab
Relevance of the project
Employment/employability at the heart of the EU 2020 Strategy
Recent flagship initiatives
“An agenda for new skills/jobs” – “An integrated industrial policy for the globalization era...” –
“Bruges Communiqué” : Need of rapidly changing skills, anticipation of skill needs,
development of skills; need of new skills, better match between needs and skills...
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III - IMPLEMENTATION OF THE CODE OF CONDUCT
EIGHTH CSR REPORT – ESSD RECENT DEVELOPMENT
RECENT DEVELOPMENTS OF
THE EUROPEAN SOCIAL SECTORAL DIALOGUE
Commission Publication 2010 on the functioning of the 40
existing sectoral dialogue committees
Sugar dialogue well described
Creation of a new agro-food sectoral committee
As recommended by the High Level Group on competitiveness
of agro-food industry in July 2009
It seems important that the sugar dialogue committee and the agro-food committee
can work in parallel in an harmonized way with a view to prevent any
counterproductive action within the agro food sector...
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III - IMPLEMENTATION OF THE CODE OF CONDUCT
EIGHTH CSR REPORT
IMPACT OF LISBON TREATY ON EUROPEAN SOCIAL DIALOGUE
Staff working document on the functioning and
potential of ESSD
New Article 9 TFEU : in defining and implementing its policies, the EU shall take into
account ... A high level of employment, adequate social protection, a high level of
education ...
Single Market Act : “The Commission will first of all conduct an in –depth analysis of
the social impact of all proposed legislation...”
The social impact of all EU policies should from now on be systematically assessed...
CURRENT USUAL ACTION TOOLS AT SECTORAL LEVEL
Consultation & impact assessment of Commission initiatives...
CEFS & EFFAT are regularly concerting themselves...
See presentation by François Ziegler (DG EMPL)
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III - IMPLEMENTATION OF THE CODE OF CONDUCT
EIGHTH CSR REPORT – ISO 26 000 GUIDANCE
In December 2010 the International Organization for
Standardization published the international
ISO 26 000 Guidance on social responsibility
The social partners will examine this new
ISO CSR Guidance
and propose a technical update of the
Code of Conduct as judged necessary
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III - IMPLEMENTATION OF THE CODE OF CONDUCT
EIGHTH CSR REPORT - CONCLUSIONS
According to the Commission ,
technically speaking, the sugar reform can be considered as a success.
The reality of success – in economic and social terms – will not only depend
on companies and employees, but mainly on EU policy makers.
The social partners did their utmost to manage the restructuring and crisis
in a responsible way.
They urge the Commission and all EU and national policy makers
to also act in a fully responsible way and in particular to
increase consistency between the different EU policies (external-internal).
On this depend the sustainability of the European sugar industry
and its ability to remain competitive on the market and
continue offer prospects of employment and employability ...
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