São Paulo, January 25, 2010 – In a letter sent today to Commissioner for Agriculture Mariann Fischer Boel, the Brazilian Sugarcane Industry Association (UNICA) called on the European Commission to stick with its commitment, assumed at the World Trade Organization (WTO), and not allow European exports of sugar above the ceiling of 1.374 million tonnes. 
 

According to UNICA, current EU sugar surpluses are the result of stocks accumulated over the last campaigns, when world sugar prices were lower than the European price. Current higher prices for sugar on the world market are an exceptional circumstance that should not trigger a change in European sugar policy.
“The EU is trying to externalize its surplus problems on world markets, while this sugar surplus could well be used by downstream domestic users,” says UNICA President and CEO Marcos Jank in the letter to Fischer Boel.
 

UNICA believes that the European Commission should undertake a proper consultation of the interests at stake and an assessment of potential implications, as such a decision would be an incentive for EU farmers to expand their sowing. “In the short term, some user industries could be left without sugar they are counting on, as the export market becomes more profitable. In the mid to long term, when global prices for sugar drop below the European price, the EU will be left with cross-subsidized surpluses of sugar that will need to be exported, putting the EU in clear infringement of its international commitments,” concluded Jank.
 

A copy of the letter is available in the document attached.

ABOUT UNICA
The Brazilian Sugarcane Industry Association (UNICA) represents the top producers of sugar and ethanol in the country’s South-Central region, the heart of the sugarcane industry. With over 120 member companies, UNICA provides information on the sector, including statistics and specific research, and enters into dialogue with stakeholders in support of Brazil’s sugarcane, ethanol and bioelectricity sectors.
 

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Rosa Webster - +55 11 3643 2707 / rosa.webster@cdn.com.br
Mariane dos Santos - +55 11 3643 2730 / mariane.santos@cdn.com.br