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ISO  29 th COUNCIL SESSION : 

ISO 29 th COUNCIL SESSION 23 MAY 2006 TURKISH SUGAR AUTHORITY İSTANBUL

THE IMPACTS OF THE NEW EU REGIMEA TURKISH VIEW: 

THE IMPACTS OF THE NEW EU REGIME A TURKISH VIEW AYSIN ÜNAL Secretary General TURKISH SUGAR AUTHORITY

Key Figures  The EU Sugar Regime  Impacts & Policies An Assessment for Turkey : 

Key Figures  The EU Sugar Regime  Impacts & Policies  An Assessment for Turkey OUTLINE

KEY FIGURES : 

KEY FIGURES TURKISH SUGAR AUTHORITY

KEY FIGURES: 

KEY FIGURES Source: F.O.Lichts World Sugar Yearbook 2006

KEY FIGURES: 

Source: F.O.Lichts World Sugar Yearbook 2006 KEY FIGURES

POSITIONS: 

POSITIONS Source: F.O.Lichts World Sugar Yearbook 2006

THE EU SUGAR REGIME : 

THE EU SUGAR REGIME

The new regime;   Aims to shrink inefficient sugar supply,   Leaves high price policy,  Targets more competitive & efficient domestic market,  Discourages surplus,  Encourages and supports the usage of  the products for non-food purposes. : 

The new regime;  Aims to shrink inefficient sugar supply,  Leaves high price policy,  Targets more competitive & efficient domestic market,  Discourages surplus,  Encourages and supports the usage of the products for non-food purposes. THE EU REGIME - Objectives

The new EU regime; Compensates growers losses,  Establishes a self financing system for restructuring,   Monitors and controls the market/sector closely,  Imposes new criteria for quota allocations…: 

The new EU regime;  Compensates growers losses,  Establishes a self financing system for restructuring,  Monitors and controls the market/sector closely,  Imposes new criteria for quota allocations… THE EU REGIME - Objectives

Slide11: 

THE EU REGIME - Restructuring EUR/TON - QUOTA RENOUNCED Source: EC No 320/2006

Slide12: 

Deadlines are; Accession of Bulgaria and Romania: 2007 Turkey’s accession date (Estimate : 2012) Timetable for restructuring (Ending in 2009/10) Free access of EBA countries to the EU Market 2009 End of the Regime 2014/15 THE EU REGIME - Timetable & Deadlines

IMPACTS & POLICIES: 

IMPACTS & POLICIES

Slide14: 

IMPACTS & POLICIES  Possible impacts ???  Sustainability ???  If yes, on what conditions ???  If no, possibility of substitutes/alternatives ?  If yes, partly or fully ???  Need for policy changes ???  If yes, the cost of changes ???  If yes, finance mechanism???

Slide15: 

IMPACTS & POLICIES If;  The tariff rates are protecting the domestic market,  The production is sufficient to domestic demand,  The borders can be strictly controlled against illegal inflows,  There are not much exports may have minimal impacts.

The key points make Turkey different,: 

The key points make Turkey different, IMPACTS & POLICIES  Is to be the candidate country to the EU,  Is to be the big producer,  And timing for accession .

Slide17: 

IMPACTS & POLICIES Outcomes of Doha Round Investors’ favors World Prices (Sugar,Fuel) Brazil’s Strategies Consumer Behaviors Government Policies …..

AN ASSESSMENT FOR TURKEY: 

AN ASSESSMENT FOR TURKEY

Slide19: 

FACTS & TRENDS To adopt the EU Legislation is a commitment, Sector has some structural problems, Fundamental agricultural problems, Technological weaknesses. No national aids or funds in operation for the sector, As a result of Sugar Law, competitiveness in the sector; Downward trend in beet & sugar prices, Measures for cost reduction, Investments for diversification…

Slide20: 

IMPACTS & POLICIES  Possible impacts ???  Sustainability ???  If yes, on what conditions ???  If no, possibility of substitutes/alternatives ?  If yes, partly or fully ???  Need for policy changes ???  If yes, the cost of changes ???  If yes, finance mechanism???

Slide21: 

POSSIBLE IMPACTS BS PRODUCER SBS PRODUCER B GROWER C GROWER CONSUMERS END USERS BS USERS (IND) BS USERS (IND) SBS USERS (IND)

Slide22: 

CONFECTIONARY BEVERAGES ETHANOL& BIOETHANOL MORE COMPETITIVE DOMESTIC PRODUCTS MORE COMPETITIVE EXPORT GOODS ETC. MORE COMPETITIVE DOMESTIC PRODUCTS MORE COMPETITIVE DOMESTIC PRODUCTS ETC. GROWTH OF VA POSSIBLE IMPACTS

TURKEY & TIMETABLE: 

TURKEY & TIMETABLE 2006 2009 2012 2007 2008 2010 TR Accession Post RS Period RS Period BUL&ROM Accession 2015 TR Accession ? End of The Regime

Slide24: 

SCENARIOS FOR TURKEY STATUS QUO RESTRUCTURING STEADILY SUDDEN IMPACTS AT THE ACCESSION DATE SMOOTH TRANSITION IN THE SECTOR

Slide25: 

SUSTAINABILITY ? Wide range of; Sugar beet yield, Sugar yield, Sugar beet and sugar production costs, Processing capacities.

Slide26: 

SUSTAINABILITY ? In recent years; Relatively high market oriented sector, Lower production costs in recent years, Higher average beet processing capacity/fac. Lower sugar beet prices (not mandatory) Lower sugar prices (under market conditions)

Slide27: 

OTHER IMPACTS

Slide28: 

IMPACTS & POLICIES ?

Slide29: 

FROM WHERE? TO WHERE? Current TR EU Post RS Current EU TR Post RS

Slide30: 

CONCLUSIONS Sustainability seems to be a “must” particularly in some regions. Some regions and mills may have the possibility to apply the prices. Some agreements which may have been undertaken by Turkey, can have disturbing effect.

Slide31: 

Turkey has to introduce some new regulations, due to her candidate country status and the new sugar regime. Turkey has to approve a reform plan, and to put into force the related legislation urgently. All institutional and financial requirements have to be met with the approach of “Common Responsibility Principle”. Sugar, has been likely a more important issue between EU & TR after the reform decision relted to negotiations. CONCLUSIONS

THANK YOU…: 

THANK YOU… TURKISH SUGAR AUTHORITY