The Global Sugar Alliance Communiqués.
WTO Must Pass the Sugar Test
Published: 06/07/2006
Abstract: The Doha Round must create significant new commercial opportunities. The Global Sugar Alliance, exporters of 80 per cent of the world?s cane sugar, urges WTO Ministers to agree modalities that will deliver an ambitious outcome.
Full Article:
The Doha Round must create significant new commercial opportunities. The Global Sugar Alliance, exporters of 80 per cent of the world’s cane sugar, urges WTO Ministers to agree modalities that will deliver an ambitious outcome.
For the Doha Round to deliver a “substantial improvement in market access” as promised in the July 2004 Framework Agreement, the draft framework will need to be tightened to reduce the range of exemptions and exclusions that provide opportunities for the world’s richest economies to escape significant opening of their markets. The world’s richest economies are seeking real increases in access to developing country markets for non-agricultural products. They must deliver worthwhile increases in commercial access to their agricultural markets.
Presidents and Prime Ministers have delivered strong statements supporting an ambitious outcome as the best way of increasing GDP and alleviating poverty. It is time for WTO Ministers to deliver on the rhetoric.
Access for sugar to the EU and US markets will be a test of success for the round. With the option of branding sugar as a so-called “sensitive product” and the continued application of the Special Agricultural Safeguard, the modalities being developed may deliver no new access and no new commercial opportunities in the world’s richest markets.
Sugar is central to the negotiations.
Market access
The Doha Round modalities must:
· deliver substantial improvements in Market Access sufficient to deliver new commercial opportunities
o for Developed Countries, this will require meaningful tariff reductions, reductions exceeding 75 per cent in the highest tariffs and, for the so-called sensitive products, substantial increases in TRQ access by 10.5 per cent of domestic consumption for products that would otherwise face the highest tariff cuts
o for Developing Countries, recognition of their needs through special and differential treatment of developing countries will be an important part of the agreement
· eliminate the in-quota tariff
· eliminate the Special Agricultural Safeguard used by some Developed Countries to restrict real market access opportunities
· require administration of TRQs in a fashion that provides opportunities for imports to occur, including the timely reallocation of quotas
· be guided by the principles of special and differential treatment for Developing Countries when considering
o “Special Products” – new disciplines for these products should include lesser tariff reduction and TRQ expansion over a longer implementation period than Developed Countries apply to their “Sensitive Products”
o “Special Safeguard Mechanism” – this mechanism should be supported for a limited number of products
Trade-distorting domestic support
The Doha Round modalities must deliver real reductions in total actual Domestic Support payments and in “de minimus” product specific payments, the water must be squeezed out of the bound levels of commitment.
Export subsidies
The Doha Round modalities must remove trade-distorting export subsidies in the shortest time possible.
The Doha Round has an ambitious agenda. Progress has been made; more is required. The negotiations must not fail. Presidents and Prime Ministers support the mandate, highlighting the social and economic benefits as well as the benefits to global security that will follow the successful conclusion of the round.
The Global Sugar Alliance understands the wide range of views held by WTO Members. Consistent with the Doha Ministerial Declaration, our message is clear and unequivocal. There must be substantial improvements in market access, elimination of all forms of export subsidies, and substantial reductions in trade-distorting domestic support. It is important that the modalities contain sufficient flexibility to recognise the special and differential needs of developing countries, but not provisions that would enable developed countries to opt out of further commitments on individual products such as sugar.
Leadership by the major developed economies is essential. The Global Sugar Alliance will continue its strong support for the fullest liberalisation of agriculture. We will work with the G-20, Cairns Group and all WTO Ministers to ensure the fair and equal treatment of sugar.
Simply put, the Doha Round must pass the sugar test!
TOP
