Global Sugar Alliance members are active participants in processes to improve the world sugar trading environment. Members works closely together to ensure the fair and equal treatment of sugar in the WTO negotiations on agriculture.
Sugar ? a Litmus Test for WTO Ministerial Leaders
Published: 01/07/2005
Abstract: The Global Sugar Alliance calls on WTO Ministers to use sugar as a litmus test for the success of the Doha Round.
Full Article:
As exporters of 80 per cent of the world’s raw sugar, the Global Sugar Alliance calls on WTO Ministers to use sugar as a litmus test for the success of the Doha Round.
Our governments, key members of G-20 and the Cairns Group, have ensured agriculture is at the centre of the Doha Round. We will not rest until significant achievements have been made. The sugar market is one of the most distorted of all agricultural markets. Sugar will be the litmus test for the success of the agricultural agenda. We have waited long enough for change. The discrimination against sugar must come to an end.
The Hong Kong WTO Ministerial meeting will be a key to achieving this objective.
Achieving a worthwhile agreement on modalities for agriculture by Hong Kong is essential. We have met with G-20 and Cairns Group Ambassadors urging them to intensify their efforts. We pledge ourselves to work closely with them and their Ministers and will increase our engagement in the coming months to ensure the framework delivers outcomes for sugar.
We seek the elimination of all forms of export subsidies, substantial reductions in trade-distorting domestic support, substantial improvements in market access opportunities for sugar and elimination of the Special Agricultural Safeguard which was conceived as a transitory exception in the Uruguay Round Agreement on Agriculture.
The Doha Round must deliver real improvements in market access as well as cuts in subsidies and protection to ensure our farmers, the vast majority in developing countries, see genuine change in the world sugar market.
In Doha Ministers had strong ambition, they sought
”… comprehensive negotiations aimed at: substantial improvements in market access, reductions of, with a view to phasing out, all forms of export subsidies, and substantial reductions in trade-distorting domestic support.” (Doha Ministerial Declaration, November 2001)
All WTO Members have endorsed this commitment at the highest level. To achieve it leadership is required. We call on the G-20, Cairns Group, EU and USA to provide this leadership. As preparations are made for the 6th WTO Ministerial in Hong Kong, our message is clear and unequivocal, the modalities for further commitments on agriculture must include:
1. Market access
· the round must deliver substantial and meaningful increases in market access, on an individual tariff line basis – with TRQ access increased, initially, by an amount equal to, at least, 20 per cent of domestic consumption for developed countries
· Special agricultural safeguards – temporary measures used by some developed countries must be eliminated – ideally, within year one of the agreement
· substantial reductions in all tariffs using a formula approach that will deliver real improvements in market access delivering the highest cuts in the highest tariffs and the elimination of all in-quota tariffs is the key to a successful outcome – initially out-quota tariffs should be capped at a maximum 25 per cent of the import price
2. Trade-distorting domestic support
· the objective must be elimination– fifty per cent of the reduction progressively over the first two years with the balance achieved over the following three years
3. Export subsidies
· these, the most insidious for of subsidy, must be eliminated in equal instalments over three years. The Global Sugar Alliance welcomes the July 2004 Framework decision to this effect.
4. Special and differential treatment for developing countries
· these provisions must be continued and strengthened as an integral part of all three pillars
· developing countries should be able to delay implementation of new commitments and to impose an additional duty to protect their agricultural industries from the harm caused by subsidised competition from major developed countries (we acknowledge least developed countries will not be required to make further commitments).
To make a difference, the Doha Round must enable our farmers to sell their product into all markets, especially those of the richest economies. Improved trade flows will only occur if there are substantial reductions in tariffs and, for so-called sensitive products, combinations of tariff reductions and tariff quota expansions. As agreed in the July 2004 Framework Text the principle of “substantial improvement” must apply to each product, especially sugar.
Sugar is an important agricultural product. The Global Sugar Alliance strongly supports the view held by the G-20 and Cairns Group that modalities for the fullest liberalisation of agriculture, in particular sugar are long overdue. We will work with WTO Ministers to ensure the fair and equal treatment of sugar.
We appreciate the strong support of the G-20 and Cairns Group as we work to secure these outcomes and reiterate our commitment to work closely with them to achieve success. Together, we can make sugar a litmus test for the success of the Doha Round.
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