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.
Intervention of Ricardo Villaveces in Cairns Group Ministers Meeting
Published: 30/03/2005
Author: Ricardo Villaveces
Origin: Colombia
Abstract: Let me take you back briefly to the DOHA Ministerial Declaration November 2001.
The words, though carefully crafted, highlight the need and commitment of WTO Ministers to improve world trade, especially for agriculture.
Full Article:
Chairman and Ministers
I am pleased to address you on behalf of the Global Sugar Alliance. Our membership – Australia, Brazil, Canada, Chile, Guatemala, Honduras, India, South Africa, Thailand and Colombia– together produce over 50% of total world sugar production and export 85% of the world’s raw sugar. Unfortunately, not all of our Members are present at this meeting. However, we carry their apologies, good wishes and confidence in making these remarks.
Let me take you back briefly to the DOHA Ministerial Declaration November 2001.
The words, though carefully crafted, highlight the need and commitment of WTO Ministers to improve world trade, especially for agriculture.
Ministers undertook to establish a fair and market-oriented trading system through a programme of fundamental reform. This reform must comprise strengthened rules and specific commitments on support and protection in order to correct and prevent restrictions and distortions in world agricultural markets.
Ministers reconfirmed their commitment to comprehensive negotiations aimed at: Substantial improvements in market access; reduction of, with a view to phasing out, all forms of export subsidies; and substantial reductions in trade-distorting domestic support.
This commitment is embodied in the Agricultural Framework Agreement of July 2004 and it was reconfirmed at the informal WTO Ministerial meeting earlier this month in Mombasa, Kenya.
It is pleasing that all parties including the USA and European Union have endorsed the commitment at the highest level. The Global Sugar Alliance has confidence these commitments will remain still at each moment of the negotiation.
In this context, the Cairns Group has a very important role going forward, maintaining the level of ambition in the negotiations. A good outcome that achieves the Doha mandate is much more important for us all than an agreement that reflects the Doha mandate.
The Cairns Group has a long and proud history as a strong advocate for liberalized trade in agriculture. On the very important topic of Market Access the Cairns Group has goals, ambitious goals, that place the strongly protectionist voices in Europe and the USA under close scrutiny, especially for so called “sensitive products” like sugar.
Under the “Sensitive Product” heading, the framework agreement states “the principle of ‘substantial improvement’ will apply to each product. Combinations of tariff quota commitments and tariff reductions applying to each product are to be used to achieve the improved access.
It is important that the Cairns Group holds firm in the pursue of this objectives. Increasing, for example, access to the US & EU markets by 20% of domestic consumption would be a significant step. We all know the term “sensitive product” is code for “politically sensitive”. Sugar is one of the most politically sensitive of all agricultural products in many developed economies. It is a sensitive product too in many developing countries, where the consequences of EU and US policy are felt. For this reason it is important the special and differential needs of developing countries be continued and strengthened as an integral part of the negotiations.
Though we are hopeful, and think that, at least in Europe, a change may be taking place.
Concerned that the European Union was not complying with its WTO obligations, Brazil, Thailand and Australia challenged its export practices on sugar. The Global Sugar Alliance considers as positive the way this case has evolved and looks forward to the Appellate Body’s decision on 28 April.
The increased focus on export subsidy practices brought by the case should provide momentum for the ultimate exclusion of export subsidies on agriculture in the Round. We urge the Cairns Group and all WTO negotiators to ensure this happens.
The Global Sugar Alliance has high expectations of the Doha development round. At long last, it appears the process has some real momentum. We hope 2005 will prove to be a pivotal year for the negotiations and for world trade in sugar.
In summary, our expectation is for the positive, progressive & meaningful reform of the world sugar market by ensuring that sugar is included as an important element of the agricultural trade agenda and treated – equally and fairly – with other commodities/products.
To deliver the greatest benefits and to ensure the “equal and fair” treatment of sugar along with all other basic products it is important the modalities for further commitments on agriculture include:
- The provision of special and differential treatment for developing countries to be continued and strengthened as an integral part of all three pillars
an important element of special and differential treatment, is an ability for developing and least developed countries to delay implementation of new commitments and to impose an additional duty to protect their agricultural sectors from the harm caused by subsidised competition from major developed countries - substantial and meaningful increases in market access, on an individual tariff line basis, no exceptions
- the elimination of special agricultural safeguards for developed countries
- substantial reductions in all tariffs using a formula approach that delivers the highest cuts in the highest tariffs and the elimination of all in-quota tariffs
- the elimination of all forms of trade-distorting domestic support
- the elimination of export subsidies
The Global Sugar Alliance does not wish to see the Doha mandate weakened, but we have serious concerns. It is important as we move through this critical year that an agreement is crafted that truly reflects the Doha ambition, not simply the political imperative to get a deal done. In this, there is very clearly a role for the Cairns Group to ensure that expectations for sugar and agriculture more generally become realities.
The Global Sugar Alliance is thinking beyond expectations. We will continue to work tirelessly, with our Governments, major trade organizations, key individuals and you the Cairns Group of Ministers to achieve success.
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