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.
Published: 09/10/2000 Origin: Canada Abstract: The Global Alliance for Sugar Trade Reform and Liberalisation is committed to achieving an agreement from the WTO negotiations on agriculture that includes meaningful reform of sugar trade policies. It is important that the negotiations focus on the fundamental benefits of liberalisation for developing countries rather than solely on the concessions the major developed countries are prepared to make.
Full Article: The Global Alliance for Sugar Trade Reform and Liberalisation is committed to achieving an agreement from the WTO negotiations on agriculture that includes meaningful reform of sugar trade policies. It is important that the negotiations focus on the fundamental benefits of liberalisation for developing countries rather than solely on the concessions the major developed countries are prepared to make. 1.0 Export subsidies must be phased out
1.1 Export subsidies are among the most distortionary of trade policy instruments impinging on the world sugar market. Export subsidies both reduce world sugar prices and distort competition for access to markets for all exporting countries. Fundamental reform is required to eliminate these subsidies.
1.2 A key priority of the Global Alliance is the elimination of export subsidies. We note this is also a target for the Cairns Group and the United States.
1.3 The elimination of export subsidies for sugar and other agricultural products would bring WTO disciplines on agriculture into line with the longstanding GATT prohibition on export subsidies for industrial products.
2.0 Domestic support must not distort trade
2.1 The increasing pace of globalisation is forcing changes in all aspects of economic activity. Increasingly, farmers are responding to market signals. For sugar producers in many developed countries, these market signals are being distorted by the differential application of domestic price supports. The WTO Agreement on Agriculture began the process of reducing trade-distorting support levels. For many commodities, policies were introduced to replace support systems that significantly distort trade with payments to farmers that are less trade distorting. These changes have not been applied in a meaningful manner to sugar support programs.
2.2 The Global Alliance proposes the elimination of all trade-distorting domestic support arrangements. This proposal would reduce the level of trade distortion by WTO member economies, increase the level of transparency in the provision of industry assistance and ensure all measures are targeted and minimally trade distorting. Where countries seek to address “multifunctional” non-trade issues in agriculture, it is important that these are pursued through policies that are specific, targeted, transparent and non-trade distorting.
2.3 Agriculture plays a special role in many developing countries. Because agriculture has far reaching implications for employment and the growth and development of these countries, it is important that they be given special consideration.
3.0 Market access must be improved
3.1 Improved access to markets is a central objective of the Global Alliance. To maximise effective market access opportunities for all countries to all markets it is important that all non-tariff barriers be eliminated. The Global Alliance is seeking improved market access by calling for the elimination of all tariffs, including both out-of-quota tariffs and in-quota duties. While we recognise that the elimination of tariffs might be achieved progressively, it is important that there is a concerted and coordinated reduction of all tariffs. There is no reason for tariffs on sugar to be levied at a higher level than tariffs for other goods.
4.0 Global Alliance goals
4.1 The best outcome would be to secure a WTO agreement for significant cuts in support and protection as well as for the introduction of tighter rules and disciplines across the board. The policies of some OECD countries are the central cause of problems confronting the sugar and more generally the agricultural sectors in many developing countries. We must work together to change these policies.
4.2 There are compelling reasons for reform of agricultural policies and the full inclusion of disciplines on sugar in those changes. In too many countries, the production and marketing decisions of sugar producers respond to support programs rather than natural market conditions. The consequence is that the world's most efficient exporters, the majority of whom are developing countries, face competition from subsidised sugar exports and suffer a lack of access to markets. The subsidies and market access restrictions distort global supply patterns and detract from security of supply. This proposal will:
4.2.1 expand effective world trade opportunities for efficient sugar producers; 4.2.2 reduce the influence of parochial support policies; 4.2.3 raise incomes and living standards in many developing economies; 4.2.4 provide sugar users with access to supplies from a wider choice of origins at more competitive values.
5.0 The Global Alliance urges Cairns Group Ministers and all WTO Ministers to:
5.1 take up the challenge of negotiating a WTO agricultural agreement that will achieve free and open trade in sugar; 5.2 commit their governments to address agricultural issues with targeted non-trade distorting policies.
