Welcome to the Global Alliance for Sugar Trade Reform and Liberalisation

Welcome to the Global Alliance for Sugar Trade Reform and Liberalisation

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.

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Multilateral Trade Reform ? An Opportunity for the World Sugar Market ? An Australian Perspective

Published: 30/11/1999
Author: Mr Bruce Vaughan
Origin: Australia
Abstract:

Full Article:

Chairman, as the last speaker, might I thank you for your professional chairmanship.

We have a funny game in Australia. Cricket – 11 in team, early batters are expected to do the big hits – I’m the last batter and therefore not expected to make a big hit.

  • I will speak about: The Facts of it. The Why of it. The How of it
  • You have all heard many comments about Sugar already today from so many able, knowledgeable and distinguished speakers, so I will try and not be repetitive - in any case I am humbled in their presence
  • Briefly why Australia wants a voice in all this

THE FACTS OF IT

  • We have approximately 7200 Australian cane growers which are mostly small family units
  • Over 95% of our sugar comes from Queensland
  • We produce at or about 5 million tonnes of good quality raw sugar through 30 mills
  • We export annually approximately 85% of our production.
  • With the minor exception of the 2% Australian sugar allowed into the US, the balance (98%) of our sugar is world market priced.
  • We sell all our production annually
  • There are no tariff/nor subsidies to assist producers nor are their any barriers to import sugar.
  • Sugar is very significant in Australia’s total exports.
  • These facts and figures alone make Australia very significant in the world of sugar.
  • Such is our concern about the state of the grossly distorted world sugar market, we have brought a very strong private sector delegation to Seattle. The team includes the
Chairman and General Manager of CANEGROWERS
Chairman and General Manager of Australian Cane Farmers Association
Chairman and General Manager of Australian Sugar Milling Council
Executive Director of Sugar Research and Development Corporation
Myself as chairman of the Queensland Sugar Corporation (the body responsible to the millers and the cane growers for selling the raw sugar)
General manager for Raw Sugar Marketing
Accompanied by:
A grower Director of the Queensland Sugar Corporation
The Principal Economist and the Senior Manager of Communications of QSC
  • The travelling and associated expenses of this delegation have been paid for by the industry without any Government assistance.

THE WHY OF IT

  • Enough is enough – we have had enough of the grossly distorted situation.
  • Looking around this room it is clear that we are not alone
  • In Australia the sugar industry is on it’s own.
  • As was evident from the ABARE/Sparks company’s independent study and Terry Sheales presentation today any assistance in Australia is minuscule (a little bit for research provided the private sector matches it dollar for dollar) and it is capped.
  • You will vividly recall Dr Sheales charts illustrating the high level of assistance in various forms to producers in the EU and US
  • The facts of life for rural industries in Australia – if you cannot make it on your own you better do something else as the only alternative is to receive low level social benefits – Proud, hardworking farmers won’t accept subsistence hand outs.
  • What really annoys us, when you achieve all we have done to be cost effective and efficient we are still denied access to the world’s largest markets.


THE HOW OF IT

  • Private Sector People are Doing People – They are Action People
  • As you have heard, last Sunday here in Seattle a Historic event took place.
  • Likeminded people from a number of sugar producing countries agreed to form a Global Alliance for Sugar Trade Reform and Liberalization
  • 13 countries signed (not including US users, at least not at this stage) a Communique which clearly sets out objectives for WTO Ministerial Deliberation
  • Participants are all resolved to pursue these objectives. In almost every case they already have the full support of their respective governments

OBJECTIVE

  • Furthermore we support the CIUS priorities
  • People whose livelihood are being affected by the distortions in the market will not be put-off or deterred by world trade speakese or gobbledegook of multifunctionality which can lead to procrastination and delays.
  • There are millions of people in poverty, without any real hope in many of the countries who signed the Communique
  • We would not have a social conscious if we let them down.
  • If I might make a detailed point about how which really is about commitment – Australia has offered to act as the Co-ordinator for the Global Sugar Alliance.
  • For the first 12 months – Warren Males, who has worked so hard around the world Pre-Seattle and who in my opinion has done an outstanding job will be Co-Ordinator
  • I use the word Co-Ordinator quite deliberately because the Alliance is one of likeminded equals.
  • We believe the next meeting of the Sugar Alliance should be before the end of March 2000.
  • The Global Alliance is a group of countries which whilst competitors in the market place, have a common view about improving the conditions of the market in which we participate.
  • We would welcome any other likeminded country which genuinely and I repeat genuinely believe in the objectives
  • Just before I close I want to clarify what Australia/Queensland has by way of marketing organisations:

- Australia does not have a state controlled monopoly
- Sugar produced in NSW and WA is not pooled for marketing purposes as is the case in Queensland.
- Furthermore the present Queensland marketing organisation is controlled and funded by millers and growers
- For further information and clarification a new company is being formed to market Queenslands raw sugar – the constitution has been written – it will commence early in year 2000 – This company will clearly by owned, controlled and funded by cane growers and millers.
- With my broad industrial and commercial experience around the world I understand the benefits of efficiently managed volume (many industries do it)
- The good ones survive – the others do not
- Our task is to sell and efficiently deliver to our customers around the world what they want and need
- If aggregating a bulk raw material like raw sugar is the best way to do it – we have and we will because what we do is transparent and open to scrutiny in fact we welcome it – one wonders whether others would.

So in conclusion:
All we want is sugar trade liberalisation so we can stand or fall by our own efforts and efficiency. In so saying we support any initiatives which would sensibly assist those in developing countries. All Australia wants and I believe the 13 countries who signed the Communique and even others is a FAIR GO, A FAIR DEAL So lets start the process now.

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