Sugar ? an Opportunity for Leadership
Published: 11/12/2005
Abstract: The Doha Round must deliver the fair and equal treatment sugar. The Global Sugar Alliance, exporters of 85 per cent of the world?s raw sugar, urges WTO Ministers to make the Hong Kong WTO Ministerial meeting a watershed in the negotiations.
Full Article:
Hong Kong – Call for Action
The Doha Round must deliver the fair and equal treatment sugar. The Global Sugar Alliance, exporters of 85 per cent of the world’s raw sugar, urges WTO Ministers to make the Hong Kong WTO Ministerial meeting a watershed in the negotiations.
Our governments, key members of G-20 and the Cairns Group, have worked tirelessly to ensure an ambitious outcome for agriculture. If the Doha Round is to deliver a meaningful outcome, effective leadership will be required. The key to an effective outcome will be achievements made on market access. Opening market access creates trade opportunities, generates income and alleviates poverty. The Hong Kong Ministerial provides an opportunity for the world’s richest countries to show leadership and move the round forward.
The European Union is yet to effectively respond to the negotiating proposals put forward by the USA, G-20, Cairns Group and others. While we recognise the politics are difficult, Hong Kong provides an opportunity for leaders on both sides of the Atlantic to improve the trading environment for world agricultural trade and deliver global market conditions that will make changes more politically palatable.
Sugar is central to the negotiations. As one of the most sensitive of all agricultural products, sugar is a prism for the negotiations.
Market access
Hong Kong provides an opportunity to move forward. In support of this the Global Sugar Alliance is seeking an outcome that delivers substantial, genuine and commercially meaningful increases in market access, on an individual tariff line basis, for all products. There should be substantial reductions in tariffs so that trade can begin to flow.
For so-called Sensitive Products, TRQ access must be increased to deliver a “substantial improvement in market access” as required by the July 2004 Framework Agreement. It is important that an ambitious new access regime be introduced. Market access should be increased by at least 20 per cent of domestic consumption.
Consistent with the Agreement on Agriculture, Special Agricultural Safeguards – temporary measures, conceived as a transitory exception in the Uruguay Round Agreement on Agriculture, used by some developed countries – must be eliminated. This can be achieved within one year of the agreement.
It is only through meaningful increases in market access that the benefits of the development dividend promised in the Doha mandate can be achieved.
Trade-distorting domestic support
As tariff barriers are reduced and TRQ access increased, it is important that countries do not simply re-instrument support structures. The objective must continue to be elimination of trade distorting support measures. Fifty per cent of the reduction should occur progressively over the first two years with the balance achieved over the following three years of the agreement.
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.
Special and differential treatment for developing countries
It is important that the special needs of developing countries be recognised an integral part of the agreement. Providing special and differential treatment will recognize the harm caused to developing countries by subsidized competition from major developed nations. We acknowledge that least developed countries will not be required to make further commitments – it is important that proper transitional arrangements including delayed implementation.
The 6th WTO Ministerial in Hong Kong provides an important opportunity to break the logjam in negotiations and deliver on the ambitious Doha mandate. The increased trade will benefit developed and developing countries alike.
Sugar is an important product for the round to consider. The highly concentrated nature of the benefits means sugar has become a fulcrum for protectionist lobby groups in many developed countries. Success in Hong Kong will help raise incomes and lift living standards, making the necessary reforms at home more achievable. The negotiations must not fail.
The Global Sugar Alliance message is clear and unequivocal. Consistent with the Doha Ministerial Declaration, there must be substantial improvements in market access, elimination of all forms of export subsidies, and substantial reductions in trade-distorting domestic support.
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.
Hong Kong provides an opportunity for world leaders to step forward. Let’s take the step!
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