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.
US Leadership Essential to Achieving Trade Outcomes
Published: 14/07/2009 Abstract: Bringing the Doha Round to a conclusion can deliver worthwhile improvements on the foundation of the Uruguay Round, and prevent the world sliding into a new era of protectionism. Much will depend on US leadership. It is both the opportunity and the challenge.
Full Article: Global Sugar Alliance members welcome the recent calls for re-engagement on WTO negotiations and the reaffirmation from WTO Members of the importance of concluding the Doha Round. Bringing the Doha Round to a conclusion can deliver worthwhile improvements on the foundation of the Uruguay Round, and prevent the world sliding into a new era of protectionism. We agree with President Obama and world leaders who underline the "critical importance of rejecting protectionism" and support them in their efforts to ensure countries do not turn inwards in these times of financial uncertainty. While agreement is attainable, much depends on US leadership and the commitment of all WTO members to finishing the round. Agreement on the big issues has already been achieved. We urge world leaders to work through the politics of change and ensure the remaining issues are resolved. In North America, we see two specific opportunities to demonstrate leadership. First, the US-Mexico sugar provisions of NAFTA have now been in place for more than 18 months. The initial uncertainties associated with the market opening have been managed. It is clear that the emerging USâ€Mexican sugar market has a supply deficit. Resolving this supply shortfall in a timely manner demonstrates commitment to improved market access for sugar in the US and globally. Second, the Global Sugar Alliance has recognised the growing linkage between sugar and ethanol, by extending its support for a freer global market to ethanol. A more open global ethanol market will help deliver efficient, environmentally-friendly outcomes, while at the same time providing more stability for the world sugar market. As a major producer and consumer, the USA has an important leadership role in the establishment of a more open global ethanol market. The marked change in the world sugar market following the EU's implementation of its WTO commitments has lowered the cost of sweeteners to EU consumers while delivering significantly enhanced incomes for sugar exporters, most of whom come from developing countries. Changes in the world sugar market flowing from the EU reforms demonstrate and that policies adopted by the world's richest economies are important drivers of market outcomes. Concluding the Doha negotiations will deliver a much needed contribution to economic recovery and demonstrate the benefits of the multilateral trading system. This outcome is within grasp, and we urge you to make it happen. Much will depend on US leadership. It is both the opportunity and the challenge. Global Sugar Alliance members will continue to actively encourage positive, progressive and meaningful new trade rules, and work with governments, the Cairns Group, G-20 and in the WTO to secure this outcome for sugar. The long-term sustainability of our industries depends on practical progress and a strong legally enforceable framework.
