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Sugar trade dereg pressure building

By Angus Macmillan, Dow Jones Newswires
September 12, 2000
 
The international sugar industry is likely to come under renewed pressure for liberalization from the World Trade Organization, David King, secretary general of the World Association of Beet and Cane Growers, said Monday.

Speaking at the 7th World Sugar Farmers' Conference in Durban, South Africa, King said sugar is being targeted because tariff protection is higher than on many other globally-traded products.

King said a new lobby group, the Global Sugar Alliance for Sugar Trade Reform and Liberalization, is also putting pressure on the industry.

The alliance comprises sugar producers from 15 countries pushing for changes to sugar-trading practices in the U.S., the European Union and Japan.

"There will inevitably be winners and losers if the current status quo in the international sugar industry is altered," King said.

Among the winners would be countries that export the bulk of their sugar at prevailing world sugar prices.

These include Brazil, the world's biggest producer, South Africa, Columbia, Guatemala, Thailand and Australia.

Losers would be countries heavily dependent on preferential prices through trade treaties such as the Cotonou Convention, previously known as the Lome Convention.

They include Mauritius, Swaziland, Fiji, Trinidad and Tobago, Guyana, Jamaica and the Philippines.

King said regional trade agreements will also have an impact on international sugar trade.

He said U.S. sugar imports from Mexico will rise sharply in 2001 and 2002 as a result of the North American Free Trade Agreement.

In the E.U., sugar imports are likely to rise from former Eastern European countries such as Poland.

He said the international sugar industry, worth around 38 billion dollars a year, must take urgent steps to shape its future to meet challenges from changing world and regional trading patterns.