Local sugar firms to gain from EU trade reforms
June 23, 2004
By Margie Inggs
Durban - The EU Commission would announce reform proposals for sugar - the last outstanding regulated sector of the common agricultural policy - in the next few weeks, Rodger Stewart, the chairman of the SA Sugar Association, said yesterday.
Speaking at the association's annual general meeting, he said reform would affect sugar production not only in the expanded EU but also in countries benefiting from preferential marketing arrangements.
The EU and US governments have been severely criticised for giving their farmers huge subsidies, which have distorted the sugar market by creating artificially low-cost producers at the expense of developing countries.
What was not mentioned at the meeting was that sugar millers Illovo and Tongaat-Hulett would benefit from the EU's preferential marketing arrangements with lesser developed African countries.
Transvaal Sugar, which is 41 percent owned by Rembrandt, is also investigating the possibility of expanding into other parts of Africa.
The dispute panel of the World Trade Organisation (WTO), which is considering the case of Australia, Brazil and Thailand against certain elements of the EU sugar regime, is also due to report its initial findings shortly. These could affect the EU's sugar regime.
Stewart said the next few weeks were critical to the progress of the WTO's Doha round, which has been stalled on agricultural issues since the unsuccessful ministerial meeting in Cancun, Mexico, in September 2003.
"A concerted effort is being made by EU trade commissioners, whose term of office expires in September; US trade administrators, whose efforts will soon be swamped by the US presidential election in November; and the Group of 20 countries, to negotiate a meaningful agricultural trade reform framework," he said.
"The Doha round needs to make progress in order that a modified multilateral trading system can lead to a better distribution of trade benefits between developed and developing countries."
"The political, economic and social global imbalances brought about by distorted international trade policy presents a significant danger to the current world order."
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