2004-11-15
This is Gwen Outen with the VOA Special English Agriculture
Report.
By some measures, these would seem like sweet times for the sugar
industry. The world market for sugar is expanding. So is production.
Developing countries currently produce more than two-thirds of
all sugar. And they are expected to be responsible for almost all
production growth through two thousand ten. This is shown in
research by the United Nations Food and Agriculture Organization.
Yet the value of sugar exports has decreased. In nineteen eighty,
it was almost ten thousand million dollars. By two thousand one, the
value of sugar exports fell to six thousand million dollars.
The Food and Agriculture Organization says government
intervention drives down world sugar prices. It says policies in the
United States and the European Union are believed to have the most
effect in limiting chances for growth. It says prices are kept high
in their own markets, while prices on the world market are
depressed.
In July of last year, Australia, Brazil and Thailand took action
in the World Trade Organization against the European Union. The
three nations said European Union countries were giving more aid to
their sugar producers than they had agreed to under W.T.O. rules.
They said this aid was unfair and kept world prices down.
Brazil is the biggest producer of sugar from sugar cane. As much
as seventy percent of sugar is made from this plant. France is the
biggest producer of sugar from sugar beets.
Australia, Brazil and Thailand argued that the European Union
guaranteed its sugar producers very high prices within its market.
As a result, they said the producers were able to export surplus
sugar at prices below their cost of production.
Also, the three nations said the European Union was giving more
direct subsidies to its sugar producers than permitted. These
payments are based on the amount of sugar imported into the union
under special trade agreements with some countries. These countries
include India, but they are mainly in Africa, the Caribbean and the
Pacific.
Last month, the W.T.O. ruled the European subsidies illegal. The
European Union immediately said it would appeal. But Agricultural
Commissioner Franz Fischler says the E.U. needs reforms to make its
sugar industry "more competitive and trade-friendly."
This VOA Special English Agriculture Report was written by Mario
Ritter. This is Gwen Outen.