|
What Do Changes in Sugar Policy Mean for the Future?
Major changes are on the horizon for sugar, one of the world's most highly
protected agricultural commodities. A recent shift in European Union (EU)
policy, which could significantly reshape sugar markets in both
industrialized and developing countries, is receiving scant attention in
the U.S. Current protectionist measures greatly restrict access to sugar
markets worldwide, distort global competition, and lower prices and
revenues for many competitive, low-cost producers and exporters.
The substantial EU sugar reforms, initiated in 2006, focus on cutting
subsidies to farmers and closing obsolete sugar mills. Over time, these
policy changes could cause sugar production in the European Union to fall
by one-third, shifting the EU from a net exporter to a net importer of
sugar. Reducing EU protectionism will also have a ripple effect across the
globe, increasing world sugar prices and providing new opportunities to
low-cost producers, such as Brazil, Colombia, Guatemala, South Africa, and
Thailand. Conversely, countries that currently have preferential access to
sugar markets would experience economic losses.
Press statement is available at:
http://www.ifpri.org/pressrel/2007/20070531.asp
For more information or an interview, please contact:
Michael Rubinstein
Head of Media Relations
International Food Policy Research Institute
2033 K Street, NW
Washington, DC 20006-1002
202-862-5670
202-467-4439 fax
m.rubinstein@cgiar.org
http://www.ifpri.org
|
