WORLD TRADE
ORGANIZATIONWT/L/367
30 October 2000
(00-4512)
Original:  English
GLOBAL ALLIANCE FOR SUGAR TRADE REFORM
AND LIBERALISATION
Banff, Canada
9 October, 2000
Communication from Australia
The following communication, containing a "Call for Action" from the Global Alliance for
Sugar Trade Reform and Liberalisation, has been received from the Permanent Mission of Australia
with the request that it be circulated to Members.
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A CALL FOR ACTION
1. The Global Alliance for Sugar Trade Reform and Liberalisation  is committed to achieving an
agreement from the WTO negotiations on agriculture th at includes meaningful reform of sugar trade
policies.  It is important that the negotiations focus on the fundamental benefits of liberalization for
developing countries rather than solely on the concessions the major developed countries are prepared
to make.
1. Export subsidies must be phased out
2. Export subsidies are among the most distortionary of trade policy instruments impinging on
the world sugar market.  Export subsidies both reduce world sugar prices and distort competition foraccess to markets for all exporting countries.  Fundamental reform is required to eliminate these
subsidies.
3. A key priority of the Global Alliance is the elimination of export subsidies.  We note this is
also a target for the Cairns Group and the United States.
4. The elimination of export subsidies for sugar and other agricultural products would bring
WTO disciplines on agriculture into line with the longstanding GATT prohibition on export subsidies
for industrial products.
2. Domestic support must not distort trade
5. The increasing pace of globalization is forcing changes in all aspects of economic activity.
Increasingly, farmers are responding to market signals.  For sugar producers in many developedcountries, these market signals are being distorted by the differential application of domestic price
supports.  The WTO Agreement on Agriculture began th e process of reducing trade-distorting support
levels.  For many commodities, policies were introduced to replace support systems that significantly
distort trade with payments to farmers that are less trade distorting.  These changes have not been
applied in a meaningful manner to sugar support programmes.WT/L/367
Page 2
6. The Global Alliance proposes the elimination of all trade-distorting domestic support
arrangements.  This proposal would reduce the level of trade distortion by WTO Member economies,
increase the level of transparency in the provision of industry assistance and ensure all measures are
targeted and minimally trade distorting.  Where countries seek to address “multifunctional” non-trade
issues in agriculture, it is important that these are pursued through policies that are specific, targeted,transparent and non-trade distorting.
7. Agriculture plays a special role in many developing countries.  Because agriculture has far
reaching implications for employment and the growth and development of these countries, it is
important that they be given special consideration.
3. Market access must be improved
8. Improved access to markets is a central objective of the Global Alliance.  To maximize
effective market access opportunities for all countries to all markets it is important that all non-tariffbarriers be eliminated.  The Global Alliance is seeking improved market access by calling for the
elimination of all tariffs, including both out-of-quota tariffs and in-quota duties.  While we recognize
that the elimination of tariffs might be achieved progressively, it is important that there is a concerted
and coordinated reduction of all tariffs.  There is no reason for tariffs on sugar to be levied at a higher
level than tariffs for other goods.
4. Global Alliance goals
9. The best outcome would be to secure a WTO agreement for significant cuts in support and
protection as well as for the introduction of tighter rules and disciplines across the board.  The policies
of some OECD countries are the central cause of problems confronting the sugar and more generally
the agricultural sectors in many developing countries.  We must work together to change thesepolicies.
10. There are compelling reasons for reform of agricultural policies and the full inclusion of
disciplines on sugar in those changes.  In too many countries, the production and marketing decisions
of sugar producers respond to support programmes rather than natural market conditions.  The
consequence is that the world's most efficient exporters, the majority of whom are developingcountries, face competition from subsidised sugar exports and suffer a lack of access to markets.  The
subsidies and market access restrictions distort global supply patterns and detract from security of
supply.  This proposal will:
(a) expand effective world trade opportunities for efficient sugar producers;
(b) reduce the influence of parochial support policies;
(c) raise incomes and living standards in many developing economies;
(d) provide sugar users with access to supplies from a wider choice of origins at more
competitive values.
5. The Global Alliance urges Cairns Group Ministers and all WTO Ministers to:
(a) take up the challenge of negotiating a WTO agricultural agreement that will achieve
free and open trade in sugar;
(b) commit their governments to address agricultural issues with targeted non-trade
distorting policies.WT/L/367
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Mr. Harry Bonanno Mr. Warren Martin
CANEGROWERS Australian Cane Farmers Association
AUSTRALIA AUSTRALIA
Mr. Geoff Mitchell Mr. Bruce Vaughan AO
Australian Sugar Milling Council Queensland Sugar
AUSTRALIA AUSTRALIA
Mr. Homero Correa De Arruda Mr. Eduardo Carvalho
Copersucar UNICA and SIAESP
BRAZIL BRAZIL
Mr. Maurilio Biagi Filho Mr. Merrill Harris
Crystalsev Canadian Sugar Beet Producers
BRAZIL CANADA
Ms. Sandra Marsden Mr. Ricardo Villaveces
Canadian Sugar Institute Asocana
CANADA COLOMBIA
Mr. Fernando Fiallos Mr. Jose Orive
Honduras Sugar Producers Association Central American Sugar AssociationHONDURAS EL SALVADOR, GUATEMALA
NICARAGUA, PANAMA
Mr. Tilak Dhar Mr. Shivajirao G Patil
Indian Sugar Mills Association National Federation of CooperativeINDIA Sugar Factories Limited
INDIA
Mr. Tony Ardington Mr. David Hardy
South African Sugar Association South Africa Sugar Millers
SOUTH AFRICA Association Limited
SOUTH AFRICA
Mr. Rodger Stewart Mr. Suchai Limsommut
South African Canegrowers Association Un ited Associations of Thai Sugar Cane
SOUTH AFRICA Planters
THAILAND
Dr. Phisit Pakkasem
Federation of Thai Sugar Millers
THAILAND
*One member unable to be present was Chile who have indicated their support.
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