GLOBAL SUGAR ALLIANCE MEDIA RELEASE

3 December 2011:  Sugar and Ethanol – structures for the 21st century

Interventionist policies continue to distort markets, preventing the world’s most efficient sugar producers from meeting rising global demand for sugar and ethanol.
Meeting in London, the Global Sugar Alliance says to secure the best economic and environmental outcomes there is no room for tariffs and other barriers to limit the trade in sugar and ethanol in the 21st century.

“Government restrictions mean production subsidies to inefficient producers reduce natural supply responses from countries with expansion capacity,” says Mr Ian Glasson Chairman of the Global Sugar Alliance and Chief Executive Officer of Australian-based Sucrogen Limited.

“The EU continues to produce and export surplus sugar despite clear evidence of the negative impact to world market prices of export subsidies.”

The Global Sugar Alliance calls on the European Commission to abide by its international obligations and not authorise exports beyond its WTO commitment limit.

In the United States, the upcoming Farm Bill as an opportunity to reform an out-dated and trade distorting sugar policy.

“Market restrictions constraining domestic supply are failing both consumers and sugar users, limiting their ability to access sugar produced by the world’s most efficient and lowest cost producers.”
The development of bio-fuels has been an important response to the demand for renewable energy in both the EU and US.

“Ethanol produced from sugarcane has a much greater environmental benefit than cereal crop based ethanol. In the USA sugarcane ethanol is seen as an advanced bio-fuel. Yet both the EU and USA place restrictions on the import of sugarcane ethanol. Policy change is essential to provide better environmental outcomes.”

Mr Glasson said, “There is no place for antiquated supply management systems in sugar and ethanol policy structures in the 21st century. There is no reason to prevent consumers and sugar users wherever they are located from accessing the most competitively produced sugar and ethanol in the world.”

“Market mechanisms will ensure the needs of consumers can be met without the need for production quotas, tariffs and import restrictions to deliver producer price support.”

The Global Sugar Alliance calls on the European Commission and the USA to lead the way as their agricultural policies are reviewed.

Further information, please contact:
Ian Glasson +61 418 965 078
Warren Males +61 417 002 325
www.globalsugaralliance.org