Australian sugar industry welcomes TPP (ASA media release)

Australian sugar industry welcomes TPP (ASA media release)
February 5 2016



4 February 2016: Australian sugar industry welcomes TPP

The Australian sugar industry welcomes today’s formal signing of the Trans-Pacific Partnership (TPP) Agreement between 12 countries of our region and looks forward to its smooth and quick formal ratification in Australia.

John Pratt, Chairman of the Australian Sugar Industry Alliance, said it was an historic pact which would improve access for Australian agricultural produce into important regional markets, particularly the United States and Japan.

The gains for Australian sugar under the TPP include the first increase in Australian sugar’s access to the United States market for two decades. The increase of 65,000 tonnes to a total of 152,000 tonnes is worth around $13 million extra per year to Australia.

“The negotiations also achieved the removal of the in-quota tariff, worth around $3 million, plus the potential for additional annual allocation of access based on US needs,” Mr Pratt said.

Projections for sales of high pol sugar to Japanese refineries are around 600,000 tonnes for this financial year, more than double the previous year’s sales and the TPP will deliver a reduction of costs for sugar going into that market of $25 per tonne.

“There is no doubt this deal translates to dollars for the Australian industry and it is very much a step in the right direction as far as trade liberalisation goes,” Mr Pratt said. “Over time this will be a platform on which further trade opportunities for Australian sugar can be built.”

“We thank and congratulate the Australian negotiators and the Minister for Trade and Investment, Andrew Robb, for the work carried out over five years to bring us to this point,” Mr Pratt said.

“We look forward to the speedy ratification of the Agreement in the Australian Parliament.”

Australia is the third largest sugar exporter in the world. Sugarcane is grown on more than 4,000 farms and processed at 24 mills. The industry employs 15,600 people.

Media contact:

John Pratt, Chairman, Australian Sugar Industry Alliance, 07 4722 1908

Note: The Australian Sugar Industry Alliance is the peak, whole of supply chain body with founding members CANEGROWERS and the Australian Sugar Milling Council representing in excess of 80 per cent of Australian growers and 95 per cent of Australian raw sugar production.