1. Australian Sugarcane Industry
Warren Males
Head – Economics
4 December 2016

2. 20% 80% Aussie sugar production key facts Raw Sugar 4 to 5 Mt
Exports around 3 Mt
1.7% of world consumption
White Sugar 1.15 Mt
Exports 250 kt
0.06% of world consumption
4000
30-35 Mt
CANE FARM BUSINESSES
CANE HARVESTED
20%
DOMESTIC
80%
EXPORTED

3. East Asia is a deficit sugar region
Australian export sugar can’t fill the gap
Market access restrictions increase import costs
Source: ISO Sugar Yearbook

4. Trade rules WTO MC10 (Nairobi) – Export Competition
Developed countries – immediately remove export subsidies
Developing countries – elimination by 2018
The poorest and food-importing developing countries – remove by 2028.

5. Protection promotes “unofficial trade”
On 22 September the Chinese Ministry of Trade (MOFCOM) initiated an investigation on whether to apply ‘safeguard’ measures to protect the Chinese sugar industry from a surge in imported sugar (raw and refined)
The situation
Official (duty paid) sugar trade increased in response to an import need
“Unofficial Trade” flows have increased faster in response to economic opportunity
The challenge – manage trade flows
The risk – restrictions on official imports could stimulate even more “unofficial” trade

6. RCEP could deliver huge benefits
Facts
East-Asia is a deficit sugar region
Consumption & import demand are growing quickly
Efficient supply solutions are needed
RCEP negotiations provide opportunity
To boost economic growth & development throughout the region
For importers to secure food supply through stronger trade structures
For exporters to strengthen supply relationships
The RCEP challenge
to break the shackles of protectionism and establish a comprehensive regional economic partnership that will lift incomes and create opportunity

7. Thank you