Sugar growers and millers frustrated with exclusion from China FTA
http://www.abc.net.au/news/2014-11-17/china-fta-sugar-reax/5897706November 17, 2014 at 11:31 AM
Peak group Canegrowers and the Australian Sugar Milling Council say they will now use a three-year review period to fight to get sugar included.
Farmers react to the China free trade deal
- Livestock: beef and lamb exporters winners
- Dairy: China deal delivers competitive advantage to Australia's industry
- Sugar: growers and millers frustrated by exclusion from China FTA
- Wine: winemakers warned build trade relationships to ensure true potential is realised
- Seafood: FTA a pearler for Australian seafood industry
- Rice: Australian growers haven't given up on exporting to China
- Wool: tariff review benefits billion dollar wool trade
- Mining: $590m in savings for Australian mining.
More significantly, upcoming negotiations on the TPP (Trans Pacific Partnership) - a regional FTA spanning 12 countries - are viewed as critical for the sugar industry's export opportunity.
Each year, China imports about four million tonnes of sugar.
More than 250,000 tonnes of that is from Australia, which Canegrowers Queensland chair Paul Schembri was hoping to at least double under an FTA.
Mr Schembri says sugar seems to be the 'perennial castaway' and consigned to the 'too hard basket' when it comes to trade reform and market access.
He denies lobbying efforts are to blame, instead highlighting the politically sensitive nature of the commodity.
It's mostly consumed domestically and is, in some cases, a form of social affluence, Mr Schembri says, causing countries to become protectionist in their policies.
Now sights are set firmly on securing a good deal for sugar in the TPP.
"What we'll be saying bluntly to the Australian Government is that this is a make or break situation for our industry," Mr Schmebri said.
Dominic Nolan, from the Australian Sugar Milling Council, is also pledging to throw every effort behind finding a place for sugar in trade deals.
China is already a player in the domestic sugar market (COFCO owns Tully Sugar), but Mr Nolan says more export opportunity would be significant.
He says any trade liberalisation frees up the "distorted" global sugar market.
But he says Australia has a set volume of sugar available for trade, and would not flood the global market.
"For us, it's about making sure we've got access to the most commercially meaningful markets globally... and options so that our exports can pick and choose strong, long-term commercial relationships."
The Australian sugar industry exports 80 per cent of its production (3.3 million tonnes), with 80 per cent going into Asia.
Sign In © 2024 Green Pool Commodity Specialists All rights reserved.