This study continues the ISO’s investigation into how the world sugar trade is shaped by government policy. In particular, the wide range of government policies and interventions that are typically categorised as non-tariff measures (NTMs) and non-tariff barriers (NTBs) to trade are examined. This is done in a holistic context by investigating sugar policy for eight selected countries. Five of these are major importers – China, EU, Indonesia, Nigeria and the United States. The three other selected countries are India, Pakistan and Egypt. The former two have typically exported surplus production with government support, while Egypt offers an insight into a highly regulated industry approaching self-sufficiency.
Because NTMs/NTBs coexist with tariffs as well as other market interventions, trade impacts are sometimes complicated. There are five key categories of NTMs/NTBs including: tariff rate quotas; imports quotas, licencing and import bans; export incentives; price support schemes and sugar quality standards, feature across all countries. A key focus is on how trade levels and dynamics are impacted by government policy. At no point is a formal assessment or conclusion made regarding the status of any specific NTBs/NTMs in a WTO context (i.e., to assess WTO compliance and possible violation of international trade rules).
A key conclusion is that there are significant differences in the type and duration of NTMs/NTBs governments provide to their national sugar industries, creating both short-term and long-term impacts on the sugar trade, with evolving preferences, and concessions under FTA and Bilateral Agreements, already altering trade flows in some regions.
Introduction 1. Selected Major Importers 1.1 China Domestic Price Support Production Controls Marketing Arrangements Trade Measures Domestic and World Prices Trade Dynamics 1.2 European Union Policy Reform Brexit and Sugar Trade Measures Domestic and World Prices Trade Dynamics 1.3 Indonesia Domestic Price Support Production Controls and Targets Marketing Arrangements Trade Measures Domestic and World Prices Trade Dynamics 1.4 Nigeria Production Controls Marketing Arrangements Trade Measures Trade Dynamics 1.5 United States Market Access Domestic Producers Foreign Suppliers Entries under FTAs and Bilateral Agreements The Special Case of Mexico Price Support Domestic vs World Market Prices Trade Dynamics 2. Others 2.1 Egypt Domestic Price Support Production Controls Marketing Arrangements Trade Measures Trade Dynamics 2.2 India Domestic Price Support Production Controls Marketing Arrangements Sugar Ethanol Trade Measures Domestic and World Prices Trade Dynamics 2.3 Pakistan Domestic Price Support Production Controls Marketing Arrangements Trade Measures Exports Imports Domestic and World Prices Trade Dynamics 3. Other Selected NTBs/NTMs 3.1 Kenya: COMESA Safeguard 3.2 Colombia Price Band System 3.3 Japan: Raw Sugar Quality Specification Conclusions