Commonwealth Trade Hot Topics

The Trade Hot Topics series provides concise and informative analyses of various trade and trade-related issues which are prepared both by Commonwealth Secretariat and international experts.


Beyond EU Sugar Reform

Financing Diversification in ACP Sugar Exporting Countries

The export of cane sugar to the European Union by several ACP countries and India has been facilitated by special guaranteed arrangements enshrined in the Sugar Protocol. The secure earnings from this trade have contributed to stability of rural incomes and in several of the countries sugar exports have been the foundation for national economic growth and development. However, threats to the regulatory basis on which this trade operates are now emerging which can place in jeopardy the income and employment contribution of the industry.

A decline in the industry will necessitate economic adjustment entailing the introduction of replacement income and employment generating activities, in order to safeguard living standards and growth and development prospects. This issue of Trade Hot Topics examines the nature of the current marketing system, the likely threats and their impact and based on the lessons of the recent experience of EU financial assistance to ACP banana exporters, notably the Windward Islands, makes recommendations for approaches to providing external support for economic diversification in the ACP Sugar Protocol Members.


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