MECAS(21)16 - Non-Tariff Policy in a Global Sugar Trade Context

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.

Contents:

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