Weaning states off subsidies

This research paper examines the impact of European Union (EU) sugar subsidy reforms and World Trade Organisation (WTO) rulings on African, Caribbean, and Pacific (ACP) sugar-producing countries. It argues that while developed-country subsidies distort global trade, the rapid removal of preferential access threatens the livelihoods of vulnerable farmers and requires more substantial adjustment assistance and a phased transition to ensure sustainable development.

• The European Commission proposes reducing guaranteed prices for white sugar by 39% over four years, a move that could cost African, Caribbean, and Pacific sugar-producing countries approximately €400 million annually if fully implemented.
• The WTO ruled in favor of Australia, Brazil, and Thailand in a dispute regarding EU sugar subsidies, determining that the EU's export subsidies exceeded its WTO reduction commitments.
• The transition to a tariff-only system for bananas, following a 1993 US complaint to the WTO, is estimated to result in the loss of livelihoods for 200,000 poor African, Caribbean, and Pacific farmers.
• The EU's proposed adjustment assistance of €40 million for 18 African, Caribbean, and Pacific sugar exporters is considered insufficient, as it represents only one-tenth of their projected losses.
• To support sustainable development, the Mozambique Sugar Producers Association suggests the EU should increase market access for African, Caribbean, Pacific, and least-developed countries at current prices for at least 10 years to attract industry investment.

APA

South African Institute of International Affairs (2005). Weaning states off subsidies. https://saiia.org.za/research/weaning-states-off-subsidies/

Chicago

South African Institute of International Affairs. Weaning states off subsidies. 2005. https://saiia.org.za/research/weaning-states-off-subsidies/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Weaning states off subsidies |date=19 August 2005 |url=https://saiia.org.za/research/weaning-states-off-subsidies/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2005weaning, author = {{South African Institute of International Affairs}}, title = {{Weaning states off subsidies}}, institution = {South African Institute of International Affairs}, year = {2005}, month = aug, url = {https://saiia.org.za/research/weaning-states-off-subsidies/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }