Weaning states off subsidies

The European Commission proposes cutting guaranteed white sugar prices by 39% over four years, a move expected to cost African, Caribbean, and Pacific (ACP) sugar producers approximately €400 million annually. While the author acknowledges that developed-country subsidies distort global trade and depress world sugar prices by more than 50%, the document highlights the vulnerability of ACP economies that rely on preferential access to EU markets. Drawing parallels to the devastating impact of the WTO banana dispute, which threatened the livelihoods of 200,000 farmers, the paper argues that the EU's proposed €40 million adjustment assistance is insufficient. It recommends a longer transition period, increased market access for at least 10 years to attract investment, and targeted safety nets for resource-constrained least-developed countries to ensure sustainable development during trade liberalisation.

• The European Commission's plan to reduce guaranteed white sugar prices by 39% over four years is projected to result in an annual loss of €400 million for sugar-producing countries in Africa, the Caribbean, and the Pacific.
• Agricultural subsidies in developed countries are estimated to lower the global price of sugar by more than 50%.
• The transition to a tariff-only system following the WTO banana dispute is estimated to cause 200,000 farmers in African, Caribbean, and Pacific regions to lose their livelihoods.
• The EU's proposed adjustment assistance of €40 million for 18 ACP sugar exporters is considered inadequate, as it represents only 10% of their projected losses.
• To foster global competitiveness and attract investment, the EU should increase market access for ACP and least-developed countries at current prices for a minimum of 10 years.

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} }