Asian sugar trade to rise as Japan, U.S. open markets

Asian sugar trade to rise as Japan, U.S. open markets

MANILA (Reuter): The liberalization of sugar trade in the
United States and Japan by year 2010 will likely benefit
producers from the Asia-Pacific region, the general manager of an
Australia-based sugar marketing firm said yesterday.

"Australian, Thai, Malaysian, Indonesian and Chinese producers
gain from increased sales and increased prices," Phil Atkins,
general manager of CSR Ltd said.

Atkins and two other economists from Australia presented a
study on the effects of sugar trade liberalization in the United
States and Japan during the third day of the First Asia-Pacific
Sugar Conference in Manila.

Based on the study, world raw sugar trade will likely increase
by 14 percent if the United States and Japan will open fully
their markets, he said.

Both Japan and the United States impose policies that keep
domestic sugar prices high compared with world prices to protect
their processors and growers.

"In tariff equivalent terms, protection in both countries
exceeds 80 percent," Atkins said.

Efficient sugar exporters from Asia-Pacific like Thailand and
Australia are likely to benefit from increased demand from Japan
and the United States, he said.

"Australian producer revenue is projected to be 19 percent
higher as a result of liberalization...This translates to A$300
million a year in increased profits to the industry, accruing
each year following liberalization," Atkins said.

Revenues of Thai sugar producers are also expected to rise by
10 percent.

The liberalization of sugar trade in both Japan and the United
States is a test of the Asia-Pacific Economic Cooperation (APEC),
Atkins added.

"Policy makers in both countries know they must liberalize
(sugar trade) as early as possible under APEC. Only that way are
they likely to get recognition for providing leadership in APEC."

APEC groups the United States, Canada, China, Japan,
Australia, Brunei, Chile, Hong Kong, Indonesia, Malaysia, Mexico,
New Zealand, Papua New Guinea, the Philippines, Singapore, South
Korea, Taiwan and Thailand.

The regional body aims to foster free trade among its members.