Doha Round maneuvers
Daniel Drezner reports on European Union efforts to preserve its Common Agricultural Policy (CAP) in WTO Doha Round trade negotiations by dividing the ranks of agricultural exporters and developing countries. Peter Gallagher posts on the same story.
European sugar
In the same post, Drezner also draws attention to a Financial Times story on a new Oxfam report critical of Europe's sugar policies. Financial Times reporter Guy de Jonquieres writes:
"Oxfam accused the European Union on Tuesday of employing "economic sophistry" to conceal the true costs of its controversial sugar regime, saying the policy inflicted big losses on poor countries and reduced the value of EU development aid.
A study* by the development organization said the regime, which boosts European sugar output by keeping prices at more than three times world levels and heavily subsidizing exports, mainly benefited a "cartel" of big sugar processors...
The EU puts the annual budgetary cost of export subsidies at �1.3bn, but the study found it provided a further �833m a year in "hidden" support to cover the difference between production costs and export prices. Every �1 of EU sugar exported cost �3.30 in subsidies...
Oxfam estimated the regime deprived Brazil, the world's biggest sugar exporter, of $494m (�414m, �272m) of potential export earnings in 2002.
It put the costs to Ethiopia, Mozambique and Malawi at $238m since 2001. Mozambique's losses equalled a third of its development aid from the EU and its government's spending on agriculture and rural development. Malawi's losses exceeded its primary healthcare budget..."
Modified 4-15-04
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