Trans-Pacific Partnership: Nothing sweet about free trade deal for Australian sugar growers

Sydney : It was supposed to be the ultimate free trade deal — a tie-up of 12 countries representing about 40 per cent of global GDP.But the American-led Trans-Pacific Partnership (TPP) failed at the last hurdle earlier this month, where a dispute over sugar was among the many stumbling blocks, and specifically, America’s refusal to open its sugar markets to greater competition and free trade.
In the complex world of free trade talks, true freedom remains an unattainable goal. Freer trade may be the result, but the benefits are often hard to measure or identify.
While it was largely unstated, the TPP was also America’s opportunity to exploit regional concerns about China’s rise; to create a regional alliance based on a trade agreement.Trade negotiators often become the conduits for lobby groups looking to extend or protect their vested interests. And few lobby groups are as effective as the American Sugar Alliance.”Multinational food makers want artificially cheap sugar to boost corporate profits, even if it means jeopardising 142,000 US sugar jobs and America’s food security,” according to one of the lobby group’s slickly produced video presentations.Among those accused of peddling artificially cheap sugar is Australia and the lobby was quick to jump on those who might suggest otherwise.”If we were to have much freer trade in sugar, I doubt that there would be much grown in the US,” the Sugar Alliance said.”Too many countries like Brazil and Australia simply can grow it much more cheaply.”The American Sugar Alliance, which declined an interview request for this story, sees unfair competitors everywhere.Australia has been accused of receiving direct grower payments, credit subsidies and exporting sugar at prices below the domestic prices — an accusation that rankles Canegrowers Association economist Warren Males.”The US sugar alliance is drawing a very long bow in making those statements,” Mr Males said.”Australian sugar producers do not receive support from the Government, there are no financial payments that are made.”