Australia-US in sugar fight over TPP

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By Leith van Onselen

As the Trans-Pacific Partnership (TPP) trade deal reaches its final stages of negotiation in Hawaii, US sugar growers have urged the government to rule-out further opening of the US market to sugar imports:

The American Sugar Alliance’s Don Phillips said sugar will be on the agenda, but the ASA will argue that any agreement that would harm the US sugar program should be opposed by the US negotiators.

“Well, it will definitely be on the agenda, because there are a number of countries, particularly Australia that want it on the agenda,” he said.

“Any opening up would have to be limited and the US Trade Representative has said they would not do anything that would undermine the Sugar Program.

“So we will just have to see how that plays out, but we would see there would be very limited scope for additional commitments on sugar.”

This has sparked a stern response from Australian Trade Minister, Andrew Robb, who said today he wouldn’t sign the TPP without improved sugar access:

“Well I am not going to sign it [the TPP] without something for the sugar industry. Now it’s just a matter of what I can secure. And I will do my level best. This is an agreement that is designed to provide increased access… Designed to reduce the barriers to further protection…

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Australia’s sugar industry missed out entirely in the Australia-US FTA, signed 11 years ago, and have received minimal market access gains in Australia’s other FTAs.

Let’s hope Minister Robb sticks to his guns and refuses to sign any deal that doesn’t significantly open agricultural markets, as well as tightens intellectual property protections.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.