WORLD SUGAR TRADE

Press, Volume LXXXIX, Issue 27132, 31 August 1953, Page 10

WORLD SUGAR TRADE

Effect Of 51-Nation Agreement

ESTIMATING MARKET REQUIREMENTS

(N.Z. Press Association—Copyright) (Rec. 8 p.m.)* LONDON, Aug. 29. The “Economist” said yesterday tne central feature of the 51-nation sugar agreement concluded in London this week was that the international sugar council would estimate each year the net requirements of the free market. It would make these estimates for the ensuing 12 months before the beginning of each calendar year, and in the light of these would assign export quotas to the various free producers. The “Economist” said the biggest conference disappointment was that it had to discard as politically impracticable the section of the agreement that would have guaranteed exporters to the free market a share in any expansion of world consumption at the expense of still more increases in the cushioned section of the trade.

“Low cost producers who do not enjoy preferential arrangements with arty of the big importers must now pin what hopes they can to pious platitudes in the agreement that requires participating governments to limit subsidies and reduce disproportionate burdens on sugar resulting from fiscal and other policies. “These articles; and those limiting production and stocks, will not be observed by Russia and the Soviet-bloc countries, on the grounds that they have full-scale planned economies.” The “Economist” said: “Those who are opposed to restrictive agreements in any field will no doubt shed a tear that the ‘Cinderella’ section of the sugar trade is getting up to some of her ugly sisters’ tricks. But the agreement is at least reasonably flexible.

“Laberal criticism should be directed. not at the pact itself, but at the rabbit-warren of preferences and protectionism that has made it necessary to bring it into action.”