Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

ASA - American Sugar Alliance : Brazilís Sugar Subsidies Expand as Global Prices Fall

08/05/2013 | 04:01pm US/Eastern

FOR IMMEDIATE RELEASE                                                                                                                                                      CONTACT:   Phillip Hayes

August 5, 2013                                                                                                                                                                            202-271-5734 (cell)

From the International Sweetener Symposium: 

Napa, Calif.-Patrick Chatenay, a UK-based researcher and global sugar policy expert, quantified more than $2.5 billion a year in hidden Brazilian sugar subsidies earlier this year. But since his study was published in April, Brazil has announced additional incentives to help its sugar and sugarcane ethanol sector, he said today at the 30th International Sweetener Symposium.

"There is a clear acceleration in Brazilian subsidization," Chatenay said. "The sugarcane ethanol usage mandate was recently increased, $450 million a year in new tax rebates were just announced, and the country also will make available $3 billion in new soft loans for 2013."

These "soft loans" are a popular way for Brazil to subsidize its sugar sector, according to Chatenay. Such low interest loans are often coupled with future debt forgiveness to have the same effect as a direct subsidy.

In addition to loans and debt forgiveness, Chatenay said Brazilian producers benefit from some direct government payments, ethanol blending requirements, favorable interest rates and preferential treatment under the tax code. He estimates that without these subsidies, Brazilian producers would need a 15 percent rise in sugar prices to achieve the same financial returns.

"Brazil controls roughly half of all global sugar exports, and this dominance was made possible by three decades of massive government support," Chatenay explained. "Brazil openly advocates for trade liberalization, and as such, it should be held to account for the government support it gives its own industry."

In addition to increasing its subsidies, Brazil has increased its sugar production this year, and global prices have fallen as a result.

U.S. sugar producers have called on Brazil and other foreign countries to end market-manipulating programs. Under a "zero-for-zero" sugar policy, which was introduced by Rep. Ted Yoho (R-FL) in June, there would be a global subsidy ceasefire where all countries, including America, would halt government sugar policies and compete on a true free market.

-0-

For more information about the International Sweetener Symposium, visit www.sugaralliance.org



distributed by
React to this article
Latest news
Date Title
07:12a MOODY : s: Easing of US restrictions is credit positive for Cuba
07:12a MOODY : s: ECB's bond-buying to have limited impact on credit
07:12a MOODY : affirms Teachers Mutual Bank at A3
07:12a MOODY : affirms ratings of LBB at A1 and Berlin Hyp at A2
07:12a MOODY : downgrades deposit ratings of Russian Regional Development Bank and Far Eastern Bank
07:12a RANGE RESOURCES : Energy industry says it's on top of methane leaks, but environmentalists want oversight
07:12a MOODY : s: Final functionality of bail-in regimes in LatAm and Canada is uncertain
07:06a EXPEDIA : acquires Travelocity for 280 million dollars
07:01a DOMINION DEALER SOLUTIONS : Launches Online Advertising Platform for Automotive Dealers
07:00a APPLE : Deutsche Bank: No Catalyst For Apple Shares
Latest news
Advertisement
Hot News 
HAIKE CHEMICAL : Expects To Report 2014 Profit After Restructuring
FXCM : Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of FXCM Inc. Stockholders
SAGENTIA : Considering GBP10 Million Cash Windfall To Shareholders
SABLE MINING AFRICA LD : Set To Sign Big Transshipment, Infrastructure Development Deal
LEAPFROG ENTERPRISES : Provides Preliminary Unaudited Fiscal Third Quarter Results
Most Read News
01/24 WENDYS : Woman attempts to fend off armed robber with stun gun
01/24 Redding Record Searchlight, Calif.. Buzz on the Street column
01/24 SCIENCE APPLICATIONS : Brokerages Give Average Rating of “Hold” to Science Applications International Corp
01/24 MICROSOFT : taps multi-device support, holograms for Windows 10
01/24 KANSAS CITY SOUTHERN : EDITORIAL: n Topic: Train traps residents nOur View: Officials, company should work together to find cost-effective solution
Most recommended articles
06:15a Retreat of Russian shoppers fails to dent Dubai retailers
05:59aDJLatest Attempt to Lift AirAsia Fuselage Fails
05:47a ECB's Mersch calls for European capital markets union
05:09a Austria FinMin says expects Swiss franc to weaken in longer term
04:39a All eyes on Fed, Greece after ECB fires bazooka
Dynamic quotes  
ON
| OFF