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Conclusion of new sugar agreement almost certain


, : Conclusion of new sugar agreement almost certain. Agra Europe (744): P/5-P/7

The final draft of the new International Sugar Agreement (1977) includes the following provisions : (1) an agreed price range from US $ 0.11 to $ 0.21 per lb ; (2) a reserve stock of 2.5 million tonnes held by quota-holding (exporting) members of the agreement under the control of the International Sugar Organization ; (3) the creation of stocks is to be paid for by importers through a fee (0.5 cents to 0.75 cents per lb) to be paid on all imports of sugar or on exports to non-ISA member countries. The fund raised will provide interest-free loans to exporters to cover the cost of carrying stocks ; (4) the most difficult item was fixing Basic Export Tonnages (BET) for individual countries. The provisional arrangements are outlined. The EEC will not at present be a signatory of the Agreement as its revised mandate arrived too late to be considered in the time available. The EEC is expected to become a member eventually and is proposing to undertake 'equivalent disciplines' on its exports to those imposed on quota holders. Two earlier articles in Agra Europe 742 and 743 describe the discussions leading up to the agreement.

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