A spoonful of sugar makes the trade deficit go down

Jane Lawson considers losing her sweet tooth.

Before Columbus planted Canary Island sugar cane root in the Caribbean on his second voyage, sugar was a luxury item that figured in the dowries of queens. It soon come to be the most important agricultural product for European commerce and, by the end of the 18th century, the first mass consumer product. The traffic in slaves for sugar plantations was the fulcrum of the triangular trade (of manufactures, slaves and sugar) between Europe, Africa and America and, for three centuries, sugar was the most important agricultural product for European commerce. The cultivation of sugar beet developed in the early nineteenth century as a result of the British naval blockade of Napoleonic France and the consequent French drive for self-sufficiency; the Paris basin is still one of the main sugar beet-growing areas in the EU.

Not so sweet
Before Columbus planted Canary Island sugar cane root in the Caribbean on his second voyage, sugar was a luxury item that figured in the dowries of queens. It soon come to be the most important agricultural product for European commerce and, by the end of the 18th century, the first mass consumer product. The traffic in slaves for sugar plantations was the fulcrum of the triangular trade (of manufactures, slaves and sugar) between Europe, Africa and America and, for three centuries, sugar was the most important agricultural product for European commerce. The cultivation of sugar beet developed in the early nineteenth century as a result of the British naval blockade of Napoleonic France and the consequent French drive for self- sufficiency; the Paris basin is still one of the main sugar beet-growing areas in the EU.

Sugar dumps
The economic inequalities enshrined in slavery are perpetuated in the structure of the world sugar trade. The EU overproduces about 5m tonnes of sugar annually and dumps the surplus overseas through a system of direct and indirect subsidies, destroying markets for developing country producers while using high import duties equivalent to a tariff of 324% to block imports. EU producers receive a guaranteed price, usually about three or four times the world market price, and the EU currently pays around 525 euros/tonne in export subsidies. EU producers receive these subsidies for a set quota of sugar, and because the subsidy is enough to cover all their fixed costs, they can also export sugar in excess of their quota at a reduced price.(1)

This may be about to change. The Common Agricultural Policy is under reform and, following a complaint by Brazil, Thailand and Australia, a World Trade Organisation dispute settlement panel has found that EU sugar subsidies contravene WTO rules.(2) According to Oxfam estimates, EU dumping translated into losses of $494m for Brazil and $151m for Thailand in 2002. The WTO ruling also states that non-quota exports are cross-subsidised by the subsidies for quota sugar, as average EU costs of production by far exceed the price at which EU sugar can be viably exported.(1)

The EU does import 1.6m tonnes sugar annually from India and the ACP (Asia, Caribbean and the Pacific) countries at prices linked to EU guaranteed prices, but then spends 800m euros subsidising the re-export of an equivalent amount. As well as the ACP countries, Least Developed Countries also have preferential access for a limited quota, equivalent to 1% of EU sugar consumption, under the Everything But Arms initiative. To put that into perspective, the combined export quota of Mozambique and Ethiopia, 256,000 tonnes, is less than the output of fifteen of the biggest sugar farms in Norfolk.(3) A cut in the guaranteed EU price would hit the ACP countries, as the price they receive would fall. What would be most useful to these countries would be the end of the sale of artificially-cheap EU sugar on the world market, estimated to depress prices by 12%, and increased access to European markets. Oxfam and WWF are currently campaigning for the elimination of EU export subsidies, a cut in EU production and an increase in imports from the poorest countries.(4)

Sugar production in Europe tends to be dominated by a few companies. British Sugar has a monopoly on the sugar beet crop in the UK and Tate & Lyle controls the cane sugar market, and between them they account for around 90% of the British sugar market. Danisco has a monopoly over the sugar quota in Denmark, Sweden and Finland.(1)

Sugar cultivation and the environment
According to the WWF, sugar beet cultivation requires a very high level of pesticide use and causes soil erosion. Cane also has impacts, especially when grown in natural habitats in places like Brazil, India and Australia. Although there is little to choose between them environmentally, cane is much more valuable to poor countries socially and economically than beet is to Europe and the US.(5) It�s also worth noting that sugar is also generally transported by sea rather than air.

Genetic modification
British Sugar has stated that no GM beet is used in the manufacture of its sugar, and there are no plans to introduce genetically modified varieties for the foreseeable future. There is no GM sugar cane and so no Tate & Lyle sugars are of GM origin.

Organic and Fairtrade options
Equal Exchange and Traidcraft sugars are both organic and Fairtrade. The Co- op stocks Fairtrade white granulated and golden granulated sugar. Whitworths sells Fairtrade granulated, golden granulated and demerara sugars, available in Co-op, Waitrose, Tesco, Budgens and independent shops, and Billington�s sell Fairtrade golden granulated and demerara, also available in Waitrose. Tate & Lyle and Billington�s include organic granulated, caster and demerara sugar in their ranges.

Health
Delicious though it is, nutritionally-empty refined sugar causes tooth decay, weight gain and an increased risk of diabetes, and there are indications that it may cause physical dependency.(10) Raw sugars such as raw cane and muscovado retain a few nutrients and can only be derived from cane sugar. Fruit sugars are complex carbohydrates and are metabolised more slowly than normal sugar, leading to less of a peak and trough in blood sugar. Also available, but not in this country until consumers pressure retailers into stocking it, is Sucanat, an organic whole cane sugar. Manufacturer Pronatec claims that Sucanat retains almost all of the minerals, trace elements and vitamins present in the whole cane.(11) Equal Exchange is hoping to bring out a Fairtrade organic whole cane sugar in the near future.(22) All of our recommended Best Buys are raw cane sugars, and if none of them are available we recommend choosing cane sugar over beet sugar because of the benefits to Third World sugar farmers. If you want to cut down on sugar intake, try gradually reducing the amount you use in hot drinks or baking. You can also use honey in drinks instead.

Sweet and low down
Artificial sweeteners may not have such an impact on your teeth, but there are other issues to consider. Canderel and Hermesetas contain aspartame, a substance that causes an allergic reaction in sufferers of the rare genetic disorder phenylketonuria. Products containing aspartame therefore have to carry a warning on their label. The consumption of aspartame in the US has been linked by consumers to a host of symptoms including headaches, nausea and joint pain. In 1996 the US Journal of Neuropathy and Experimental Neurology published a survey that found a significant increase in the incidence and malignancy of brain tumours in the US in the twelve years after aspartame was introduced. Dr John Olney, one of the authors of the survey, has called for more studies to determine its safety and observed this year that the complaints of tens of thousands of consumers should not �be dismissed summarily, which is the way FDA [US Food and Drug Administration] has dealt with these claims. Credibility of the claims is increased by the fact that aspartame is comprised of two molecules (aspartate and phenylalanine), both of which influence the function of neurotransmitter systems in the brain.�(7) The companies that sell it say that they are confident of its safety; the Canderel website states �Almost 200 controlled tests have established that it is entirely risk free.�(8)

Sweetex contains saccharin, described on the Food Commission website as being �under a cloud over its links with increased bladder cancer in rats and other forms of cancer in monkeys.� Hermesetas, Canderel and Sweetex all contain acesulfame K. Tests showing links between acesulfame K and cancer were discounted in the 1970s when it was given approval for use, and there are calls for re-testing under stricter controls.(9) Splenda only contains maltodextrin and sucralose, and ECRA is not aware of any particular health concerns relating to these two substances.

References
1 Dumping on the world Oxfam briefing paper March 2004
2 An end to EU sugar dumping? Oxfam briefing paper 6/8/04
3 Farmgate The Developmental Impact of Agricultural Subsidies � ActionAid
4 European Sugar Reform: What, When and Why it Matters, Oxfam and WWF July 2004
5 Email from WWF 13/9/04
6 The Bitter Truth About Artificial Sweeteners Mark D. Gold
7 Email from Dr. John Olney 24/8/04
8 www.organicconsumers.org viewed 12/8/04
9 www.foodcomm.org.uk viewed 19/8/04
10 Sweet Addiction by Robin Edelman viewed on www.eatingwell.com viewed on 12/9/04
11 www.pronatec.com viewed on 12/8/04
12 The Guardian 1/8/03
13 Who Owns Whom 2003/04
14 www.saav.org viewed April 2000
15 Merisant filing to US Securities and Exchange Commission August 2004
16 Telephone conversation with Nirvana 13/9/04
17 Anti Fur News November 2003
18 www.bigcampaign.org 2004