Thailand, GSA members to call for elimination of sugar subsidy

BANGKOK, April 18 (TNA) - Thailand, the world's second largest sugar exporting country, will join other member countries of the Global Sugar Alliance (GSA) in calling for Pakistan and India to stop their policy on subsidizing local sugar exporters to allow the market mechanism to work properly. Siriwut Liamphakdee, who chairs a task force on public relations (PR) of the Thai Sugar Producer Association (TSPA), told journalists of the move on Wednesday based on a resolution of GSA member countries, including Australia, Brazil and Thailand, at a teleconference on March 29. "Thailand, as the world's second largest sugar exporting country and a GSA member country, will participate in the new GSA meeting in New York on May 8 to discuss the joint move and to call on Pakistan and India to comply with the World Trade Organization (WTO) rules", Siriwut said. Siriwut stated that based on the GSA resolution late last month, GSA member countries, including Thailand, will issue a statement calling for Pakistan, as the world's 9th largest sugar producing country and 8th largest sugar consuming country, to end its subsidy for sugar exporters, which has distorted sugar prices on the world market. According to the PR chief, the statement will also call on India, the world's second largest sugar producer, not to follow Pakistan's sugar subsidy policy, but to observe the WTO rules. The PR chief revealed that the GSA move also followed an estimate that there should be sugar supply surplus of about 2.3 million tons and 3 million tons for Pakistan and India this year respectively, which, if subsidized and exported, would distort world sugar prices. Meanwhile, three Thai sugar associations have sent a letter to the Ministries of Industry and Commerce, as well as the team of Thai representatives to WTO to probe on the sugar subsidy cases and to file a complaint with WTO on the issue. (TNA)