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LEVEL
THE PLAYING FIELD FOR ALL
Publication:
The Sun-Sentinel
Printed: Monday, June 28, 2004
Written by: Mike Jones |
Most South Floridians have never ventured into
the interior portions of the state and viewed the expansive green sugarcane
fields, nor do they recognize sugar's important economic contribution
to the state. Sugar production, in fact, is the second largest agricultural
sector in the state and accounts for over $3 billion in economic activity
annually.
According to a recent economic study conducted by the Washington Economics
Group, the Florida sugar industry supported 25,334 jobs, paid $847 million
in labor income -- some 130 percent above the average wage in the state
-- and generated $101 million in state and local taxes.
The production of raw and refined sugar has increased, even as land used
for growing sugarcane has remained steady. The industry is also using
new technologies to improve efficiency and enhance its production and
use of sugarcane as a renewable energy source. This phenomenon has substantially
benefited the state and our region economically.
The region's three major sugar companies produced over 2 million tons
of raw sugar this past season, exceeding all prior production records.
Unfortunately, despite the success of new varieties and smarter farming
methods, there is an over-supply of sugar that farmers cannot sell into
the marketplace due to government policies.
Even though the U.S. doesn't produce enough sugar to meet domestic demand,
Florida producers are not allowed to sell all the sugar they produce
in our marketplace, primarily due to the guaranteed access of foreign
producers through free trade agreements and the importation of sugar-containing
products from foreign countries.
The United States is currently one of the largest importers of sugar
in the world, having given up a substantial portion of its own market
to guarantee access for foreign producers. This access remains fixed
at a time when the low-carb diet fad has negatively impacted consumption
that had been growing at a rate of 1 percent to 2 percent per year, but
has fallen slightly over the last two marketing years.
By all standards, Florida producers are the most efficient in the world
and can compete with foreign producers on a level playing field. According
to research by LMC International of Oxford, England, the U.S. ranks as
the 28th lowest-cost producer out of the 102 sugar-producing countries
recently studied.
U.S. sugar farmers rate high in efficiency despite costly environmental
and labor standards not imposed on all worldwide competitors. About three-quarters
of the world's sugar production is in least-developed or developing countries
that have labor and environmental standards substantially lower than
those in the U.S.
The benefits of this $3.1 billion industry should be considered when
developing public policies related to managing the eco-system and opening
markets to free trade agreements.
The elimination of all subsidies and protective barriers in world sugar
trade has, in fact, been long advocated by the American Sugar Alliance,
the umbrella organization representing the nation's sugarcane and beet
producers. The impact of partial elimination of subsidies of foreign
sugar or of eliminating support for U.S. industries without corresponding
elimination of trade-distorting practices of foreign competition is,
however, a recipe for bankrupting an American industry.
Free trade agreements need to be adopted on a level playing field so
our markets are not unfairly given away.
Florida's sugar industry is good for the region, state and nation. Every
South Florida resident taxpayer is a stakeholder and should pay attention
to the ongoing public debate concerning these important emerging policies.
Mike Jones is the president and CEO of the Economic Council of Palm Beach
County. .
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