Unfair trade rules are preventing Mozambique from reaping the rewards of its highly efficient sugar industry.
After almost two decades of conflict, and the devastating floods in 2000, Mozambique has managed to get its sugar production back to pre-war levels. Thanks to massive government investment, its sugar cane industry now boasts the lowest production costs in the world. But in spite of this, Mozambique is unable to compete in the world market.
Why? Because the EU dumps thousands of tonnes of beet sugar on poor countries every year - sugar which has been produced with generous government subsidies, and which is sold in developing countries at less than half of what it cost to cultivate. This makes it almost impossible for poor countries to compete, even though they can produce sugar far more more cheaply than is possible in Europe.
Mozambique's sugar industry is further depressed by prohibitive EU taxes (known as 'tariffs') on imports of processed foods. These tariffs lock countries like Mozambique into trading raw sugar, blocking them out of exporting processed sugar to Europe, which would be worth considerably more.
Meanwhile, European companies buy the cheap raw sugar for refining - and reap the financial rewards. If Mozambique was able to refine its own sugar, it could generate wealth and create thousands more jobs in the processing sector.
In 2001 Europe gave 170 million euros of emergency and development aid to Mozambique, including money to help "improve the lives of farming and rural communities". Yet these people would benefit far more if Europe traded freely and fairly.
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