You will prepare and submit a term paper on Factors Affecting Trade of Sugar. Your paper should be a minimum of 1000 words in length.

You will prepare and submit a term paper on Factors Affecting Trade of Sugar. Your paper should be a minimum of 1000 words in length. 70% of this production is for domestic consumption while 30% is traded in the world. Since only a small portion of the production is being traded freely, it is subjected to government policies and production so that any change affects the trading practices of the commodity. These are trade barriers such as quota and bilateral agreements that limits trading opportunities of least developed countries. As 120 countries partake of sugar allocations imposed by importing countries, it is important to understand if trade barriers create equal opportunity. Sugar producers believe that by removing these restrictions and opening of markets, supply is ensured, rational pricing will be maintained, and smaller countries can have an equal share of sugar quota ( GATRL, 2009). The top sugar producing countries in the world are Australia, Brazil, China, Columbia, European Union, India, Mexico, Pakistan, Thailand, and United States. World production as of 2010/2012 estimates is 168,647 metric tons raw value. BraziL has the biggest share of production followed by India and next by China. The rest is accounted for by Asian production (SUCDEN). With a global population of 7 billion, sugar consumption is estimated at 171.4 million tons and a per capita consumption of 21.kg. Per capita sugar consumption is highest in Brazil, Australia, and Cuba.

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