It is claimed that Australia is in the process of concluding a raw sugar export agreement with China, as the latter country prepares to up its import quotas under its new agreement with the World Trade Organisation (WTO).
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Industry sources told Reuters that firm commitments to take exports from Queensland, Australia’s main sugar-growing state, were currently being finalised.
Earlier this month China confirmed it had set an upper import quota of 1.764 million tonnes for 2002 as part of its WTO accession package. It is likely that the country will not import this full amount. Last year, Australian trade sources said that China imported between 500,000 tonnes and one million tonnes, of which Australia supplied 200,000-300,000t.
It is also still unclear how sugar imports will be handled. A new organisation may be set up to streamline imports.
With demand growing in China, the world sugar trade is keen to get a piece of the action. A final decision on import quantity is awaited.
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