Multilateral Trade and Agricultural Policy Reforms in Sugar Markets Amani Elobeid and John Beghin Working Paper 04-WP 356 September 2005 (Revised) Center for Agricultural and Rural Development Iowa State University Ames, Iowa 50011-1070 www.card.iastate.edu Amani Elobeid and John Beghin are, respectively, associate scientist and professor at the Center for Agricultural and Rural Development (CARD), and the Department of Economics at Iowa State University. Without implicating them, the authors thank two referees and Tim Lloyd for comments and suggestions, and Pierre Bascou, John Dyck, Jay Fabiosa, Chad Hart, Holger Matthey, Don Mitchell, Jack Roney, Dominique van der Mensbrugghe, and Pat Westhoff for discussion, information, and comments. This paper is available online on the CARD Web site: www.card.iastate.edu. Permission is granted to reproduce this information with appropriate attribution to the authors. Questions or comments about the contents of this paper should be directed to Amani Elobeid, 567 Heady Hall, Iowa State University, Ames, IA 50011-1070, USA; Ph: (515) 294-6175; Fax: (515) 294-6336; E-mail: amani@iastate.edu. Iowa State University does not discriminate on the basis of race, color, age, religion, national origin, sexual orientation, gender identity, sex, marital status, disability, or status as a U.S. veteran. Inquiries can be directed to the Director of Equal Opportunity and Diversity, 3680 Beardshear Hall, (515) 294-7612. Abstract We analyze the impact of trade liberalization, removal of production subsidies, and elimination of consumption distortions in world sugar markets using a partial-equilibrium international sugar model calibrated on 2002 market data and current policies. The removal of trade distortions alone induces a 27% price increase while the removal of all trade and production distortions induces a 48% increase by 2011/12 relative to the baseline. Aggregate trade expands moderately, but location of production and trade patterns change substantially. Protectionist OECD countries (the EU, Japan, the US) experience an import expansion or export reduction and significant contraction in production in unfettered markets. Competitive producers in both OECD countries (Australia) and non-OECD countries (Brazil, Cuba), and even some protected producers (Indonesia, Turkey), expand production when all distortions are removed. Consumption distortions have marginal impacts on world markets and location of production. We discuss the significance of these results in the context of mounting pressures to increase market access in highly protected OECD countries and the impact on non-OECD countries. Keywords: agricultural policy, Doha, domestic subsidies, sugar, trade liberalization, WTO. JEL code: Q18, F10 1. Introduction The current world sugar market situation has complex North-South, South-South, and NorthNorth components. A myriad of policy interventions make sugar one of the most distorted commodity markets in the world. The European Union (EU), Japan, and the United States (US) are among the worst offenders in these markets. Producers in the EU and the US receive between two and three times the world market price because of production quotas, import controls, and government guaranteed prices. OECD (Organization for Economic Cooperation and De ve l opme nt )c ount r i e s ’s uppor tt ot he i rs ug a rpr oduc e r sa mount e dt oa bout$5. 3bi l l i oni n200 2 ( OECD,20 0 3) ,r oug hl yt heva l ueofd e ve l opi ngc ount r i e s ’s ug a re xpor t s .I n2002,t heEU,t he US, and Japan provided annual support of US$2.45 billion, US$1.18 billion, and JPY40 billion, respectively (OECD, 2003). Such high protection has converted the EU, a natural importer of sugar, to a net exporter and has reduced sugar imports to the US and Japan to a fraction of freetrade levels. Further, most countries, including the lowest-cost producers, offer some form of protection or subsidies to their producers, and/or distort signals seen by consumers, and often impede or directly distort trade in some fashion with restrictive import policies (Mitchell, 2004; OECD, 2003). Import restrictions and regulated domestic markets are also prevalent in nonOECD (developing) countries like China and India, which protect their producers and maintain domestic sugar prices at a higher level than the current world price. An obvious question to ask is what unfettered markets would look like. What consumption and production levels would prevail and what world price could be sustained in the absence of distortions? The latter question has been a bone of contention with producers in pr ot e c t e dma r ke t s .Thec ur r e ntwor l dpr i c ei sof t e nr e f e r r e dt oa st he“ wor l ddumppr i c e ”by sugar interests in protected OECD countries because a substantial share of world sugar trade 1 occurs under preferential agreements (American Sugar Alliance, 2003). Beyond the politics of sugar protectionism, the determination of an undistorted world price is a legitimate concern. There is no consensus on what this undistorted world price would look like. Partial-equilibrium estimates tend to be higher than those coming from computable general equilibrium (CGE) studies (Borrell and Duncan, 1992; Frandsen et al., 2003; van der Mensbrugghe, Beghin, and Mitchell, 2003). Given that policies and market conditions change over time, a useful contribution to this debate is to provide a new estimate of the undistorted world price of sugar. CGE analyses provide a consistent framework to assess economy-wide effects of sugar reform, which are typically very small. These models assume constant returns to scale in production; marginal cost is horizontal as long as factor and input prices do not change. Supply eventually exhibits some positive slope when land is constrained, and supply expansion implies higher land rental rates and input prices as resources are bidden away. These general-equilibrium supply responses remain much higher than in partial equilibrium models. Further, the biology of the slow growth and perennial nature of sugarcane is not considered by CGE models, which assume instantaneous supply adjustment. These two reasons explain why commodity price effects are much smaller in CGE models. Recent and interesting policy developments warrant a new analysis of the sugar market. Protectionist interests in the United States won a battle with the virtual exclusion of sugar in the US-Australia Free Trade Agreement (FTA). Despite this setback, the US will soon be forced to reform its sugar program because of internal market changes and international commitments already made under the North American Free Trade Agreement (NAFTA), and minimum-market access commitments made under the Uruguay Round of the World Trade Organization (WTO) and the Central American Free Trade Agreement (CAFTA). Further commitments are being 2 negotiated under the Free Trade Agreement of the Americas (FTAA), and the latter will only exacerbate these pressures for reform. This is another case of border opening forcing domestic policy discipline, such as in the recent reform of the US peanut program. With the recent WTO ruling that the EU has been illegally exporting too much subsidized sugar further complicated by the Everything But Arms (EBA) agreement, the European Commission adopted its proposals to r a di c a l l yr e f or mt heEU’ spr ot e c t i oni s ts ug a rr e g i mei n2006( WTO,2004a ;Commi s sion of the European Communities, 2005). Needed reforms coincide with scheduled reviews of the common agricultural policy (CAP) in 2006 and the expiring of the US Farm Security and Rural Investment Act in 2007 and provide a target period to get reforms in place. Would these reforms be more palatable under free trade with a higher world price? What is the effect of domestic farm policies relative to border barriers on world prices and markets? Multilateral trade liberalization erodes benefits and market access from preferential bilateral trade agreements and casts low-cost producers from Brazil and Thailand against lessefficient producers in the South. For example, 9 of the 42 countries that hold US quotas do not even produce the sugar they deliver under the quotas. Hence, sugar market liberalization has an important South-South dimension. How these reforms occur will have important consequences f orde ve l opi ngc ount r i e s .I fwor l dpr i c ee f f e c t sa r el a r g e ,wha ti st hene te f f e c tofr e movi ngone ’ s protection when it is combined with a substantial world price increase? Finally, the North-North dimension of the sugar trade liberalization has to do with Australia standing to gain as a net exporter of sugar and being at odds with many OECD partners protecting their sugar producers. Most partial-equilibrium analyses of the sugar market examine trade liberalization holding prices and policies constant in other markets. We depart from this approach and incorporate the impact of agricultural trade liberalization on prices for crops competing with 3 sugar in land use. These free-trade prices come from a similar policy analysis carried out with companion models and using the same baseline of the Food and Agricultural Policy Research Institute (FAPRI) (FAPRI, 2004).1 In addition to trade liberalization, we also introduce the removal of production and consumption distortions into the analysis. Furthermore, since scenario results are contingent on market conditions and policy developments, this study incorporates more recent policy settings than were available in previous liberalization analyses. In the following paragraphs we summarize major policy interventions in world sugar markets. Then we briefly describe the international sugar model used for the simulations. After introducing the policy reform scenarios, we present the key results of our simulations and sensitivity analysis. Further detailed information on the country-by-country results for trade, production, and consumption are available in the Appendix tables. We close with further reflection on what our results mean for global sugar policy reforms. 2. Distortions in Sugar Markets Table 1 summarizes key distortions as of 2002 by countries covered in our analysis. The table classifies countries by their development level (OECD, non-OECD/developing) and distortion levels (highly protected, minimally or moderately distorted). We use the nominal protection coefficient (npc) estimate from the sugar Producer Support Estimate data of OECD countries to categorize them into the two protection categories (OECD, 2003) with a cut-off value of npc=1.25. For non-OECD countries, we use cut-off criteria of greater than 25% ad valorem tariff or the combination of a 25% tariff or lower and the presence of domestic production support for 1 The FAPRI baseline is a set of projections for the US agricultural and international commodity markets. The 10year projections are published as FAPRI Outlooks, which are also used for policy analysis. FAPRI baseline projections are grounded in a series of assumptions about the general economy, agricultural policies, the weather, and technological change. The projections assume that during the projection period, current agricultural policies remain in place, and average weather conditions and historical rates of technological change prevail. 4 heavily distorted countries. Detailed coverage of sugar policies by country is available in Appendix Table A. Distortions categories in Table 1 are based on their distortion impact. As is the case for many agricultural markets, trade distortions are predominant in sugar markets and affect both producers and consumers via border tariffs, tariff-rate quota (TRQ) schemes, and, less importantly, export tax/subsidies (Aksoy and Beghin, 2004; Hoekman, Ng, and Olarreaga, 2004). Border restrictions reduce import demand flows and reduce world prices while increasing domestic prices received by producers and paid by sugar users. Export subsidies are less important except in the EU, where these subsidies are instrumental for dumping non-competitive sugar on world markets and sustain the domestic production of high-price sugar. EU sugar exports and associated subsidies will have to be dramatically reduced as mentioned in the introduction. Border tariffs, TRQs, and export subsidy policies are part of the current Doha negotiations (WTO, 2004b). Next in importance are production distortions, which sometimes take the form of producer-price support, coupled with production controls such as quota limiting production under price support (e.g., EU, and Turkey). It is well known that OECD countries provide domestic support in addition to border protection. It is less well known that many developing countries engage in similar practices although these are now formally reported in WTO notifications since the generous de minimis applies to their distorting domestic policies (WTO, 1994).2 Domestic production support is often redundant, as the border protection binds first 2 Distorting support is divided into product-specific and non-product-specific groups. The non-product-specific support (not specifically tied to a certain product) and the Aggregate Measure of Support (AMS) is assigned to all agricult u r a lpr odu c t i on .Forde v e l opi ngc oun t r i e s ,AMSv a l u e sbe l ow10% oft h epr odu c t ’ sv a l u eofpr odu c t i onf or product-s pe c i f i cs u ppor ta n dAMSv a l u e sbe l ow 10% oft h ec ou n t r y ’ sov e r a l lv a l u eofa g r i c u l t u r a lpr odu ction for non-product-specific support are exempted from the domestic support limits of the Uruguay Round Agreements Act and are not notified to the WTO (WTO, 1994). 5 (e.g., Japan). This would change when border protection is reduced by commitments in trade agreements. Reductions in domestic price support are also under negotiation in the Doha round (WTO, 2004b). Finally, a few countries also intervene with targeted consumer policies to subsidize consumption to offset some of the impact of the other distortions or just by social objective (such as in Cuba and Egypt). As suggested by Table 1, many countries intervene in sugar markets; hence, the degree and nature of interventions are what differentiate countries. OECD markets are by far the most distorted (OECD, 2003). Virtually all countries provide some sort of support to their sugar producers, including developing nations as well as countries considered low-cost producers, such as Brazil (Mitchell, 2004). To summarize the extent of distortions, 60% of trade in sugar and 80% of production takes place at prices above the world price (Mitchell, 2004). The table also shows the heterogeneity of support across countries. The policy debate on sugar protection has been oversimplified by pitching low-cost Brazil against industrialized countries (EU and US). Table 1 shows clearly that protection extends beyond the usual suspects among OECD countries to its poorer members (Mexico and Turkey) and also to many countries in the developing world. Several highly distorted developing countries (India, Egypt, and Colombia) provide domestic farm subsidies to their producers, either directly or through sugar processors who rebate them to farmers. In several countries (e.g., Japan), domestic production policies are in fact supported by trade barriers. Closed borders reduce government outlays on farm programs, and sugar users and consumers effectively bear the cost of the production subsidies. As a final remark, we note that protection is not always equivalent to lack of competitiveness, as producers in several developing countries would be competitive in unfettered markets provided world prices increase significantly (e.g., Colombia, Indonesia, Malaysia, Pakistan). 3. Structure of the CARD International Sugar Model The CARD3 international sugar model is a non-spatial, partial-equilibrium econometric world sugar model consisting of 29 countries/regions, including a Rest-of-the-World aggregate to close the model. The model is used to establish the sugar component of the FAPRI baseline (FAPRI, 2003) and for policy analysis (Beghin, et al., 2003). Major sugar producing, exporting, and importing countries are included in the CARD international sugar model. The model specifies only raw sugar production, use, and trade between countries/regions and does not disaggregate refined trade from raw trade. Consequently, there is no category for importers as refiners or toll refiners because those countries that specialize in that role are well known and stable over time. Country coverage consists of the following countries/regions: Algeria, Argentina, Australia, Brazil, Canada, China, Colombia, Cuba, Eastern Europe (Poland, Hungary, Czech and Slovak Republics4), Egypt, European Union-15, Former Soviet Union (FSU) (mainly Russia and the Ukraine5), India, Indonesia, Iran, Japan, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, South Africa, South Korea, Thailand, Turkey, the United States, Venezuela, and a Rest-of-World aggregate. The general structure of the country sub-model includes behavioral equations for area harvested, yield, production for sugarcane and sugar beet on the supply side, and per capita consumption and ending stocks on the demand side. Equilibrium prices, quantities, and net trade 3 CARD stands for Center for Agricultural and Rural Development at Iowa State University. Eastern Europe also includes Albania, Bosnia, Bulgaria, Croatia, Macedonia, Romania, and Slovenia. 5 The Former Soviet Union includes Armenia, Azerbaijan, the Baltic States (Estonia, Latvia, and Lithuania), Belarus, Georgia, Republic of Kazakhstan, Kyrgyzstan, Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Republic of Uzbekistan. 4 7 are determined by equating excess supply and excess demand across countries and regions. Using price transmission equations, the domestic price of each country or region is linked with a representative world price (Caribbean FOB price) through exchange rates and other price policy wedges such as tariffs and transfer-service margins. Because of the overall scope of the model, it is not feasible to include the complete empirical model in the text. The general framework for each country sub-model consists of the following: Harvested area at time t: AHt = f (AHt-1, RSPPt-1, RGPt-1, Trend), (1) Yield at time t: Yieldt= f (Yieldt-1, Trend), (2) Cane and beet crop production at time t: Productiont= AHt * Yieldt, (3) with AH denoting acreage, RSPP being the cane or beet price, and RGP denoting the price of alternative crops; subscripts indicate the time period. Total sugar production is obtained by converting raw cane production and beet production into raw sugar equivalent. Sugar consumption per capita is determined by the real price of sugar and income per capita: Per capita sugar consumption at time t: = f (RSPt, PCRGDPt), (4) with RSP being the real consumer price of raw sugar, and PCRGDP representing real income per capita; total demand is just the product (population * per capita consumption). Inventory demand at time t is ESt = f (ESt-1, SCt, RSPt), (5) with ES representing ending stock and SC denoting sugar consumption. In many countries, the beet or cane prices are set by policy and can be treated as being predetermined. Where countries lack information on agricultural price, the raw cane sugar price, RSP, is used instead of the agricultural prices in the specification of the acreage response. In 8 some countries, yield improvements are captured by a time trend. The excess demand (supply) of each country goes to the world market for raw sugar, and the sum of all excess demands and supplies is equal to zero by market clearing to determine the world market price. The CARD international sugar model uses price transmission elasticities to link the world and domestic markets for each country. The price transmission equation assumes that agents in each country are price-takers in the world market. Countries are either a natural importer or exporter if their autarkic price falls above or below the world price. Net importers enjoy natural protection plus whatever barrier is set at the border. Abstracting from any spatial consideration a nda s s umi nga n“ a dva l or e mt a r i f fon l y ”r e g i me ,t hedome s t i cpr i c ec a nbee xpr e s s e da s Pd=α+β*Pw * r * (1+d), (6) where Pd is the domestic sugar price, Pw is the world price of sugar including international transportation cost if the country is an importer (FOB price for exporters), r is the exchange rate, and d summarizes policy interventions between the world and domestic markets and is expressed i na dva l or e mf or m.Pa r a me t e rαc a pt ur e st hedi ve r g e nc eoft hedome s t i ca ndbor de rpr i c et ha t does not depend on the price level but rather reflects transaction costs arising between the farmgate and the market place and/or marketing mark-ups .Pa r a me t e rβ a l l owsi mpe r f e c t transmission between world and domestic prices. Depending on data availability, domestic prices in the sugar model can be farm, wholesale, or retail prices. Because of the homogeneous nature of sugar, quality adjustments are not incorporated in the price transmission equations. In general, only one domestic price is used in the model.6 Consumer and producer prices are differentially 6 Sugar is a true homogeneous commodity implying that the sugar market is a global market with a single world price and that in trade its origin is undistinguishable, as opposed to cereals or oilseeds, which are highly differentiated products and for which trade is more specialized and spatial. 9 specified only in countries that have a deficiency type of producer support or an explicit tax on consumption. This general structure is slightly modified to accommodate policy interventions other than price distortions, such as quantitative restrictions on area, supply, or trade flows. For example, imports constrained by binding TRQs are treated as exogenous, and domestic prices are solved endogenously. Policy interventions providing a price floor are treated as such and are effective whenever the domestic producer price falls to the price floor level (e.g., the US loan rate). This mechanism is important when we remove trade barriers in the first scenario but maintain domestic farm policies. The interaction with other model components used to establish the FAPRI baseline is limited to cross-price effects in supply (for wheat, rice, and soybeans). There are no links in consumption. Data for area, yield, sugarcane, and sugar beet production were gathered from the Food and Agricultural Organization (FAO) of the United Nations, and data for sugar production, consumption, and ending stocks were obtained from Production, Supply and Distribution (PS&D) View of the US Department of Agriculture. Cane and beet production is tied to sugar production through the extraction rate. Macroeconomic data such as real gross domestic product (GDP), consumer price index, population, and exchange rate were gathered from various sources, including the International Monetary Fund and Global Insight (formerly WEFA-DRI). Demand and supply price responses and income response of demand are econometric estimates or, when not available, consensus estimates. Their elasticity values are available from the FAPRI Web site (http://www.fapri.iastate.edu/tools/elasticity.aspx). The period for the econometric estimation is 1980 to 2001. Simple linear specifications and ordinary least squares 10 are used in the estimation of these equations to save degrees of freedom, given the short time series used. This estimation approach treats sugar prices as exogenous for estimation purposes. Elasticities in the CARD international sugar model are comparable to most existing ones (e.g., Devadoss and Kropf, 1996; Hafi, Connell, and Sturgiss, 1993; and Wohlgenant, 1999) and do not depart from the conventional wisdom on price-inelastic sugar markets. The own-price elasticities of sugarcane supply are highly inelastic in the short run. This feature is consistent with the fact that several annual crops can be harvested from one planting of sugarcane. Therefore, there is limited acreage adjustment to price fluctuations in the short run. The ownprice supply elasticities for sugar beet production are generally not as inelastic as they are for sugarcane since beet is an annual crop. On the demand side, the own-price and income elasticities reflect the fact that in many developing countries sugar is considered a staple in the diet. Consumers look to sugar to fulfill basic caloric requirements. The Caribbean raw sugar price is generally considered to be the representative world market price. The nominal world price of sugar has been increasing over time, although in a volatile fashion, while the real price has decreased. Our analysis has some caveats, which are inherent to the radical nature of the policy reforms considered. The policy changes considered in the first two scenarios are drastic and imply large price changes and displacement of market equilibrium far from prevailing volume and prices. For example, our assumptions on supply curves underlying EU production quotas are based on consensus views on the relative competitiveness of the producers constrained by the quota. The exact shape of those supply curves is unknown. 11 4. Reform Scenarios and Results We ran a sequence of three scenarios in deviation from the FAPRI baseline. We use the 2002 baseline because it was used to carry the trade liberalization analysis in all other agricultural markets (FAPRI, 2004). The sequence of scenarios starts with the removal of the largest distortions affecting sugar markets, i.e., trade and border distortions (tariffs, export taxes/subsidies, TRQs, and state trading). Then a second scenario considers the further removal of domestic production policies in addition to the trade liberalization of the first scenario. The third and last scenario considers the additional removal of consumption distortions along with the previous reforms of trade and production policies. Consumption distortions are the least prevailing distortions in these markets. In each scenario, the policy reforms are fully implemented in 2002/03 and their impact is measured in deviations for the years 2002/03 to 2011/12. We report the average of these annual changes as a summary indicator of the impacts as well as the impact in the final year (2011/12), which represents a long-term impact as the model dynamics take time to settle. Table 2 presents summary impacts for the world market; Tables 3-6 show the detailed impacts for select countries following the country taxonomy adopted earlier in the discussion of distortions (OECD, highlydistorted; OECD, minimally or moderately distorted; Non-OECD/ developing, highly distorted; Non-OECD/developing, minimally or moderately distorted). Figure 1 shows the impact of liberalization under the three scenarios on average production shares (2002/03 to 2011/12) for major countries classified according to their development and distortion levels. Figure 2 shows 12 the impact on average trade shares under scenarios 1, 2, and 3 for the major countries grouped by development and distortion levels.7 Trade Liberalization Impacts To implement scenario 1, we assume that governments have the fiscal resources to sustain existing sugar production subsidies. Producers receive the prevailing domestic market price under open borders but also get a production subsidy, which leaves the domestic policy support to production unchanged. This is, of course, an artificial device, which allows us to separate the specific effects of trade and domestic production policies. In reality, the mounting fiscal pressures of domestic subsidies would render them unsustainable in the medium run and policy reforms would follow. The removal of all trade distortions increases the world sugar price by 32% on average during the simulation period (Table 2). This average figure is inflated by a very strong initial price shock, which eventually tapers to 27% in 2011/12. Aggregate trade increases by a moderate 4% by 2011/12. The depth of the world market price formation mechanism increases dramatically, however, since preferential trade and export subsidies are eliminated. This mostly concerns EU imports and exports, and US and Japanese imports. Aggregate effects on world production and consumption are small. As shown in Tables 3-6, change in consumption and, to a lesser extent, relocation of production are substantial because of the magnitude of the price effects. In highly distorted OECD countries, sugar producers are also protected by domestic policies, and their production changes little or not at all. However, their consumption increases as sugar users face the world price of sugar. As a consequence, Figures 1 and 2 show countries like the EU experiencing a 7 Not all countries mentioned in the text appear in the tables and figures. Individual country results are available in Appendix Tables B, C, and D for the three scenarios and in Appendix Table E for the sensitivity analysis. 13 small decline in average production and trade shares, respectively, under trade liberalization. Conversely, in Australia, a country with limited distortion and the only major competitive sugar producer among OECD countries, production increases by more than 5% annually by 2011/12, and consumption falls as consumers face higher world prices after reform. So Australia increases its average production and trade shares, albeit slightly, under scenario 1. Among the most heavily distorted developing countries, production decreases substantially whenever domestic subsidies are not present, such as in the FSU and the Philippines. In developing countries in which domestic production support is present (e.g., India, Thailand) production changes little, as producers are shielded from world competition; consumption increases, however, as consumers face a higher domestic price. In terms of global shares, with the removal of trade barriers, importing countries like the FSU, Japan, and the US experience a small reduction in average production shares (Figure 1) and an increase in trade shares compared to the baseline (Figure 2). In a few countries, such as China, the net impact of the tariff removal and the increase in world prices turns out to increase production and decrease consumption. Moderately distorted developing countries increase their production significantly; Brazil, for example, increases production 8% annually on average. As a response to the higher wor l d pr i c e ,Br a z i l ’ sa ve r a g epr oduc t i on a nd t r a des ha r e si nc r e a s efrom 35.8% and 15%, respectively, in the baseline to 41.8% and 16%, respectively, under the trade liberalization scenario (Figures 1 and 2). Consumption falls in all countries of the latter group as sugar users face higher world and consumer prices after reform. Trade Liberalization and Domestic Production Policy Reform The same Tables 2-6 show the results for the combined removal of trade distortions and domestic policies affecting production. Major changes occur in scenario 2 with the additional 14 removal of domestic production subsidies. The removal of all trade and production distortions induces a 48% price increase by 2011/12 as shown in Table 2. Aggregate world sugar production and use decrease by about 3% on average. Aggregate trade expands moderately but the location of production and trade patterns are even more substantially affected than in the previous scenario. The most protected OECD and non-OECD countries (e.g., the EU, India, Japan, and, to a lesser extent, Mexico, Thailand, and the US) experience an import expansion or export reduction because of substantial contraction in production and increased consumption. In Figure 1, the average production share for the EU declines to 5% in scenario 2 from about 13% in the baseline and Figure 2 shows that the region experiences a trade reversal from a net exporter of sugar to a net importer when domestic support is removed. Japan reduces its average production share and increases its trade share compared to the baseline (Figure 1 and 2). The US production share remains where it was in the trade reform as the world price increase in scenario 2 offsets the loss of domestic subsidies. US imports increase relative to the baseline but not as much as in the previous scenario because the price faced by sugar users does not fall as much as it does in scenario 1. World beet production decreases by 21% by the end of the decade, whereas world cane production increases by 8%. Hence, in aggregate terms, the conventional wisdom holds that cane sugar production tends to be more competitive than beet sugar production. In contrast to the first scenario, the drop in production among the most protected countries is so drastic that the resulting world price increase induces higher production in many countries. Higher production is obviously seen among non-OECD competitive producers such as Brazil and Cuba but also in some countries with significant distortions such as Indonesia, Malaysia, and China. For these countries, the world price increase is large enough to provide improved incentives to produce, and lesser incentives to use sugar. Figure 1 shows the average 15 production share of Brazil increasing from 15% in the baseline to 18% with the removal of domestic support while, in Figure 2, its trade share increases from 35.8% to 63%. Indonesia, although highly distorted, also increases its average production and decreases its imports by almost 50% relative to the baseline. Among highly distorted OECD countries, Turkey also expands production because higher world prices and the removal of producer policies lead to improved incentives to produce. Negative changes in consumption observed in the first scenario are accentuated in this second scenario since consumers face even higher prices in the latter scenario. This occurs in OECD and non-OECD countries with moderate border protection (Australia, Brazil, Canada) but also in a few non-OECD countries with significant protection but for which the net effect of the removal of distortions and higher world price worsens consumer prices. For example, in China, consumption decreases by 7% in 2011/12 relative to the baseline level. Full Market Liberalization (Trade, Consumption, and Production Reforms) In this scenario, consumption distortions are removed in Cuba, Egypt, and Morocco, in addition to the policy reforms of the previous scenario.8 As Table 2 shows, the removal of pure consumption distortions has small effects on world markets price relative to scenario 2.9 By 2011/12, the world price increase is 47% or 1% lower than in scenario 2, as consumption subsidies are removed. Hence, the bulk of the effects of this reform occur in the countries removing their own consumer price distortions with limited feedback on world market. Tables 36 show that the removal of the consumer subsidies in these select developing countries has little 8 Although previously sugar was sold at subsidized prices to consumers in Turkey, consumer sugar subsidies have been gradually reduced over the last several years and prices have increased according to production costs, resulting in consumption increases closer to the population growth rate. For this reason, consumer subsidies in Turkey were not considered. 9 A border tariff constitutes a tax on consumption and a subsidy on production. Hence, sugar consumption has been extremely distorted by high tariffs rather than by pure consumer taxes/subsidies occurring only in a few countries. 16 impact on the rest of the countries when compared with scenario 2. Among non-OECD countries, Cuba has the largest subsidy removal, and consumption decreases significantly, by an average of 42.5% between 2002/03 and 2011/12. This translates in an expansion of Cuban exports on world markets, which are responsible for the 1% decrease in the world price relative to the world price prevailing after removing trade and production distortions (47% versus 48% increase in 2011-12). In Egypt, consumption decreases by 21%, whereas it would decrease by 15% under scenario 2. Finally, in Morocco, the removal of the consumption subsidy results in the reduction of sugar consumption by 11% relative to the baseline. Under scenario 2, Moroccan sugar consumption would decrease by nearly 4%. Sensitivity Analysis In conducting the sensitivity analysis, baseline price response elasticities in the supply, demand, and inventory equations for all countries were first doubled and then halved. The analysis involved the recalibration of the intercepts in these equations in order to maintain the original baseline. Then the scenarios were run with the alternative elasticities. Detailed results are presented in Appendix Table E. The doubling of elasticities makes the model more price responsive. Policy reforms induce larger marginal changes in supply, demand, and trade and, as a result, more moderate world price increases. Brazil and Australia expand their production beyond levels indicated in the original scenarios 2 and 3, whereas Japan and FSU decrease their production and increase their consumption to a larger extent. The loss of protection is exacerbated in highly distorted markets such as the EU and Japan and the response to the larger loss is also greater as the elasticity of supply is doubled. With the halving of elasticities these tendencies are reversed: world price increases are larger because marginal responses of supply, demand, and trade flows 17 are diminished. Note that the qualitative results of the original analysis are maintained throughout as the direction of changes is unaffected by changes in elasticities, with the unique e xc e pt i onoft heUSi ns c e na r i o2whe ne l a s t i c i t i e sa r eha l ve d.I nt hel a t t e rc a s e ,“ not hi ng ” happens compared to the baseline as the US sub-model becomes so inelastic and the US policy removal is offset fully by the world price increase. In average terms, when elasticities are halved in scenarios 2 and 3, the world price increase is about 11% higher than the world price increase when elasticities are unchanged. The sensitivity analysis led to a few extreme results. In the case of scenarios 2 and 3, when elasticities are doubled, the model goes to a corner solution in terms of inventories for Brazil as they become more responsive to higher world prices. This occurs as well for production in Japan with the removal of protection. Sugar beet area harvested in Japan falls to zero faster than sugarcane area harvested, resulting in positive, albeit drastically diminished, sugar production during the projection period. In scenario 3, where consumer subsidies are removed, Cuba ’ ss uga rc ons umpt i onf a l l st oz e r oi nt hef i r s ty e a rbe c a us eoft hedr a ma t i ci nc r e a s ei nwor l d price, the removal of the subsidies, and the higher demand response to price. Cuban sugar consumption remains positive although very low after the first year. Sensitivity analysis was also conducted that doubled and halved the elasticities in the price transmission equations. Where elasticities were originally high, an upper bound of one was implemented (full transmission). The latter analysis tended to exacerbate tendencies observed in the two previous cases, accentuating price responses in the halving and decreasing them in the doubling. Results of this analysis are available from the authors. 5. Conclusions We analyzed a sequence of incremental policy reforms in international sugar markets: the 18 removal of trade distortions, followed by the removal of trade distortions and domestic production support, and finally the removal of pure consumption distortions in addition to the previous removals. The sequence of reforms is structured by order of decreasing importance of these types of distortions. Trade distortions are the largest contributor to distortions in sugar markets and are responsible for large price and consumptions effects. But domestic production policies in highly protected OECD countries are also important to maintain production in these countries. With the removal of both trade and production distortions, it is clear that a massive sugar production relocation would take place away from highly protected OECD markets (the EU; Japan, and, to a lesser extent, Mexico and the US). Production would move toward competitive producers in moderately protected developing economies, chiefly Brazil and Cuba, and to moderately protected OECD countries, mostly Australia, and less obviously to producers in protected countries such as Turkey and Indonesia because of the large world price effects. The EU and Japan have virtually everything to lose in unfettered markets. The large increase in price is little solace for their sugar producers, who would probably be wiped out. EU producers might want to focus on compensation and negotiate a buy-out program within the ongoing CAP reforms and specifically its sugar common market organization, while the Doha round evolves slowly and the EBA agreement is not yet fully implemented. Japanese sugar producers may well be the last bastion of protectionism in global sugar markets. The analysis also makes clear that trade liberalization without domestic reforms would induce import surges in the US. These surges would make domestic programs fiscally unpalatable and unsustainable because of the current policy commitments. A similar pattern emerges in the EU, which is constrained in its ability to export expensive domestic sugar displaced by cheaper imports or to provide large, unsustainable production subsidies to make 19 domestic producers competitive. Of course one should never underestimate the strength of the sugar lobby in OECD countries, and many sugar specialists have wrongly predicted the imminent unraveling of sugar protectionism as shown in the recent outcome of the AustralianUS FTA and CAFTA. We obtained large world price effects reflecting the price-inelastic nature of sugar markets. We found that by the end of the outlook period, world prices would increase by about 27% with the imposition of free trade and by a staggering 48% when all trade and production distortions are removed. These figures are slightly inflated by strong initial price shocks, which take time to taper because of the slow dynamic adjustment of sugar production. Supply adjustment in sugar production takes time, and the price changes in the later years provide a sense of how markets would adjust in the long run to such radical policy shocks. These estimates of the price effects are large but within the ballpark of previous estimates obtained with partialequilibrium models (Borrell and Pearce, 1999; Sheales, Hafi, and Toyne, 1999; Wohlgenant, 1999). Sugar markets are price-inelastic both on the supply and demand sides. This fundamental characteristic explains why reforms have large price effects but more moderate effects on production, consumption, and trade. In contrast, CGE models predict smaller price effects and larger production and consumption effects because they assume larger market responses to prices, especially in supply. Sug a rpr oduc e r s ’g r oupsi npr ot e c t e dma r ke t si ns i s tonus i ngt hemul t i l a t e r a lne g ot iation route to liberalize sugar markets, often as a convenient veil of legitimacy for their protectionist interests. Our numbers provide some credence to their strategy, as it appears that the competitive segment of the sugar industries would survive in unfettered markets in the US, Turkey, and other protected markets. A major qualifier to our analysis is that our model may understate exit/entry 20 and investment decisions. The drastic world price increases predicted by our analysis may induce massive investment in sugar production and reduce these price changes considerably. 21 References Aksoy, M.A., and J.C. Beghin, eds. (2004). Global Agricultural Trade and Developing Countries. Washington D.C.: The World Bank. Ame r i c a nSug a rAl l i a nc e .( 2003) .“ Submi s s i onof the American Sugar Alliance on the USCe nt r a lAme r i c aFr e eTr a deAgr e e me nt , ”Of f i c eoft heU. S.Tr a deRe pr e s e nt a t i ve ,U. S. Department of Labor, April 25. Be g hi n,J . ,B.ElOs t a ,J .Che r l ow,a ndS.Moha nt y .( 2003) .“ TheCos toft heU. S.Suga rPr og r a m Revi s i t e d, ”Contemporary Economic Policy 21 (1): 106-116. Bor r e l l ,B. ,a ndR. C.Dunc a n.( 1992) .“ Ec onomi cEf f e c t sofPol i c yI nt e r ve nt i onofWor l dSug a r Pol i c i e s , ”The World Bank Research Observer 7(2): 173-194. Bor r e l l ,B. ,a ndD.Pe a r c e .( 1999) .“ Suga r :TheTa s t eTe s tofTr a deLi be r a l i s a t i on. ”CI ERe por t , Centre for International Economics, Canberra and Sydney, Australia, September. De va dos s , S. ,a ndJ .Kr opf .( 1996) .“ I mpa c tofTr a deLi be r a l i z a t i onunde rt heUr ug ua yRoundon t heWor l dSug a rMa r ke t , ”Agricultural Economics: 83-96. Commi s s i onoft heEur ope a nCommuni t i e s .( 2005) .“ Pr opos a lf oraCounc i lRe g ul a t i onont he CommonOr g a ni z a t i onoft heMa r ke t si nt heSug a rSe c t or . ”COM ( 2005)263f i na l , Brussels, June. Food and Agricultural Policy Research Inst i t ut e( FAPRI ) .( 2004) .“ TheDohaRoundoft he Wor l dTr a deOr ga ni z a t i on:Appr a i s i ngFur t he rLi be r a l i z a t i onofAg r i c ul t ur a lMa r ke t s . ” CARD Working Paper 02-WP 317, Center for Agricultural and Rural Development, Iowa State University, Ames, revised July. ———. FAPRI 2003 U.S. and World Agricultural Outlook. (2003). CARD Staff Report 1-03, Iowa State University, Ames, Iowa, January. Frandsen, S.E., H.G. Jensen, W. Yu, and A. Walter-Jørgensen. (2003). “Reform of EU Sugar Policy: Price Cuts Versus Quota Reductions , ” European Review of Agriculture Economics 30(1): 1-26. Ha f i ,A. ,P.Conne l l ,a ndR.St ur g i s s .( 1993) .“ Ma r ke tPot e nt i a lf orRe f i ne dSug a rExpor t sf r om Aus t r a l i a . ”ABARERe s e a r c hRe por t93. 17,Ca nbe r r a ,Aus t r a l i a . Hoekman, B., F. Ng, and M. Olarreaga. ( 2004) .“ Ag r i c ul t ur a lTa r i f f sve r s usSubs i di e s :Wha t ’ s Mor eI mp or t a ntf orDe ve l opi ngCount r i e s ? ’World Bank Economic Review 18(2): 175-204. Mi t c he l l ,D.( 2004) .“ Sug a rPol i c i e s :AnOppor t uni t yf orCha ng e . ”I nGlobal Agricultural Trade and Developing Countries, M.A. Aksoy and J.C. Beghin, eds. pp. 141–60.Washington, D.C.: The World Bank. 22 Organization for Economic Cooperation and Development (OECD). (2003). Agricultural Policies in OECD Countries. Monitoring and Evaluation 2002. Paris: OECD Publications. She a l e s ,T. ,S.Gor don.A.Ha f i ,a ndC.Toy ne .( 1999) .“ Sug a rI nt e r na t i ona lPol i c i e sAf f e c t i ng Ma r k e tExpa ns i on. ”ABARERe s e a r c hRe por t99. 14.Ca nbe r r a ,Aus t r a l i a . van der Mensbrugghe, D., J. Beghin, and D. Mitchell. (2003). “Modeling Tariff Rate Quotas in a Gl oba lCont e xt :TheCa s eofSug a rMa r ke t si nOECDCount r i e s , ”CARDWor ki ngPa pe r 03-WP-343, Center for Agricultural and Rural Development, Iowa State University, Ames, September. Wohlgenant, M.K. (1999). Effects of Trade Liberalization on the World Sugar Market, prepared for the Food and Agriculture Organization of the United Nations, Rome. Wor l dTr a d eOr g a ni z a t i on( WTO) .( 2004a ) .“ Eur ope a nCommuni t i e s–Export Subsidies on Sug a r :Compl a i ntbyAus t r a l i a ” ,Re por toft hePa ne lWT/ DS265/ R( 04-4209), October 14. ———.( 2004b) .“ DohaWor kPr og r a mme ,De c i s i onAdopt e dbyt heGe ne r a lCounc i lon1 Aug us t2004. ”Re por tofGe ne r a lCounc i l .Aug us t2.Doc ume ntc odeWT/ L/ 579. ———.( 1994) .“ Agr e e me ntonAg r i c ul t ur e . ”Fi na lAc toft he1986-1994 Uruguay Round, WTO Agreements, Rome. 23 Table 1. Summary of Sugar Policies by Country (2001/02) Trade Policies Country Import tariff(1) and TRQ schemes Classification OECD Countries: Highly Distorted Eastern Europe(2) 40% in-quota rate with minimum of EUR0.17/kg; 96% out-of-quota rate with minimum of EUR0.43/kg European Union EUR98/ton in-quota rate; EUR339/ton out-of-quota rate; ACP TRQ 1.3 million tons white sugar equivalent Japan JPY21.5/kg refined sugar + additional surcharge of JPY53.88/kg Mexico $0.3166/kg on U.S. imports and $0.3958/kg on third-country imports 3% raw sugar and temporary 50% refined sugar South Korea 110.45% on EU imports; 138% on third-country imports 0. 625/lb MFN import duty; 15.36¢/lb out-of-quota rate raw sugar; 16.21¢/lb refined sugar; TRQ of 1.29 United States million tons in 2002;Preferential treatment for Mexico under NAFTA OECD Countries: Limited to Moderate Distortion Australia No import tariffs Canada CAD$30.86/ton refined sugar; CAD$22.07 - $24.69/ton raw sugar (MFN) Non-OECD Countries: Highly Distorted Argentina 20% (+ $60/ton on Brazilian imports) 20% in-quota rate; 76% out-of-quota rate; TRQ 1.64 million tons increasing to 1.95 million tons by 2004 China Export subsidy Export tax X Turkey 4.05% Domestic Policies Production Consumption Price Production Consumer support quota subsidy X X X X X X X X 5% X Colombia 20% + variable surcharge (effective duty in 2002 $114/ton raw imports; $85/ton refined) 2.5% X Egypt Former Soviet Union (Russia)(3) 5% raw sugar; 10% refined sugar X India 5% in-quota rate but no less than EUR0.015/kg; 40% out-of-quota rate but no less than EUR0.12/kg for raw sugar and EUR0.14/kg for white sugar; TRQ 3.65 million tons in 2002 60% plus INR850/ton countervailing duty X Indonesia 20% raw cane sugar; 25% beet sugar X Malaysia 5% + specific tax of RM426.7/ton X Morocco 35% + 0.25% parafiscal tax and 123% of the difference between a threshold price and CIF price X 30% X Pakistan Philippines 65% South Africa ZAR1312/ton in 2002 (based on difference between world price and set reference price) Thailand 65% in-quota rate; 99% out-of-quota rate 99% X X Non-OECD Countries: Limited to Moderate Distortion Algeria 15% cane sugar; 5% beet sugar Brazil 17.5% Cuba 10% Iran(4) 19% Peru 25% + additional duty based on price band system used in Colombia Venezuela 15% + additional duty based on price band system used in Colombia 1. Import tariffs are for raw sugar unless indicated otherwise. 2. Poland is used to represent Eastern Europe as its production constitutes 60% of total sugar production in Eastern Europe. 3. Rus s i ai sus e dt or e pr e s e ntt heFo r me rSov i e tUni o na si ti st her e g i on’ sl a r g est importer. The Ukraine sets minimum purchase prices for sugar beets and refined sugar at the wholesale level. However, sugar prices are often below the mandated minimum. 4. Regional average X X X Table 2. Impact of Reforms on World Sugar World Sugar Production, Consumption, Total Exports[1] and World Prices Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Production 11/12 Average 155.81 144.82 156.94 146.02 1.13 1.20 0.72% 0.83% (Million Metric Tons) Consumption 11/12 Average 156.13 145.25 156.97 146.08 0.85 0.82 0.54% 0.56% Total Exports 11/12 Average 35.51 32.02 37.01 32.83 1.50 0.81 4.22% 2.40% (U.S. Dollars per Metric Ton) FOB Caribbean Price 11/12 Average 238.83 214.61 302.47 282.31 63.64 67.69 26.65% 31.95% 153.06 -2.75 -1.76% 140.76 -4.06 -2.86% 153.12 -3.01 -1.93% 141.21 -4.04 -2.82% 38.42 2.91 8.19% 35.76 3.75 11.73% 353.32 114.49 47.94% 353.93 139.32 66.18% 152.79 -3.02 -1.94% 140.52 -4.30 -3.03% 152.85 -3.27 -2.10% 140.94 -4.31 -3.01% 38.39 2.88 8.12% 35.70 3.68 11.53% 350.83 112.00 46.89% 351.36 136.74 64.96% [1] Total exports are computed by summing up all positive exports and negative imports and not by summing trade flows of net exporters. Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 25 Table 3. Impact of Reforms on Heavily Distorted OECD Countries European Union Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Production 11/12 19,752.11 19,752.11 0.00 0.00% Average 18,702.35 18,702.35 0.00 0.00% (Thousand Metric Tons) Consumption 11/12 Average 15,087.83 14,932.70 15,659.04 15,597.65 571.21 664.94 3.79% 4.46% [1] Average 3,734.87 3,032.31 -702.57 -19.56% 7,987.60 -11,764.50 -59.56% 7,230.69 -11,471.66 -61.28% 15,520.31 432.47 2.87% 15,382.79 450.09 3.01% -7,555.19 -12,189.24 -263.04% -8,214.96 -11,949.83 -323.47% 7,955.73 -11,796.38 -59.72% 7,202.49 -11,499.86 -61.43% 15,527.12 439.29 2.91% 15,390.47 457.76 3.06% -7,593.85 -12,227.91 -263.87% -8,251.26 -11,986.13 -324.45% Eastern European Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Net Exports 11/12 4,634.06 4,078.36 -555.70 -11.99% [1] (Thousand Metric Tons) Consumption 11/12 Average 4,356.21 4,346.01 4,427.71 4,421.47 71.50 75.46 1.64% 1.74% Production 11/12 3,190.73 2,891.28 -299.45 -9.39% Average 3,265.61 3,003.62 -261.98 -8.06% 2,936.56 -254.17 -7.97% 3,058.26 -207.34 -6.38% 4,427.18 70.96 1.63% 2,934.62 -256.11 -8.03% 3,056.39 -209.22 -6.44% 4,427.83 71.62 1.64% Net Imports 11/12 1,187.31 1,553.21 365.89 30.82% Average 1,091.26 1,454.06 362.80 33.14% 4,412.02 66.01 1.52% 1,510.27 322.95 27.20% 1,385.99 294.73 26.75% 4,412.67 66.65 1.53% 1,512.85 325.53 27.42% 1,388.67 297.41 27.00% Eastern Europe represents the 11 East European countries prior to the EU Enlargement in 2004. The EU Enlargement is not incorporated into the model. Japanese Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline (Thousand Metric Tons) Consumption 11/12 Average 2,432.89 2,383.36 2,478.30 2,453.02 45.41 69.66 1.87% 2.93% Production 11/12 897.94 688.78 -209.16 -23.29% Average 854.26 736.93 -117.33 -13.46% 146.32 -751.62 -83.71% 385.92 -468.34 -53.85% 2,466.63 33.74 1.39% 321.03 -576.91 -64.25% 514.23 -340.03 -39.06% 2,467.20 34.31 1.41% Net Imports 11/12 1,535.03 1,788.59 253.57 16.52% Average 1,531.41 1,719.17 187.77 12.27% 2,433.09 49.72 2.09% 2,319.58 784.55 51.11% 2,050.05 518.65 33.92% 2,433.79 50.43 2.12% 2,145.44 610.41 39.77% 1,922.46 391.05 25.57% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 26 South Korean Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline [2] Production 11/12 0.00 0.00 0.00 0.00% Average 0.00 0.00 0.00 0.00% [2] (Thousand Metric Tons) Consumption 11/12 Average 1,675.18 1,497.67 1,776.27 1,581.43 101.09 83.76 6.03% 5.56% Net Imports 11/12 1,670.74 1,772.14 101.40 6.07% Average 1,499.67 1,587.57 87.91 5.85% 0.00 0.00 0.00% 0.00 0.00 0.00% 1,763.90 88.72 5.30% 1,558.92 61.25 4.00% 1,760.50 89.76 5.37% 1,564.06 64.39 4.22% 0.00 0.00 0.00% 0.00 0.00 0.00% 1,765.39 90.21 5.38% 1,560.21 62.54 4.09% 1,761.98 91.23 5.46% 1,565.39 65.72 4.31% South Korea does not produce sugar. Turkish Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline (Thousand Metric Tons) Consumption 11/12 Average 2,395.14 2,215.55 2,445.07 2,258.36 49.93 42.81 2.08% 1.92% Production 11/12 2,211.87 2,211.87 0.00 0.00% Average 2,067.43 2,067.43 0.00 0.00% Net Imports 11/12 184.90 237.71 52.82 28.57% 3,733.30 1,521.43 68.78% 2,780.43 713.00 33.17% 2,438.05 42.91 1.79% 2,245.98 30.43 1.36% -1,289.85 -1,474.75 -797.60% -532.89 -676.25 -259.02% 3,719.12 1,507.25 68.14% 2,768.22 700.79 32.59% 2,438.78 43.64 1.82% 2,246.65 31.10 1.39% -1,274.93 -1,459.83 -789.53% -519.94 -663.30 -250.17% Average 143.36 194.29 50.93 42.91% US Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Average 7,965.40 7,688.57 -276.83 -3.46% (Thousand Metric Tons) Consumption 11/12 Average 10,975.62 10,258.58 11,049.92 10,394.51 74.30 135.93 0.68% 1.35% Net Imports 11/12 3,132.43 3,339.86 207.43 6.62% Average 2,423.20 3,043.80 620.61 29.62% 7,614.48 -368.86 -4.62% 7,482.78 -482.62 -6.06% 10,992.55 16.93 0.15% 10,306.18 47.60 0.47% 3,430.32 297.89 9.51% 2,941.35 518.16 22.58% 7,584.90 -398.44 -4.99% 7,454.10 -511.29 -6.42% 10,995.36 19.74 0.18% 10,309.33 50.75 0.50% 3,463.38 330.95 10.57% 2,974.49 551.29 24.00% Production 11/12 7,983.34 7,921.85 -61.49 -0.77% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 27 Table 4. Impact of Reforms on Moderately Distorted OECD Countries Australian Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline (Thousand Metric Tons) Consumption 11/12 Average 1,116.69 1,074.69 1,095.17 1,052.37 -21.51 -22.32 -1.93% -2.08% Production 11/12 6,684.35 7,026.17 341.82 5.11% Average 6,063.38 6,364.24 300.86 4.86% 7,340.35 656.00 9.81% 6,700.27 636.89 10.33% 1,063.43 -53.25 -4.77% 7,327.37 643.02 9.62% 6,688.85 625.47 10.14% 1,064.80 -51.88 -4.65% Net Exports 11/12 5,568.31 5,930.74 362.43 6.51% Average 4,989.95 5,318.02 328.07 6.46% 1,019.19 -55.50 -5.17% 6,273.27 704.96 12.66% 5,691.56 701.60 13.88% 1,020.50 -54.19 -5.05% 6,258.93 690.62 12.40% 5,678.64 688.69 13.62% Net Imports 11/12 1,274.60 1,257.13 -17.46 -1.37% Average 1,196.84 1,175.65 -21.19 -1.79% Canadian Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Production 11/12 116.95 117.82 0.87 0.74% Average 116.21 117.11 0.90 0.77% (Thousand Metric Tons) Consumption 11/12 Average 1,385.97 1,309.39 1,369.16 1,289.63 -16.81 -19.76 -1.21% -1.52% 119.46 2.51 2.15% 119.22 3.00 2.59% 1,333.65 -52.32 -3.78% 1,249.47 -59.92 -4.60% 1,220.58 -54.02 -4.24% 1,132.81 -64.03 -5.39% 119.39 2.44 2.09% 119.15 2.94 2.53% 1,335.37 -50.60 -3.65% 1,251.14 -58.25 -4.47% 1,222.37 -52.23 -4.10% 1,134.57 -62.27 -5.24% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 28 Table 5. Impact of Reforms on Heavily Distorted Non-OECD Countries Chinese Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Production 11/12 8,980.43 9,244.23 263.79 2.94% Average 8,375.08 8,733.96 358.88 4.31% (Thousand Metric Tons) Consumption 11/12 Average 11,149.15 9,834.95 10,964.54 9,493.71 -184.61 -341.24 -1.66% -3.59% 9,769.23 788.79 8.78% 9,469.22 1,094.14 13.10% 10,389.91 -759.24 -6.81% 8,529.91 -1,305.04 -13.66% 624.47 -1,530.16 -71.02% -965.58 -2,416.26 -182.19% 9,737.33 756.89 8.43% 9,437.40 1,062.32 12.72% 10,418.12 -731.03 -6.56% 8,563.96 -1,270.98 -13.31% 684.49 -1,470.15 -68.23% -899.12 -2,349.79 -177.34% Net Imports 11/12 2,154.64 1,711.10 -443.53 -20.58% Average 1,450.67 746.37 -704.30 -53.24% Former Soviet Union Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Average 4,523.13 3,904.78 -618.35 -13.45% (Thousand Metric Tons) Consumption 11/12 Average 12,653.62 12,206.35 12,772.54 12,325.21 118.92 118.86 0.94% 0.97% Net Imports 11/12 7,840.12 8,893.43 1,053.31 13.43% Average 7,613.89 8,371.37 757.47 9.91% 4,821.15 101.73 2.16% 4,854.56 331.43 7.37% 12,668.91 15.29 0.12% 12,162.57 -43.78 -0.37% 7,766.81 -73.30 -0.93% 7,239.65 -374.24 -4.95% 4,780.52 61.09 1.29% 4,822.71 299.58 6.67% 12,674.00 20.37 0.16% 12,168.36 -37.99 -0.32% 7,812.47 -27.65 -0.35% 7,278.16 -335.73 -4.45% Production 11/12 4,719.42 3,782.04 -937.38 -19.86% Indian Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Average 20,724.70 20,724.70 0.00 0.00% (Thousand Metric Tons) Consumption 11/12 Average 22,291.02 20,313.63 23,298.40 21,134.24 1,007.38 820.60 4.52% 4.01% Net Exports 11/12 506.65 -526.08 -1,032.73 -203.84% Average 697.32 -235.19 -932.51 -143.90% 22,094.60 -575.86 -2.54% 19,827.87 -896.82 -4.39% 22,487.96 196.95 0.88% 20,156.38 -157.25 -0.86% -351.71 -858.35 -169.42% -80.75 -778.07 -125.47% 22,069.97 -600.49 -2.65% 19,805.72 -918.98 -4.49% 22,538.27 247.25 1.11% 20,201.73 -111.91 -0.64% -426.09 -932.74 -184.10% -151.07 -848.39 -136.21% Production 11/12 22,670.46 22,670.46 0.00 0.00% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 29 Table 5. (continued) Thai Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline (Thousand Metric Tons) Consumption 11/12 Average 2,401.24 2,090.00 2,525.48 2,188.66 124.24 98.66 5.17% 4.67% Production 11/12 7,012.04 6,825.65 -186.40 -2.66% Average 6,283.39 6,157.79 -125.60 -1.94% 6,961.40 -50.64 -0.72% 6,304.78 21.39 0.39% 2,428.27 27.03 1.13% 6,955.85 -56.19 -0.80% 6,299.81 16.42 0.31% 2,434.63 33.39 1.39% Net Exports 11/12 4,606.68 4,297.23 -309.45 -6.72% Average 4,179.72 3,952.38 -227.35 -5.33% 2,065.81 -24.19 -1.34% 4,526.95 -79.74 -1.73% 4,223.20 43.48 1.19% 2,071.65 -18.35 -1.06% 4,515.15 -91.53 -1.99% 4,212.42 32.70 0.93% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 30 Table 6. Impact of Reforms on Moderately Distorted Non-OECD Countries Algerian Sugar Production, Consumption and Net Imports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Production 11/12 10.55 10.79 0.24 2.28% Average 10.35 10.60 0.25 2.39% (Thousand Metric Tons) Consumption 11/12 Average 1,065.61 1,017.42 1,050.21 997.65 -15.40 -19.78 -1.45% -1.96% Net Imports 11/12 1,054.68 1,039.08 -15.60 -1.48% Average 1,006.76 986.67 -20.09 -2.01% 11.26 0.71 6.70% 11.10 0.76 7.29% 1,022.05 -43.56 -4.09% 957.74 -59.69 -5.91% 1,010.56 -44.12 -4.18% 946.14 -60.62 -6.07% 11.24 0.69 6.51% 11.09 0.74 7.12% 1,023.44 -42.17 -3.96% 959.17 -58.25 -5.77% 1,011.96 -42.72 -4.05% 947.60 -59.16 -5.92% Brazilian Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline Average 21,871.81 23,617.86 1,746.05 7.92% (Thousand Metric Tons) Consumption 11/12 Average 11,211.34 10,565.25 10,831.02 10,201.03 -380.32 -364.23 -3.39% -3.46% Net Exports 11/12 11,521.02 13,982.53 2,461.51 21.37% Average 11,311.48 13,434.52 2,123.04 18.70% 26,796.25 4,067.30 17.89% 25,651.73 3,779.92 17.16% 10,238.31 -973.03 -8.68% 9,633.87 -931.38 -8.83% 16,551.51 5,030.49 43.66% 16,045.25 4,733.77 41.72% 26,713.48 3,984.52 17.53% 25,582.09 3,710.28 16.85% 10,265.28 -946.06 -8.44% 9,657.02 -908.23 -8.61% 16,441.72 4,920.70 42.71% 15,952.01 4,640.53 40.90% Production 11/12 22,728.95 24,811.63 2,082.67 9.16% Cuban Sugar Production, Consumption and Net Exports Scenario 1 Baseline Reform Change % chg from baseline Scenario 2 Reform Change % chg from baseline Scenario 3 Reform Change % chg from baseline (Thousand Metric Tons) Consumption 11/12 Average 839.07 777.13 810.55 744.48 -28.52 -32.64 -3.40% -4.24% Production 11/12 4,797.62 5,258.59 460.97 9.61% Average 4,024.91 4,269.67 244.76 5.73% 6,014.83 1,217.22 25.37% 4,722.58 697.67 16.43% 774.08 -64.99 -7.75% 5,986.63 1,189.02 24.78% 4,706.75 681.85 16.06% 525.84 -313.23 -37.33% Net Exports 11/12 3,952.72 4,442.04 489.32 12.38% Average 3,245.84 3,523.86 278.02 8.14% 693.96 -83.17 -10.84% 5,234.16 1,281.44 32.42% 4,028.13 782.29 23.01% 448.99 -328.14 -42.46% 5,452.49 1,499.77 37.94% 4,240.52 994.68 29.63% Note: Average is the average for 2002/03 to 2011/12. Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 31 Figure 1. Average Production Shares for Select Countries Under the Three Reform Scenarios Non-OECD Moderately Distorted Percent 20 18 16 14 12 10 8 6 4 2 0 OECD Highly Distorted Scenario 1 Scenario 2 ub a l zi C B ra nd ila di a Th a In U FS tr al A us Ea Baseline C hi na ia S U Ja st er n Eu pa e n OECD Moderately Distorted ro p EU Non-OECD Highly Distorted Scenario 3 Note: Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization Figure 2. Average Trade Shares for Select Countries Under the Three Reform Scenarios Non-OECD Moderately Distorted Percent 50 OECD Moderately Distorted 40 OECD Highly Distorted 30 Non-OECD Highly Distorted 20 10 0 -10 -20 Ea Baseline C ub a zi l B ra Th ai la nd di a In FS U C hi na ia A us tr al U S n pa Ja pe Eu ro st er n EU -30 Scenario 1 Scenario 2 Scenario 3 Note 1: Positive trade shares represent net export shares while negative trade shares represent net import shares. Note 2: Scenario 1 = Trade Liberalization; Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms; Scenario 3 = Full Market Liberalization. 32 Appendix Tables A: Sugar Policies by Country B1: Impacts of Trade Liberalization Reform on Sugar Price and Trade B2: Impacts of Trade Liberalization Reform on Sugar Production and Consumption C1: Impacts of Trade Liberalization and Domestic Production Subsidy Reforms on Sugar Price and Trade C2: Impacts of Trade Liberalization and Domestic Production Subsidy Reforms on Sugar Production and Consumption D1: Impacts of Full Market Liberalization Reform on Sugar Price and Trade D2: Impacts of Full Market Liberalization Reform on Sugar Production and Consumption E1: Sensitivity Results for Scenario 1 with Elasticities Doubled E2: Sensitivity Results for Scenario 2 with Elasticities Doubled E3: Sensitivity Results for Scenario 3 with Elasticities Doubled E4: Sensitivity Results for Scenario 1 with Elasticities Halved E5: Sensitivity Results for Scenario 2 with Elasticities Halved E6: Sensitivity Results for Scenario 3 with Elasticities Halved Table A. Sugar Policies by Country (1) Country Trade and Domestic Policies Algeria imposes a tariff rate of 15% on cane sugar and 5% on beet sugar. Argentina imposes a 20% tariff on sugar imports in addition to a variable duty of $60/ton on imports from Brazil. A 5% export tax is in place as well as a 4.05% export rebate. Australia ended administered price arrangements in 1989 and removed import tariffs in 1997. Brazil imposes a 17.5% tariff on imports from non-MERCOSUL countries (Brazil has zero imports). Although high-cost growers in the Northeast region are to receive a small subsidy (BRR 5.07/mt), this support has not been received for the past few years. Canada imposes a tariff on refined imports from MFNs equal to CAD $30.86/ton and on raw imports equal to CAD $22.07 to CAD $24.69/tonne (depending on the polarization of sugar). Developing countries pay zero duty on raw sugar, and Australia and Cuba, from where the bulk of the raw sugar is imported, are exempt from duty. China provides a 'guidance price' to sugar refiners to guide prices paid for sugarcane and sugar beet, but market forces largely determine prices. China has a TRQ of 1.64 million tons at a 20% in-quota rate and a 76% above-quota rate. The TRQ increases to 1.945 million tons by 2004 with an above-quota rate of 65%. Colombia Sugar imports from the Andean community are allowed duty free. The basic duty on raw and refined sugar imports from the non-Andean Community is 20%. In addition, a variable surcharge is calculated based upon adjusted floor, ceiling, and reference prices. In 2002, the total effective duty (basic plus surcharge) on raw sugar imports was $114/ton and on refined imports was $85/ton. Export subsidies of 2.5% of the f.o.b. value for centrifugal and panela sugar is received by Colombian exporters. This is not provided for exports to the United States. Colombia sets guaranteed sugar prices close to the world price. Cuba imposes a tariff rate of 10% on raw and refined sugar. The sugar industry is under the control of the Cuban government(2). The domestic price of sugar is subsidized by the Cuban government under a rationing system. A monthly allowance of 6 pounds of sugar is provided at 0.13¢/lb. Eastern Europe (Poland)(3) imposes an in-quota tariff on sugar imports of 40% with a minimum of EUR 0.17/kg and an out-of-quota tariff rate of 96% with a minimum of EUR 0.43/kg. Although minimum sugar prices are set by the government, Poland has not been able to enforce them. Egypt imposes a 5% import tariff on raw sugar and a 10% tariff on refined sugar. The government also establishes sugarcane and sugar beet prices (set in 2002 at LE 95/ton and LE 77/ton respectively). Sugar consumption is subsidized. 500,000 tons of white sugar is sold at 60 piasters/kg to ration card-holders while another 500,000 tons is sold at 130 piasters/kg. Non-rationed sugar is sold at LE 1.30/kg through government outlets while the retail price in private shops is between LE 1.6/kg and LE 2/kg (1 LE = 100 piasters). European Union sets intervention prices for farmers and national aid for Italy, Portugal, and Spain. Export refunds are paid to exporters to cover the gap between the EU price and the world price when sugar is sold from intervention stocks. Production quotas are used to limit the sugar eligible for support. The surplus of A and B production above domestic consumption is exported with subsidy. C quota sugar must be exported at world prices. Sugar imported from ACP is re-exported with subsidy. Production levies are applied to quota sugar production to cover export refunds (2% on A and B quotas and between 30% and 37.5% on B quota plus additional levies to cover shortfalls in export refunds in the previous year). The import levy is a fixed duty plus a safeguard clause allowing variable additional duty. 1.3 million tons of white sugar equivalent preferential imports from ACP countries are at guaranteed prices and an additional 0.2-0.3 million tons at 85% of the guaranteed price. The with-in quota rate is EUR 98/ton and out-of-quota rate is EUR339/ton. Everything-But-Arms is limited by quotas until 2009 when duty-free access is allowed. 34 Table A: (continued) Former Soviet Union (Russia)(4) India had a total TRQ of 3.65 million tons in 2002 (3.35 million tons for the first six months and 0.3 million tons for the remaining months). Seasonal tariffs are added during periods of peak domestic production to protect producers and support prices. The in-quota tariff rate was 5% but no less than EUR 0.015/kg and the overquota rate was set at 40% for raw and white sugar but no less than EUR 0.12/kg for raw sugar and EUR 0.14/kg for white sugar. The over-quota seasonal rate was 50% but not less than EUR 0.15 /kg for raw sugar and EUR 0.18/kg for white sugar. imposes an import duty of 60% plus INR 850/ton countervailing duty on raw sugar. National minimum support price for sugarcane (INR 620/ton in 2001/02) are augmented by state governments by another 20% to 50%. Sugar millers and importers are required to sell portion of supplies to Public Distribution System at below market prices for resale to low-income consumers (15% of production and imports). There is a transport subsidy to encourage exports (INR 140/ton in 2001/02). Indonesia imposes a tariff rate of 20% on raw cane sugar and 25% on be e ts u g a r .Tos uppor tf a r me r s ’i nc ome s ,t heg ov e r nme nta l s os e t sas ug a rf l oorpr i c e( IDR 2,600/kg in 2001/02). Iran imposes a tariff rate of 19% on sugar imports (5). Japan imposes a prohibitive duty on refined sugar of JPY 21.5/kg with an additional surcharge of JPY 53.88/kg. In 2001, the minimum producer price for sugar beet was JPY 17,040/ton and JPY 20,370/ton for sugarcane. A target price is set for sugar refiners to allow them to pay the guaranteed price to farmers and a subsidy is provided to the refiners to cover the difference between the domestic market price and the target price. The difference is made up by a subsidy provided by a surcharge on imported sugar, other surcharges, and funds from Japan's national budget. The current subsidy for refiners is JPY 90 billion, 85% from surcharge on raw sugar imports. In 2001, average import price was JPY 32,580/ton and the resale price was JPY 59,960/ton, implying a surcharge of JPY 27,380/ton. A secondary surcharge is imposed on import companies that exceed their raw sugar import volume target (JPY 23,309/ton). The volume of target imports was 1.47 million metric tons. Japan does not impose import tariffs on raw sugar. Malaysia controls sugar imports through quota restrictions by licenses. The country imposes a 5% ad valorem rate on sugar imports as well as a specific tax of MYR 426.7/ton.Wholesale and retail sugar prices are controlled (MYR 1,345/ton for the wholesale price and MYR 1.4/kg for the retail price). Mexico imposes a duty of $0.3166/kg on U.S. sugar imports and $0.3958/kg on third-country imports. Every year the government announces the reference price for standard sugar, which is used to calculate the price paid to sugarcane growers. Growers are given 57% of the wholesale reference price of a ton of standard sugar (MX pesos 4,561.08/ton in 2001/02). Morocco imposes a 35% tariff rate on sugar imports plus a 0.25% parafiscal tax and 123% of the difference between a threshold price (MAD 3,500/ton) and the CIF price (if the latter is less than the former). The country sets support prices for beet and cane with additional bonus for various regions (MAD 325/ton for sugar beet and MAD 220/ton for sugarcane with additional bonus ranging between MAD 25/ton and MAD 55/ton). The government subsidies sugar consumption at the retail level. In 2001, the government paid refineries a subsidy of MAD 2,000/ton. Pakistan imposes a 30% import tariff on raw and refined sugar. The country also sets a producer support price, although market prices are usually above support prices (currently 50% above). Philippines has sugar imports duties set at 65%. Peru imposes a tariff rate of 25% and an additional duty based on the price band system used in Colombia. The domestic price is set by the market based on supply and demand. South Africa imposes duties based on the difference between the world price and a set reference price. The duty was ZAR 784/ton in 2001 and ZAR 1312/ton in July 2002. South Africa provides import access of sugar to Swaziland, Mozambique, Zambia, and Zimbabwe. 35 Table A: (continued) South Korea imposes a 3% tariff on raw sugar and a temporary 50% tariff on refined sugar. The wholesale sugar price is controlled by the government. Thailand maintains high internal sugar prices using quotas and import tariffs. The country has a 65% in-quota tariff rate and a 99% out-of-quota tariff rate. The government sets initial and final producer prices for sugarcane (THB 530/ton in 2002). If the final price is greater than the initial price, a supplement is paid to the growers; if the final price is less than the initial price, the government compensates the mills for the difference. imposes a 138% tariff rate on sugar imports but 110.45% of c.i.f. value for imports from the European Union. Turkey sets production quotas for refined beet sugar and corn sweeteners and administered floor prices for sugar beet. Quota A is set for domestic consumption; B (2% of A quota) is set to meet emergency needs; C sugar (produced in excess of A and B) is sold in the world market at prevailing prices below domestic prices as it cannot be sold domestically. Turkey sets a support price for sugar beet (TRL 50,000/kg in marketing year 2002). Retail prices are determined by market forces. Turkey United States Venezuela (1) (2) (3) (4) (5) has an MFN import duty of 0.625/lb (raw value) but most quota suppliers are exempt. The above-TRQ rate is 15.36¢/lb for raw sugar and 16.21¢/lb for refined sugar (TRQ was 1.361 million tons in 2001 and 1.289 million tons in 2002). Under NAFTA, Mexico has duty-free access to the U.S. of up to 25,000 MTRV until 2008 when all imports from Mexico are duty free. Raw sugar over-quota tariff for Mexico is 9.07¢/lb, which drops about 1.5¢/lb each year to zero by 2008. Sugarcane processors see a loan rate of $0.18/lb for raw cane sugar and $0.229/lb for refined beet sugar. Processors can forfeit sugar to the CCC if the minimum selling price is less than the loan rate plus the interest rate. The minimum raw sugar market price to discourage forfeitures is 19.86¢/lb for raw cane sugar and 24.78¢/lb for refined beet sugar. imposes a 15% tariff-rate (0% for the Andean Community) and an additional duty based on the price band system used in Colombia and Peru. Venezuela does not provide producer support prices. All policies are as of 2001/02. The Cuban sugar industry is currently undergoing significant restructuring. Poland is used to represent Eastern Europe as its production constitutes 60% of total sugar production in Eastern Europe. Rus s i ai sus e dt or e pr e s e ntt heFo r me rSov i e tUni o na si ti st her e g i on’ sl a r g e s ti mpor t e r .TheUk r a i nes e t smi ni mumpur c ha s epr i c e sf ors ug a rbe e t sa ndr e f i ne ds ug a ra tt he wholesale level. However, sugar prices are often below the mandated minimum. Regional average. 36 Table B1: Impacts of Trade Liberalization Reform on Sugar Price and Trade 01/02 02/03 03/04 04/05 05/06 06/07 Net Exporters Argentina Baseline Scenario 1 Change % chg 90 90 0.0 0.00% 114 110 -3.3 -2.91% 135 101 -34.2 -25.29% 136 67 -69.1 -50.75% Australia Baseline Scenario 1 Change % chg 3,646 3,646 0.0 0.00% 4,007 4,065 58.0 1.45% 4,398 4,677 278.7 6.34% 4,811 5,152 340.4 7.08% 4,920 5,282 362.7 7.37% 5,025 5,402 376.9 7.50% Brazil Baseline Scenario 1 Change % chg 9,500 9,500 0.0 0.00% 10,919 11,449 530.3 4.86% 11,147 12,878 1,731.4 15.53% 11,295 13,413 2,118.2 18.75% 11,243 13,519 2,275.7 20.24% Colombia Baseline Scenario 1 Change % chg 920 920 0.0 0.00% 913 894 -18.5 -2.02% 913 835 -78.0 -8.54% 924 783 -141.1 -15.27% Cuba Baseline Scenario 1 Change % chg 2,700 2,700 0.0 0.00% 2,625 2,683 58.7 2.23% 2,741 2,849 108.1 3.94% European Union Baseline Scenario 1 Change % chg 1,850 1,850 0.0 0.00% 3,065 2,198 -867.1 -28.29% 3,170 2,288 -881.6 -27.81% India Baseline Scenario 1 Change % chg 1,000 1,000 0.0 0.00% 1,067 558 -509.3 -47.74% 915 -85 -999.8 -109.25% Mexico Baseline Scenario 1 Change % chg 530 530 0.0 0.00% 702 622 -80.4 -11.44% 819 735 -84.0 -10.25% 909 828 -81.0 -8.92% Pakistan Baseline Scenario 1 Change % chg -200 -200 0.0 0.00% -288 -209 79.1 -27.50% -416 -314 102.5 -24.62% South Africa Baseline Scenario 1 Change % chg 1,230 1,230 0.0 0.00% 1,221 1,230 8.6 0.70% Thailand Baseline Scenario 1 Change % chg 3,550 3,550 0.0 0.00% Total Exports[2] Baseline Scenario 1 Change % chg Net Importers Algeria Baseline Scenario 1 Change % chg Average [1] 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 143 134 123 56 38 22 -86.3 -96.0 -100.9 -60.47% -71.62% -82.11% 115 10 -104.7 -90.90% 105 -3 -108.6 -102.98% 95 -18 -113.0 -118.45% 88 -30 -117.4 -134.07% 118.83 35.48 -83.35 -73.96% 5,130 5,512 382.5 7.46% 5,238 5,616 378.5 7.23% 5,346 5,719 373.1 6.98% 5,456 5,824 367.5 6.73% 5,568 5,931 362.4 6.51% 4,989.95 5,318.02 328.07 6.46% 11,351 13,712 2,360.9 20.80% 11,401 13,812 2,411.4 21.15% 11,377 13,812 2,435.1 21.40% 11,406 13,854 2,448.1 21.46% 11,456 13,914 2,457.9 21.46% 11,521 13,983 2,461.5 21.37% 11,311.48 13,434.52 2,123.04 18.70% 936 752 -183.9 -19.64% 956 739 -216.7 -22.67% 972 732 -240.3 -24.72% 987 729 -257.6 -26.10% 1,006 733 -272.8 -27.12% 1,027 740 -286.7 -27.91% 1,050 750 -299.7 -28.55% 968.40 768.88 -199.52 -20.25% 2,863 3,018 154.9 5.41% 3,002 3,198 195.4 6.51% 3,145 3,398 253.2 8.05% 3,293 3,600 307.5 9.34% 3,449 3,807 358.4 10.39% 3,611 4,016 405.6 11.23% 3,778 4,227 449.2 11.89% 3,953 4,442 489.3 12.38% 3,245.84 3,523.86 278.02 8.14% 3,248 2,432 -816.0 -25.12% 3,385 2,660 -724.9 -21.42% 3,555 2,867 -688.4 -19.36% 3,753 3,086 -666.4 -17.76% 3,960 3,327 -632.9 -15.98% 4,177 3,570 -607.1 -14.53% 4,403 3,817 -585.8 -13.31% 4,634 4,078 -555.7 -11.99% 3,734.87 3,032.31 -702.57 -19.56% 784 728 -172 -264 -956.8 -991.3 -121.99% -136.24% 673 -290 -962.6 -143.03% 622 -317 -938.9 -150.98% 589 -369 -958.4 -162.69% 559 -415 -974.2 -174.33% 530 -471 -1,001.1 -188.94% 507 -526 -1,032.7 -203.84% 697.32 -235.19 -932.51 -143.90% 991 914 -76.9 -7.76% 1,076 1,001 -75.6 -7.02% 1,234 1,159 -75.8 -6.14% 1,386 1,311 -75.5 -5.45% 1,546 1,470 -75.6 -4.89% 1,707 1,631 -76.2 -4.46% 1,812 1,736 -75.9 -4.19% 1,218.33 1,140.65 -77.68 -7.05% -459 -374 84.3 -18.37% -457 -397 60.7 -13.28% -445 -404 40.8 -9.16% -431 -404 26.8 -6.24% -415 -401 14.1 -3.40% -405 -403 1.7 -0.42% -401 -412 -10.8 2.69% -404 -428 -23.8 5.88% -412.19 -374.63 37.56 -9.44% 1,369 1,381 11.5 0.84% 1,440 1,445 4.6 0.32% 1,503 1,504 1.5 0.10% 1,551 1,554 3.0 0.19% 1,594 1,601 7.4 0.47% 1,634 1,646 12.8 0.78% 1,677 1,695 17.9 1.06% 1,718 1,741 22.1 1.29% 1,763 1,789 25.7 1.46% 1,547.00 1,558.50 11.50 0.72% 3,662 3,619 -42.5 -1.16% 3,816 3,690 -126.1 -3.31% 3,925 3,744 -180.8 -4.61% 4,042 3,819 -222.4 -5.50% 4,144 3,893 -250.9 -6.06% 4,241 3,973 -268.5 -6.33% 4,347 4,066 -281.2 -6.47% 4,452 4,161 -291.2 -6.54% 4,562 4,262 -300.4 -6.58% 4,607 4,297 -309.5 -6.72% 4,179.72 3,952.38 -227.35 -5.33% 25,316 25,316 0 0.00% 28,293 27,428 -865 -3.06% 29,423 29,434 11 0.04% 30,337 30,883 546 1.80% 30,892 31,705 813 2.63% 31,611 32,604 993 3.14% 32,366 33,497 1,131 3.50% 33,088 34,325 1,237 3.74% 33,893 35,218 1,325 3.91% 34,741 36,155 1,414 4.07% 35,508 37,005 1,497 4.22% 32,015.18 32,825.41 810.24 2.40% 940 940 0.0 0.00% 966 928 -37.4 -3.88% 974 952 -21.9 -2.25% 981 961 -20.3 -2.06% 990 971 -18.6 -1.88% 999 981 -18.3 -1.83% 1,009 991 -18.1 -1.79% 1,020 1,003 -17.5 -1.71% 1,031 1,014 -16.9 -1.64% 1,043 1,026 -16.2 -1.56% 1,055 1,039 -15.6 -1.48% 1,006.76 986.67 -20.09 -2.01% 37 Table B1: (continued) 01/02 02/03 03/04 04/05 05/06 06/07 Canada Baseline Scenario 1 Change % chg 1,094 1,094 0.0 0.00% 1,128 1,090 -37.6 -3.34% 1,144 1,121 -22.6 -1.97% 1,161 1,140 -21.0 -1.81% China Baseline Scenario 1 Change % chg 1,177 1,177 0.0 0.00% 1,159 212 -946.6 -81.71% 1,201 169 -1,031.9 -85.93% 1,169 268 -901.4 -77.10% 1,203 423 -780.7 -64.87% 1,219 523 -696.5 -57.13% Eastern Europe Baseline Scenario 1 Change % chg 1,029 1,029 0.0 0.00% 897 1,096 198.8 22.17% 966 1,307 340.5 35.23% 1,030 1,422 392.0 38.07% 1,067 1,469 401.9 37.67% Egypt Baseline Scenario 1 Change % chg 745 745 0.0 0.00% 747 524 -222.9 -29.84% 752 600 -151.1 -20.11% 778 633 -144.3 -18.55% Former Soviet Union Baseline Scenario 1 Change % chg 6,286 6,286 0.0 0.00% 7,565 7,656 91.3 1.21% 7,469 7,796 327.0 4.38% Indonesia Baseline Scenario 1 Change % chg 1,600 1,600 0.0 0.00% 1,406 1,307 -98.6 -7.01% Iran Baseline Scenario 1 Change % chg 1,200 1,200 0.0 0.00% Japan Baseline Scenario 1 Change % chg Average [1] 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 1,169 1,185 1,201 1,150 1,166 1,181 -19.4 -19.2 -19.3 -1.66% -1.62% -1.61% 1,217 1,198 -18.8 -1.54% 1,235 1,216 -18.5 -1.49% 1,255 1,237 -17.9 -1.43% 1,275 1,257 -17.5 -1.37% 1,196.84 1,175.65 -21.19 -1.79% 1,310 672 -637.6 -48.68% 1,478 896 -581.7 -39.36% 1,690 1,155 -534.6 -31.64% 1,923 1,435 -488.5 -25.40% 2,155 1,711 -443.5 -20.58% 1,450.67 746.37 -704.30 -53.24% 1,106 1,506 399.3 36.10% 1,139 1,532 393.3 34.54% 1,160 1,545 385.7 33.26% 1,176 1,554 378.5 32.20% 1,185 1,558 372.2 31.39% 1,187 1,553 365.9 30.82% 1,091.26 1,454.06 362.80 33.14% 792 651 -140.9 -17.78% 819 678 -141.4 -17.26% 850 708 -142.4 -16.74% 876 734 -141.9 -16.20% 904 762 -141.9 -15.70% 933 793 -140.6 -15.07% 961 821 -140.4 -14.60% 841.22 690.44 -150.77 -18.19% 7,520 8,075 555.4 7.39% 7,471 8,197 726.2 9.72% 7,516 8,363 847.1 11.27% 7,600 8,530 929.5 12.23% 7,651 8,635 984.4 12.87% 7,716 8,735 1,019.1 13.21% 7,791 8,832 1,041.4 13.37% 7,840 8,893 1,053.3 13.43% 7,613.89 8,371.37 757.47 9.91% 1,789 1,685 -103.8 -5.80% 2,003 1,895 -108.6 -5.42% 2,133 2,000 -132.8 -6.23% 2,230 2,087 -143.9 -6.45% 2,320 2,165 -155.2 -6.69% 2,401 2,228 -172.8 -7.19% 2,486 2,297 -189.0 -7.60% 2,579 2,374 -204.8 -7.94% 2,680 2,456 -224.6 -8.38% 2,202.74 2,049.34 -153.40 -6.87% 1,304 1,256 -47.7 -3.66% 1,357 1,323 -34.3 -2.53% 1,419 1,387 -32.1 -2.26% 1,478 1,449 -28.2 -1.91% 1,540 1,514 -26.8 -1.74% 1,606 1,580 -26.1 -1.63% 1,672 1,648 -24.6 -1.47% 1,740 1,717 -23.4 -1.34% 1,810 1,788 -21.9 -1.21% 1,885 1,865 -20.3 -1.08% 1,581.21 1,552.66 -28.55 -1.88% 1,548 1,548 0.0 0.00% 1,553 1,642 88.8 5.72% 1,536 1,647 110.8 7.21% 1,529 1,672 143.4 9.38% 1,524 1,692 167.6 10.99% 1,524 1,716 191.9 12.60% 1,525 1,737 211.7 13.88% 1,527 1,752 225.8 14.79% 1,529 1,767 237.4 15.52% 1,532 1,779 246.7 16.10% 1,535 1,789 253.6 16.52% 1,531.41 1,719.17 187.77 12.27% Malaysia Baseline Scenario 1 Change % chg 1,125 1,125 0.0 0.00% 1,051 1,016 -34.9 -3.32% 1,079 1,048 -31.6 -2.93% 1,113 1,078 -34.3 -3.08% 1,144 1,106 -38.6 -3.37% 1,185 1,144 -40.5 -3.42% 1,229 1,187 -41.9 -3.41% 1,272 1,228 -44.6 -3.51% 1,318 1,271 -47.1 -3.57% 1,365 1,316 -49.4 -3.62% 1,412 1,360 -52.6 -3.73% 1,216.80 1,175.24 -41.56 -3.40% Morocco Baseline Scenario 1 Change % chg 455 455 0.0 0.00% 490 500 10.0 2.04% 504 519 14.2 2.81% 521 540 18.2 3.50% 534 543 8.7 1.63% 549 556 6.5 1.18% 565 570 5.9 1.04% 578 585 6.9 1.20% 592 600 7.7 1.31% 606 615 8.7 1.44% 619 629 9.7 1.56% 555.86 565.51 9.65 1.77% Peru Baseline Scenario 1 Change % chg 70 70 0.0 0.00% 57 66 9.1 16.13% 34 66 31.4 91.60% 20 71 50.2 245.26% 8 0 71 72 62.4 71.3 736.45% 15833.03% -4 74 77.5 -2004.37% -7 75 82.2 -1206.55% -8 -8 78 82 86.4 90.6 -1041.19% -1112.87% -7 88 94.6 -1345.51% 8.61 74.18 65.56 1021.20% Philippines Baseline Scenario 1 Change % chg 133 133 0.0 0.00% 181 210 28.4 15.70% 204 321 117.5 57.67% 214 436 222.0 103.88% 211 517 306.5 145.48% 214 596 381.6 178.07% 220 660 440.6 200.42% 224 711 487.2 217.68% 229 758 528.6 230.79% 233 799 565.4 242.26% 236 835 599.0 254.00% 216.54 584.23 367.68 164.59% South Korea Baseline Scenario 1 Change % chg 1,225 1,225 0.0 0.00% 1,311 1,375 63.7 4.86% 1,352 1,434 81.8 6.05% 1,402 1,484 82.6 5.90% 1,439 1,526 86.6 6.02% 1,483 1,571 88.0 5.93% 1,528 1,617 89.4 5.85% 1,567 1,659 92.3 5.89% 1,604 1,699 95.1 5.93% 1,640 1,738 98.2 5.99% 1,671 1,772 101.4 6.07% 1,499.67 1,587.57 87.91 5.85% 38 Table B1: (continued) 01/02 02/03 03/04 04/05 Turkey Baseline Scenario 1 Change % chg -300 -300 0.0 0.00% 43 97 53.9 124.66% 104 161 57.5 55.56% United States Baseline Scenario 1 Change % chg 1,344 1,344 0.0 0.00% 1,616 2,723 1,106.7 68.46% Venezuela Baseline Scenario 1 Change % chg 92 92 0.0 0.00% Rest of World Baseline Scenario 1 Change % chg Total Imports[2] Baseline Scenario 1 Change % chg 05/06 06/07 Average [1] 07/08 08/09 09/10 10/11 11/12 137 187 50.0 36.45% (Thousand Metric Tons) 149 156 162 199 204 209 50.3 48.3 47.2 33.86% 30.96% 29.09% 165 213 48.7 29.56% 166 216 49.7 29.93% 167 218 51.0 30.47% 185 238 52.8 28.57% 143.36 194.29 50.93 42.91% 1,799 2,759 960.0 53.38% 1,966 2,910 944.3 48.03% 2,164 2,917 753.5 34.82% 2,397 3,021 623.7 26.02% 2,555 3,093 537.3 21.03% 2,707 3,146 439.0 16.22% 2,866 3,229 362.0 12.63% 3,028 3,300 272.1 8.99% 3,132 3,340 207.4 6.62% 2,423.20 3,043.80 620.61 29.62% 85 91 6.5 7.61% 106 128 21.8 20.60% 120 153 33.7 28.20% 124 168 43.9 35.37% 127 181 53.2 41.77% 129 190 61.5 47.71% 128 197 68.8 53.80% 126 202 75.5 59.86% 124 206 81.9 66.03% 121 208 87.5 72.32% 119.00 172.43 53.43 43.33% 4,152 4,152 0.0 0.00% 4,747 3,729 -1,017.7 -21.44% 4,937 4,301 -636.6 -12.89% 5,096 4,323 -772.3 -15.16% 5,133 4,295 -838.0 -16.32% 5,214 4,334 -879.5 -16.87% 5,288 4,379 -908.4 -17.18% 5,331 4,400 -930.6 -17.46% 5,380 4,428 -951.9 -17.69% 5,425 4,459 -966.1 -17.81% 5,455 4,469 -986.3 -18.08% 5,200.54 4,311.79 -888.75 -17.09% 25,316 25,316 0 0.00% 28,293 27,428 -865 -3.06% 29,423 29,434 11 0.04% 30,337 30,883 546 1.80% 30,892 31,705 813 2.63% 31,611 32,604 993 3.14% 32,366 33,497 1,131 3.50% 33,088 34,325 1,237 3.74% 33,893 35,218 1,325 3.91% 34,741 36,155 1,414 4.07% 35,508 37,005 1,497 4.22% 32,015.18 32,825.41 810.24 2.40% Sugar Prices FOB Caribbean Price Baseline Scenario 1 Change % chg (U.S. Dollars per Metric Ton) 190 190 0.0 0.00% 186 280 94.0 50.56% 199 267 68.3 34.38% 199 264 65.4 32.92% 211 276 64.5 30.55% 215 279 64.5 30.04% 216 281 64.4 29.80% 222 287 64.3 28.90% 227 292 64.2 28.23% 232 296 63.6 27.43% 239 302 63.6 26.65% 214.61 282.31 67.69 31.95% New York Spot Baseline Scenario 1 Change % chg 465 465 0.0 0.00% 458 302 -156.4 -34.13% 439 289 -149.7 -34.10% 427 286 -140.5 -32.92% 418 298 -120.5 -28.80% 409 301 -107.5 -26.31% 408 303 -105.3 -25.81% 407 309 -97.9 -24.09% 402 314 -88.6 -22.03% 396 318 -78.0 -19.71% 394 325 -69.9 -17.72% 415.78 304.35 -111.43 -26.56% [1] Average is the average for the period 2002/03 to 2011/12. Total exports (imports) are computed by summing up all positive (negative) exports and negative (positive) imports and not by summing trade flows of net exporters (importers). Scenario 1 = Trade Liberalization Reform [2] 39 Table B2: Impacts of Trade Liberalization Reform on Sugar Production and Consumption World Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Algeria Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Argentina Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Australia Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Brazil Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Canada Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 127 127 0.0 0.00% 134 134 0.0 -0.02% 136 138 1.7 1.27% 139 141 1.6 1.13% 141 143 1.4 1.01% 132 132 0.0 0.00% 135 134 -0.7 -0.54% 137 138 0.9 0.62% 139 140 1.0 0.71% 142 143 1.1 0.74% 10 10 0.0 0.00% 10 10 0.0 0.00% 10 10 0.3 2.70% 10 11 0.3 2.96% 950 950 0.0 0.00% 976 940 -36.7 -3.76% 985 963 -21.6 -2.19% 992 972 -19.9 -2.01% 1,000 982 -18.4 -1.84% 1,010 992 -18.0 -1.79% 1,540 1,540 0.0 0.00% 1,587 1,587 0.0 0.00% 1,622 1,620 -1.7 -0.11% 1,648 1,610 -37.6 -2.28% 1,667 1,613 -53.6 -3.21% 1,470 1,470 0.0 0.00% 1,472 1,475 2.6 0.18% 1,487 1,513 25.2 1.70% 1,509 1,537 28.2 1.87% 4,662 4,662 0.0 0.00% 5,035 5,035 0.0 0.00% 5,437 5,682 245.6 4.52% 1,020 1,020 0.0 0.00% 1,031 1,004 -26.6 -2.58% 18,500 18,500 0.0 0.00% Average [1] 07/08 08/09 09/10 10/11 11/12 (Million Metric Tons) 144 146 145 147 1.3 1.3 0.92% 0.88% 148 150 1.2 0.83% 151 152 1.2 0.78% 153 155 1.2 0.75% 156 157 1.1 0.72% 144.82 146.02 1.20 0.83% 146 147 1.0 0.71% 149 150 1.0 0.70% 151 152 1.0 0.69% 154 155 1.1 0.68% 156 157 0.8 0.54% 145.25 146.08 0.82 0.56% (Thousand Metric Tons) 10 10 10 11 11 11 0.3 0.3 0.3 2.95% 2.82% 2.70% 10 11 0.3 2.61% 10 11 0.3 2.51% 11 11 0.3 2.40% 11 11 0.2 2.28% 10.35 10.60 0.25 2.39% 1,020 1,002 -17.9 -1.75% 1,031 1,014 -17.2 -1.67% 1,042 1,025 -16.7 -1.61% 1,053 1,037 -16.0 -1.52% 1,066 1,050 -15.4 -1.45% 1,017.42 997.65 -19.78 -1.96% 1,680 1,617 -63.4 -3.77% 1,691 1,623 -68.0 -4.02% 1,700 1,630 -70.3 -4.14% 1,710 1,637 -73.4 -4.29% 1,720 1,643 -76.2 -4.43% 1,729 1,649 -79.6 -4.60% 1,675.39 1,623.02 -52.37 -3.09% 1,526 1,556 29.9 1.96% 1,547 1,577 30.6 1.98% 1,569 1,600 31.1 1.99% 1,589 1,621 32.0 2.01% 1,610 1,643 32.7 2.03% 1,631 1,665 33.9 2.08% 1,652 1,686 34.6 2.09% 1,559.19 1,587.28 28.08 1.79% 5,862 6,175 313.1 5.34% 5,978 6,315 337.7 5.65% 6,093 6,447 353.5 5.80% 6,210 6,570 360.6 5.81% 6,327 6,684 357.3 5.65% 6,445 6,797 352.2 5.47% 6,564 6,911 346.8 5.28% 6,684 7,026 341.8 5.11% 6,063.38 6,364.24 300.86 4.86% 1,041 1,018 -22.5 -2.16% 1,053 1,030 -22.3 -2.12% 1,059 1,038 -21.7 -2.04% 1,069 1,047 -21.7 -2.03% 1,081 1,059 -21.9 -2.02% 1,090 1,068 -21.7 -2.00% 1,099 1,078 -21.7 -1.98% 1,108 1,087 -21.6 -1.95% 1,117 1,095 -21.5 -1.93% 1,074.69 1,052.37 -22.32 -2.08% 20,624 20,597 -26.6 -0.13% 21,077 22,453 1,375.8 6.53% 21,442 23,215 1,773.0 8.27% 21,591 23,531 1,939.1 8.98% 21,893 23,910 2,016.4 9.21% 22,118 24,175 2,056.9 9.30% 22,251 24,327 2,075.7 9.33% 22,415 24,496 2,081.6 9.29% 22,577 24,663 2,085.8 9.24% 22,729 24,812 2,082.7 9.16% 21,871.81 23,617.86 1,746.05 7.92% 9,450 9,450 0.0 0.00% 9,706 9,277 -428.8 -4.42% 9,936 9,592 -343.9 -3.46% 10,154 9,808 -345.7 -3.40% 10,355 10,016 -338.5 -3.27% 10,549 10,203 -346.0 -3.28% 10,723 10,367 -356.0 -3.32% 10,879 10,518 -360.9 -3.32% 11,014 10,646 -367.9 -3.34% 11,125 10,751 -374.1 -3.36% 11,211 10,831 -380.3 -3.39% 10,565.25 10,201.03 -364.23 -3.46% 115 115 0.0 0.00% 116 116 0.0 0.00% 116 117 1.5 1.28% 116 117 1.1 0.97% 116 117 1.0 0.84% 116 117 0.9 0.77% 116 117 0.9 0.78% 116 117 0.9 0.76% 116 117 0.9 0.78% 116 117 0.9 0.76% 117 118 0.9 0.74% 116.21 117.11 0.90 0.77% 1,240 1,240 0.0 0.00% 1,252 1,222 -29.8 -2.38% 1,259 1,238 -21.1 -1.67% 1,273 1,252 -20.4 -1.60% 1,280 1,262 -18.9 -1.48% 1,295 1,277 -18.7 -1.44% 1,311 1,293 -18.7 -1.42% 1,327 1,309 -18.1 -1.37% 1,345 1,327 -17.8 -1.32% 1,365 1,348 -17.3 -1.27% 1,386 1,369 -16.8 -1.21% 1,309.39 1,289.63 -19.76 -1.52% 144 145 1.0 0.72% 40 Table B2: (continued) China Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Colombia Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Cuba Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Eastern Europe Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Egypt Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg European Union Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 7,623 7,623 0.0 0.00% 7,735 7,735 0.0 0.00% 7,824 8,432 607.7 7.77% 8,026 8,557 530.5 6.61% 8,800 8,800 0.0 0.00% 8,903 8,071 -832.6 -9.35% 9,046 8,612 -434.6 -4.80% 9,203 8,820 -382.6 -4.16% 9,396 9,072 -323.9 -3.45% 9,582 9,284 -297.7 -3.11% 2,265 2,265 0.0 0.00% 2,290 2,290 0.0 0.00% 2,309 2,272 -37.4 -1.62% 2,350 2,252 -98.5 -4.19% 2,382 2,242 -140.5 -5.90% 1,350 1,350 0.0 0.00% 1,378 1,395 16.9 1.23% 1,398 1,436 38.1 2.72% 1,425 1,467 41.3 2.90% 3,200 3,200 0.0 0.00% 3,329 3,329 0.0 0.00% 3,463 3,536 73.4 2.12% 700 700 0.0 0.00% 718 665 -52.5 -7.32% 3,188 3,188 0.0 0.00% Average [1] 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 8,180 8,359 8,494 8,650 8,767 8,863 469.6 407.6 369.1 5.74% 4.88% 4.35% 8,593 8,934 340.8 3.97% 8,713 9,025 311.5 3.57% 8,846 9,135 288.4 3.26% 8,980 9,244 263.8 2.94% 8,375.08 8,733.96 358.88 4.31% 9,802 9,526 -275.2 -2.81% 10,075 9,827 -247.4 -2.46% 10,412 10,184 -228.4 -2.19% 10,782 10,576 -205.3 -1.90% 11,149 10,965 -184.6 -1.66% 9,834.95 9,493.71 -341.24 -3.59% 2,429 2,256 -173.0 -7.12% 2,472 2,276 -195.9 -7.92% 2,511 2,299 -212.5 -8.46% 2,555 2,328 -226.9 -8.88% 2,600 2,361 -239.7 -9.22% 2,646 2,394 -252.1 -9.53% 2,454.63 2,296.99 -157.64 -6.28% 1,447 1,489 42.5 2.94% 1,472 1,516 43.2 2.94% 1,499 1,543 44.1 2.94% 1,524 1,569 44.9 2.94% 1,549 1,595 45.6 2.94% 1,573 1,620 46.7 2.97% 1,597 1,644 47.3 2.96% 1,486.29 1,527.34 41.05 2.75% 3,608 3,731 122.8 3.40% 3,758 3,923 165.0 4.39% 3,918 4,141 222.9 5.69% 4,083 4,361 277.3 6.79% 4,253 4,581 328.7 7.73% 4,428 4,805 376.2 8.49% 4,610 5,031 420.5 9.12% 4,798 5,259 461.0 9.61% 4,024.91 4,269.67 244.76 5.73% 728 694 -33.9 -4.65% 744 712 -32.0 -4.30% 754 724 -30.5 -4.05% 769 738 -30.4 -3.95% 784 754 -30.3 -3.87% 798 768 -29.9 -3.74% 812 782 -29.5 -3.64% 826 797 -28.9 -3.50% 839 811 -28.5 -3.40% 777.13 744.48 -32.64 -4.24% 3,363 3,363 0.0 0.00% 3,326 3,148 -177.6 -5.34% 3,303 3,031 -272.3 -8.25% 3,285 2,977 -307.5 -9.36% 3,269 2,951 -317.7 -9.72% 3,253 2,935 -317.8 -9.77% 3,238 2,924 -314.1 -9.70% 3,222 2,913 -309.3 -9.60% 3,207 2,902 -304.1 -9.48% 3,191 2,891 -299.5 -9.39% 3,265.61 3,003.62 -261.98 -8.06% 4,217 4,217 0.0 0.00% 4,263 4,329 66.2 1.55% 4,295 4,375 80.0 1.86% 4,326 4,408 81.4 1.88% 4,347 4,425 78.3 1.80% 4,364 4,442 77.4 1.77% 4,377 4,454 77.0 1.76% 4,381 4,457 75.4 1.72% 4,379 4,454 74.2 1.69% 4,371 4,445 73.2 1.67% 4,356 4,428 71.5 1.64% 4,346.01 4,421.47 75.46 1.74% 1,375 1,375 0.0 0.00% 1,410 1,410 0.0 0.00% 1,437 1,437 0.0 0.00% 1,462 1,462 0.0 0.00% 1,487 1,487 0.0 0.00% 1,512 1,512 0.0 0.00% 1,537 1,537 0.0 0.00% 1,563 1,563 0.0 0.00% 1,589 1,589 0.0 0.00% 1,615 1,615 0.0 0.00% 1,642 1,642 0.0 0.00% 1,525.31 1,525.31 0.00 0.00% 2,080 2,080 0.0 0.00% 2,137 1,912 -225.9 -10.57% 2,177 2,025 -152.4 -7.00% 2,233 2,087 -145.2 -6.50% 2,277 2,135 -141.6 -6.22% 2,331 2,189 -142.1 -6.10% 2,389 2,246 -143.0 -5.99% 2,441 2,299 -142.5 -5.84% 2,496 2,354 -142.5 -5.71% 2,552 2,411 -141.1 -5.53% 2,608 2,467 -140.8 -5.40% 2,364.13 2,212.42 -151.71 -6.48% 16,178 16,178 0.0 0.00% 17,835 17,835 0.0 0.00% 18,013 18,013 0.0 0.00% 18,141 18,141 0.0 0.00% 18,318 18,318 0.0 0.00% 18,522 18,522 0.0 0.00% 18,746 18,746 0.0 0.00% 18,982 18,982 0.0 0.00% 19,229 19,229 0.0 0.00% 19,486 19,486 0.0 0.00% 19,752 19,752 0.0 0.00% 18,702.35 18,702.35 0.00 0.00% 14,700 14,700 0.0 0.00% 14,768 15,425 657.8 4.45% 14,815 15,563 748.1 5.05% 14,851 15,601 749.1 5.04% 14,888 15,593 705.5 4.74% 14,921 15,607 685.4 4.59% 14,950 15,620 670.0 4.48% 14,982 15,625 643.4 4.29% 15,015 15,635 619.9 4.13% 15,050 15,649 599.0 3.98% 15,088 15,659 571.2 3.79% 14,932.70 15,597.65 664.94 4.46% 41 Table B2: (continued) Former Soviet Union Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg India Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Indonesia Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Iran Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Japan Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Malaysia Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 4,111 4,111 0.0 0.00% 4,250 4,250 0.0 0.00% 4,327 4,212 -115.9 -2.68% 4,412 4,037 -374.6 -8.49% 11,649 11,649 0.0 0.00% 11,819 11,870 51.6 0.44% 11,846 11,976 129.4 1.09% 11,985 12,118 133.3 1.11% 12,013 12,146 132.2 1.10% 12,124 12,254 129.3 1.07% 18,350 18,350 0.0 0.00% 18,801 18,801 0.0 0.00% 19,206 19,206 0.0 0.00% 19,641 19,641 0.0 0.00% 20,070 20,070 0.0 0.00% 18,000 18,000 0.0 0.00% 18,426 18,768 341.4 1.85% 18,795 19,514 718.7 3.82% 19,234 20,002 768.2 3.99% 1,700 1,700 0.0 0.00% 1,619 1,619 0.0 0.00% 1,593 1,620 26.6 1.67% 3,400 3,400 0.0 0.00% 3,481 3,406 -74.4 -2.14% 775 775 0.0 0.00% Average [1] 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 4,462 4,529 4,580 3,893 3,823 3,781 -569.0 -706.5 -799.1 -12.75% -15.60% -17.45% 4,614 3,754 -859.8 -18.64% 4,650 3,751 -898.9 -19.33% 4,686 3,764 -922.3 -19.68% 4,719 3,782 -937.4 -19.86% 4,523.13 3,904.78 -618.35 -13.45% 12,256 12,383 126.5 1.03% 12,348 12,473 124.3 1.01% 12,453 12,575 122.1 0.98% 12,565 12,686 121.0 0.96% 12,654 12,773 118.9 0.94% 12,206.35 12,325.21 118.86 0.97% 20,507 20,507 0.0 0.00% 20,940 20,940 0.0 0.00% 21,371 21,371 0.0 0.00% 21,804 21,804 0.0 0.00% 22,237 22,237 0.0 0.00% 22,670 22,670 0.0 0.00% 20,724.70 20,724.70 0.00 0.00% 19,633 20,462 829.4 4.22% 20,065 20,918 853.1 4.25% 20,511 21,383 872.3 4.25% 20,947 21,854 906.4 4.33% 21,392 22,329 936.5 4.38% 21,842 22,815 972.6 4.45% 22,291 23,298 1,007.4 4.52% 20,313.63 21,134.24 820.60 4.01% 1,593 1,620 26.7 1.67% 1,617 1,642 25.8 1.59% 1,652 1,676 23.7 1.43% 1,694 1,717 22.5 1.33% 1,739 1,761 22.1 1.27% 1,788 1,809 21.4 1.20% 1,838 1,858 20.6 1.12% 1,889 1,908 19.6 1.04% 1,702.10 1,723.01 20.90 1.23% 3,569 3,498 -71.1 -1.99% 3,676 3,597 -79.3 -2.16% 3,788 3,687 -101.4 -2.68% 3,905 3,789 -116.4 -2.98% 4,031 3,900 -130.3 -3.23% 4,155 4,007 -148.0 -3.56% 4,288 4,122 -165.5 -3.86% 4,431 4,249 -182.7 -4.12% 4,585 4,382 -203.3 -4.43% 3,990.96 3,863.72 -127.24 -3.12% 742 742 0.0 0.00% 749 762 12.9 1.72% 759 772 13.3 1.75% 768 781 12.7 1.66% 779 791 11.7 1.50% 789 800 11.0 1.39% 799 809 10.5 1.31% 809 819 9.9 1.22% 819 828 9.3 1.14% 825 833 8.7 1.05% 783.70 793.70 9.99 1.27% 2,000 2,000 0.0 0.00% 2,057 2,022 -35.7 -1.74% 2,118 2,098 -19.8 -0.93% 2,187 2,168 -18.6 -0.85% 2,256 2,240 -16.1 -0.71% 2,329 2,313 -15.7 -0.68% 2,404 2,388 -15.7 -0.66% 2,480 2,465 -14.8 -0.60% 2,558 2,544 -14.2 -0.55% 2,638 2,625 -13.3 -0.50% 2,720 2,707 -12.4 -0.46% 2,374.63 2,356.98 -17.65 -0.77% 795 795 0.0 0.00% 803 803 0.0 0.00% 814 792 -22.2 -2.73% 827 770 -57.9 -6.99% 840 751 -88.4 -10.53% 852 735 -117.3 -13.77% 863 721 -141.7 -16.42% 873 711 -161.8 -18.53% 882 703 -179.6 -20.36% 891 695 -195.2 -21.92% 898 689 -209.2 -23.29% 854.26 736.93 -117.33 -13.46% 2,350 2,350 0.0 0.00% 2,341 2,423 81.4 3.48% 2,344 2,430 85.2 3.63% 2,354 2,439 84.3 3.58% 2,364 2,443 79.1 3.35% 2,376 2,451 75.0 3.16% 2,388 2,458 70.6 2.96% 2,400 2,464 64.8 2.70% 2,411 2,470 58.6 2.43% 2,423 2,475 52.3 2.16% 2,433 2,478 45.4 1.87% 2,383.36 2,453.02 69.66 2.93% 112 112 0.0 0.00% 116 116 0.0 0.00% 121 121 0.0 0.00% 125 125 0.0 0.00% 129 129 0.0 0.00% 132 132 0.0 0.00% 136 136 0.0 0.00% 140 140 0.0 0.00% 144 144 0.0 0.00% 149 149 0.0 0.00% 153 153 0.0 0.00% 134.52 134.52 0.00 0.00% 1,100 1,100 0.0 0.00% 1,145 1,111 -33.9 -2.96% 1,185 1,154 -31.3 -2.64% 1,227 1,193 -34.0 -2.77% 1,267 1,228 -38.2 -3.01% 1,313 1,273 -40.2 -3.06% 1,363 1,322 -41.7 -3.06% 1,412 1,368 -44.4 -3.14% 1,463 1,416 -46.9 -3.21% 1,515 1,466 -49.2 -3.25% 1,567 1,515 -52.5 -3.35% 1,345.74 1,304.52 -41.23 -3.05% 42 Table B2: (continued) Mexico Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Morocco Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Pakistan Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Peru Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Philippines Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg South Africa Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg 01/02 02/03 03/04 04/05 5,092 5,092 0.0 0.00% 5,277 5,277 0.0 0.00% 5,423 5,423 0.0 0.00% 4,543 4,543 0.0 0.00% 4,574 4,634 60.1 1.31% 545 545 0.0 0.00% 05/06 06/07 Average [1] 07/08 08/09 09/10 10/11 11/12 5,560 5,560 0.0 0.00% (Thousand Metric Tons) 5,690 5,817 6,037 5,690 5,817 6,037 0.0 0.0 0.0 0.00% 0.00% 0.00% 6,248 6,248 0.0 0.00% 6,467 6,467 0.0 0.00% 6,688 6,688 0.0 0.00% 6,850 6,850 0.0 0.00% 6,005.68 6,005.68 0.00 0.00% 4,607 4,678 71.3 1.55% 4,655 4,729 74.6 1.60% 4,705 4,779 73.7 1.57% 4,747 4,821 74.4 1.57% 4,810 4,886 75.8 1.58% 4,870 4,946 76.1 1.56% 4,931 5,007 76.5 1.55% 4,990 5,067 77.2 1.55% 5,047 5,124 76.9 1.52% 4,793.55 4,867.21 73.66 1.54% 537 537 0.0 0.00% 545 545 0.0 0.00% 553 553 0.0 0.00% 563 563 0.0 0.00% 572 572 0.0 0.00% 582 582 0.0 0.00% 592 592 0.0 0.00% 603 603 0.0 0.00% 613 613 0.0 0.00% 623 623 0.0 0.00% 578.34 578.34 0.00 0.00% 1,000 1,000 0.0 0.00% 1,028 1,039 10.2 0.99% 1,049 1,064 14.5 1.38% 1,074 1,093 18.6 1.73% 1,095 1,104 8.7 0.79% 1,120 1,126 6.4 0.57% 1,145 1,151 5.8 0.51% 1,168 1,175 6.9 0.59% 1,192 1,200 7.7 0.65% 1,217 1,225 8.8 0.72% 1,241 1,250 9.7 0.78% 1,132.94 1,142.67 9.72 0.87% 3,006 3,006 0.0 0.00% 2,994 2,994 0.0 0.00% 3,012 3,090 78.5 2.61% 3,051 3,117 65.5 2.15% 3,107 3,159 51.6 1.66% 3,174 3,207 33.7 1.06% 3,247 3,268 20.6 0.64% 3,326 3,338 11.7 0.35% 3,408 3,410 2.2 0.07% 3,492 3,486 -6.7 -0.19% 3,579 3,563 -15.9 -0.44% 3,238.97 3,263.10 24.13 0.79% 3,450 3,450 0.0 0.00% 3,478 3,397 -80.4 -2.31% 3,502 3,479 -23.7 -0.68% 3,539 3,520 -18.7 -0.53% 3,577 3,568 -8.9 -0.25% 3,625 3,618 -7.0 -0.19% 3,682 3,676 -6.2 -0.17% 3,745 3,743 -2.3 -0.06% 3,817 3,818 0.6 0.02% 3,898 3,902 4.2 0.11% 3,988 3,996 8.0 0.20% 3,685.28 3,671.85 -13.43 -0.39% 810 810 0.0 0.00% 840 840 0.0 0.00% 875 867 -8.4 -0.96% 907 882 -25.6 -2.82% 935 898 -37.2 -3.98% 964 918 -45.9 -4.76% 991 940 -51.9 -5.23% 1,018 961 -56.2 -5.52% 1,045 984 -60.2 -5.76% 1,072 1,008 -63.8 -5.95% 1,100 1,032 -67.6 -6.14% 974.77 933.10 -41.67 -4.11% 880 880 0.0 0.00% 897 906 8.8 0.98% 910 933 22.4 2.46% 929 953 24.3 2.62% 945 970 24.9 2.64% 966 991 25.2 2.61% 989 1,014 25.6 2.59% 1,012 1,038 25.9 2.56% 1,038 1,064 26.2 2.52% 1,065 1,092 26.7 2.51% 1,095 1,121 26.9 2.46% 984.67 1,008.36 23.69 2.39% 1,800 1,800 0.0 0.00% 1,789 1,789 0.0 0.00% 1,794 1,746 -48.0 -2.68% 1,818 1,674 -144.3 -7.94% 1,845 1,627 -218.7 -11.85% 1,874 1,585 -288.6 -15.40% 1,902 1,559 -343.0 -18.04% 1,929 1,545 -383.3 -19.87% 1,955 1,537 -418.7 -21.41% 1,982 1,533 -449.0 -22.65% 2,008 1,532 -475.9 -23.70% 1,889.67 1,612.72 -276.95 -14.35% 1,950 1,950 0.0 0.00% 1,984 2,014 30.3 1.53% 2,010 2,084 73.3 3.64% 2,042 2,123 80.2 3.92% 2,067 2,156 89.6 4.33% 2,096 2,191 94.4 4.50% 2,129 2,227 98.7 4.64% 2,159 2,264 105.1 4.87% 2,191 2,302 111.0 5.07% 2,222 2,340 117.6 5.29% 2,250 2,375 124.2 5.52% 2,115.09 2,207.52 92.43 4.33% 2,690 2,690 0.0 0.00% 2,940 2,940 0.0 0.00% 3,076 3,095 18.3 0.60% 3,167 3,174 6.5 0.21% 3,235 3,235 0.7 0.02% 3,291 3,292 0.7 0.02% 3,342 3,347 5.2 0.15% 3,389 3,400 10.8 0.32% 3,435 3,451 16.2 0.47% 3,480 3,501 20.8 0.60% 3,524 3,549 24.2 0.69% 3,288.02 3,298.37 10.36 0.31% 1,665 1,665 0.0 0.00% 1,685 1,683 -1.4 -0.08% 1,700 1,700 0.3 0.02% 1,718 1,718 0.2 0.01% 1,732 1,732 0.0 0.00% 1,732 1,732 -0.3 -0.02% 1,738 1,737 -0.5 -0.03% 1,745 1,744 -0.6 -0.04% 1,745 1,744 -0.7 -0.04% 1,746 1,745 -0.7 -0.04% 1,748 1,747 -0.8 -0.05% 1,728.80 1,728.34 -0.45 -0.03% 43 Table B2: (continued) South Korea Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Thailand Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Turkey Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg United States Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg Venezuela Production Baseline Scenario 1 Change % chg Consumption Baseline Scenario 1 Change % chg 01/02 02/03 03/04 04/05 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 1,230 1,230 0.0 0.00% 1,293 1,346 52.4 4.06% 5,225 5,225 0.0 0.00% 05/06 06/07 Average [1] 07/08 08/09 09/10 10/11 11/12 0 0 0.0 0.00% (Thousand Metric Tons) 0 0 0 0 0 0 0.0 0.0 0.0 0.00% 0.00% 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0.00 0.00 0.00 0.00% 1,342 1,414 71.9 5.36% 1,396 1,472 76.1 5.46% 1,437 1,518 81.4 5.66% 1,483 1,568 84.5 5.70% 1,530 1,617 87.3 5.71% 1,570 1,661 90.9 5.79% 1,608 1,702 94.2 5.86% 1,644 1,741 97.7 5.94% 1,675 1,776 101.1 6.03% 1,497.67 1,581.43 83.76 5.56% 5,505 5,505 0.0 0.00% 5,697 5,668 -29.6 -0.52% 5,866 5,783 -83.5 -1.42% 6,032 5,914 -117.2 -1.94% 6,199 6,053 -145.4 -2.35% 6,369 6,206 -162.9 -2.56% 6,541 6,370 -171.3 -2.62% 6,717 6,539 -177.6 -2.64% 6,895 6,713 -182.0 -2.64% 7,012 6,826 -186.4 -2.66% 6,283.39 6,157.79 -125.60 -1.94% 1,750 1,750 0.0 0.00% 1,807 1,841 34.8 1.92% 1,862 1,946 84.1 4.51% 1,922 2,013 90.4 4.70% 1,982 2,082 99.5 5.02% 2,047 2,149 102.7 5.02% 2,114 2,220 105.6 5.00% 2,183 2,294 110.7 5.07% 2,254 2,369 115.0 5.10% 2,327 2,446 119.6 5.14% 2,401 2,525 124.2 5.17% 2,090.00 2,188.66 98.66 4.67% 1,900 1,900 0.0 0.00% 1,964 1,964 0.0 0.00% 1,956 1,956 0.0 0.00% 1,975 1,975 0.0 0.00% 2,002 2,002 0.0 0.00% 2,038 2,038 0.0 0.00% 2,075 2,075 0.0 0.00% 2,112 2,112 0.0 0.00% 2,150 2,150 0.0 0.00% 2,190 2,190 0.0 0.00% 2,212 2,212 0.0 0.00% 2,067.43 2,067.43 0.00 0.00% 2,000 2,000 0.0 0.00% 2,041 2,069 28.4 1.39% 2,077 2,116 38.3 1.84% 2,117 2,157 40.0 1.89% 2,154 2,197 42.3 1.96% 2,194 2,237 43.4 1.98% 2,234 2,279 44.4 1.99% 2,274 2,320 45.8 2.01% 2,314 2,361 47.1 2.03% 2,355 2,403 48.5 2.06% 2,395 2,445 49.9 2.08% 2,215.55 2,258.36 42.81 1.92% 7,189 7,189 0.0 0.00% 7,924 7,924 0.0 0.00% 8,065 7,478 -587.7 -7.29% 8,034 7,441 -592.9 -7.38% 7,983 7,498 -485.0 -6.07% 7,942 7,580 -362.0 -4.56% 7,906 7,670 -236.1 -2.99% 7,917 7,729 -188.1 -2.38% 7,940 7,787 -153.2 -1.93% 7,958 7,856 -101.8 -1.28% 7,983 7,922 -61.5 -0.77% 7,965.40 7,688.57 -276.83 -3.46% 9,335 9,335 0.0 0.00% 9,469 9,673 204.2 2.16% 9,669 9,862 192.5 1.99% 9,853 10,031 177.9 1.81% 10,026 10,176 150.0 1.50% 10,203 10,335 131.7 1.29% 10,362 10,488 126.3 1.22% 10,517 10,632 114.6 1.09% 10,676 10,777 101.1 0.95% 10,834 10,921 86.6 0.80% 10,976 11,050 74.3 0.68% 10,258.58 10,394.51 135.93 1.35% 710 710 0.0 0.00% 711 711 0.0 0.00% 721 717 -3.7 -0.52% 731 718 -13.3 -1.82% 740 718 -22.4 -3.03% 748 717 -31.0 -4.15% 756 717 -38.7 -5.12% 763 718 -45.5 -5.97% 770 718 -51.8 -6.72% 776 719 -57.4 -7.40% 782 720 -62.7 -8.01% 749.92 717.25 -32.67 -4.27% 850 850 0.0 0.00% 856 863 7.0 0.82% 861 880 19.5 2.27% 868 890 21.4 2.47% 873 895 22.1 2.54% 879 901 22.6 2.57% 885 908 23.1 2.61% 889 912 23.5 2.65% 892 916 23.9 2.68% 896 920 24.6 2.74% 898 923 24.9 2.77% 879.56 900.83 21.28 2.41% [1] Average is the average for the period 2002/03 to 2011/12. Scenario 1 = Trade Liberalization Reform 44 Table C1: Impacts of Trade Liberalization and Domestic Production Subsidy Reforms on Sugar Price and Trade 07/08 08/09 09/10 10/11 11/12 Average[1] (Thousand Metric Tons) 143 134 123 299 268 242 156.2 134.5 119.3 109.53% 100.38% 97.05% 115 223 107.8 93.60% 105 200 94.8 89.89% 95 177 81.5 85.40% 88 157 69.1 78.83% 118.83 245.60 126.77 104.55% 5,130 5,952 822.4 16.03% 5,238 6,033 795.0 15.18% 5,346 6,112 765.7 14.32% 5,456 6,190 733.3 13.44% 5,568 6,273 705.0 12.66% 4,989.95 5,691.56 701.60 13.88% 11,351 16,786 5,435.3 47.88% 11,401 16,811 5,409.9 47.45% 11,377 16,728 5,350.8 47.03% 11,406 16,674 5,267.9 46.19% 11,456 16,609 5,153.4 44.99% 11,521 16,552 5,030.5 43.66% 11,311.48 16,045.25 4,733.77 41.72% 936 1,046 110.1 11.76% 956 1,041 85.2 8.91% 972 1,033 60.9 6.27% 987 1,027 40.1 4.06% 1,006 1,024 18.4 1.83% 1,027 1,022 -4.7 -0.45% 1,050 1,022 -27.4 -2.61% 968.40 1,031.15 62.75 6.74% 2,863 3,338 474.9 16.59% 3,002 3,625 623.0 20.75% 3,145 3,912 767.5 24.40% 3,293 4,188 895.6 27.20% 3,449 4,461 1,012.0 29.34% 3,611 4,725 1,114.8 30.88% 3,778 4,982 1,203.7 31.86% 3,953 5,234 1,281.4 32.42% 3,245.84 4,028.13 782.29 23.01% 3,170 -7,758 -10,927.5 -344.76% 3,248 -8,894 -12,142.1 -373.78% 3,385 -9,165 -12,549.1 -370.77% 3,555 -9,124 -12,679.5 -356.63% 3,753 -8,934 -12,686.7 -338.09% 3,960 -8,649 -12,608.2 -318.42% 4,177 -8,306 -12,483.3 -298.87% 4,403 -7,944 -12,346.9 -280.45% 4,634 -7,555 -12,189.2 -263.04% 3,734.87 -8,214.96 -11,949.83 -323.47% 1,067 1,495 427.9 40.11% 915 78 -836.7 -91.43% 784 -19 -803.0 -102.38% 728 -279 -1,006.8 -138.37% 673 -352 -1,024.7 -152.27% 622 -338 -959.4 -154.29% 589 -342 -930.6 -157.97% 559 -351 -910.0 -162.82% 530 -349 -879.0 -165.90% 507 -352 -858.4 -169.42% 697.32 -80.75 -778.07 -125.47% 530 530 0.0 0.00% 702 669 -33.5 -4.76% 819 815 -4.6 -0.56% 909 298 -610.8 -67.21% 991 326 -665.5 -67.15% 1,076 414 -662.7 -61.56% 1,234 561 -673.1 -54.53% 1,386 721 -665.0 -47.97% 1,546 929 -616.9 -39.91% 1,707 1,127 -580.1 -33.98% 1,812 1,272 -539.4 -29.78% 1,218.33 713.16 -505.17 -40.74% Pakistan Baseline Scenario 2 Change % chg -200 -200 0.0 0.00% -288 61 349.2 -121.35% -416 170 586.5 -140.88% -459 177 636.2 -138.67% -457 198 654.9 -143.19% -445 196 641.2 -144.00% -431 190 621.0 -144.24% -415 181 596.0 -143.45% -405 161 566.0 -139.70% -401 132 533.1 -132.89% -404 95 499.4 -123.60% -412.19 156.16 568.35 -137.20% South Africa Baseline Scenario 2 Change % chg 1,230 1,230 0.0 0.00% 1,221 1,295 73.9 6.05% 1,369 1,520 150.6 11.00% 1,440 1,620 179.8 12.48% 1,503 1,707 203.9 13.57% 1,551 1,765 214.5 13.83% 1,594 1,814 220.2 13.82% 1,634 1,858 223.8 13.70% 1,677 1,900 223.4 13.32% 1,718 1,938 219.4 12.77% 1,763 1,977 213.8 12.13% 1,547.00 1,739.34 192.34 12.27% Thailand Baseline Scenario 2 Change % chg 3,550 3,550 0.0 0.00% 3,662 3,825 163.8 4.47% 3,816 3,951 135.4 3.55% 3,925 4,052 126.6 3.23% 4,042 4,132 90.2 2.23% 4,144 4,198 53.7 1.30% 4,241 4,268 26.6 0.63% 4,347 4,347 0.1 0.00% 4,452 4,425 -27.8 -0.62% 4,562 4,508 -54.0 -1.18% 4,607 4,527 -79.7 -1.73% 4,179.72 4,223.20 43.48 1.19% Total Exports[2] Baseline Scenario 2 Change % chg 25,316 25,316 0.0 0.00% 28,293 29,564 1,270.7 4.49% 29,423 33,369 3,945.4 13.41% 30,337 34,549 4,212.3 13.88% 30,892 35,726 4,834.4 15.65% 31,611 36,454 4,843.7 15.32% 32,366 36,913 4,547.2 14.05% 33,088 37,201 4,113.1 12.43% 33,893 37,492 3,599.1 10.62% 34,741 37,941 3,199.8 9.21% 35,508 38,416 2,907.8 8.19% 32,015.18 35,762.52 3,747.35 11.73% Net Importers Algeria Baseline Scenario 2 Change % chg 940 940 0.0 0.00% 966 855 -111.3 -11.53% 974 914 -60.0 -6.16% 981 912 -69.4 -7.08% 990 929 -61.2 -6.19% 999 942 -56.7 -5.68% 1,009 954 -55.0 -5.45% 1,020 967 -52.6 -5.16% 1,031 982 -49.2 -4.77% 1,043 996 -46.5 -4.46% 1,055 1,011 -44.1 -4.18% 1,006.76 946.14 -60.62 -6.07% 01/02 02/03 03/04 04/05 05/06 06/07 Net Exporters Argentina Baseline Scenario 2 Change % chg 90 90 0.0 0.00% 114 247 133.6 117.49% 135 337 201.8 149.26% 136 305 169.1 124.11% Australia Baseline Scenario 2 Change % chg 3,646 3,646 0.0 0.00% 4,007 4,145 138.5 3.46% 4,398 5,056 657.6 14.95% 4,811 5,559 747.9 15.55% 4,920 5,736 816.6 16.60% 5,025 5,859 834.1 16.60% Brazil Baseline Scenario 2 Change % chg 9,500 9,500 0.0 0.00% 10,919 12,232 1,313.1 12.03% 11,147 15,359 4,212.2 37.79% 11,295 16,136 4,841.1 42.86% 11,243 16,567 5,323.6 47.35% Colombia Baseline Scenario 2 Change % chg 920 920 0.0 0.00% 913 990 77.1 8.45% 913 1,059 145.9 15.98% 924 1,046 121.7 13.16% Cuba Baseline Scenario 2 Change % chg 2,700 2,700 0.0 0.00% 2,625 2,752 127.3 4.85% 2,741 3,064 322.8 11.77% European Union Baseline Scenario 2 Change % chg 1,850 1,850 0.0 0.00% 3,065 -5,821 -8,885.9 -289.90% India Baseline Scenario 2 Change % chg 1,000 1,000 0.0 0.00% Mexico Baseline Scenario 2 Change % chg 45 Table C1: (continued) 07/08 08/09 09/10 10/11 11/12 Average[1] (Thousand Metric Tons) 1,169 1,185 1,201 1,107 1,124 1,141 -62.6 -60.3 -60.1 -5.36% -5.09% -5.00% 1,217 1,158 -58.7 -4.82% 1,235 1,178 -56.8 -4.60% 1,255 1,199 -55.5 -4.42% 1,275 1,221 -54.0 -4.24% 1,196.84 1,132.81 -64.03 -5.39% 1,310 -984 -2,293.6 -175.13% 1,478 -598 -2,075.8 -140.45% 1,690 -182 -1,871.8 -110.77% 1,923 233 -1,690.8 -87.91% 2,155 624 -1,530.2 -71.02% 1,450.67 -965.58 -2,416.26 -182.19% 1,106 1,433 326.4 29.51% 1,139 1,466 327.2 28.74% 1,160 1,485 325.4 28.07% 1,176 1,500 324.9 27.63% 1,185 1,510 324.2 27.35% 1,187 1,510 323.0 27.20% 1,091.26 1,385.99 294.73 26.75% 792 483 -308.9 -38.99% 819 510 -309.7 -37.80% 850 525 -325.3 -38.26% 876 532 -343.6 -39.22% 904 539 -364.4 -40.31% 933 541 -392.3 -42.04% 961 535 -426.4 -44.36% 841.22 487.17 -354.04 -42.23% 7,520 6,952 -568.0 -7.55% 7,471 6,938 -533.2 -7.14% 7,516 7,058 -458.2 -6.10% 7,600 7,220 -380.3 -5.00% 7,651 7,345 -305.7 -4.00% 7,716 7,489 -226.6 -2.94% 7,791 7,644 -147.4 -1.89% 7,840 7,767 -73.3 -0.93% 7,613.89 7,239.65 -374.24 -4.95% 1,789 1,052 -736.8 -41.18% 2,003 1,124 -879.4 -43.90% 2,133 1,095 -1,037.5 -48.64% 2,230 1,069 -1,161.3 -52.06% 2,320 1,057 -1,263.1 -54.45% 2,401 1,035 -1,365.9 -56.88% 2,486 1,009 -1,477.1 -59.42% 2,579 992 -1,586.6 -61.53% 2,680 977 -1,703.6 -63.56% 2,202.74 1,057.30 -1,145.44 -49.89% 1,304 1,150 -153.7 -11.79% 1,357 1,230 -127.3 -9.38% 1,419 1,281 -137.9 -9.72% 1,478 1,349 -128.6 -8.70% 1,540 1,418 -122.6 -7.96% 1,606 1,487 -119.6 -7.45% 1,672 1,557 -115.4 -6.90% 1,740 1,630 -110.3 -6.34% 1,810 1,704 -106.0 -5.86% 1,885 1,784 -101.6 -5.39% 1,581.21 1,458.90 -122.31 -7.95% 1,548 1,548 0.0 0.00% 1,553 1,597 43.8 2.82% 1,536 1,745 208.8 13.59% 1,529 1,870 341.5 22.34% 1,524 1,979 454.2 29.79% 1,524 2,072 548.4 35.99% 1,525 2,150 625.1 40.99% 1,527 2,212 685.2 44.88% 1,529 2,260 731.0 47.81% 1,532 2,296 763.9 49.86% 1,535 2,320 784.6 51.11% 1,531.41 2,050.05 518.65 33.92% Malaysia Baseline Scenario 2 Change % chg 1,125 1,125 0.0 0.00% 1,051 951 -99.8 -9.50% 1,079 958 -121.8 -11.28% 1,113 980 -132.7 -11.92% 1,144 1,003 -142.0 -12.41% 1,185 1,037 -147.3 -12.43% 1,229 1,079 -150.2 -12.22% 1,272 1,119 -152.8 -12.01% 1,318 1,163 -155.1 -11.77% 1,365 1,208 -157.1 -11.51% 1,412 1,252 -159.9 -11.32% 1,216.80 1,074.94 -141.86 -11.64% Morocco Baseline Scenario 2 Change % chg 455 455 0.0 0.00% 490 454 -35.3 -7.21% 504 451 -53.0 -10.51% 521 468 -53.2 -10.21% 534 476 -58.1 -10.88% 549 491 -58.3 -10.62% 565 507 -58.0 -10.27% 578 523 -55.1 -9.53% 592 539 -52.6 -8.90% 606 555 -50.5 -8.34% 619 566 -52.8 -8.53% 555.86 503.14 -52.71 -9.50% Peru Baseline Scenario 2 Change % chg 70 70 0.0 0.00% 57 5 -51.6 -91.07% 34 -31 -65.6 -191.66% 20 -41 -61.3 -299.12% 8 -47 -55.8 -658.92% 0 -47 -47.1 -10455.46% -4 -43 -39.5 1020.20% -7 -40 -32.7 480.69% -8 -34 -25.4 305.91% -8 -26 -17.7 216.90% -7 -17 -10.1 143.35% 8.61 -32.05 -40.67 -952.92% #DIV/0! Philippines Baseline Scenario 2 Change % chg 133 133 0.0 0.00% 181 71 -109.7 -60.55% 204 -15 -218.5 -107.26% 214 17 -196.8 -92.09% 211 32 -178.6 -84.80% 214 80 -134.6 -62.82% 220 131 -88.9 -40.44% 224 179 -44.9 -20.05% 229 232 2.8 1.22% 233 286 52.7 22.56% 236 339 102.7 43.57% 216.54 135.16 -81.38 -40.07% South Korea Baseline Scenario 2 Change % chg 1,225 1,225 0.0 0.00% 1,311 1,326 14.5 1.11% 1,352 1,411 58.8 4.35% 1,402 1,450 48.7 3.48% 1,439 1,499 60.5 4.21% 1,483 1,549 65.9 4.44% 1,528 1,597 68.5 4.48% 1,567 1,640 73.5 4.69% 1,604 1,683 79.3 4.94% 1,640 1,724 84.4 5.14% 1,671 1,761 89.8 5.37% 1,499.67 1,564.06 64.39 4.22% 01/02 02/03 03/04 04/05 05/06 06/07 Canada Baseline Scenario 2 Change % chg 1,094 1,094 0.0 0.00% 1,128 1,028 -100.0 -8.86% 1,144 1,080 -63.3 -5.54% 1,161 1,092 -68.9 -5.94% China Baseline Scenario 2 Change % chg 1,177 1,177 0.0 0.00% 1,159 -1,853 -3,011.4 -259.92% 1,201 -1,914 -3,114.5 -259.35% 1,169 -1,950 -3,119.1 -266.78% 1,203 -1,689 -2,892.8 -240.37% 1,219 -1,343 -2,562.5 -210.19% Eastern Europe Baseline Scenario 2 Change % chg 1,029 1,029 0.0 0.00% 897 1,014 117.2 13.06% 966 1,224 257.4 26.63% 1,030 1,332 302.5 29.38% 1,067 1,386 319.2 29.92% Egypt Baseline Scenario 2 Change % chg 745 745 0.0 0.00% 747 301 -445.9 -59.71% 752 455 -296.1 -39.40% 778 450 -327.9 -42.16% Former Soviet Union Baseline Scenario 2 Change % chg 6,286 6,286 0.0 0.00% 7,565 7,086 -479.2 -6.33% 7,469 6,898 -570.5 -7.64% Indonesia Baseline Scenario 2 Change % chg 1,600 1,600 0.0 0.00% 1,406 1,163 -243.0 -17.28% Iran Baseline Scenario 2 Change % chg 1,200 1,200 0.0 0.00% Japan Baseline Scenario 2 Change % chg 46 Table C1: (continued) 07/08 08/09 09/10 10/11 11/12 Average[1] (Thousand Metric Tons) 149 156 162 -354 -624 -826 -503.0 -780.0 -988.0 -338.63% -500.48% -609.30% 165 -986 -1,150.9 -699.08% 166 -1,126 -1,292.3 -777.65% 167 -1,230 -1,397.5 -834.61% 185 -1,290 -1,474.7 -797.60% 143.36 -532.89 -676.25 -259.02% 2,555 3,141 585.6 22.92% 2,707 3,226 519.1 19.17% 2,866 3,321 454.5 15.85% 3,028 3,390 361.9 11.95% 3,132 3,430 297.9 9.51% 2,423.20 2,941.35 518.16 22.58% 127 69 -58.6 -46.06% 129 71 -57.8 -44.83% 128 72 -55.7 -43.50% 126 74 -52.1 -41.28% 124 76 -47.8 -38.56% 121 78 -42.9 -35.49% 119.00 66.27 -52.73 -44.66% 5,133 3,328 -1,805.3 -35.17% 5,214 3,377 -1,836.5 -35.22% 5,288 3,417 -1,870.3 -35.37% 5,331 3,459 -1,871.8 -35.11% 5,380 3,534 -1,845.5 -34.31% 5,425 3,594 -1,831.4 -33.76% 5,455 3,636 -1,819.2 -33.35% 5,200.54 3,365.42 -1,835.13 -35.39% 30,892 35,726 4,834.4 15.65% 31,611 36,454 4,843.7 15.32% 32,366 36,913 4,547.2 14.05% 33,088 37,201 4,113.1 12.43% 33,893 37,492 3,599.1 10.62% 34,741 37,941 3,199.8 9.21% 35,508 38,416 2,907.8 8.19% 32,015.18 35,762.52 3,747.35 11.73% 01/02 02/03 03/04 04/05 05/06 06/07 Turkey Baseline Scenario 2 Change % chg -300 -300 0.0 0.00% 43 883 840.1 1944.11% 104 251 147.6 142.53% 137 -27 -163.8 -119.45% United States Baseline Scenario 2 Change % chg 1,344 1,344 0.0 0.00% 1,616 1,803 186.9 11.56% 1,799 2,462 663.1 36.87% 1,966 2,677 710.7 36.15% 2,164 2,913 749.8 34.66% 2,397 3,049 652.1 27.20% Venezuela Baseline Scenario 2 Change % chg 92 92 0.0 0.00% 85 38 -46.5 -54.77% 106 57 -49.0 -46.16% 120 62 -57.8 -48.36% 124 65 -59.1 -47.60% Rest of World Baseline Scenario 2 Change % chg 4,152 4,152 0.0 0.00% 4,747 2,317 -2,430.1 -51.19% 4,937 3,722 -1,215.2 -24.61% 5,096 3,270 -1,825.9 -35.83% Total Imports[2] Baseline Scenario 2 Change % chg 25,316 25,316 0.0 0.00% 28,293 29,564 1,270.7 4.49% 29,423 33,369 3,945.4 13.41% 30,337 34,549 4,212.3 13.88% Sugar Prices FOB Caribbean Price Baseline Scenario 2 Change % chg (U.S. Dollars per Metric Ton) 190 190 0.0 0.00% 186 410 224.4 120.72% 199 334 135.3 68.06% 199 351 151.9 76.40% 211 351 139.6 66.08% 215 347 132.3 61.66% 216 346 129.7 59.99% 222 349 126.5 56.90% 227 349 121.4 53.39% 232 350 117.6 50.67% 239 353 114.5 47.94% 214.61 353.93 139.32 66.18% New York Spot Baseline Scenario 2 Change % chg 465 465 0.0 0.00% 458 432 -26.0 -5.67% 439 356 -82.7 -18.84% 427 373 -54.1 -12.67% 418 373 -45.4 -10.86% 409 369 -39.6 -9.69% 408 368 -40.0 -9.82% 407 371 -35.7 -8.78% 402 371 -31.4 -7.80% 396 372 -24.1 -6.09% 394 375 -19.0 -4.83% 415.78 375.97 -39.80 -9.50% [1] Average is the average for the period 2002/03 to 2011/12. Total exports (imports) are computed by summing up all positive (negative) exports and negative (positive) imports and not by summing trade flows of net exporters (importers). Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms [2] 47 Table C2: Impacts of Trade Liberalization and Domestic Production Subsidy Reforms on Sugar Production and Consumption World Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Algeria Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Argentina Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Australia Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Brazil Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Canada Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg 07/08 08/09 09/10 10/11 11/12 Average[1] 144 140 -3.4 -2.37% 146 143 -3.3 -2.29% 148 145 -3.2 -2.18% 151 148 -3.0 -1.97% 153 151 -2.9 -1.86% 156 153 -2.7 -1.76% 144.82 140.76 -4.06 -2.86% 144 140 -3.7 -2.54% 146 143 -3.5 -2.41% 149 145 -3.4 -2.26% 151 148 -3.1 -2.07% 154 151 -3.0 -1.92% 156 153 -3.0 -1.93% 145.25 141.21 -4.04 -2.82% (Thousand Metric Tons) 10 10 10 11 11 11 0.9 0.9 0.9 9.23% 9.01% 8.53% 10 11 0.8 8.10% 10 11 0.8 7.67% 11 11 0.8 7.17% 11 11 0.7 6.70% 10.35 11.10 0.76 7.29% 1,020 966 -54.3 -5.32% 1,031 979 -51.9 -5.03% 1,042 993 -48.5 -4.66% 1,053 1,008 -45.9 -4.36% 1,066 1,022 -43.6 -4.09% 1,017.42 957.74 -59.69 -5.91% 1,680 1,764 83.7 4.98% 1,691 1,759 68.2 4.03% 1,700 1,760 59.7 3.51% 1,710 1,762 51.5 3.01% 1,720 1,761 41.0 2.38% 1,729 1,760 31.4 1.82% 1,675.39 1,744.81 69.43 4.16% 1,526 1,469 -57.5 -3.77% 1,547 1,494 -53.0 -3.43% 1,569 1,517 -51.8 -3.30% 1,589 1,540 -49.1 -3.09% 1,610 1,564 -45.4 -2.82% 1,631 1,588 -42.6 -2.61% 1,652 1,612 -39.9 -2.42% 1,559.19 1,502.34 -56.86 -3.69% 5,862 6,539 677.0 11.55% 5,978 6,733 755.6 12.64% 6,093 6,872 778.8 12.78% 6,210 6,980 770.2 12.40% 6,327 7,071 744.2 11.76% 6,445 7,161 716.4 11.12% 6,564 7,248 684.3 10.42% 6,684 7,340 656.0 9.81% 6,063.38 6,700.27 636.89 10.33% 1,041 986 -54.7 -5.26% 1,053 995 -57.2 -5.44% 1,059 1,004 -55.1 -5.20% 1,069 1,014 -54.5 -5.10% 1,081 1,026 -54.7 -5.06% 1,090 1,036 -54.4 -4.99% 1,099 1,045 -53.9 -4.91% 1,108 1,055 -53.6 -4.84% 1,117 1,063 -53.3 -4.77% 1,074.69 1,019.19 -55.50 -5.17% 20,624 20,607 -16.6 -0.08% 21,077 24,451 3,374.1 16.01% 21,442 25,348 3,906.0 18.22% 21,591 26,035 4,443.2 20.58% 21,893 26,446 4,552.5 20.79% 22,118 26,619 4,501.1 20.35% 22,251 26,680 4,428.3 19.90% 22,415 26,752 4,337.0 19.35% 22,577 26,783 4,206.2 18.63% 22,729 26,796 4,067.3 17.89% 21,871.81 25,651.73 3,779.92 17.16% 9,450 9,450 0.0 0.00% 9,706 8,682 -1,023.9 -10.55% 9,936 9,085 -851.0 -8.56% 10,154 9,235 -919.0 -9.05% 10,355 9,462 -892.8 -8.62% 10,549 9,650 -899.1 -8.52% 10,723 9,803 -920.3 -8.58% 10,879 9,947 -932.8 -8.57% 11,014 10,071 -943.3 -8.56% 11,125 10,167 -958.5 -8.62% 11,211 10,238 -973.0 -8.68% 10,565.25 9,633.87 -931.38 -8.83% 115 115 0.0 0.00% 116 116 0.0 0.00% 116 121 4.8 4.12% 116 120 3.8 3.25% 116 120 3.8 3.26% 116 120 3.4 2.96% 116 119 3.2 2.74% 116 119 3.0 2.58% 116 119 2.9 2.48% 116 119 2.7 2.31% 117 119 2.5 2.15% 116.21 119.22 3.00 2.59% 1,240 1,240 0.0 0.00% 1,252 1,173 -79.3 -6.33% 1,259 1,198 -60.7 -4.82% 1,273 1,208 -65.0 -5.11% 1,280 1,220 -60.2 -4.70% 1,295 1,237 -58.5 -4.51% 1,311 1,253 -58.0 -4.42% 1,327 1,270 -56.6 -4.27% 1,345 1,290 -55.0 -4.09% 1,365 1,311 -53.7 -3.93% 1,386 1,334 -52.3 -3.78% 1,309.39 1,249.47 -59.92 -4.60% 01/02 02/03 03/04 04/05 05/06 06/07 127 127 0.0 0.00% 134 123 -10.8 -8.09% 136 134 -2.6 -1.88% 139 134 -4.9 -3.52% 141 137 -3.8 -2.68% 132 132 0.0 0.00% 135 127 -8.2 -6.10% 137 133 -3.8 -2.76% 139 135 -4.7 -3.40% 142 138 -4.0 -2.84% 10 10 0.0 0.00% 10 10 0.0 0.00% 10 11 0.8 8.04% 10 11 0.9 8.44% 950 950 0.0 0.00% 976 867 -109.1 -11.17% 985 926 -59.1 -6.00% 992 923 -68.3 -6.89% 1,000 940 -60.3 -6.03% 1,010 954 -55.9 -5.54% 1,540 1,540 0.0 0.00% 1,587 1,587 0.0 0.00% 1,622 1,780 158.5 9.78% 1,648 1,747 99.0 6.01% 1,667 1,768 101.2 6.07% 1,470 1,470 0.0 0.00% 1,472 1,367 -105.5 -7.17% 1,487 1,431 -56.0 -3.77% 1,509 1,441 -67.7 -4.49% 4,662 4,662 0.0 0.00% 5,035 5,035 0.0 0.00% 5,437 6,023 586.3 10.78% 1,020 1,020 0.0 0.00% 1,031 967 -63.5 -6.16% 18,500 18,500 0.0 0.00% (Million Metric Tons) 48 Table C2: (continued) China Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Colombia Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Cuba Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Eastern Europe Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Egypt Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg European Union Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg 07/08 08/09 09/10 10/11 11/12 Average[1] (Thousand Metric Tons) 8,180 8,359 8,494 9,709 9,740 9,712 1,529.0 1,381.3 1,218.2 18.69% 16.52% 14.34% 8,593 9,685 1,092.3 12.71% 8,713 9,698 984.8 11.30% 8,846 9,726 879.6 9.94% 8,980 9,769 788.8 8.78% 8,375.08 9,469.22 1,094.14 13.10% 9,802 8,696 -1,105.9 -11.28% 10,075 9,066 -1,009.1 -10.02% 10,412 9,502 -910.7 -8.75% 10,782 9,950 -831.5 -7.71% 11,149 10,390 -759.2 -6.81% 9,834.95 8,529.91 -1,305.04 -13.66% 2,429 2,495 66.4 2.74% 2,472 2,515 43.4 1.76% 2,511 2,537 25.2 1.00% 2,555 2,563 7.4 0.29% 2,600 2,588 -12.7 -0.49% 2,646 2,614 -32.7 -1.24% 2,454.63 2,494.41 39.78 1.69% 1,447 1,422 -24.4 -1.69% 1,472 1,453 -19.8 -1.34% 1,499 1,481 -18.2 -1.22% 1,524 1,509 -15.5 -1.02% 1,549 1,537 -11.7 -0.76% 1,573 1,565 -8.7 -0.55% 1,597 1,591 -6.0 -0.37% 1,486.29 1,463.12 -23.17 -1.61% 3,608 3,989 380.6 10.55% 3,758 4,298 539.9 14.37% 3,918 4,608 690.0 17.61% 4,083 4,903 819.8 20.08% 4,253 5,191 938.6 22.07% 4,428 5,474 1,045.3 23.60% 4,610 5,747 1,137.1 24.66% 4,798 6,015 1,217.2 25.37% 4,024.91 4,722.58 697.67 16.43% 728 647 -80.7 -11.09% 744 651 -92.6 -12.44% 754 671 -83.3 -11.05% 769 690 -78.3 -10.18% 784 708 -76.5 -9.76% 798 724 -74.1 -9.29% 812 741 -70.3 -8.66% 826 758 -67.5 -8.17% 839 774 -65.0 -7.75% 777.13 693.96 -83.17 -10.84% 3,363 3,363 0.0 0.00% 3,326 3,221 -104.7 -3.15% 3,303 3,096 -206.8 -6.26% 3,285 3,050 -235.1 -7.16% 3,269 3,019 -249.6 -7.63% 3,253 2,997 -255.9 -7.86% 3,238 2,981 -256.6 -7.93% 3,222 2,967 -255.6 -7.93% 3,207 2,952 -255.0 -7.95% 3,191 2,937 -254.2 -7.97% 3,265.61 3,058.26 -207.34 -6.38% 4,217 4,217 0.0 0.00% 4,263 4,302 39.0 0.91% 4,295 4,365 70.4 1.64% 4,326 4,390 64.1 1.48% 4,347 4,413 66.6 1.53% 4,364 4,433 68.6 1.57% 4,377 4,446 69.4 1.58% 4,381 4,451 69.5 1.59% 4,379 4,450 70.5 1.61% 4,371 4,443 71.1 1.63% 4,356 4,427 71.0 1.63% 4,346.01 4,412.02 66.01 1.52% 1,375 1,375 0.0 0.00% 1,410 1,276 -133.5 -9.47% 1,437 1,398 -39.3 -2.73% 1,462 1,407 -55.2 -3.77% 1,487 1,445 -41.9 -2.82% 1,512 1,488 -23.7 -1.57% 1,537 1,534 -3.3 -0.22% 1,563 1,585 22.3 1.43% 1,589 1,645 56.1 3.53% 1,615 1,709 93.6 5.80% 1,642 1,777 135.7 8.27% 1,525.31 1,526.41 1.10 -0.16% 2,080 2,080 0.0 0.00% 2,137 1,550 -587.3 -27.48% 2,177 1,840 -337.8 -15.52% 2,233 1,847 -385.9 -17.28% 2,277 1,924 -352.6 -15.49% 2,331 1,996 -334.7 -14.36% 2,389 2,059 -329.8 -13.81% 2,441 2,119 -322.2 -13.20% 2,496 2,187 -309.0 -12.38% 2,552 2,253 -299.3 -11.73% 2,608 2,317 -291.2 -11.16% 2,364.13 2,009.15 -354.97 -15.24% 16,178 16,178 0.0 0.00% 17,835 9,248 -8,586.1 -48.14% 18,013 7,762 -10,250.8 -56.91% 18,141 6,533 -11,607.4 -63.98% 18,318 6,271 -12,046.5 -65.76% 18,522 6,340 -12,182.6 -65.77% 18,746 6,544 -12,202.2 -65.09% 18,982 6,836 -12,146.0 -63.99% 19,229 7,201 -12,028.3 -62.55% 19,486 7,584 -11,902.3 -61.08% 19,752 7,988 -11,764.5 -59.56% 18,702.35 7,230.69 -11,471.66 -61.28% 14,700 14,700 0.0 0.00% 14,768 14,995 227.4 1.54% 14,815 15,356 541.0 3.65% 14,851 15,336 484.6 3.26% 14,888 15,367 479.4 3.22% 14,921 15,405 484.0 3.24% 14,950 15,429 479.6 3.21% 14,982 15,446 464.7 3.10% 15,015 15,474 458.4 3.05% 15,050 15,499 449.3 2.99% 15,088 15,520 432.5 2.87% 14,932.70 15,382.79 450.09 3.01% 01/02 02/03 03/04 04/05 05/06 06/07 7,623 7,623 0.0 0.00% 7,735 7,640 -94.9 -1.23% 7,824 9,532 1,707.5 21.82% 8,026 9,481 1,454.9 18.13% 8,800 8,800 0.0 0.00% 8,903 6,171 -2,732.1 -30.69% 9,046 7,607 -1,439.3 -15.91% 9,203 7,553 -1,650.3 -17.93% 9,396 8,002 -1,394.3 -14.84% 9,582 8,363 -1,218.1 -12.71% 2,265 2,265 0.0 0.00% 2,290 2,290 0.0 0.00% 2,309 2,435 126.0 5.45% 2,350 2,438 88.1 3.75% 2,382 2,469 86.7 3.64% 1,350 1,350 0.0 0.00% 1,378 1,307 -70.5 -5.12% 1,398 1,375 -23.0 -1.64% 1,425 1,391 -33.9 -2.38% 3,200 3,200 0.0 0.00% 3,329 3,296 -32.9 -0.99% 3,463 3,704 241.0 6.96% 700 700 0.0 0.00% 718 574 -143.4 -19.97% 3,188 3,188 0.0 0.00% 49 Table C2: (continued) Former Soviet Union Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg India Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Indonesia Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Iran Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Japan Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Malaysia Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg 07/08 08/09 09/10 10/11 11/12 Average[1] 4,412 4,918 506.2 11.47% (Thousand Metric Tons) 4,462 4,529 4,580 4,983 4,993 4,964 520.6 463.4 383.8 11.67% 10.23% 8.38% 4,614 4,926 312.7 6.78% 4,650 4,896 245.5 5.28% 4,686 4,858 172.3 3.68% 4,719 4,821 101.7 2.16% 4,523.13 4,854.56 331.43 7.37% 11,846 11,814 -32.2 -0.27% 11,985 11,914 -70.4 -0.59% 12,013 11,973 -40.4 -0.34% 12,124 12,101 -23.3 -0.19% 12,256 12,239 -16.9 -0.14% 12,348 12,339 -9.7 -0.08% 12,453 12,454 1.3 0.01% 12,565 12,574 9.2 0.07% 12,654 12,669 15.3 0.12% 12,206.35 12,162.57 -43.78 -0.37% 18,801 17,735 -1,066.5 -5.67% 19,206 18,327 -879.0 -4.58% 19,641 18,485 -1,155.8 -5.88% 20,070 18,989 -1,081.0 -5.39% 20,507 19,497 -1,009.6 -4.92% 20,940 20,001 -939.5 -4.49% 21,371 20,521 -850.5 -3.98% 21,804 21,054 -749.4 -3.44% 22,237 21,576 -661.1 -2.97% 22,670 22,095 -575.9 -2.54% 20,724.70 19,827.87 -896.82 -4.39% 18,000 18,000 0.0 0.00% 18,426 17,425 -1,001.7 -5.44% 18,795 18,591 -204.2 -1.09% 19,234 18,856 -378.3 -1.97% 19,633 19,445 -187.3 -0.95% 20,065 19,961 -104.3 -0.52% 20,511 20,435 -75.3 -0.37% 20,947 20,934 -12.7 -0.06% 21,392 21,457 65.2 0.30% 21,842 21,971 129.1 0.59% 22,291 22,488 196.9 0.88% 20,313.63 20,156.38 -157.25 -0.86% 1,700 1,700 0.0 0.00% 1,619 1,564 -54.2 -3.35% 1,593 2,148 555.0 34.84% 1,593 2,253 659.9 41.43% 1,617 2,424 807.5 49.95% 1,652 2,574 921.7 55.79% 1,694 2,702 1,008.1 59.50% 1,739 2,831 1,092.2 62.80% 1,788 2,976 1,188.7 66.49% 1,838 3,119 1,281.2 69.71% 1,889 3,266 1,377.5 72.93% 1,702.10 2,585.88 883.78 51.01% 3,400 3,400 0.0 0.00% 3,481 3,256 -224.3 -6.44% 3,569 3,386 -183.1 -5.13% 3,676 3,463 -213.8 -5.82% 3,788 3,560 -228.2 -6.02% 3,905 3,664 -240.8 -6.17% 4,031 3,774 -256.7 -6.37% 4,155 3,880 -274.5 -6.61% 4,288 3,998 -290.1 -6.77% 4,431 4,124 -307.3 -6.93% 4,585 4,258 -327.4 -7.14% 3,990.96 3,736.33 -254.63 -6.34% 775 775 0.0 0.00% 742 742 0.0 0.00% 749 790 41.6 5.56% 759 802 42.6 5.62% 768 814 46.3 6.02% 779 824 44.7 5.74% 789 831 42.1 5.34% 799 839 40.0 5.00% 809 847 37.8 4.67% 819 854 35.3 4.31% 825 858 32.7 3.97% 783.70 820.02 36.32 4.62% 2,000 2,000 0.0 0.00% 2,057 1,942 -115.2 -5.60% 2,118 2,036 -81.6 -3.86% 2,187 2,097 -90.2 -4.13% 2,256 2,173 -82.5 -3.66% 2,329 2,249 -80.0 -3.43% 2,404 2,324 -79.8 -3.32% 2,480 2,402 -78.1 -3.15% 2,558 2,482 -75.6 -2.96% 2,638 2,564 -73.9 -2.80% 2,720 2,648 -71.8 -2.64% 2,374.63 2,291.74 -82.88 -3.55% 795 795 0.0 0.00% 803 803 0.0 0.00% 814 674 -140.4 -17.25% 827 546 -281.9 -34.07% 840 443 -396.3 -47.19% 852 360 -492.2 -57.77% 863 291 -572.1 -66.30% 873 236 -636.8 -72.95% 882 195 -687.0 -77.88% 891 166 -725.0 -81.41% 898 146 -751.6 -83.71% 854.26 385.92 -468.34 -53.85% 2,350 2,350 0.0 0.00% 2,341 2,381 40.1 1.71% 2,344 2,409 64.6 2.76% 2,354 2,413 58.6 2.49% 2,364 2,421 57.6 2.44% 2,376 2,432 56.2 2.37% 2,388 2,441 53.3 2.23% 2,400 2,448 48.9 2.04% 2,411 2,456 44.6 1.85% 2,423 2,462 39.6 1.63% 2,433 2,467 33.7 1.39% 2,383.36 2,433.09 49.72 2.09% 112 112 0.0 0.00% 116 133 16.3 13.95% 121 171 50.6 41.93% 125 178 53.0 42.49% 129 188 59.9 46.59% 132 196 63.6 47.98% 136 201 64.2 47.08% 140 204 63.6 45.29% 144 208 63.2 43.76% 149 211 62.3 41.97% 153 214 61.4 40.19% 134.52 190.32 55.80 41.12% 1,100 1,100 0.0 0.00% 1,145 1,065 -80.2 -7.00% 1,185 1,115 -70.3 -5.93% 1,227 1,148 -78.6 -6.41% 1,267 1,185 -81.3 -6.42% 1,313 1,230 -83.3 -6.35% 1,363 1,278 -85.8 -6.29% 1,412 1,323 -89.2 -6.31% 1,463 1,371 -91.9 -6.28% 1,515 1,420 -94.8 -6.26% 1,567 1,468 -98.6 -6.29% 1,345.74 1,260.34 -85.40 -6.35% 01/02 02/03 03/04 04/05 4,111 4,111 0.0 0.00% 4,250 4,250 0.0 0.00% 4,327 4,936 608.1 14.05% 11,649 11,649 0.0 0.00% 11,819 11,548 -270.7 -2.29% 18,350 18,350 0.0 0.00% 05/06 06/07 50 Table C2: (continued) Mexico Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Morocco Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Pakistan Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Peru Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Philippines Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg South Africa Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg 07/08 08/09 09/10 10/11 11/12 Average[1] (Thousand Metric Tons) 5,690 5,817 6,037 5,081 5,214 5,424 -608.6 -603.7 -613.0 -10.70% -10.38% -10.16% 6,248 5,645 -603.7 -9.66% 6,467 5,914 -553.1 -8.55% 6,688 6,174 -514.4 -7.69% 6,850 6,377 -472.3 -6.90% 6,005.68 5,559.28 -446.40 -7.29% 4,810 4,869 59.4 1.23% 4,870 4,931 61.1 1.26% 4,931 4,994 63.8 1.29% 4,990 5,056 66.0 1.32% 5,047 5,114 67.4 1.34% 4,793.55 4,849.27 55.72 1.16% 572 584 12.2 2.13% 582 593 11.3 1.93% 592 603 10.6 1.79% 603 613 10.8 1.78% 613 624 10.6 1.74% 623 634 10.6 1.70% 578.34 587.60 9.26 1.58% 1,095 1,049 -46.3 -4.23% 1,120 1,073 -46.6 -4.16% 1,145 1,098 -47.1 -4.12% 1,168 1,124 -44.7 -3.82% 1,192 1,150 -42.0 -3.52% 1,217 1,177 -39.9 -3.28% 1,241 1,203 -37.6 -3.03% 1,132.94 1,089.49 -43.45 -3.86% 3,051 3,416 364.9 11.96% 3,107 3,516 408.8 13.16% 3,174 3,577 403.1 12.70% 3,247 3,630 382.6 11.78% 3,326 3,689 362.9 10.91% 3,408 3,748 340.1 9.98% 3,492 3,805 312.3 8.94% 3,579 3,863 284.6 7.95% 3,238.97 3,559.56 320.59 9.89% 3,502 3,260 -242.2 -6.92% 3,539 3,266 -272.7 -7.70% 3,577 3,331 -246.3 -6.89% 3,625 3,387 -238.3 -6.57% 3,682 3,444 -238.7 -6.48% 3,745 3,512 -233.3 -6.23% 3,817 3,591 -226.0 -5.92% 3,898 3,677 -220.9 -5.67% 3,988 3,773 -214.8 -5.39% 3,685.28 3,436.47 -248.81 -6.80% 840 840 0.0 0.00% 875 923 47.4 5.42% 907 942 35.0 3.86% 935 971 36.0 3.85% 964 994 30.2 3.14% 991 1,015 23.6 2.38% 1,018 1,036 18.6 1.83% 1,045 1,058 13.9 1.33% 1,072 1,080 8.1 0.76% 1,100 1,102 2.4 0.22% 974.77 996.30 21.53 2.28% 880 880 0.0 0.00% 897 847 -49.9 -5.56% 910 891 -19.2 -2.11% 929 903 -26.3 -2.84% 945 925 -20.1 -2.13% 966 949 -17.1 -1.77% 989 973 -16.0 -1.62% 1,012 998 -14.2 -1.41% 1,038 1,026 -11.7 -1.13% 1,065 1,056 -9.7 -0.91% 1,095 1,087 -7.9 -0.72% 984.67 965.47 -19.20 -2.02% 1,800 1,800 0.0 0.00% 1,789 1,789 0.0 0.00% 1,794 1,980 185.3 10.33% 1,818 1,964 146.1 8.04% 1,845 1,993 147.2 7.98% 1,874 1,986 111.9 5.97% 1,902 1,971 69.4 3.65% 1,929 1,961 32.1 1.67% 1,955 1,948 -7.4 -0.38% 1,982 1,932 -50.3 -2.54% 2,008 1,915 -92.9 -4.62% 1,889.67 1,943.82 54.15 3.01% 1,950 1,950 0.0 0.00% 1,984 1,867 -116.9 -5.89% 2,010 1,978 -32.7 -1.63% 2,042 1,991 -51.6 -2.53% 2,067 2,036 -30.7 -1.49% 2,096 2,074 -21.9 -1.05% 2,129 2,110 -18.9 -0.89% 2,159 2,147 -12.1 -0.56% 2,191 2,188 -3.7 -0.17% 2,222 2,225 3.3 0.15% 2,250 2,261 10.8 0.48% 2,115.09 2,087.65 -27.44 -1.36% 2,690 2,690 0.0 0.00% 2,940 2,940 0.0 0.00% 3,076 3,234 157.8 5.13% 3,167 3,333 165.9 5.24% 3,235 3,431 196.9 6.09% 3,291 3,500 208.2 6.32% 3,342 3,554 212.2 6.35% 3,389 3,606 216.6 6.39% 3,435 3,653 218.0 6.35% 3,480 3,694 214.3 6.16% 3,524 3,733 208.5 5.92% 3,288.02 3,467.87 179.85 5.39% 1,665 1,665 0.0 0.00% 1,685 1,673 -12.0 -0.71% 1,700 1,693 -7.2 -0.43% 1,718 1,709 -8.8 -0.51% 1,732 1,724 -8.1 -0.47% 1,732 1,724 -7.9 -0.46% 1,738 1,730 -7.9 -0.46% 1,745 1,737 -7.8 -0.45% 1,745 1,738 -7.5 -0.43% 1,746 1,738 -7.2 -0.41% 1,748 1,741 -7.0 -0.40% 1,728.80 1,720.64 -8.15 -0.47% 01/02 02/03 03/04 04/05 05/06 06/07 5,092 5,092 0.0 0.00% 5,277 5,277 0.0 0.00% 5,423 5,485 61.9 1.14% 5,560 5,003 -556.9 -10.02% 4,543 4,543 0.0 0.00% 4,574 4,599 25.0 0.55% 4,607 4,661 54.6 1.18% 4,655 4,704 49.1 1.05% 4,705 4,759 53.6 1.14% 4,747 4,804 57.2 1.20% 545 545 0.0 0.00% 537 522 -14.8 -2.76% 545 562 17.1 3.14% 553 565 11.7 2.12% 563 575 12.5 2.22% 1,000 1,000 0.0 0.00% 1,028 977 -51.3 -4.98% 1,049 1,012 -36.9 -3.51% 1,074 1,032 -42.2 -3.93% 3,006 3,006 0.0 0.00% 2,994 2,994 0.0 0.00% 3,012 3,358 346.5 11.51% 3,450 3,450 0.0 0.00% 3,478 3,123 -355.0 -10.21% 810 810 0.0 0.00% 51 Table C2: (continued) South Korea Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Thailand Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Turkey Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg United States Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg Venezuela Production Baseline Scenario 2 Change % chg Consumption Baseline Scenario 2 Change % chg 07/08 08/09 09/10 10/11 11/12 Average[1] 0 0 0.0 0.00% (Thousand Metric Tons) 0 0 0 0 0 0 0.0 0.0 0.0 0.00% 0.00% 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0.00 0.00 0.00 0.00% 1,342 1,392 50.6 3.77% 1,396 1,440 44.3 3.17% 1,437 1,493 56.0 3.90% 1,483 1,546 62.4 4.21% 1,530 1,596 66.1 4.32% 1,570 1,641 71.5 4.56% 1,608 1,686 77.7 4.83% 1,644 1,727 83.2 5.06% 1,675 1,764 88.7 5.30% 1,497.67 1,558.92 61.25 4.00% 5,505 5,505 0.0 0.00% 5,697 5,812 114.3 2.01% 5,866 5,941 74.2 1.27% 6,032 6,100 68.0 1.13% 6,199 6,241 42.5 0.69% 6,369 6,386 17.7 0.28% 6,541 6,541 -0.3 0.00% 6,717 6,700 -17.3 -0.26% 6,895 6,861 -34.6 -0.50% 7,012 6,961 -50.6 -0.72% 6,283.39 6,304.78 21.39 0.39% 1,750 1,750 0.0 0.00% 1,807 1,673 -134.2 -7.43% 1,862 1,827 -35.3 -1.89% 1,922 1,865 -57.0 -2.97% 1,982 1,952 -30.1 -1.52% 2,047 2,028 -18.2 -0.89% 2,114 2,101 -13.7 -0.65% 2,183 2,179 -4.3 -0.20% 2,254 2,261 7.1 0.31% 2,327 2,343 16.7 0.72% 2,401 2,428 27.0 1.13% 2,090.00 2,065.81 -24.19 -1.34% 1,900 1,900 0.0 0.00% 1,964 1,134 -829.4 -42.23% 1,956 1,853 -102.6 -5.25% 1,975 2,169 193.7 9.81% 2,002 2,542 539.5 26.95% 2,038 2,856 817.3 40.09% 2,075 3,100 1,024.6 49.38% 2,112 3,301 1,189.9 56.35% 2,150 3,484 1,334.1 62.04% 2,190 3,631 1,441.4 65.83% 2,212 3,733 1,521.4 68.78% 2,067.43 2,780.43 713.00 33.17% 2,000 2,000 0.0 0.00% 2,041 2,046 5.6 0.28% 2,077 2,104 26.4 1.27% 2,117 2,140 22.8 1.08% 2,154 2,183 28.5 1.32% 2,194 2,225 31.4 1.43% 2,234 2,267 32.9 1.47% 2,274 2,309 35.3 1.55% 2,314 2,352 38.0 1.64% 2,355 2,395 40.4 1.72% 2,395 2,438 42.9 1.79% 2,215.55 2,245.98 30.43 1.36% 7,189 7,189 0.0 0.00% 7,924 7,924 0.0 0.00% 8,065 7,824 -240.9 -2.99% 8,034 7,204 -829.7 -10.33% 7,983 7,230 -753.4 -9.44% 7,942 7,296 -646.8 -8.14% 7,906 7,348 -558.6 -7.07% 7,917 7,386 -531.3 -6.71% 7,940 7,463 -477.1 -6.01% 7,958 7,538 -419.7 -5.27% 7,983 7,614 -368.9 -4.62% 7,965.40 7,482.78 -482.62 -6.06% 9,335 9,335 0.0 0.00% 9,469 9,504 34.5 0.36% 9,669 9,776 106.3 1.10% 9,853 9,921 68.1 0.69% 10,026 10,082 56.0 0.56% 10,203 10,251 47.8 0.47% 10,362 10,409 47.0 0.45% 10,517 10,557 40.5 0.38% 10,676 10,711 34.2 0.32% 10,834 10,859 24.7 0.23% 10,976 10,993 16.9 0.15% 10,258.58 10,306.18 47.60 0.47% 710 710 0.0 0.00% 711 711 0.0 0.00% 721 748 26.8 3.72% 731 760 29.0 3.96% 740 775 34.7 4.68% 748 785 36.4 4.86% 756 792 36.1 4.77% 763 798 35.2 4.61% 770 803 33.4 4.34% 776 807 30.5 3.93% 782 809 26.9 3.44% 749.92 778.81 28.89 3.83% 850 850 0.0 0.00% 856 805 -50.7 -5.92% 861 837 -23.2 -2.70% 868 838 -30.1 -3.46% 873 848 -24.8 -2.84% 879 856 -22.3 -2.54% 885 863 -21.7 -2.45% 889 868 -20.4 -2.30% 892 874 -18.5 -2.08% 896 879 -17.1 -1.91% 898 882 -15.8 -1.76% 879.56 855.09 -24.47 -2.80% 01/02 02/03 03/04 04/05 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 1,230 1,230 0.0 0.00% 1,293 1,305 11.9 0.92% 5,225 5,225 0.0 0.00% 05/06 06/07 [1] Average is the average for the period 2002/03 to 2011/12. Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms 52 Table D1: Impacts of Full Market Liberalization Reform on Sugar Price and Trade 01/02 02/03 03/04 04/05 05/06 06/07 Net Exporters Argentina Baseline Scenario 3 Change % chg 90 90 0.0 0.00% 114 242 128.6 113.09% 135 329 193.9 143.39% 136 298 161.7 118.69% Australia Baseline Scenario 3 Change % chg 3,646 3,646 0.0 0.00% 4,007 4,142 135.5 3.38% 4,398 5,043 644.3 14.65% 4,811 5,548 736.5 15.31% 4,920 5,722 802.8 16.32% 5,025 5,845 819.8 16.31% Brazil Baseline Scenario 3 Change % chg 9,500 9,500 0.0 0.00% 10,919 12,204 1,284.9 11.77% 11,147 15,272 4,125.1 37.01% 11,295 16,056 4,761.1 42.15% 11,243 16,471 5,227.5 46.50% Colombia Baseline Scenario 3 Change % chg 920 920 0.0 0.00% 913 986 73.6 8.06% 913 1,051 138.2 15.13% 924 1,038 113.6 12.29% Cuba Baseline Scenario 3 Change % chg 2,700 2,700 0.0 0.00% 2,625 2,935 310.7 11.84% 2,741 3,256 515.4 18.80% European Union Baseline Scenario 3 Change % chg 1,850 1,850 0.0 0.00% 3,065 -5,841 -8,906.6 -290.57% India Baseline Scenario 3 Change % chg 1,000 1,000 0.0 0.00% Mexico Baseline Scenario 3 Change % chg [1] Average 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 143 134 123 291 260 234 148.0 126.1 110.7 103.76% 94.12% 90.03% 115 214 99.0 85.96% 105 191 85.9 81.47% 95 168 72.6 76.09% 88 148 60.0 68.53% 118.83 237.49 118.65 97.51% 5,130 5,938 807.6 15.74% 5,238 6,018 780.1 14.89% 5,346 6,097 750.9 14.04% 5,456 6,175 718.8 13.17% 5,568 6,259 690.6 12.40% 4,989.95 5,678.64 688.69 13.62% 11,351 16,686 5,335.0 47.00% 11,401 16,706 5,305.1 46.53% 11,377 16,621 5,243.4 46.09% 11,406 16,564 5,158.6 45.23% 11,456 16,500 5,043.8 44.03% 11,521 16,442 4,920.7 42.71% 11,311.48 15,952.01 4,640.53 40.90% 936 1,037 100.6 10.74% 956 1,031 75.0 7.84% 972 1,022 50.1 5.15% 987 1,016 28.7 2.91% 1,006 1,013 6.7 0.67% 1,027 1,010 -16.6 -1.62% 1,050 1,010 -39.6 -3.77% 968.40 1,021.43 53.03 5.74% 2,863 3,551 687.7 24.02% 3,002 3,845 842.7 28.07% 3,145 4,133 988.0 31.42% 3,293 4,408 1,115.4 33.87% 3,449 4,681 1,231.9 35.72% 3,611 4,944 1,333.6 36.94% 3,778 5,200 1,421.7 37.63% 3,953 5,452 1,499.8 37.94% 3,245.84 4,240.52 994.68 29.63% 3,170 -7,795 -10,964.4 -345.93% 3,248 -8,927 -12,175.3 -374.80% 3,385 -9,202 -12,587.0 -371.89% 3,555 -9,162 -12,717.8 -357.70% 3,753 -8,973 -12,725.9 -339.13% 3,960 -8,688 -12,647.8 -319.42% 4,177 -8,346 -12,522.8 -299.82% 4,403 -7,983 -12,385.8 -281.33% 4,634 -7,594 -12,227.9 -263.87% 3,734.87 -8,251.26 -11,986.13 -324.45% 1,067 1,422 354.7 33.25% 915 26 -889.4 -97.19% 784 -90 -873.9 -111.41% 728 -348 -1,075.7 -147.84% 673 -423 -1,096.3 -162.89% 622 -410 -1,031.9 -165.95% 589 -415 -1,004.0 -170.43% 559 -424 -983.1 -175.91% 530 -422 -951.7 -179.62% 507 -426 -932.7 -184.10% 697.32 -151.07 -848.39 -136.21% 530 530 0.0 0.00% 702 667 -35.2 -5.01% 819 771 -47.8 -5.83% 909 272 -636.7 -70.06% 991 291 -700.5 -70.68% 1,076 380 -696.8 -64.73% 1,234 526 -708.1 -57.36% 1,386 686 -700.1 -50.49% 1,546 894 -652.1 -42.19% 1,707 1,093 -614.6 -36.00% 1,812 1,238 -573.1 -31.64% 1,218.33 681.85 -536.48 -43.40% Pakistan Baseline Scenario 3 Change % chg -200 -200 0.0 0.00% -288 52 339.3 -117.93% -416 153 569.6 -136.82% -459 159 618.2 -134.76% -457 177 634.8 -138.80% -445 175 620.0 -139.24% -431 168 598.9 -139.10% -415 158 573.3 -137.98% -405 138 542.9 -133.99% -401 109 509.9 -127.09% -404 72 475.9 -117.79% -412.19 136.09 548.28 -132.35% South Africa Baseline Scenario 3 Change % chg 1,230 1,230 0.0 0.00% 1,221 1,292 71.5 5.86% 1,369 1,515 146.2 10.68% 1,440 1,615 174.7 12.13% 1,503 1,701 197.8 13.16% 1,551 1,759 207.8 13.40% 1,594 1,807 213.0 13.37% 1,634 1,850 216.3 13.24% 1,677 1,893 215.6 12.86% 1,718 1,930 211.5 12.31% 1,763 1,969 205.9 11.68% 1,547.00 1,733.03 186.03 11.87% Thailand Baseline Scenario 3 Change % chg 3,550 3,550 0.0 0.00% 3,662 3,818 156.3 4.27% 3,816 3,943 127.0 3.33% 3,925 4,042 116.3 2.96% 4,042 4,121 79.3 1.96% 4,144 4,186 42.2 1.02% 4,241 4,256 14.8 0.35% 4,347 4,335 -11.9 -0.27% 4,452 4,413 -39.7 -0.89% 4,562 4,496 -65.8 -1.44% 4,607 4,515 -91.5 -1.99% 4,179.72 4,212.42 32.70 0.93% Total Exports[2] Baseline Scenario 3 Change % chg 25,316 25,316 0 0.00% 28,293 29,534 1,241 4.39% 29,423 33,246 3,823 12.99% 30,337 34,512 4,175 13.76% 30,892 35,657 4,766 15.43% 31,611 36,380 4,769 15.09% 32,366 36,831 4,465 13.80% 33,088 37,117 4,028 12.17% 33,893 37,405 3,512 10.36% 34,741 37,916 3,175 9.14% 35,508 38,392 2,884 8.12% 32,015.18 35,699.10 3,683.93 11.53% Net Importers Algeria Baseline Scenario 3 Change % chg 940 940 0.0 0.00% 966 857 -108.6 -11.25% 974 915 -59.5 -6.10% 981 913 -67.8 -6.91% 990 930 -59.9 -6.05% 999 944 -55.3 -5.54% 1,009 956 -53.6 -5.31% 1,020 969 -51.2 -5.02% 1,031 983 -47.8 -4.64% 1,043 997 -45.2 -4.33% 1,055 1,012 -42.7 -4.05% 1,006.76 947.60 -59.16 -5.92% 53 Table D1: (continued) 01/02 02/03 03/04 04/05 05/06 06/07 Canada Baseline Scenario 3 Change % chg 1,094 1,094 0.0 0.00% 1,128 1,030 -97.7 -8.66% 1,144 1,081 -62.1 -5.43% 1,161 1,094 -67.1 -5.78% China Baseline Scenario 3 Change % chg 1,177 1,177 0.0 0.00% 1,159 -1,774 -2,932.6 -253.11% 1,201 -1,855 -3,056.3 -254.50% 1,169 -1,880 -3,049.3 -260.81% 1,203 -1,619 -2,822.0 -234.49% 1,219 -1,273 -2,492.5 -204.44% Eastern Europe Baseline Scenario 3 Change % chg 1,029 1,029 0.0 0.00% 897 1,017 120.2 13.40% 966 1,226 259.6 26.86% 1,030 1,335 305.2 29.65% 1,067 1,389 321.9 30.17% Egypt Baseline Scenario 3 Change % chg 745 745 0.0 0.00% 747 177 -569.8 -76.30% 752 324 -427.4 -56.87% 778 324 -454.1 -58.40% Former Soviet Union Baseline Scenario 3 Change % chg 6,286 6,286 0.0 0.00% 7,565 7,107 -458.4 -6.06% 7,469 6,925 -543.8 -7.28% Indonesia Baseline Scenario 3 Change % chg 1,600 1,600 0.0 0.00% 1,406 1,170 -235.8 -16.77% Iran Baseline Scenario 3 Change % chg 1,200 1,200 0.0 0.00% Japan Baseline Scenario 3 Change % chg [1] Average 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 1,169 1,185 1,201 1,109 1,126 1,142 -61.0 -58.6 -58.3 -5.21% -4.95% -4.86% 1,217 1,160 -56.9 -4.68% 1,235 1,180 -55.1 -4.46% 1,255 1,201 -53.7 -4.28% 1,275 1,222 -52.2 -4.10% 1,196.84 1,134.57 -62.27 -5.24% 1,310 -916 -2,225.9 -169.96% 1,478 -532 -2,010.2 -136.01% 1,690 -119 -1,808.7 -107.04% 1,923 293 -1,630.3 -84.76% 2,155 684 -1,470.1 -68.23% 1,450.67 -899.12 -2,349.79 -177.34% 1,106 1,435 329.2 29.76% 1,139 1,469 330.0 28.98% 1,160 1,488 328.2 28.30% 1,176 1,503 327.5 27.86% 1,185 1,512 326.8 27.57% 1,187 1,513 325.5 27.42% 1,091.26 1,388.67 297.41 27.00% 792 359 -433.2 -54.68% 819 389 -430.4 -52.54% 850 408 -442.3 -52.01% 876 420 -456.5 -52.11% 904 430 -473.4 -52.38% 933 436 -497.4 -53.30% 961 434 -527.2 -54.85% 841.22 370.04 -471.18 -56.34% 7,520 6,985 -534.9 -7.11% 7,471 6,976 -495.2 -6.63% 7,516 7,099 -417.0 -5.55% 7,600 7,263 -336.8 -4.43% 7,651 7,390 -260.7 -3.41% 7,716 7,535 -181.0 -2.35% 7,791 7,689 -101.8 -1.31% 7,840 7,812 -27.7 -0.35% 7,613.89 7,278.16 -335.73 -4.45% 1,789 1,069 -720.0 -40.25% 2,003 1,139 -863.9 -43.12% 2,133 1,114 -1,018.5 -47.75% 2,230 1,089 -1,141.0 -51.15% 2,320 1,079 -1,241.3 -53.51% 2,401 1,058 -1,342.7 -55.92% 2,486 1,033 -1,452.8 -58.44% 2,579 1,017 -1,561.5 -60.56% 2,680 1,003 -1,677.5 -62.59% 2,202.74 1,077.23 -1,125.51 -49.01% 1,304 1,154 -149.8 -11.49% 1,357 1,232 -124.5 -9.17% 1,419 1,285 -134.2 -9.46% 1,478 1,353 -124.9 -8.46% 1,540 1,422 -118.8 -7.71% 1,606 1,491 -115.8 -7.21% 1,672 1,561 -111.5 -6.67% 1,740 1,634 -106.4 -6.11% 1,810 1,708 -102.1 -5.64% 1,885 1,788 -97.6 -5.18% 1,581.21 1,462.67 -118.55 -7.71% 1,548 1,548 0.0 0.00% 1,553 1,599 45.4 2.92% 1,536 1,695 159.7 10.40% 1,529 1,782 252.6 16.52% 1,524 1,856 331.7 21.76% 1,524 1,927 403.0 26.45% 1,525 1,988 462.6 30.34% 1,527 2,037 510.5 33.44% 1,529 2,080 550.8 36.02% 1,532 2,116 583.9 38.11% 1,535 2,145 610.4 39.77% 1,531.41 1,922.46 391.05 25.57% Malaysia Baseline Scenario 3 Change % chg 1,125 1,125 0.0 0.00% 1,051 953 -98.0 -9.33% 1,079 960 -119.4 -11.06% 1,113 983 -130.1 -11.69% 1,144 1,005 -139.2 -12.16% 1,185 1,040 -144.3 -12.18% 1,229 1,082 -147.1 -11.97% 1,272 1,123 -149.6 -11.76% 1,318 1,166 -151.8 -11.52% 1,365 1,211 -153.8 -11.27% 1,412 1,256 -156.5 -11.08% 1,216.80 1,077.81 -138.99 -11.40% Morocco Baseline Scenario 3 Change % chg 455 455 0.0 0.00% 490 387 -102.7 -20.98% 504 374 -130.8 -25.92% 521 390 -131.4 -25.20% 534 395 -139.0 -26.02% 549 407 -142.3 -25.91% 565 420 -144.5 -25.60% 578 435 -143.3 -24.78% 592 449 -142.9 -24.15% 606 463 -142.8 -23.57% 619 460 -159.6 -25.78% 555.86 417.92 -137.93 -24.79% Peru Baseline Scenario 3 Change % chg 70 70 0.0 0.00% 57 7 -49.4 -87.16% 34 -28 -62.3 -182.03% 20 -37 -57.6 -281.33% 8 -43 -51.8 -611.11% 0 -42 -42.8 -9500.16% -4 -39 -34.9 903.38% -7 -35 -28.1 411.84% -8 -29 -20.6 247.83% -8 -21 -12.8 156.71% -7 -12 -5.0 71.84% 8.61 -27.90 -36.52 -887.02% Philippines Baseline Scenario 3 Change % chg 133 133 0.0 0.00% 181 76 -104.6 -57.77% 204 -3 -206.8 -101.50% 214 30 -183.6 -85.93% 211 48 -162.8 -77.29% 214 97 -117.2 -54.69% 220 150 -70.1 -31.89% 224 199 -25.1 -11.20% 229 252 23.3 10.19% 233 307 73.6 31.54% 236 360 124.1 52.62% 216.54 151.62 -64.92 -32.59% South Korea Baseline Scenario 3 Change % chg 1,225 1,225 0.0 0.00% 1,311 1,327 16.3 1.24% 1,352 1,412 59.3 4.39% 1,402 1,452 50.2 3.58% 1,439 1,501 61.7 4.29% 1,483 1,551 67.2 4.53% 1,528 1,598 69.9 4.57% 1,567 1,642 74.9 4.78% 1,604 1,685 80.7 5.03% 1,640 1,725 85.7 5.23% 1,671 1,762 91.2 5.46% 1,499.67 1,565.39 65.72 4.31% 54 Table D1: (continued) 01/02 02/03 03/04 04/05 05/06 06/07 Turkey Baseline Scenario 3 Change % chg -300 -300 0.0 0.00% 43 885 841.6 1947.76% 104 267 163.1 157.44% 137 -16 -153.1 -111.68% United States Baseline Scenario 3 Change % chg 1,344 1,344 0.0 0.00% 1,616 1,837 220.4 13.64% 1,799 2,484 685.5 38.11% 1,966 2,714 747.6 38.02% 2,164 2,947 783.0 36.19% 2,397 3,085 687.4 28.67% Venezuela Baseline Scenario 3 Change % chg 92 92 0.0 0.00% 85 40 -44.6 -52.49% 106 59 -46.6 -43.92% 120 65 -54.7 -45.71% 124 69 -55.5 -44.71% Rest of World Baseline Scenario 3 Change % chg 4,152 4,152 0.0 0.00% 4,747 2,369 -2,378.5 -50.10% 4,937 3,728 -1,209.6 -24.50% 5,096 3,306 -1,789.6 -35.12% Total Imports[2] Baseline Scenario 3 Change % chg 25,316 25,316 0.0 0.00% 28,293 29,534 1,241.1 4.39% 29,423 33,246 3,823.0 12.99% 30,337 34,512 4,175.0 13.76% [1] Average 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 149 156 162 -341 -610 -811 -489.2 -766.2 -973.6 -329.33% -491.60% -600.42% 165 -972 -1,136.2 -690.13% 166 -1,111 -1,277.2 -768.61% 167 -1,215 -1,382.4 -825.62% 185 -1,275 -1,459.8 -789.53% 143.36 -519.94 -663.30 -250.17% 2,555 3,176 620.6 24.29% 2,707 3,261 554.0 20.46% 2,866 3,355 488.5 17.04% 3,028 3,423 394.9 13.04% 3,132 3,463 330.9 10.57% 2,423.20 2,974.49 551.29 24.00% 127 73 -54.6 -42.89% 129 76 -53.3 -41.40% 128 77 -50.9 -39.78% 126 79 -47.0 -37.28% 124 81 -42.5 -34.30% 121 84 -37.4 -30.92% 119.00 70.28 -48.71 -41.34% 5,133 3,357 -1,776.1 -34.60% 5,214 3,411 -1,802.9 -34.58% 5,288 3,452 -1,835.8 -34.72% 5,331 3,495 -1,835.9 -34.44% 5,380 3,570 -1,809.4 -33.63% 5,425 3,630 -1,794.9 -33.08% 5,455 3,674 -1,780.7 -32.64% 5,200.54 3,399.20 -1,801.34 -34.74% 30,892 35,657 4,765.8 15.43% 31,611 36,380 4,769.4 15.09% 32,366 36,831 4,465.2 13.80% 33,088 37,117 4,028.3 12.17% 33,893 37,405 3,512.2 10.36% 34,741 37,916 3,175.5 9.14% 35,508 38,392 2,883.9 8.12% 32,015.18 35,699.10 3,683.93 11.53% Sugar Prices FOB Caribbean Price Baseline Scenario 3 Change % chg 190 190 0.0 0.00% 186 406 219.7 118.16% 199 333 134.3 67.55% 199 348 149.1 74.98% 211 348 137.2 64.97% 215 344 129.9 60.50% 216 343 127.2 58.84% 222 346 124.0 55.77% 227 346 118.9 52.32% 232 347 115.2 49.64% 239 351 112.0 46.89% 214.61 351.36 136.74 64.96% New York Spot Baseline Scenario 3 Change % chg 465 465 0.0 0.00% 458 428 -30.8 -6.71% 439 355 -83.7 -19.08% 427 370 -56.9 -13.33% 418 370 -47.8 -11.42% 409 367 -42.1 -10.30% 408 365 -42.5 -10.42% 407 368 -38.2 -9.39% 402 368 -33.8 -8.41% 396 369 -26.5 -6.69% 394 373 -21.5 -5.46% 415.78 373.40 -42.38 -10.12% (U.S. Dollars per Metric Ton) [1] Average is the average for the period 2002/03 to 2011/12. Total exports (imports) are computed by summing up all positive (negative) exports and negative (positive) imports and not by summing trade flows of net exporters (importers). Scenario 3 = Full Market Liberalization Reform [2] 55 Table D2: Impacts of Full Market Liberalization Reform on Sugar Production and Consumption World Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Algeria Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Argentina Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Australia Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Brazil Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Canada Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg 01/02 02/03 03/04 04/05 127 127 0.0 0.00% 134 123 -10.8 -8.09% 136 133 -2.9 -2.15% 132 132 0.0 0.00% 135 127 -8.5 -6.27% 10 10 0.0 0.00% 05/06 06/07 [1] Average 07/08 08/09 09/10 10/11 11/12 139 134 -5.1 -3.67% (Million Metric Tons) 141 144 146 137 140 142 -4.0 -3.7 -3.6 -2.87% -2.55% -2.47% 148 145 -3.5 -2.35% 151 148 -3.2 -2.15% 153 150 -3.1 -2.04% 156 153 -3.0 -1.94% 144.82 140.52 -4.30 -3.03% 137 133 -4.1 -3.01% 139 134 -5.0 -3.59% 142 137 -4.3 -3.04% 146 142 -3.8 -2.60% 149 145 -3.6 -2.44% 151 148 -3.4 -2.24% 154 150 -3.2 -2.10% 156 153 -3.3 -2.10% 145.25 140.94 -4.31 -3.01% 10 10 0.0 0.00% 10 11 0.8 7.84% 10 11 0.8 8.29% (Thousand Metric Tons) 10 10 10 11 11 11 0.9 0.9 0.9 9.05% 8.82% 8.33% 10 11 0.8 7.91% 10 11 0.8 7.47% 11 11 0.7 6.98% 11 11 0.7 6.51% 10.35 11.09 0.74 7.12% 950 950 0.0 0.00% 976 870 -106.4 -10.90% 985 926 -58.5 -5.94% 992 925 -66.7 -6.73% 1,000 941 -59.0 -5.90% 1,010 955 -54.5 -5.40% 1,020 967 -52.9 -5.18% 1,031 980 -50.5 -4.90% 1,042 994 -47.2 -4.53% 1,053 1,009 -44.6 -4.23% 1,066 1,023 -42.2 -3.96% 1,017.42 959.17 -58.25 -5.77% 1,540 1,540 0.0 0.00% 1,587 1,587 0.0 0.00% 1,622 1,774 152.7 9.42% 1,648 1,744 95.8 5.82% 1,667 1,763 96.6 5.80% 1,680 1,759 79.1 4.71% 1,691 1,755 63.5 3.75% 1,700 1,755 54.9 3.23% 1,710 1,757 46.6 2.72% 1,720 1,756 36.1 2.10% 1,729 1,756 26.6 1.54% 1,675.39 1,740.59 65.20 3.91% 1,470 1,470 0.0 0.00% 1,472 1,371 -101.6 -6.90% 1,487 1,434 -53.4 -3.59% 1,509 1,445 -63.9 -4.23% 1,526 1,472 -53.9 -3.53% 1,547 1,498 -49.2 -3.18% 1,569 1,521 -47.9 -3.06% 1,589 1,544 -45.2 -2.85% 1,610 1,568 -41.5 -2.58% 1,631 1,592 -38.7 -2.37% 1,652 1,616 -35.9 -2.17% 1,559.19 1,506.06 -53.13 -3.45% 4,662 4,662 0.0 0.00% 5,035 5,035 0.0 0.00% 5,437 6,010 573.9 10.56% 5,862 6,530 667.3 11.38% 5,978 6,721 743.3 12.43% 6,093 6,859 765.9 12.57% 6,210 6,966 756.7 12.19% 6,327 7,057 730.6 11.55% 6,445 7,148 702.9 10.91% 6,564 7,235 671.0 10.22% 6,684 7,327 643.0 9.62% 6,063.38 6,688.85 625.47 10.14% 1,020 1,020 0.0 0.00% 1,031 969 -62.2 -6.03% 1,041 987 -53.6 -5.15% 1,053 997 -55.9 -5.31% 1,059 1,005 -53.8 -5.08% 1,069 1,016 -53.2 -4.98% 1,081 1,027 -53.4 -4.94% 1,090 1,037 -53.0 -4.87% 1,099 1,047 -52.6 -4.78% 1,108 1,056 -52.3 -4.72% 1,117 1,065 -51.9 -4.65% 1,074.69 1,020.50 -54.19 -5.05% 18,500 18,500 0.0 0.00% 20,624 20,607 -16.6 -0.08% 21,077 24,379 3,301.4 15.66% 21,442 25,292 3,849.4 17.95% 21,591 25,960 4,368.5 20.23% 21,893 26,369 4,475.1 20.44% 22,118 26,538 4,420.0 19.98% 22,251 26,597 4,345.3 19.53% 22,415 26,667 4,252.7 18.97% 22,577 26,699 4,122.3 18.26% 22,729 26,713 3,984.5 17.53% 21,871.81 25,582.09 3,710.28 16.85% 9,450 9,450 0.0 0.00% 9,706 8,704 -1,002.2 -10.33% 9,936 9,102 -833.7 -8.39% 10,154 9,257 -897.0 -8.83% 10,355 9,484 -871.2 -8.41% 10,549 9,673 -876.3 -8.31% 10,723 9,826 -896.7 -8.36% 10,879 9,971 -908.3 -8.35% 11,014 10,096 -918.2 -8.34% 11,125 10,193 -932.7 -8.38% 11,211 10,265 -946.1 -8.44% 10,565.25 9,657.02 -908.23 -8.61% 115 115 0.0 0.00% 116 116 0.0 0.00% 116 121 4.7 4.03% 116 120 3.7 3.21% 116 120 3.7 3.19% 116 120 3.4 2.89% 116 119 3.1 2.68% 116 119 2.9 2.52% 116 119 2.8 2.42% 116 119 2.6 2.25% 117 119 2.4 2.09% 116.21 119.15 2.94 2.53% 1,240 1,240 0.0 0.00% 1,252 1,175 -77.5 -6.19% 1,259 1,199 -59.4 -4.72% 1,273 1,210 -63.2 -4.97% 1,280 1,222 -58.6 -4.58% 1,295 1,239 -56.8 -4.38% 1,311 1,255 -56.3 -4.29% 1,327 1,272 -54.9 -4.14% 1,345 1,292 -53.3 -3.96% 1,365 1,313 -52.0 -3.81% 1,386 1,335 -50.6 -3.65% 1,309.39 1,251.14 -58.25 -4.47% 144 140 -3.9 -2.73% 56 Table D2: (continued) China Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Colombia Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Cuba Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Eastern Europe Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Egypt Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg European Union Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 7,623 7,623 0.0 0.00% 7,735 7,640 -94.9 -1.23% 7,824 9,485 1,660.8 21.23% 8,026 9,455 1,428.5 17.80% 8,800 8,800 0.0 0.00% 8,903 6,241 -2,662.7 -29.91% 9,046 7,622 -1,424.0 -15.74% 9,203 7,594 -1,608.9 -17.48% 9,396 8,035 -1,361.0 -14.48% 9,582 8,397 -1,184.3 -12.36% 2,265 2,265 0.0 0.00% 2,290 2,290 0.0 0.00% 2,309 2,429 120.0 5.20% 2,350 2,433 83.1 3.54% 2,382 2,462 80.0 3.36% 1,350 1,350 0.0 0.00% 1,378 1,310 -67.3 -4.89% 1,398 1,377 -21.1 -1.51% 1,425 1,395 -30.9 -2.16% 3,200 3,200 0.0 0.00% 3,329 3,296 -32.9 -0.99% 3,463 3,697 233.8 6.75% 700 700 0.0 0.00% 718 297 -421.0 -58.65% 3,188 3,188 0.0 0.00% [1] Average 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 8,180 8,359 8,494 9,672 9,704 9,675 1,491.2 1,344.9 1,181.7 18.23% 16.09% 13.91% 8,593 9,650 1,057.1 12.30% 8,713 9,664 950.5 10.91% 8,846 9,693 846.5 9.57% 8,980 9,737 756.9 8.43% 8,375.08 9,437.40 1,062.32 12.72% 9,802 8,727 -1,074.3 -10.96% 10,075 9,097 -978.4 -9.71% 10,412 9,531 -881.6 -8.47% 10,782 9,978 -803.7 -7.45% 11,149 10,418 -731.0 -6.56% 9,834.95 8,563.96 -1,270.98 -13.31% 2,429 2,488 59.2 2.44% 2,472 2,508 35.5 1.44% 2,511 2,528 16.9 0.67% 2,555 2,554 -1.2 -0.05% 2,600 2,579 -21.6 -0.83% 2,646 2,605 -41.7 -1.58% 2,454.63 2,487.66 33.03 1.42% 1,447 1,425 -21.6 -1.49% 1,472 1,456 -16.8 -1.14% 1,499 1,484 -15.2 -1.01% 1,524 1,512 -12.5 -0.82% 1,549 1,540 -8.6 -0.56% 1,573 1,568 -5.6 -0.36% 1,597 1,594 -2.7 -0.17% 1,486.29 1,466.06 -20.23 -1.41% 3,608 3,981 372.4 10.32% 3,758 4,286 527.9 14.05% 3,918 4,593 675.2 17.23% 4,083 4,885 802.0 19.64% 4,253 5,171 918.0 21.59% 4,428 5,450 1,021.9 23.08% 4,610 5,721 1,111.2 24.10% 4,798 5,987 1,189.0 24.78% 4,024.91 4,706.75 681.85 16.06% 728 417 -311.2 -42.76% 744 411 -333.0 -44.76% 754 429 -325.3 -43.13% 769 451 -318.1 -41.38% 784 468 -316.4 -40.35% 798 481 -316.8 -39.71% 812 498 -313.8 -38.66% 826 513 -312.4 -37.83% 839 526 -313.2 -37.33% 777.13 448.99 -328.14 -42.46% 3,363 3,363 0.0 0.00% 3,326 3,219 -107.3 -3.23% 3,303 3,095 -208.4 -6.31% 3,285 3,048 -237.3 -7.22% 3,269 3,017 -251.6 -7.70% 3,253 2,995 -258.0 -7.93% 3,238 2,979 -258.7 -7.99% 3,222 2,965 -257.7 -8.00% 3,207 2,950 -257.0 -8.02% 3,191 2,935 -256.1 -8.03% 3,265.61 3,056.39 -209.22 -6.44% 4,217 4,217 0.0 0.00% 4,263 4,303 40.0 0.94% 4,295 4,365 70.5 1.64% 4,326 4,391 64.9 1.50% 4,347 4,414 67.2 1.55% 4,364 4,434 69.3 1.59% 4,377 4,447 70.0 1.60% 4,381 4,451 70.1 1.60% 4,379 4,451 71.1 1.62% 4,371 4,443 71.7 1.64% 4,356 4,428 71.6 1.64% 4,346.01 4,412.67 66.65 1.53% 1,375 1,375 0.0 0.00% 1,410 1,276 -133.5 -9.47% 1,437 1,393 -43.5 -3.03% 1,462 1,403 -59.0 -4.04% 1,487 1,439 -47.5 -3.19% 1,512 1,482 -30.3 -2.00% 1,537 1,526 -11.0 -0.72% 1,563 1,577 13.6 0.87% 1,589 1,635 46.4 2.92% 1,615 1,698 83.1 5.14% 1,642 1,766 124.4 7.58% 1,525.31 1,519.58 -5.73 -0.59% 2,080 2,080 0.0 0.00% 2,137 1,412 -725.7 -33.95% 2,177 1,694 -482.9 -22.18% 2,233 1,711 -522.0 -23.38% 2,277 1,791 -486.2 -21.36% 2,331 1,867 -464.1 -19.91% 2,389 1,933 -455.5 -19.07% 2,441 1,997 -444.3 -18.20% 2,496 2,068 -427.6 -17.13% 2,552 2,138 -414.6 -16.24% 2,608 2,205 -402.7 -15.44% 2,364.13 1,881.57 -482.56 -20.69% 16,178 16,178 0.0 0.00% 17,835 9,248 -8,586.1 -48.14% 18,013 7,727 -10,286.0 -57.10% 18,141 6,510 -11,631.0 -64.11% 18,318 6,240 -12,077.3 -65.93% 18,522 6,309 -12,213.4 -65.94% 18,746 6,512 -12,234.2 -65.26% 18,982 6,804 -12,178.4 -64.16% 19,229 7,168 -12,061.1 -62.72% 19,486 7,552 -11,934.7 -61.25% 19,752 7,956 -11,796.4 -59.72% 18,702.35 7,202.49 -11,499.86 -61.43% 14,700 14,700 0.0 0.00% 14,768 15,011 243.1 1.65% 14,815 15,359 544.1 3.67% 14,851 15,345 493.3 3.32% 14,888 15,374 486.5 3.27% 14,921 15,413 491.4 3.29% 14,950 15,436 486.9 3.26% 14,982 15,454 471.9 3.15% 15,015 15,481 465.3 3.10% 15,050 15,506 455.9 3.03% 15,088 15,527 439.3 2.91% 14,932.70 15,390.47 457.76 3.06% 57 Table D2: (continued) Former Soviet Union Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg India Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Indonesia Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Iran Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Japan Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Malaysia Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 4,111 4,111 0.0 0.00% 4,250 4,250 0.0 0.00% 4,327 4,909 581.7 13.44% 4,412 4,894 481.8 10.92% (Thousand Metric Tons) 4,462 4,529 4,951 4,957 488.2 428.0 10.94% 9.45% 11,649 11,649 0.0 0.00% 11,819 11,560 -258.9 -2.19% 11,846 11,816 -29.7 -0.25% 11,985 11,921 -63.8 -0.53% 12,013 11,978 -35.0 -0.29% 18,350 18,350 0.0 0.00% 18,801 17,735 -1,066.5 -5.67% 19,206 18,299 -906.8 -4.72% 19,641 18,467 -1,174.0 -5.98% 18,000 18,000 0.0 0.00% 18,426 17,474 -952.6 -5.17% 18,795 18,620 -175.6 -0.93% 1,700 1,700 0.0 0.00% 1,619 1,564 -54.2 -3.35% 3,400 3,400 0.0 0.00% [1] Average 07/08 08/09 09/10 10/11 11/12 4,580 4,926 345.8 7.55% 4,614 4,887 273.0 5.92% 4,650 4,855 204.8 4.40% 4,686 4,817 131.3 2.80% 4,719 4,781 61.1 1.29% 4,523.13 4,822.71 299.58 6.67% 12,124 12,107 -17.7 -0.15% 12,256 12,245 -11.5 -0.09% 12,348 12,344 -4.3 -0.03% 12,453 12,460 6.4 0.05% 12,565 12,579 14.2 0.11% 12,654 12,674 20.4 0.16% 12,206.35 12,168.36 -37.99 -0.32% 20,070 18,964 -1,105.7 -5.51% 20,507 19,472 -1,034.1 -5.04% 20,940 19,975 -964.8 -4.61% 21,371 20,495 -876.0 -4.10% 21,804 21,029 -775.0 -3.55% 22,237 21,551 -686.3 -3.09% 22,670 22,070 -600.5 -2.65% 20,724.70 19,805.72 -918.98 -4.49% 19,234 18,902 -331.8 -1.73% 19,633 19,488 -144.5 -0.74% 20,065 20,006 -58.7 -0.29% 20,511 20,482 -28.7 -0.14% 20,947 20,982 35.0 0.17% 21,392 21,505 113.2 0.53% 21,842 22,020 177.5 0.81% 22,291 22,538 247.3 1.11% 20,313.63 20,201.73 -111.91 -0.64% 1,593 2,134 540.8 33.95% 1,593 2,243 649.9 40.80% 1,617 2,410 793.3 49.07% 1,652 2,559 906.7 54.88% 1,694 2,686 991.7 58.53% 1,739 2,814 1,074.7 61.79% 1,788 2,958 1,170.1 65.45% 1,838 3,100 1,261.9 68.66% 1,889 3,246 1,357.6 71.88% 1,702.10 2,571.33 869.22 50.17% 3,481 3,262 -218.8 -6.29% 3,569 3,390 -179.6 -5.03% 3,676 3,468 -208.7 -5.68% 3,788 3,565 -223.3 -5.90% 3,905 3,669 -235.6 -6.03% 4,031 3,779 -251.2 -6.23% 4,155 3,886 -268.9 -6.47% 4,288 4,003 -284.4 -6.63% 4,431 4,130 -301.4 -6.80% 4,585 4,264 -321.3 -7.01% 3,990.96 3,741.63 -249.33 -6.21% 775 775 0.0 0.00% 742 742 0.0 0.00% 749 789 40.6 5.42% 759 801 41.9 5.52% 768 813 45.3 5.89% 779 823 43.7 5.62% 789 830 41.1 5.21% 799 838 38.9 4.87% 809 846 36.7 4.54% 819 853 34.2 4.18% 825 856 31.7 3.85% 783.70 819.12 35.42 4.51% 2,000 2,000 0.0 0.00% 2,057 1,945 -112.3 -5.46% 2,118 2,038 -79.6 -3.76% 2,187 2,100 -87.4 -4.00% 2,256 2,176 -79.9 -3.54% 2,329 2,251 -77.2 -3.31% 2,404 2,327 -77.0 -3.20% 2,480 2,405 -75.2 -3.03% 2,558 2,485 -72.7 -2.84% 2,638 2,567 -70.9 -2.69% 2,720 2,651 -68.8 -2.53% 2,374.63 2,294.52 -80.11 -3.44% 795 795 0.0 0.00% 803 803 0.0 0.00% 814 723 -91.1 -11.18% 827 635 -192.1 -23.21% 840 567 -273.1 -32.53% 852 506 -346.1 -40.63% 863 454 -409.0 -47.39% 873 411 -461.4 -52.86% 882 376 -506.2 -57.38% 891 346 -544.4 -61.14% 898 321 -576.9 -64.25% 854.26 514.23 -340.03 -39.06% 2,350 2,350 0.0 0.00% 2,341 2,383 41.6 1.78% 2,344 2,409 64.9 2.77% 2,354 2,414 59.4 2.52% 2,364 2,422 58.3 2.47% 2,376 2,432 56.9 2.40% 2,388 2,442 53.9 2.26% 2,400 2,449 49.5 2.06% 2,411 2,457 45.2 1.87% 2,423 2,463 40.1 1.66% 2,433 2,467 34.3 1.41% 2,383.36 2,433.79 50.43 2.12% 112 112 0.0 0.00% 116 133 16.3 13.95% 121 170 49.5 41.06% 125 177 52.1 41.80% 129 187 58.8 45.72% 132 195 62.4 47.09% 136 199 63.0 46.18% 140 203 62.3 44.40% 144 206 61.9 42.89% 149 210 61.1 41.13% 153 213 60.1 39.39% 134.52 189.28 54.75 40.36% 1,100 1,100 0.0 0.00% 1,145 1,066 -78.5 -6.85% 1,185 1,116 -69.0 -5.82% 1,227 1,150 -76.9 -6.27% 1,267 1,187 -79.7 -6.29% 1,313 1,232 -81.5 -6.21% 1,363 1,279 -83.9 -6.16% 1,412 1,325 -87.2 -6.18% 1,463 1,373 -89.9 -6.14% 1,515 1,422 -92.8 -6.13% 1,567 1,471 -96.5 -6.16% 1,345.74 1,262.16 -83.59 -6.22% 58 Table D2: (continued) Mexico Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Morocco Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Pakistan Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Peru Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Philippines Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg South Africa Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg 01/02 02/03 03/04 04/05 05/06 06/07 5,092 5,092 0.0 0.00% 5,277 5,277 0.0 0.00% 5,423 5,442 18.9 0.35% 5,560 4,978 -581.7 -10.46% 4,543 4,543 0.0 0.00% 4,574 4,600 26.3 0.57% 4,607 4,662 54.9 1.19% 4,655 4,705 50.2 1.08% 4,705 4,760 54.5 1.16% 4,747 4,805 58.2 1.23% 545 545 0.0 0.00% 537 522 -14.8 -2.76% 545 561 16.3 2.99% 553 565 11.4 2.05% 563 574 11.9 2.12% 1,000 1,000 0.0 0.00% 1,028 906 -122.4 -11.90% 1,049 931 -118.3 -11.28% 1,074 951 -122.7 -11.42% 3,006 3,006 0.0 0.00% 2,994 2,994 0.0 0.00% 3,012 3,348 336.8 11.18% 3,450 3,450 0.0 0.00% 3,478 3,133 -345.0 -9.92% 810 810 0.0 0.00% [1] Average 07/08 08/09 09/10 10/11 11/12 (Thousand Metric Tons) 5,690 5,817 6,037 5,047 5,180 5,390 -642.7 -636.8 -646.9 -11.30% -10.95% -10.72% 6,248 5,611 -637.7 -10.21% 6,467 5,880 -587.2 -9.08% 6,688 6,141 -547.8 -8.19% 6,850 6,345 -504.9 -7.37% 6,005.68 5,528.99 -476.68 -7.79% 4,810 4,870 60.4 1.26% 4,870 4,933 62.2 1.28% 4,931 4,996 64.9 1.32% 4,990 5,057 67.0 1.34% 5,047 5,116 68.5 1.36% 4,793.55 4,850.27 56.71 1.18% 572 584 11.7 2.04% 582 593 10.7 1.84% 592 602 10.1 1.71% 603 613 10.2 1.70% 613 623 10.1 1.66% 623 634 10.1 1.62% 578.34 587.12 8.78 1.50% 1,095 966 -129.1 -11.78% 1,120 988 -132.1 -11.80% 1,145 1,010 -134.9 -11.78% 1,168 1,034 -133.9 -11.46% 1,192 1,059 -133.2 -11.17% 1,217 1,084 -133.0 -10.93% 1,241 1,109 -131.9 -10.63% 1,132.94 1,003.79 -129.15 -11.42% 3,051 3,408 356.8 11.69% 3,107 3,505 398.3 12.82% 3,174 3,566 392.0 12.35% 3,247 3,618 370.8 11.42% 3,326 3,677 350.7 10.54% 3,408 3,735 327.6 9.61% 3,492 3,792 299.9 8.59% 3,579 3,851 272.4 7.61% 3,238.97 3,549.49 310.52 9.58% 3,502 3,267 -235.0 -6.71% 3,539 3,276 -262.7 -7.42% 3,577 3,340 -236.8 -6.62% 3,625 3,397 -228.2 -6.29% 3,682 3,454 -228.3 -6.20% 3,745 3,523 -222.7 -5.95% 3,817 3,602 -215.3 -5.64% 3,898 3,688 -210.0 -5.39% 3,988 3,784 -203.6 -5.11% 3,685.28 3,446.52 -238.76 -6.52% 840 840 0.0 0.00% 875 921 45.4 5.19% 907 941 33.4 3.69% 935 969 33.8 3.61% 964 992 27.9 2.90% 991 1,013 21.1 2.13% 1,018 1,034 16.0 1.57% 1,045 1,056 11.1 1.06% 1,072 1,077 5.3 0.49% 1,100 1,099 -0.5 -0.05% 974.77 994.12 19.35 2.06% 880 880 0.0 0.00% 897 849 -47.7 -5.32% 910 893 -17.9 -1.96% 929 905 -24.3 -2.61% 945 927 -18.2 -1.93% 966 951 -15.1 -1.56% 989 975 -14.0 -1.41% 1,012 1,000 -12.2 -1.20% 1,038 1,028 -9.6 -0.93% 1,065 1,058 -7.7 -0.72% 1,095 1,089 -5.8 -0.53% 984.67 967.43 -17.24 -1.82% 1,800 1,800 0.0 0.00% 1,789 1,789 0.0 0.00% 1,794 1,971 176.8 9.85% 1,818 1,956 138.1 7.60% 1,845 1,982 136.3 7.39% 1,874 1,974 99.8 5.32% 1,902 1,958 56.2 2.96% 1,929 1,947 18.1 0.94% 1,955 1,934 -21.9 -1.12% 1,982 1,917 -65.1 -3.29% 2,008 1,901 -107.8 -5.37% 1,889.67 1,932.71 43.04 2.43% 1,950 1,950 0.0 0.00% 1,984 1,872 -111.5 -5.62% 2,010 1,981 -29.4 -1.46% 2,042 1,996 -46.3 -2.27% 2,067 2,041 -25.7 -1.24% 2,096 2,080 -16.5 -0.79% 2,129 2,115 -13.3 -0.62% 2,159 2,153 -6.2 -0.29% 2,191 2,194 2.3 0.11% 2,222 2,231 9.4 0.42% 2,250 2,268 17.3 0.77% 2,115.09 2,093.11 -21.98 -1.10% 2,690 2,690 0.0 0.00% 2,940 2,940 0.0 0.00% 3,076 3,229 152.7 4.96% 3,167 3,329 161.7 5.11% 3,235 3,426 191.1 5.91% 3,291 3,493 201.9 6.13% 3,342 3,547 205.4 6.15% 3,389 3,599 209.4 6.18% 3,435 3,646 210.5 6.13% 3,480 3,687 206.7 5.94% 3,524 3,725 200.9 5.70% 3,288.02 3,462.06 174.04 5.22% 1,665 1,665 0.0 0.00% 1,685 1,673 -11.6 -0.69% 1,700 1,693 -7.0 -0.41% 1,718 1,709 -8.4 -0.49% 1,732 1,725 -7.8 -0.45% 1,732 1,725 -7.6 -0.44% 1,738 1,730 -7.6 -0.44% 1,745 1,737 -7.4 -0.43% 1,745 1,738 -7.1 -0.41% 1,746 1,739 -6.9 -0.40% 1,748 1,741 -6.7 -0.38% 1,728.80 1,720.98 -7.82 -0.45% 59 Table D2: (continued) South Korea Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Thailand Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Turkey Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg United States Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg Venezuela Production Baseline Scenario 3 Change % chg Consumption Baseline Scenario 3 Change % chg 01/02 02/03 03/04 04/05 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 1,230 1,230 0.0 0.00% 1,293 1,307 13.4 1.04% 5,225 5,225 0.0 0.00% 05/06 06/07 [1] Average 07/08 08/09 09/10 10/11 11/12 0 0 0.0 0.00% (Thousand Metric Tons) 0 0 0 0 0 0 0.0 0.0 0.0 0.00% 0.00% 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0 0 0.0 0.00% 0.00 0.00 0.00 0.00% 1,342 1,393 51.1 3.81% 1,396 1,441 45.7 3.27% 1,437 1,494 57.2 3.98% 1,483 1,547 63.7 4.30% 1,530 1,597 67.5 4.41% 1,570 1,643 72.9 4.65% 1,608 1,687 79.1 4.92% 1,644 1,728 84.6 5.14% 1,675 1,765 90.2 5.38% 1,497.67 1,560.21 62.54 4.09% 5,505 5,505 0.0 0.00% 5,697 5,806 109.0 1.91% 5,866 5,936 70.0 1.19% 6,032 6,094 62.5 1.04% 6,199 6,236 36.8 0.59% 6,369 6,381 11.8 0.19% 6,541 6,535 -6.2 -0.09% 6,717 6,694 -23.3 -0.35% 6,895 6,855 -40.4 -0.59% 7,012 6,956 -56.2 -0.80% 6,283.39 6,299.81 16.42 0.31% 1,750 1,750 0.0 0.00% 1,807 1,679 -128.0 -7.08% 1,862 1,831 -31.5 -1.69% 1,922 1,871 -51.0 -2.65% 1,982 1,958 -24.5 -1.24% 2,047 2,034 -12.3 -0.60% 2,114 2,107 -7.7 -0.36% 2,183 2,185 1.8 0.08% 2,254 2,268 13.2 0.59% 2,327 2,350 22.9 0.98% 2,401 2,435 33.4 1.39% 2,090.00 2,071.65 -18.35 -1.06% 1,900 1,900 0.0 0.00% 1,964 1,134 -829.4 -42.23% 1,956 1,838 -118.0 -6.03% 1,975 2,159 183.9 9.31% 2,002 2,529 526.3 26.29% 2,038 2,843 804.1 39.45% 2,075 3,086 1,010.9 48.72% 2,112 3,287 1,175.9 55.69% 2,150 3,470 1,319.7 61.37% 2,190 3,617 1,427.1 65.17% 2,212 3,719 1,507.3 68.14% 2,067.43 2,768.22 700.79 32.59% 2,000 2,000 0.0 0.00% 2,041 2,047 6.4 0.32% 2,077 2,104 26.7 1.29% 2,117 2,141 23.5 1.11% 2,154 2,183 29.1 1.35% 2,194 2,226 32.1 1.46% 2,234 2,268 33.6 1.50% 2,274 2,310 36.0 1.58% 2,314 2,353 38.7 1.67% 2,355 2,396 41.1 1.75% 2,395 2,439 43.6 1.82% 2,215.55 2,246.65 31.10 1.39% 7,189 7,189 0.0 0.00% 7,924 7,924 0.0 0.00% 8,065 7,781 -284.7 -3.53% 8,034 7,181 -852.8 -10.61% 7,983 7,197 -786.4 -9.85% 7,942 7,264 -678.2 -8.54% 7,906 7,316 -590.6 -7.47% 7,917 7,354 -563.0 -7.11% 7,940 7,431 -508.6 -6.41% 7,958 7,508 -450.2 -5.66% 7,983 7,585 -398.4 -4.99% 7,965.40 7,454.10 -511.29 -6.42% 9,335 9,335 0.0 0.00% 9,469 9,510 40.7 0.43% 9,669 9,777 107.6 1.11% 9,853 9,925 71.7 0.73% 10,026 10,085 58.9 0.59% 10,203 10,254 50.9 0.50% 10,362 10,412 50.0 0.48% 10,517 10,560 43.4 0.41% 10,676 10,713 37.1 0.35% 10,834 10,862 27.5 0.25% 10,976 10,995 19.7 0.18% 10,258.58 10,309.33 50.75 0.50% 710 710 0.0 0.00% 711 711 0.0 0.00% 721 747 25.7 3.57% 731 759 27.7 3.80% 740 773 32.9 4.45% 748 783 34.3 4.59% 756 790 33.7 4.46% 763 796 32.5 4.26% 770 801 30.5 3.96% 776 804 27.4 3.53% 782 806 23.6 3.02% 749.92 776.77 26.85 3.56% 850 850 0.0 0.00% 856 807 -48.6 -5.68% 861 839 -21.8 -2.54% 868 840 -28.0 -3.22% 873 850 -22.8 -2.62% 879 858 -20.3 -2.31% 885 865 -19.6 -2.22% 889 871 -18.3 -2.06% 892 876 -16.4 -1.83% 896 881 -14.9 -1.67% 898 885 -13.6 -1.51% 879.56 857.12 -22.43 -2.57% [1] Average is the average for the period 2002/03 to 2011/12. Scenario 3 = Full Market Liberalization Reform 60 Table E1: Sensitivity Results for Scenario 1 with Elasticities Doubled Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea US Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 1 Scenario 1 with doubled (S1O) elasticities (S1D) (Thousand Metric Tons) Difference between S1O and S1D (Percent) 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 23,617.86 6,364.24 18,702.35 6,157.79 4,269.67 25,345.03 6,661.67 18,702.35 6,030.63 4,508.22 7.19 4.55 0.00 -2.01 5.19 10,565.25 1,074.69 14,932.70 2,090.00 777.13 10,201.03 1,052.37 15,597.65 2,188.66 744.48 9,856.16 1,031.39 16,263.92 2,292.16 712.06 -3.39 -2.00 4.27 4.67 -4.40 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 13,434.52 5,318.02 3,032.31 3,952.38 3,523.86 15,519.60 5,641.39 2,328.57 3,718.99 3,795.47 15.30 5.95 -25.02 -5.82 7.23 4,523.13 1,702.10 854.26 0.00 7,965.40 3,904.78 1,723.01 736.93 0.00 7,688.57 3,274.99 1,743.53 591.30 0.00 7,527.15 -16.52 1.19 -20.41 0.00 -2.13 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,325.21 3,863.72 2,453.02 1,581.43 10,394.51 12,445.05 3,742.46 2,522.82 1,665.69 10,537.84 0.97 -3.07 2.85 5.29 1.40 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 8,371.37 2,049.34 1,719.17 1,587.57 3,043.80 9,140.94 1,902.12 1,935.37 1,675.96 3,533.40 9.04 -7.06 12.46 5.55 16.38 147,240.83 146,964.72 34,475.62 0.83 0.60 4.90 282.14 -0.06 144,819.93 145,232.56 32,015.18 214.61 146,019.94 146,075.05 32,825.41 (U.S. Dollars per Metric Ton) 282.31 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 1 = Trade Liberalization 61 Table E2: Sensitivity Results for Scenario 2 with Elasticities Doubled Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea US Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 2 Scenario 2 with doubled (S2O) elasticities (S2D) (Thousand Metric Tons) Difference between S2O and S2D (Percent) 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 25,651.73 6,700.27 7,230.69 6,304.78 4,722.58 28,118.92 7,121.64 4,575.37 6,232.07 5,118.33 9.40 6.13 -36.86 -1.09 7.71 10,565.25 1,074.69 14,932.70 2,090.00 777.13 9,633.87 1,019.19 15,382.79 2,065.81 693.96 9,047.02 983.57 15,972.53 2,126.32 643.78 -6.11 -3.50 3.83 2.76 -7.45 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 16,045.25 5,691.56 -8,214.96 4,223.20 4,028.13 19,112.90 6,154.76 -11,494.77 4,087.51 4,474.93 18.77 7.98 40.86 -3.10 10.40 4,523.13 1,702.10 854.26 0.00 7,965.40 4,854.56 2,585.88 385.92 0.00 7,482.78 4,580.63 3,198.28 169.45 0.00 6,801.23 -5.59 21.91 -74.25 0.00 -9.21 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,162.57 3,736.33 2,433.09 1,558.92 10,306.18 12,224.45 3,568.65 2,495.73 1,643.17 10,411.24 0.50 -4.44 2.58 5.32 1.03 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 7,239.65 1,057.30 2,050.05 1,564.06 2,941.35 7,589.89 271.35 2,329.88 1,652.06 3,734.52 4.71 -76.04 13.68 5.57 26.92 140,065.47 140,415.47 40,848.44 -0.55 -0.60 14.13 330.56 -6.55 144,819.93 145,232.56 32,015.18 214.61 140,759.31 141,211.35 35,762.52 (U.S. Dollars per Metric Ton) 353.93 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms 62 Table E3: Sensitivity Results for Scenario 3 with Elasticities Doubled Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea US Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 3 Scenario 3 with doubled (S3O) elasticities (S3D) (Thousand Metric Tons) Difference between S3O and S3D (Percent) 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 25,582.09 6,688.85 7,202.49 6,299.81 4,706.75 27,995.27 7,101.30 4,562.16 6,223.17 5,089.50 9.22 6.01 -36.78 -1.16 7.48 10,565.25 1,074.69 14,932.70 2,090.00 777.13 9,657.02 1,020.50 15,390.47 2,071.65 448.99 9,090.39 986.04 15,985.81 2,136.91 187.62 -5.89 -3.38 3.87 2.99 -60.06 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 15,952.01 5,678.64 -8,251.26 4,212.42 4,240.52 18,945.87 6,131.67 -11,521.90 4,068.10 4,870.55 18.43 7.82 40.60 -3.32 14.29 4,523.13 1,702.10 854.26 0.00 7,965.40 4,822.71 2,571.33 514.23 0.00 7,454.10 4,523.03 3,173.06 248.90 0.00 6,762.04 -6.17 21.64 -60.86 0.00 -9.39 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,168.36 3,741.63 2,433.79 1,560.21 10,309.33 12,234.48 3,578.00 2,496.95 1,645.03 10,416.69 0.54 -4.33 2.60 5.36 1.06 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 7,278.16 1,077.23 1,922.46 1,565.39 2,974.49 7,658.83 306.03 2,251.67 1,653.99 3,780.07 5.11 -73.05 16.83 5.60 27.05 139,554.13 139,853.68 40,799.77 -0.73 -0.81 14.20 328.35 -6.50 144,819.93 145,232.56 32,015.18 214.61 140,515.80 140,938.67 35,699.10 (U.S. Dollars per Metric Ton) 351.36 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 3 = Full Market Liberalization 63 Table E4: Sensitivity Results for Scenario 1 with Elasticities Halved Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea U.S Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 1 Scenario 1 with halved (S1O) elasticities (S1H) (Thousand Metric Tons) Difference between S1O and S1H (Percent) 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 23,617.86 6,364.24 18,702.35 6,157.79 4,269.67 22,744.31 6,213.73 18,702.35 6,220.56 4,147.22 -3.64 -2.31 0.00 0.99 -2.67 10,565.25 1,074.69 14,932.70 2,090.00 777.13 10,201.03 1,052.37 15,597.65 2,188.66 744.48 10,382.98 1,063.53 15,265.25 2,138.64 760.83 1.79 1.06 -2.13 -2.25 2.22 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 13,434.52 5,318.02 3,032.31 3,952.38 3,523.86 12,372.62 5,153.91 3,383.50 4,066.65 3,384.77 -7.80 -3.02 12.47 2.85 -3.72 4,523.13 1,702.10 854.26 0.00 7,965.40 3,904.78 1,723.01 736.93 0.00 7,688.57 4,213.80 1,712.53 798.97 0.00 7,828.14 8.12 -0.61 8.70 0.00 1.85 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,325.21 3,863.72 2,453.02 1,581.43 10,394.51 12,265.84 3,926.88 2,418.20 1,539.27 10,326.58 -0.48 1.60 -1.42 -2.65 -0.66 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 8,371.37 2,049.34 1,719.17 1,587.57 3,043.80 7,992.87 2,125.62 1,621.91 1,543.34 2,735.88 -4.44 3.67 -5.61 -2.78 -10.48 145,422.81 145,652.85 32,271.69 -0.41 -0.28 -1.58 282.24 -0.02 144,819.93 145,232.56 32,015.18 214.61 146,019.94 146,075.05 32,825.41 (U.S. Dollars per Metric Ton) 282.31 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 1 = Trade Liberalization 64 Table E5: Sensitivity Results for Scenario 2 with Elasticities Halved Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea US Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 2 Scenario 2 with halved (S2O) elasticities (S2H) (Thousand Metric Tons) Difference between S2O and S2H 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 25,651.73 6,700.27 7,230.69 6,304.78 4,722.58 24,301.73 6,470.57 8,798.17 6,332.82 4,498.25 -5.14 -3.34 22.09 0.42 -4.37 10,565.25 1,074.69 14,932.70 2,090.00 777.13 9,633.87 1,019.19 15,382.79 2,065.81 693.96 9,937.26 1,037.62 15,099.79 2,039.80 721.86 3.16 1.81 -1.84 -1.17 4.14 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 16,045.25 5,691.56 -8,214.96 4,223.20 4,028.13 14,383.61 5,440.09 -6,347.56 4,278.37 3,775.43 -10.17 -4.33 -22.98 1.25 -5.87 4,523.13 1,702.10 854.26 0.00 7,965.40 4,854.56 2,585.88 385.92 0.00 7,482.78 4,938.36 2,255.34 637.06 0.00 7,946.71 1.72 -11.85 110.56 0.00 6.27 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,162.57 3,736.33 2,433.09 1,558.92 10,306.18 12,140.62 3,825.10 2,402.87 1,518.98 10,258.55 -0.18 2.35 -1.24 -2.52 -0.47 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 7,239.65 1,057.30 2,050.05 1,564.06 2,941.35 7,127.65 1,479.64 1,768.34 1,522.29 2,420.75 -1.49 40.84 -13.17 -2.64 -18.21 141,303.67 141,801.78 33,781.71 0.42 0.44 -5.52 392.69 10.84 144,819.93 145,232.56 32,015.18 214.61 140,759.31 141,211.35 35,762.52 (U.S. Dollars per Metric Ton) 353.93 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 2 = Trade Liberalization and Domestic Production Subsidy Reforms 65 Table E6: Sensitivity Results for Scenario 3 with Elasticities Halved Baseline Major Exporters Production Brazil Australia EU Thailand Cuba Consumption Brazil Australia EU Thailand Cuba Trade Brazil Australia EU Thailand Cuba Major Importers Production FSU Indonesia Japan Korea US Consumption FSU Indonesia Japan Korea US Trade FSU Indonesia Japan Korea US World Production Consumption Trade World Price Caribbean raw sugar Original Scenario 3 Scenario 3 with halved (S3O) elasticities (S3H) (Thousand Metric Tons) Difference between S3O and S3H 21,871.81 6,063.38 18,702.35 6,283.39 4,024.91 25,582.09 6,688.85 7,202.49 6,299.81 4,706.75 24,266.42 6,464.77 8,783.87 6,330.30 4,490.20 -5.03 -3.26 22.38 0.46 -4.23 10,565.25 1,074.69 14,932.70 2,090.00 777.13 9,657.02 1,020.50 15,390.47 2,071.65 448.99 9,950.10 1,038.34 15,103.67 2,043.03 585.72 3.05 1.75 -1.86 -1.29 31.53 11,311.48 4,989.95 3,734.87 4,179.72 3,245.84 15,952.01 5,678.64 -8,251.26 4,212.42 4,240.52 14,335.24 5,433.48 -6,365.95 4,272.64 3,894.36 -9.96 -4.23 -23.10 1.38 -7.84 4,523.13 1,702.10 854.26 0.00 7,965.40 4,822.71 2,571.33 514.23 0.00 7,454.10 4,922.17 2,247.98 699.15 0.00 7,932.17 2.05 -11.65 45.18 0.00 6.49 12,206.35 3,990.96 2,383.36 1,497.67 10,258.58 12,168.36 3,741.63 2,433.79 1,560.21 10,309.33 12,143.55 3,828.09 2,403.22 1,519.75 10,260.14 -0.20 2.29 -1.26 -2.55 -0.48 7,613.89 2,202.74 1,531.41 1,499.67 2,423.20 7,278.16 1,077.23 1,922.46 1,565.39 2,974.49 7,147.20 1,490.02 1,706.61 1,523.08 2,437.53 -1.74 39.07 -10.85 -2.67 -18.56 141,177.21 141,660.09 33,732.24 0.50 0.53 -5.48 390.09 10.92 144,819.93 145,232.56 32,015.18 214.61 140,515.80 140,938.67 35,699.10 (U.S. Dollars per Metric Ton) 351.36 Note 1: Numbers represent the average for 2002/03 to 2011/12. Note 2: Trade represents net exports for exporters, net imports for importers and total world exports (sum of positive exports and negative imports). Scenario 3 = Full Market Liberalization 66