Globalisation: impact on sugar producers and markets

Globalisation is a nebulous term without a precise, agreed definition. It g enerally refers to economic activities moving towards global integration, f ostered by liberalisation of national markets, rapid movements of goods, an d increasingly swift communications. The process has both critics and staun ch proponents, but both agree that it has already acquired a huge momentum in many industries, including sugar. The sugar industry has arguably been o ne of the most regulated agro-industries in the world. Sugar is still somet imes seen as a political commodity: with world trade relegated to a residua l dumping market. Nevertheless, globalisation has had an impact. Liberalisa tion of national sugar industries has begun, and the structure of world sug ar markets has shifted. The situation is made more complex by the influence of regional trade agreements, and by political and economic uncertainties which follow unpredictable factors such as currency crises. Nevertheless, the pressures of increasing Foreign Direct Investment, rapidi ty of communications, and liberalisation are likely to ensure that globalis ation continues, or even accelerates, rather than declines.