THE PAKISTAN DEVELOPMENT REVIEW
The Economic Implications of a Complete Free Trade and an Alternative Form of Free Trade in Sugar Through 1980
In recent years, it has been emphasized by many economists that the less developed countries cannot achieve self-sustaining economic growth unless they are given fair opportunities to sell their exportables in the world market. It is argued that the less developed countries are losing potential investment resources as a result of trade restrictions imposed by the developed countries on primary commodities. Sugar provides an example of a commodity whose free entry into world trade has been restricted by the United States and most of the developed countries of Europe. Sugar is the principle earner of foreign exchange for many developing countries. A decrease in the quantity of exports or a fall in the price has an important impact on the overall development of their economies. In recent years, the world production of centrifugal sugar has ranged between 64 and 66 million metric tons of raw sugar. Of this total production, Europe’s share ranged from 23 to 24 million tons, or approximately 36 per cent. The United States, including Hawaii, produced approximately 5 million tons. Thus, nearly 50 per cent of world sugar production comes from the developed countries.