Global sugar, regional water, and local people: EU sugar regime liberalisation, rural livelihoods, and the environment in the Incomati River Basin

Abstract

IntroductionThe EU agreed under international pressure in 2005 to gradually liberalise its highly distorting sugar regime. This case study epitomises the complex interactions between trade liberalisation on the one hand and poverty and the environment on the other. The paper first describes pertinent environmental and social conditions in the Incomati Basin. It then outlines howt he EU sugar regime reform could affect sugar prices on the world market, and assesses the effects in South Africa. Next, it analyses the impact of a sugar production expansion on the environment and ecosystem services in the Basin. The geography of social impacts is then discussed. The conclusions include a recommendation as to how to reconcile local development with global trade liberalisation.