{"id":20040157,"date":"2023-05-18T14:10:00","date_gmt":"2023-05-18T12:10:00","guid":{"rendered":"https:\/\/www.dabangasudan.org\/?p=20040157"},"modified":"2023-05-18T17:37:52","modified_gmt":"2023-05-18T15:37:52","slug":"sudan-conflict-alarms-world-gum-arabic-market","status":"publish","type":"post","link":"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-conflict-alarms-world-gum-arabic-market","title":{"rendered":"<strong>Sudan conflict alarms world gum arabic market<\/strong>"},"content":{"rendered":"\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-6c531013 wp-block-group-is-layout-flex\">\n<p><strong>KHARTOUM \u2013<\/strong><\/p>\n\n\n<div style=\"font-style:normal;font-weight:600;\" class=\"wp-block-post-date\"><time datetime=\"2023-05-18T14:10:00+02:00\">18\/05\/2023<\/time><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><strong>Potential disruptions to the supply chain of gum arabic*, as fallout from the Sudan conflict, is causing alarm among international manufacturers. As about 70 per cent of the world\u2019s supply comes from acacia trees in Sudan, the ongoing impact on the economy has led to stockpiling efforts by companies, and disruptions in trade.<\/strong><\/p>\n\n\n\n<p>There are reports that international companies that depend on a reliable supply of gum arabic, such as major soft drink producers, have been stockpiling supplies to mitigate potential shortages.<\/p>\n\n\n\n<p>Exporters and suppliers have reported a halt in trade due to the breakdown in logistics, particularly in the capital Khartoum, and to port operations in Red Sea state which have prioritised civilian evacuations over commercial activities.<\/p>\n\n\n\n<p>The impact this year is more significant than previous conflicts, which were typically localised in remote areas like Darfur, so that &nbsp;current stockpiles may only last about five to six months.<\/p>\n\n\n\n<p>This could impact the Sudan economy in the longer term as the cosmetics and printing industries seek alternatives, however there is no such alternative for gum arabic as an emulsifier in fizzy drinks, where it is used to prevent the ingredients from separating.<\/p>\n\n\n\n<p>The significance of gum arabic to the consumer goods industry is evident from its <a href=\"https:\/\/apnews.com\/article\/da32bf2fadfc64a3e1fcbd2c473c544e\" target=\"_blank\" rel=\"noreferrer noopener\">exemption from US sanctions<\/a>** against Sudan since 1997. This exemption was granted due to its critical nature and the fear of creating an informal market.<\/p>\n\n\n\n<p>In 2021, Sudan received a <a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/european-grant-to-restructure-sudan-s-gum-arabic-sector\" target=\"_blank\" rel=\"noreferrer noopener\">\u20ac10 million grant<\/a> from the EU to restructure its gum Arabic sector and in 2020, the Netherlands <a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/new-dutch-support-for-sudan-s-gum-arabic-industry\" target=\"_blank\" rel=\"noreferrer noopener\">agreed to support and facilitate<\/a> the establishment of gum processing factories.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><em>* Gum arabic is an emulsifier and a stabiliser made from resin from the acacia Senegal tree. Apart from shoe polish and ink, the food industry uses the stabiliser in chocolate and sweets, and, most importantly, in soft drinks, as it binds the sugar to the drink.<\/em><\/p>\n\n\n\n<p><em>Sudan is the world\u2019s foremost producer at an estimated 88,000 tons a year. Sudan, Chad, and Nigeria, produce 95 per cent of gum Arabic exported to the world market.<\/em><\/p>\n\n\n\n<p><em>The gum Arabic belt covers about one fifth of the country. North Kordofan and North Darfur are the largest producers, followed by the states of Blue Nile, White Nile, and El Gedaref.<\/em><\/p>\n\n\n\n<p><em>In the past years, Sudanese economists reported a decline in the export of gum Arabic. They have urged Khartoum&nbsp;<\/em><a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-should-step-up-gum-arabic-production-economist\" target=\"_blank\" rel=\"noreferrer noopener\"><em>to step up the production<\/em><\/a><em>&nbsp;of gum Arabic&nbsp;<\/em><a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/interview-drastic-changes-needed-to-heal-sudan-s-economy\" target=\"_blank\" rel=\"noreferrer noopener\"><em>to bridge the economic crisis<\/em><\/a><em>&nbsp;in the country while at the same time meeting the&nbsp;<\/em><a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/new-dutch-support-for-sudan-s-gum-arabic-industry\" target=\"_blank\" rel=\"noreferrer noopener\"><em>growing demands in the world<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">** <strong>USA-Sudan relations<\/strong><\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">After a distinct thaw in US-Sudan relations following the overthrow of the Al Bashir regime and a movement toward democratic transition, relations between Washington and Khartoum have been strained following the subsequent&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-military-seizes-power-arrests-pm-and-civilian-ministers-in-dawn-coup\" target=\"_blank\" rel=\"noreferrer noopener\">military coup d\u2019\u00e9tat<\/a>&nbsp;of October 25, 2021.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">The USA suspended all aid to Sudan following the coup, stating that \u201cthe USA is pausing assistance from the $700 million in emergency assistance appropriations of Economic Support Funds for Sudan. Those funds were intended to support the country\u2019s democratic transition as we evaluate the next step for Sudan programming.\u201d<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">In 2022, the US Senate&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/john-godfrey-confirmed-as-first-us-ambassador-to-sudan-in-25-years\" target=\"_blank\" rel=\"noreferrer noopener\">confirmed John Godfrey as Ambassador<\/a>&nbsp;Extraordinary and Plenipotentiary of the USA to Sudan. Sudan had been served by a deputy ambassador, making Ambassador Godfrey the first fully ranked US ambassador to Sudan in 25 years.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">On May 11, the US Senate&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/usa-pass-resolution-calling-to-sanction-sudan-s-coup-leaders\" target=\"_blank\" rel=\"noreferrer noopener\">passed a draft resolution<\/a>&nbsp;\u201cto condemn the military coup in Sudan and support the Sudanese people,\u201d and the UK House of Commons also unanimously passed the non-binding resolution with a quick vote without any objections.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">On March 23, the US Senate\u2019s Foreign Relations Committee unanimously approved a draft resolution condemning the military coup in Sudan and calling on the US administration to impose sanctions on those responsible for the coup.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">The draft resolution came two days after the US Treasury&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/us-treasury-sanctions-sudan-s-central-reserve-police-over-serious-human-rights-abuses\" target=\"_blank\" rel=\"noreferrer noopener\">imposed sanctions<\/a>&nbsp;on the paramilitary Central Reserve Forces (popularly called Abu Teira) that stand under the command of the police, in accordance with the&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/enough-project-us-should-suspend-talks-with-sudan-impose-global-sanctions\" target=\"_blank\" rel=\"noreferrer noopener\">Global Magnitsky Act<\/a> on serious violations of human rights.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">The Treasury listed the excessively violent repression of peaceful pro-democracy protests by the security forces as the main reason.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">There have been wide calls for&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/intl-activists-call-for-targeted-us-sanctions-on-sudan-coup-leaders\">targeted US sanctions<\/a>&nbsp;on the Chairman of Sudan\u2019s Sovereignty Council Gen Abdelfattah El Burhan and deputy Chairman Mohamed \u2018Hemeti\u2019 Dagalo for their involvement in serious human rights abuses following the coup.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">In March, the US Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC) announced&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/Dropbox\/Andrew's%20stuff\/Andrew's%20Documents\/DABANGA\/2205\/220511\/sanctions%20on%20the%20Sudan%20Central%20Reserve%20Police\" target=\"_blank\" rel=\"noreferrer noopener\">sanctions on the Sudan Central Reserve Police<\/a>&nbsp;(CRP, popularly known as&nbsp;<em>Abu Tira<\/em>) for serious human rights abuse yesterday. The Treasury listed the excessively violent repression of peaceful pro-democracy protests by the security forces as the main reason.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">Last week, OFAC announced sanctions against \u2018<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/us-sanctions-sudan-companies-with-links-to-hamas\" target=\"_blank\" rel=\"noreferrer noopener\">Sudan companies with links to Hamas<\/a>\u2018, with one financier, Hisham Younis Yahia Qafisheh, allegedly \u201coperating and managing at least two Sudan-based companies, Agrogate Holding and Al Rowad Real Estate Development, in order to generate revenue for the Palestinian group.\u201d<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\"><strong>Bilateral agreement<\/strong><\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">In November 2020, Sudan and the US signed a&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/historic-bilateral-agreement-signed-between-sudan-and-us\" target=\"_blank\" rel=\"noreferrer noopener\">bilateral claims settlement<\/a>&nbsp;to resolve \u201cdefault judgements and claims based on allegations that Sudan\u2019s prior regime supported acts of terrorism\u201d. According to the agreement, Sudan had to pay $335 million, on top of approximately $72 million already paid, for distribution to victims of terrorism.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">Sudan\u2019s removal from the SST list, decreed in the dying days of the Donald Trump administration, was conditional on a&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/historic-bilateral-agreement-signed-between-sudan-and-us\" target=\"_blank\" rel=\"noreferrer noopener\">bilateral claims settlement<\/a>&nbsp;signed in November 2020 to resolve \u201cdefault judgements and claims based on allegations that Sudan\u2019s prior regime supported acts of terrorism\u201d. Sudan had to pay $335 million, on top of approximately $72 million already paid, for distribution to victims of terrorism.<\/p>\n\n\n\n<p style=\"font-style:italic;font-weight:400\">In exchange, after payment of compensation to the families of the victims of the&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-settles-70-million-uss-cole-suit\" target=\"_blank\" rel=\"noreferrer noopener\">bombing of the destroyer USS Cole in Yemen<\/a>&nbsp;in 2000, and the&nbsp;<a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/pompeo-accord-underway-with-sudan-on-compensation-for-1998-bombings\" target=\"_blank\" rel=\"noreferrer noopener\">1998 bombing of the US embassies in Dar El Salaam in Tanzania and Nairobi in Kenya<\/a>, the default judgments and claims against Sudan in US courts would be dismissed, and Sudan\u2019s sovereign immunities under US law would be restored to those enjoyed by countries that have never been designated by the US as a State Sponsor of Terrorism (SST).<\/p>\n<div class=\"sws_supernormalaction\"><button on=\"tap:superwebshare-lightbox\" class=\"superwebshare_normal_button1 superwebshare-button-large superwebshare-button-square superwebshare_prompt superwebshare_button_svg\" style=\"color:#ffffff;background-color: #d52631;\" ><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"superwebshare-svg\"  fill=\"currentColor\" viewBox=\"0 0 1000 1000\" stroke=\"currentColor\" stroke-width=\"0\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" 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the&#8230;<\/p>\n","protected":false},"author":9,"featured_media":20034102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29,110,109,94,27,108],"tags":[],"class_list":["post-20040157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-flash-posts","category-frontpage","category-headlines","category-news","category-news-headlines"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sudan conflict alarms world gum arabic market - Dabanga Radio TV Online<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-conflict-alarms-world-gum-arabic-market\" \/>\n<meta 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