WTO Favors Brazil Against EU on Sugar

Brazil’s Ministry of Foreign Relations has commented on the World Trade Organization’s (WTO) final decision confirming that subsidies granted by the European Union (EU) for the production and export of sugar violate international trade rules.

The European bloc can still appeal the decision, but it will be difficult to reverse the ruling on the grievance filed by Brazil, Australia, and Thailand.

The three countries protested to the WTO about EU subsidies to beet and cane sugar and sugar exports from ex-colonies in Africa, the Caribbean, and the Pacific. They argued that these practices have led to distortions on the world sugar market.

According to rough estimates, Brazil, which is the world’s largest sugar producer, accounting for approximately 16% of the market, suffers an annual loss of around US$ 400 million as a result of the EU’s sugar subsidy system, which transformed the European bloc into the world’s second largest exporter of this product.

In its preliminary finding, announced August 4, the WTO’s Dispute Settlement Body judged as appropriate the argument that the subsidies granted by the European bloc exceed limits established in previous trade agreements. This decision was just confirmed by the WTO.

This is Brazil’s second victory in a WTO panel (arbitration committee). The first, in April, involved US cotton subsidies.

Agência Brasil
Reporter: Maurí­cio Cardoso
Translator: David Silberstein

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Lula Wants Brazil to Be More Like China and Says Dollar Will Be Left Alone

Brazilian companies have to increase their productive capacity to compete internationally with rivals such ...

Brazil’s Fruit Exports Jump 10% to 851 Tons

Brazil’s fruit producers reached the end of 2004 with record exports worth US$ 370 ...

UN Urges Brazil to Ensure Human Rights to Its Indians

Despite some advances in their conditions and the Government's commitment to improve their situation ...

Brazil Caudillismo: A State Where Everything Is Named After Senator Sarney

Following a series of scandals that took Brazil’s Senate President, José Sarney, to the ...

China Gets Closer to Latin America with a US$ 350 Million Check

In a signing and flag placement ceremony held on Monday at the Inter-American Development ...

The Official Word from Brazil: China Is a Market Economy

Brazil’s President Luiz Inácio Lula da Silva received today the President of China, Hu ...

Brazilian Bras and Panties Go High Tech

The intimate fashion sector including panties and bras is one that grows the most ...

Brazilian Congress Taking Its Time to Pay Paraguay More for Itaipu

It seems there is a positive attitude in the Brazilian congress towards the consideration ...

Poll Reveals: Majority of Brazilians Don’t Trust Lula

The latest public opinion poll by Brazil’s National Industrial Confederation, conducted by Ibope, shows ...

Bush Counts on Brazil Help for World Trade Liberalization

United States President George W. Bush admitted that negotiations for a free trade zone ...