Brazil’s Ministry of Foreign Relations is commemorating two World Trade Organization decisions that were favorable to Brazil. The decisions, which are now official, concerned EU and US subsidies on sugar and cotton, repectively.
However, both the EU and the US can appeal the decisions and, even if they lose the appeals, will have additional time to adapt to the final WTO decision.
With regard to the dispute over cotton subsidies, the US has until October 18 to formalize an appeal.
“The ruling was completely favorable to Brazil. If the Americans appeal, Brazil can also do so,” explained Roberto Azevedo, who handles dispute resolutions at the ministry.
Concerning the EU sugar subsidies decision, Azevedo says, using a soccer analogy, Brazil is ahead at half-time, but no one knows what will happen in the second-half.
In the complaint against excessive exports of subsidized EU sugar, Brazil was joined by Australia and Thailand.
“In this case, we hope the EU will reduce the subsidies and fulfill its obligations [which means stop exporting subsidized sugar],” declared Azevedo, explaining that the EU has been exporting five million tons of sugar annually which could be exported by Brazil, Australia and Thailand if the WTO ruling is upheld.
Azevedo said that Brazil could probably get as much as half””2.5 million tons””of that market share in the future.
Azevedo went on to say that Brazil intends to continue its fight against unfair trade practices.
“We seek compliance with agreements that already exist, some of them signed in 1994. We want to see the Doha round strengthened and expand the negotiations to include agricultural produce,” concluded Azevedo.
Translator: Allen Bennett