EU Promises Brazil It Will End Sugar Subsidies in May

In a note issued on Friday, October 28, the Brazilian Ministry of Foreign Relations declares that it considers "reasonable" the deadline set by the World Trade Organization (WTO) for the European Union (EU) to comply with the decision to eliminate sugar export subsidies.

According to the WTO’s determination, the EU has until May 22, 2006, to implement the WTO’s recommendations.

The WTO released a report in May, recommending that the EU limit its annual sugar exports to 1.2 million tons and its annual sugar export subsidies to €499.1 million. According to the ministry, this should enlarge the international sugar market, annually, by about 5 million tons.

Considering the current price of sugar, US$ 296.5 per ton, Brazil and the other competitive producer countries would gain access to a potential market worth US$ 1.48 billion, annually.

"The Brazilian government hopes that the European Union will obey the determinations of the Dispute Settlement Body within the period that was established and reiterates that full observance of existing trade rules is essential for the credibility of the negotiations over new multilateral rules in the context of the Doha Round," the note says.

Following the announcement of the decision, the president of the São Paulo Sugar Cane Agroindustry Union (Unica), Eduardo Pereira de Carvalho, affirmed that the EU has already assured Brazilian producers that it will adhere to the decisions and dates imposed by the WTO.

"We have a formal declaration from the European Commission that the WTO decision will be obeyed. And they said this in a clear manner, formally and informally. So, I can only believe that it is true," he remarked.

According to Carvalho, Brazil’s annual losses due to European sugar export subsidies amount to nearly US$ 500 million.

Agência Brasil

Tags:

You May Also Like

Brazil Finds Clients for Its Expensive Toy Cars in Qatar

Fapinha, a Brazilian maker of mini vehicles for children, is going to export 150 ...

São Paulo, Brazil, Finds Out It’s Not Easy to Be Green

Brazilian merchant Lizete Araújo da Silva, 51, has worked for approximately ten years in ...

Brazilian President Lula in campaign for reelection

Workers Party Gives Brazil’s Lula a Decalogue to Lose the Reelection

The ten commandments created by the PT (Workers Party) to shape Brazilian President Luiz ...

Venezuela’s Upcoming Elections, a Test of Brazil’s New Pro-democracy Stance

Venezuela’s president Hugo Chávez has just died after a prolonged battle with cancer. While ...

How Door-to-Door Sales Made Cosmetics Firm Natura into a Giant in Brazil

Countries all over the world are interested in taking the Brazilian brand Natura, leader ...

Low Inflation in US Boosts Brazilian Market

Brazilian and Latin American markets leapt along with U.S. shares, after tame U.S. CPI ...

Brazils Says Environment Will Guide Its Next Budget

Brazil’s interim Minister of Environment, Claudio Langone, says that one of the biggest challenges ...

Japan’s Prime Minister Signs Several Treaties and Agreements with Brazil

Brazilian president Dilma Rousseff and Japanese prime minister Shinzo Abe announced in Brazilian capital ...

Brazil’s Foreign Reserves on the Verge of US$ 200 Billion

International reserves in Brazil are close to hitting the historic mark of US$ 200 ...

70,000 Policemen and Firefighters Go on Strike in Rio, One Week Before Carnaval

In Rio, the military police together with the civilian police and firefighters, a total ...