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Aust accuses EU of propping up inefficient sugar farmers
1 Apr 2004
Australia's and Brazil's challenge to European sugar producers has begun in the World Trade Organisation. Australia and Brazil opened their salvo by claiming that the EU is propping up its inefficient farmers at the expense of sugar producers all over the globe. EU sugar farmers are the world's most expensive, the submission states.
The EU spends around $11 billion a year supporting its sugar sector, including $1.6 billion on direct export subsidies. Australia's complaint is that the subsidies fall outside the WTO provisions and that the EU is exporting more subsidised sugar than is permitted.
Australia said its canegrowers, sugar millers and refiners, and regional communities in sugarcane-growing districts are being hurt by the EU's failure to abide by WTO rules.
The special WTO panel considering the submission may take up to two years to issue a ruling.
Tradingroom.com.au, 31/3/04.
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