WTO sugar challenge
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CTA. 2003. WTO sugar challenge. Agritrade, August 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52501
Brazil, along with Australia and Thailand, formally requested on July 21st 2003...
Brazil, along with Australia and Thailand, formally requested on July 21st 2003 the establishment of an arbitration panel on the basis of two challenges to the EU sugar regime. The challenge deals with: the 'cross subsidisation' of EU 'C' sugar exports through the high prices maintained for EU 'A' and 'B' quota sugar production, which allow 'C' sugar to be exported at prices below the EU's costs of production; the exclusion of 1.6 million tonnes of EU sugar exports (equivalent to the EU's preferential imports, largely from ACP countries) from the subsidy reduction commitments which the EU has made under the Uruguay Round. Brazil and Australia have repeatedly stressed that the challenge is not aimed at the EU's system of preferential imports from ACP countries. The ACP nevertheless feel that the challenge is likely to directly affect ACP suppliers and have responded accordingly, appealing to Australia and Brazil to take ACP interests into account. Brazil claims its industry losses some US$900 million per annum as a result of the EU's sugar subsidies. Comment: Given the outcome of the earlier challenge to the Canadian dairy regime which consisted of similar features to the EU sugar regime, there would appear to be a good chance of the dispute arbitration panel finding in favour of the claimant.