Brussels, 25/10/2000 (Agence Europe) - The European Union and Brazil have begun consultations in Geneva, with Brazil disputing the provisions applied to its deliveries of instant coffee in the framework of the system generalised preferences (SGP). These consultation, which are the first stage in the World Trade Organisation's dispute settlement procedure, relate to two measures in particular: the gradual abolition of preferential treatment on 1 January 1999 and the special system reserved for countries engaged in the fight against drugs. This dual mechanism has a "negative effect" on the import into Europe of Brazilian instant coffee and is "incompatible" with EU obligations under the Enabling Clause agreed in 1994, says Brasilia. The consultations, begun at its request this month, will continue to mid-December. In case of deadlock, Brazil could call on a panel to decide in the dispute.