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Image header Agence Europe
Europe Daily Bulletin No. 8307
Contents Publication in full By article 19 / 37
GENERAL NEWS / (eu) eu/agriculture/wto

Brazil complains about Community sugar system

Brussels, 27/09/2002 (Agence Europe) - As expected (EUROPE 19-20 August p 2), Brazil has decided to make a complaint to the WTO against the European system of export refunds in the sugar sector, accusing it of lowering market prices. According to a Commission spokesman for Frank Fischler, who refuted the accusation immediately, asserting that prices had remained stable during recent years and that beginning proceeding in Geneva, was not a good approach. This decision from the world's largest sugar producer questions an important aspect of EU development policy (1.6 million tons of sugar are sold with zero duties to ACP countries), emphasised the spokesman, noting that Australia had not yet complained although it was going to like Brazil. More recently, Thailand also warned that it intended to complain to WTO for the same reasons. At the end the Management Committee negotiations, the Commission decided to reduce Community sugar and isoglucose production quotas by 862 tons to 475 (5.7%) (825,000 for sugar) during the 2002/03 campaign, in an effort to avoid exceeding the limits of discount values for export, which are fixed by the WTO (EUR 499.1 million).

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