Brussels, 22/11/2002 (Agence Europe) - Consultations between the Union, Australia and Brazil on European export subsidies and sugar processing began on Thursday in Geneva. In this preliminary phase of this procedure launched last September, the objective is to find an amicable solution in a sixty day limit rather than going through the World Trade Organisation's binding arbitration for solving this dispute. Faced with complaints from Australia and Brazil, the Union will argue that its system is compatible with the WTO's Anti-subsidies Code by stressing that the levels of imports and exports have been stable for years and that they cannot therefor be held responsible for price hikes registered on a world scale.