Brussels, 09/09/2004 (Agence Europe) - On Thursday, Australia welcomed the WTO's ruling against the European regime of sugar export subsidies, saying that this decision should put an end to the "distortions" on the international market (EUROPE of 9 September 2004, p.11). Along with Brazil and Thailand, Australia was one of the plaintiff parties to the WTO. Brazilian producers, who also welcomed the "sugar" panel's verdict, believe that the EU should not appeal the judgement, because they do not believe it will have any effect.
Australian Trade Minister Mark Vaile, quoted by Agence France Presse, said that the decision on sugar was good news for the country's "outstanding" sugar industry, which sells 80% of its wares on the world market. Mr Vaile indicated that the EU would have to withdraw up to 4 million tonnes of subsidised sugar from the international markets. However, he stressed that the WTO decision could be appealed, and that a final decision may not be taken before the beginning of next year.
This "fair and expected" decision represents a famous victory for Brazil, Australia and Thailand, and for countries which "fight for a freer and fairer international sugar market", said the president of the Union of the agro-industry of cane sugar in Sao Paulo (Unica), Eduardo Pereira de Carvalho, also quoted by AFP. He feels it is unlikely that the EU will appeal, given that this would be "doomed to failure". The Commission stated on Wednesday that the EU would decide "in due course" whether it intends to take an appeal to the WTO. Brazilian producers underline that European subsidies represent a loss of 400 million dollars a year to them.