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Thailand Takes Aim at EU Sugar Subsidies.
Jul. 8--Thailand is preparing to lodge a complaint with the World Trade Organisation (WTO) against the European Union, saying its sugar subsidies violate EU commitments on agricultural trade.
Thailand, Brazil and Australia this week will hold separate news conferences formally announcing a request that the WTO's Dispute Settlement Body appoint a committee to consider the dispute when it meets on July 21.
The move is the first initiative agreed by an informal sugar cartel consisting of the world's five top sugar exporters: Brazil, at 10 million tonnes a year, Thailand (4.5 million), Australia (four million), South Africa (three million) and Guatemala (two million).
The trio emphasised that the EU's sugar export subsidies exceeded its commitment and violated the agreement made under the 1994 Uruguay Round of trade talks. As a result, they say, the EU policies have hurt sugar exports as well as farmers, according to a source at the global organisation.
However, the petition does not challenge the preferential access arrangements given to countries in the African, Caribbean and Pacific (ACP) group.
The Thai side found that the EU's sugar regime was structured to block imports by imposing prohibitive tariffs as high as 339 percent on raw sugar and 419 percent on white sugar.
Though the EU applies a quota system to allow imports at lower tariff rates, the amount is less than two million tonnes a year. Sugar imports by the 15-country group account for only 4 percent of the sugar exports by developing countries, which supplied 65 percent of global sugar exports in 2001.
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