Wereld Handels Organisatie laakt Europese suikersubsidies (en)

The World Trade Organisation on Wednesday (4 August) gave a preliminary ruling that the sugar subsidies given by the EU to its farmers are an unfair advantage on global export markets.

At a meeting in Geneva to discuss the issue, the WTO upheld a complaint filed by Brazil, Australia and Thailand finding that the EU has broken trade rules by providing sugar export subsidies in excess of WTO limits.

This is the second triumph for Brazil following a ruling by the WTO in June finding that subsidies paid by the US to its cotton farmers were illegal.

The European Commission refused to comment on the substance of the decision which is still confidential.

Last month the EU tabled an overhaul of the EU sugar regime. It proposed to cut back sugar exports and export refunds, abolish intervention and reduce EU production.

The WTO's preliminary ruling, which is likely to be upheld in its final decision, is likely to give more force to these proposals which have been opposed by some European sugar producing countries.

Oxfam, a development agency, said the the WTO's decision is "a triumph for developing countries".