WHO veroordeelt Europese subsidies aan suikerproducenten (en)

EUOBSERVER / BRUSSELS - The EU has broken rules governing the export of subsidised sugar, according to the World Trade Organisation (WTO).

The WTO today delivered its ruling that EU exports have exceeded quotas for subsidised sugar by up to four times.

The ruling follows a preliminary report from the WTO issued last month.

Australia, Brazil and Thailand who brought forward the case in 2002, complained that EU subsidies allow European producers to slash costs and undermine world prices.

Campaign group WWF estimates that the EU's sugar regime depresses world sugar prices by 17% and reduces imports of sugar by up to 10 million tonnes, hitting farmers in developing countries.

The European Commission said that it would study the panels report.

"A decision on whether to appeal the panel report will be made in due course", read a statement.

Development organisations welcomed the decision as a victory for poorer countries and urged the EU to accept the decision.

"The EU is proven to be in the wrong. They must now immediately act on the panels' recommendations and take the necessary steps to reform the unfair regime", said Oxfam's Jo Leadbeater.

The EU is currently reviewing its subsidy system, but campaigners say reforms do not go far enough.