The European Union鈥檚 subsidised sugar exports are illegal. That鈥檚 the ruling from the World Trade Organization, following two appeals and nearly two years since the case was originally brought by Brazil, Thailand and Australia.
The subsidies, originally intended to allow farmers in the EU to compete on world markets, depress world prices, so tropical producers cannot compete. To make matters worse, the EU imports more sugar from developing nations than the US, Canada, Japan and Australia combined, then processes and re-exports a lot of it.
Despite promising in the 1980s to cut subsidised exports to 1.3 million tonnes, the EU still exports around 4 million tonnes, plus another indirectly subsidised 2 million tonnes, which the WTO also declared illegal. The European Commission says it will issue a package of laws implementing the ruling next month. 鈥淲e will abide by our international obligations,鈥� says trade commissioner Peter Mandelson.
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Adam Harrison of the conservation group WWF-UK says that if they do this by cutting the EU鈥檚 own beet sugar production, tropical farmers will profit and could then invest in sustainable techniques, such as anti-erosion measures. But if the EU simply slashes imports, poor farmers and their land will continue to be damaged. The WTO also confirmed an earlier ruling that US cotton subsidies are illegal (New 杏吧原创, 8 May 2004, p 8).
