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WTO Rebukes Brussels on Sugar Exports

EU subsidies bring the international market price down by up to 17 percent and push developing nations out of the market, a World Trade Organization report said.

The EU has broken rules governing the export of subsidized sugar, according to the World Trade Organization. The WTO delivered its ruling Wednesday that EU exports have exceeded quotas for subsidized sugar by up to four times. The ruling follows a preliminary report from the WTO issued last month. Australia, Brazil and Thailand, who brought the case up in 2002, complained that EU subsidies allow European producers to slash costs and undermine world prices by up to 17 percent. The European Commission said that it would study the panels report and decide whether it wants to appeal the decision, but development organizations urged the EU to accept the panel's decision. (EUobserver.com)

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