:. Food Industry News


Top Sugar Exporters to Meet WTO Over EU Exports

Source: Reuters
17/02/2010

Sydney, Feb 17 - Australia, Brazil and Thailand, the world's three top sugar exporters, will meet World Trade Organisation (WTO) officials in Geneva on Thursday to press their case for immediate withdrawal of out-of-quota sugar exports by the European Union, Australia's trade ministry said on Wednesday.

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The three countries on Feb. 1 called for the withdrawal of an additional export of 500,000 tonnes of out-of-quota sugar by the EU, saying it was illegal under WTO rules.

"I can confirm that the meeting will take place," a spokesman for Trade Minister Simon Crean said but gave no more details.

The three states, which won a WTO dispute with the EU over its sugar export subsidies five years ago, this month warned they would not rule out further action, including the possibility of reopening the case which could lead to retaliation.

The EU's move, announced in January, to ramp up sugar exports in the current 2009/10 marketing year sent sugar prices plunging 15 percent from 29-year highs.

Sugar prices had been soaring because India, the world's biggest consumer of the sweetener, suffered a shortfall in its own production, leading to a global sugar deficit.

"At an industry level, Thailand, Brazil and Australia are absolutely committed to oppose the EU's decision," said Ian Ballantyne, head of Australia's canegrowers lobby.

"We believe we have the absolute support of our governments," he said, adding that it was a government-to-government matter.

Another industry official also said the matter was on the agenda of the WTO's disputes settlement body on Thursday.

"It would not be a surprise for each of Australia, Brazil and Thailand to make a statement at that meeting," said the official who declined to be quoted because he was not authorised to speak to the media on this issue.



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