Challenge to EU sugar regime
20 May 2004
Brazil announced on February 26th that it would
file a complaint at the WTO against the EU and the USA over unfair
subsidies granted to their farmers. The suit against the EU will
challenge European sugar subsidies, while the suit against the USA
will challenge subsidies in the soybean and cotton sectors. The
Brazilian action is in part a response to the introduction by the
USA of protectionist measures in the steel sector.
Editorial comment
Were any Brazilian challenge to be successful and lead to a rapid
dismantling of the EU sugar regime then this would seriously affect
the high returns which ACP States enjoy from their preferential
access to the EU sugar market under the sugar protocol and the Special
Preferential Sugar arrangement. However, the Brazilian challenge
may well be a gesture of frustration in the face of unilateral US
action in the steel sector and may not be actively pursued.