Speaking en route to the CARICOM Summit in Suriname, the Brazilian President Inacio Lula da Silva said that Brazil has 'never questioned the trade preferences granted by the European Union' to the ACP, it has only challenged EU export subsidies. He insisted that Brazil's conflict with the EU has to do with export subsidies and not preferences. He energetically rejected 'any suggestion that Brazil's action at the WTO meant any harm to the Caribbean's export of sugar to the European Union'. He said that 'those who refused to accept the rules of international trade fuelled that misunderstanding', a misunderstanding which 'must be overcome'. The President said Brazil was willing to cooperate with Caribbean countries in sugar-sector developments and ethanol production, as well as general modernisation of agriculture.