Sugar ruling appealed by EU

THE European Union, the world’s second-largest sugar exporter after Brazil, has appealed a World Trade Organisation ruling that found its sugar exports illegally benefit from production subsidies.

“We are confident we have strong grounds for appeal,” said Fabian Delcros, a spokesman for the EU in Geneva, who confirmed the appeal notice had been filed with the WTO.

The WTO in October found as much as half of EU sugar exports violate global rules, supporting a joint complaint by Brazil, Australia and Thailand.

Because EU sugar surpluses must be exported, production aid illegally “cross-subsidises” shipments, which means the bloc overshoots its aid ceilings, the Geneva-based WTO ruled.

While the EU plans to revise its €5.3 billion sugar industry, the extent of the proposed changes probably won’t bring the bloc into compliance with WTO rules. Six companies including Greencore, Suedzucker AG, and Tate & Lyle Plc together got €819 million in EU subsidies in 2003, aid agency Oxfam says.