EU subsidies to sugar producers are illegal, rules WTO

THE World Trade Organisation yesterday ruled that the European Union’s subsidies to sugar producers are illegal, upholding an earlier decision that European sugar exporters are getting more in government handouts than is allowed under trade rules.

The WTO appellate body upheld a 2004 decision by a WTO panel, which said that EU subsidies were bringing down the price of sugar on the world market and making it impossible for producers in other countries to compete.

“We had hoped the appellate body would take account of our arguments,” said EU agriculture spokesman Michael Mann. “Of course, we will comply with the ruling.”