A World Trade Organisation panel has ruled that the European Union is illegally dumping millions of tonnes of subsidised sugar on world markets. The WTO panel found that EU exports of around 2,7 million tonnes of non-quota sugar contravene world trade rules, WWF International reports in a press release Wednesday.
In a case bought by Brazil, Thailand and Australia against the European Union in 2002, the WTO has finally ruled that Europe does in fact export up to four times as much sugar as it agreed to and that the sugar is unfairly subsidised.
– The EU will have to face up to the reality that they are twisting the rules to favour their own industries at the expense of the environment and developing countries. This is a decision by the WTO that starts to tip the balance in favour of poor countries, said Adam Harrison, Agriculture policy officer at WWF.
WWF and other experts estimate that the EU sugar regime depresses the world price by 17 per cent and reduces imports of sugar by up to 10 million tonnes. This handicaps the industries attempts to raise environmental standards and destroys poor farmers livelihoods across the world.
WWF research suggests that the current Commission proposals to reform its sugar regime will fail to create a sustainable sugar industry either in Europe, or in the developing world.
WWF estimates that the EU must:
1) cut its sugar production by about 8 million tonnes rather than the 2,8 million tonnes proposed;
2) grant preferential access to environmentally sustainable sugar from developing countries; and
3) use CAP money to finance development aid packages linked to raising environmental and labour standards in developing countries sugar industries.
Only a complete package of reform like this will ensure equitable earnings for developing country farmers, and environmentally sound production. If not, WWF insists, more sugar production in the developing world could also mean more damage to biodiversity and livelihoods.
– If the EU really cares for the environment, it should invest some of the 2 billion euro (godt 14,8 milliarder DKR) it spends each year on sugar subsidies into improving the standards of the industries in developing countries, concludes Harrison.
WWF welcomes a separate ruling against support paid to US cotton farmers totalling 3 billion US dollar (18,3 milliarder DKR) annually. The WTO confirmed Wednesday the preliminary May ruling against the US subsidy system.
The EU can appeal against this ruling. It could delay the final outcome until early 2005.
WWFs position on the EU sugar reform: www.panda.org/downloads/europe/wwfsugarposition.doc
For further information: John Kornerup Bang, WWF Denmark, tlf. 35 24 78 44
