February 2, 2010
GENEVA (AFP) - Australia, Brazil and Thailand expressed concern Monday about an EU proposal to release an extra half a million tonnes of sugar for export, saying that such a move would violate trade rules.
"Australia, Brazil and Thailand today expressed concern about the decision by the European Union to expand its out-of-quota sugar export limits, announced on January 28, 2010," said the three countries in a statement.
Brazil, Australia and Thailand said the extra sugar was produced with European subsidies, and therefore against trade rules.
"No course of action is ruled out at this stage," they said.
Brazilian Ambassador Roberto Azevedo said they could pursue "bilateral, multilateral measures."
This suggested the three countries could bring the case to the WTO's dispute settlement court.
Azevedo added that Brussels's plan "sends a wrong message" to European farmers, "stimulates overproduction and violates WTO rules."
The European Commission had proposed the release of the extra tonnes of sugar for export because of "exceptional market conditions."
European Agriculture Commissioner Mariann Fischer Boel said in a statement that the extra sugar released between now and July "can be exported without violating the European Union's World Trade Organisation subsidy commitments."
The EU is normally allowed to export a maximum of 1.34 million tonnes of subsidised sugar, an EU spokesman said.
