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April 28th 2005
WTO ruling on EU sugar subsidies must trigger serious reform, say Oxfam and
WWF
The European Union must radically reform its scandalous sugar regime, said
Oxfam and WWF following today's World Trade Organization (WTO) ruling that
the EU sugar exports are illegal.
Following a complaint by Brazil, Thailand and Australia, the WTO today
confirmed its January decision that the EU has been illegally exporting too
much subsidized sugar, thereby undercutting more competitive producers
overseas. The international development agency and the environmental
organization say that the European Union will now have to face facts and
reform its regime in a way that addresses the ruling and benefits poor
countries and the environment.
"The writing has been on the wall for ages but the EU has been refusing to
read it. Today's ruling confirms that they have been breaking WTO law and
seriously harming developing countries in the process. They must act
quickly to introduce reforms that end export dumping and increase market
access for the world's poorest countries," said Phil Bloomer, Head of
Oxfam's Make Trade Fair Campaign.
Elizabeth Guttenstein, Head of WWF's European Agriculture Programme, added:
"Unfair competition from EU sugar is not just a poverty issue. Sugar
dumping depresses the world price and makes it difficult for sugar growers
in developing countries to invest in better environmental practices like
improved irrigation and preventing soil erosion and pollution. This ruling
confirms that the EU has been acting unfairly for years and that it must
end."
Oxfam and WWF emphasized that the WTO ruling addressed the issue of
subsidized European exports. It should therefore do nothing to threaten
developing countries' (ACPs) existing preferential access to the EU market.
The EU is discussing reform plans at the moment but Oxfam and WWF feel that
these do not go far enough to address the WTO's findings. They are calling
for an immediate end to export dumping, a cut in EU production and improved
access for the world's poorest countries to European markets. They also
want increased aid for developing countries to help them cope with the
transition and invest in economically and environmentally sustainable sugar
industries. The EU's legislative proposals on sugar reform are expected in
early July 2005.
Earlier this month, another panel found that US cotton subsidies were also
unlawful. Oxfam and WWF warned that if the EU and the US didn't implement
sugar and cotton rulings in good faith, this could jeopardize the entire
round of WTO trade talks.
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