Media releases
Friday, 16 August 2002 - MVT098/2002
Australia to Take WTO Action Against EU Sugar Regime
Australia is joining forces with Brazil in WTO action against the
European Union (EU) sugar regime, Trade Minister Mark Vaile announced
today.
Mr Vaile said EU sugar subsidies have resulted in one of the least
efficient producers becoming one of the largest exporters on the world
market, distorting global market conditions and prices.
"The Australian industry has been doing it tough in a highly subsidised
world marketplace," Mr Vaile said.
"The global market for sugar has been difficult for Australian producers,
and the EU sugar subsidies exacerbate the difficulties in third country
markets.
"We are pushing for reform of world trade so that our producers can
compete and maintain their place as an efficient, world class export
industry.
"In taking this WTO dispute action, we are laying down a marker on
the impact of these subsidies on Australian producers.
"The Government shares the concerns of Australia's sugar industry.
"We will be looking for support from other exporting countries, aside
from Brazil, on this action. Industry is also in close contact with
members of the Global Sugar Alliance, the sugar industry alliance
pushing for reform of world trade in sugar."
WTO processes on dispute settlement are complex. The first stage
is a mandatory consultation period of at least 60 days. Depending
on the complexity of the issues, consultation periods may extend over
several months. A decision on whether to proceed to a formal request
for legal adjudication would be made after an assessment of developments
in the consultation phase.
Mr Vaile said the action will be a test case of Uruguay Round agricultural
subsidy disciplines, disciplines that Australia and other members
of the Cairns Group are seeking to tighten in the Doha Round negotiations.
"The EU's reforms to the Common Agricultural Policy do not include
the EU sugar regime. Australia's WTO action will force the EU to
consider the concerns of other sugar exporting countries."
Media Contact: Mark Croxford +61 02 6277 7420
Local Date:
Friday, 05-Dec-2008 13:41:27 EST
