Media release
13 February 2004 - MVT09/2004
Australia Argues Case Against EU Sugar Subsidies at WTO
Australia is pushing for a fairer international trade regime for the Australian sugar industry through the World Trade Organisation Doha round negotiations and the WTO dispute settlement system, Trade Minister Mark Vaile said today.
"On 12 February in Geneva, Australia lodged its first submission to the WTO Panel examining our complaint that EU export subsidies on sugar are in violation of the EU’s WTO obligations," Mr Vaile said.
"The EU is the world’s largest exporter of white sugar and is almost unique among the major developed countries in subsidising its sugar exports. The EU spends close to $2 billion a year on sugar export subsidies with exports averaging about five million tonnes a year.
"Australia believes EU sugar exports are three to four million tonnes in excess of its WTO quantity commitments and its sugar export subsidies are more than double its WTO export subsidy expenditure commitments."
Australia is the world’s fourth largest exporter of sugar. The Australian sugar industry depends on the world market for around 80 per cent of its income. It is more exposed than any other country to world market prices. EU sugar export subsidies are badly affecting the incomes of one of the world’s most efficient sugar industries.
"The Australian sugar industry is fully supportive of our WTO challenge and has provided valuable input in the preparation of this case," Mr Vaile said.
"Brazil and Thailand, the world’s first and third largest sugar exporters have joined with Australia in this challenge.
"Australia also continues to seek substantial outcomes for its sugar industry as part of the Doha Round.
"A fair go for our sugar industry requires a concerted push that involves all the big subsidisers – the EU and the United States in particular – and that is what we have been working at with our industry in the WTO."
The Panel is scheduled to report before the end of this year. Panel reports may be appealed on questions of law.
Summary of Australia’s first submission.
Media contact: Matthew Doman 02 6277 7420