EU to Press Ahead with Sugar Reforms Despite WTO Ruling

The European Union is set to implement its sugar reform plan, announced in a recent press conference by EU Commissioner Peter Mandelson in Bangkok. The reforms, designed to bring the EU's sugar system in line with World Trade Organization rules, will proceed regardless of the WTO's decision on EU sugar subsidies. The WTO's appeals body is expected to rule on the EU's appeal against a 2004 decision that found EU sugar exporters were receiving excessive government handouts, thereby depressing world sugar prices and hindering competition from other producers.

Key Takeaways:

• The EU will press ahead with its sugar reform plan, which will be submitted to member states and implemented in due course.
• The reforms are designed to comply with World Trade Organization (WTO) rules, but will proceed regardless of the WTO's ruling on EU sugar subsidies.
• The WTO's appeals body will rule on the EU's appeal against a 2004 decision that found EU sugar exporters were receiving excessive government handouts.
• The EU expects developing countries to benefit from the sugar reforms.
• Formal reform proposals are expected before the summer, with a likely implementation period of June or July 2005.

Statistics:

• The WTO's appeals body will final and non-appealable ruling is expected to be released Thursday, Apr 28, 2005.
• The EU's sugar reform proposals will be submitted to member states before the summer.
• The US Department of Agriculture estimates that formal reform proposals are expected in June or July 2005.
• The WTO's 2004 decision found EU sugar exporters were receiving excessive government handouts, thereby depressing world sugar prices and hindering competition from other producers.

Sources:

• Dow Jones Commodities News via Comtex, Apr 28, 2005.
• The U.S. Department of Agriculture.