Thursday, February 4, 2010

European Union Increases Sugar Exports

Sugar Exports

In a move that has angered some of its trading competitors, the European Union decided to export and additional 500,000 metric tons of sugar, which major sugar exporters Brazil, Thailand and Australia have become upset over because of limitations imposed by the World Trade Organization.

The complaint centers around the exportation of subsidized sugar, which was supposed to be limited to 1.37 million tons based on a 2005 WTO decision.

The EU attempts to get around this by saying the exports aren't enjoying any benefits from a subsidy, and so they don't consider it to be subject to the imposed limitations.

This is another way of saying because sugar prices are high the subsidies don't apply. Other exporters will be hurt by the extra sugar on the market which will drive prices down.

Sugar Exports

1 comment:

Anonymous said...

What a great resource!