WTO Knocks EU Over Sugar Subsidies

The World Trade Organization gave a preliminary ruling on Wednesday that the sugar subsidies the EU gives its farmers are an unfair advantage on global export markets. At a meeting in Geneva to discuss the issue, the WTO upheld a complaint filed by Brazil, Australia and Thailand finding the EU has broken trade rules by providing sugar export subsidies in excess of WTO limits. The European Commission refused to comment on the substance of the decision, which is still confidential. The WTO's ruling is likely to be upheld in its final decision. This is Brazil's second triumph after the WTO ruled in June that subsidies paid by the US to its cotton farmers were illegal. (Euobserver.com)