WTO complaints by Australia and Brazil regarding the EU Sugar Regime

On 27 September 2002, the Governments of Australia and Brazil (‘the complainants’) filed requests for consultations with the European Communities (EC) alleging that the structure of its sugar market violates its obligations under certain agreements of the World Trade Organization (WTO). If the complainants are successful in their challenge, the EC may find itself obligated to change the nature of its sugar market in order to bring it into compliance with WTO obligations. Such changes could result in a significant reduction in price supports from which domestic and certain African, Caribbean and Pacific (ACP) suppliers benefit. This issue of Trade Hot Topics examines the background of the complaints, the policy arguments and the impact on ACP countries.