European Community—Sugar : Cross-Subsidization and the World Trade Organization
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World Bank, Washington, DC
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An important recent World Trade
Organization dispute settlement case for many developing
countries concerned European Union exports of sugar. Brazil,
Thailand, and Australia alleged that the exports have
substantially exceeded permitted levels as established by
European Union commitments in the WTO. This case had major
implications for both European Union sugar producers and
developing countries that benefited from preferential access
to the European Union market. It was also noteworthy in the
use of economic arguments by the WTO dispute settlement
panel, which held that the excess sugar exports were in part
a reflection of illegal de facto cross-subsidization-rents
from production that benefited from high support prices
being used to cover losses associated with exports of sugar
to the world market. Although in principle the economic
arguments of the panel could apply to many other policy
areas, in practice WTO provisions greatly limit the scope to
bring similar arguments for trade in products that are not
subject to explicit export subsidy reduction commitments of
the type that were made for sugar and other agricultural commodities.
Palabras clave
ABSENCE OF AGREEMENT, AD VALOREM, ADJUSTMENT ASSISTANCE, AGREEMENT ON AGRICULTURE, AGREEMENT ON SUBSIDIES, AGRICULTURAL ECONOMICS, AGRICULTURAL MARKETS, AGRICULTURAL PRODUCT, AGRICULTURAL PRODUCTS, AGRICULTURAL TRADE, AGRICULTURE, APPELLATE BODY, AVERAGE VARIABLE COSTS, BEET SUGAR, BENCHMARK, CANE SUGAR, COMMITTEE ON AGRICULTURE, COMPETITIVE ADVANTAGE, CONSUMERS, CONTRACTING PARTIES, COST FUNCTIONS, COUNTERVAILING DUTIES, COUNTERVAILING MEASURES, CROSS SUBSIDIZATION, CUSTOMS, DISPUTE SETTLEMENT, DISPUTE SETTLEMENT PANEL, DISPUTE SETTLEMENT PROCEDURES, DOMESTIC PRODUCTION, DOMESTIC SUPPORT, DSB, DUE PROCESS, EUROPEAN UNION, EXPORT, EXPORT COMPETITION, EXPORT COMPETITION COMMITMENTS, EXPORT RESTRAINTS, EXPORT SALES, EXPORT SUBSIDIES, EXPORT SUBSIDY, EXPORT SUBSIDY COMMITMENTS, EXPORTS, FARMERS, FINANCIAL CONTRIBUTION, FIXED COSTS, FREE TRADE, GLOBAL EXPORTS, GLOBAL WELFARE, IMPORTS, INTERNAL LAW, INTERNATIONAL BANK, INTERNATIONAL COURT OF JUSTICE, INTERNATIONAL LAW, INTERNATIONAL LEGAL INSTRUMENT, INTERPRETATIVE GUIDANCE, JUDGMENT, JURISDICTION, LDCS, LEGAL INTERPRETATIONS, LEGAL PROCEEDINGS, LEGAL RIGHTS, LEGAL SYSTEM, LEGAL SYSTEMS, LIBERALIZATION, MARGINAL COST, MARGINAL COST OF PRODUCTION, MARGINAL COSTS, MARGINAL REVENUE, MARKET ACCESS, MULTILATERAL TRADE, MULTILATERAL TRADE AGREEMENTS, NATIONAL TREATMENT, NET EXPORTS, NORMAL PROFITS, PANEL REPORT, PANEL REPORTS, POLICY RESEARCH, PRICE LEVELS, PRODUCERS, PRODUCTION COSTS, PROHIBITED SUBSIDY, QUANTITATIVE RESTRICTIONS, REDUCTION COMMITMENTS, RENTS, SUBSIDIZATION, SUBSIDIZED EXPORTS, SUGAR, SUGAR BEET, SUGAR CANE, SUGAR INDUSTRY, TAXPAYERS, TIMBER, TOTAL COSTS, TOTAL OUTPUT, TRADE LAW, TRADING SYSTEM, TREATIES, TREATY INTERPRETATION, URUGUAY ROUND, WAIVER OF RIGHTS, WORLD MARKET, WORLD TRADE ORGANIZATION, WTO