Sugar ruling is a victory for free and fair trade

By Alex Singleton | 29 April 2005

Protectionism and export subsidies help specific producers, but do not help society as a whole. So the World Trade Organization's ruling that the European Union's subsidies to sugar producers are currently in breach of WTO agreements is good news. It's good for European taxpayers and it's good news for the developing world.

According to The Hindu (India):

Phil Bloomer, head of Oxfam's make trade fair campaign, said: "Today's ruling confirms that the EU has been breaking WTO law and seriously harming developing countries in the process."

Sugar group Tate & Lyle saw its share price fall 15.5p to close at 453p despite saying the ruling had no direct impact on its business...

Michael Mann, the [European] commission's agriculture spokesman, said: "Obviously we're not happy with what they found against us on these two points but we will of course comply with our international obligations."

According to figures released under Britain's Freedom of Information Act, the biggest winner of Europe's current farm protectionism has been Tate & Lyle which received £233m in export subsidies over a two year period.