W.T.O. rules against E.U. sugar subsidies

It’s a complex subject involving the often-arcane rules of international trade, but bottom line is that Belize lost big time when the World Trade Organisation ruled on Friday against the European Union’s system of preferences for ACP sugar. The negative ruling was not unexpected but negotiators had hoped for some softer language on certain parts of the decision–hopes that have now been dashed. Sugar prices on the European market were already headed downward due to the E.U.’s recent expansion and this ruling will not help. Belize and other African, Caribbean and Pacific producers will now lobby hard for compensatory E.U. funding to increase productivity during the transition period. In the case of Belize, pressure will increase to improve the efficiency of the industry if it is to remain a viable part of the nation’s economy.