Challenge to EU sugar regime

Brazil announced on February 26th that it would file a complaint at the WTO against the EU and the USA over unfair subsidies granted to their farmers. The suit against the EU will challenge European sugar subsidies, while the suit against the USA will challenge subsidies in the soybean and cotton sectors. The Brazilian action is in part a response to the introduction by the USA of protectionist measures in the steel sector. Comment: Were any Brazilian challenge to be successful and lead to a rapid dismantling of the EU sugar regime then this would seriously affect the high returns which ACP States enjoy from their preferential access to the EU sugar market under the sugar protocol and the Special Preferential Sugar arrangement. However, the Brazilian challenge may well be a gesture of frustration in the face of unilateral US action in the steel sector and may not be actively pursued.Brazil announced on February 26th that it would file a complaint at the WTO..