EUROPEAN COMMUNITIES – EXPORT SUBSIDES ON SUGAR
Document: Request for Consultations by Australia
Date: 1 October 2002
Document codes: WT/DS265/1; G/L/569; G/AG/GEN/52; G/SCM/D47/1
Complainant: Australia
Respondent: EU
Third parties: Barbados, Belize, Brazil, Canada, China, Colombia, Cuba, Fiji, Guyana, India, Jamaica, Kenya, Madagascar, Malawi, Mauritius, New Zealand, Paraguay, Saint Kitts and Nevis, Eswatini, Tanzania, Thailand, Trinidad and Tobago, U.S., Côte d’Ivoire
Dispute stage: Appellate Body
Agreements cited: Art. 3.3, 8, 9.1, 10.1  AgricultureArt. 3.2, 3.1(a)  Subsidies and Countervailing Measures (SCM)

EUROPEAN COMMUNITIES – EXPORT SUBSIDES ON SUGAR
Request for Consultations by Australia
The following communication, dated 27 September 2002, from the Permanent Mission of
Australia to the Permanent Delegation of the European Commission and to the Chairman of the
Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU.
My authorities have instructed me to reques t consultations with the European Communities
(EC) pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994),
Article 19 of the Agreement on Agriculture and Articles 4 and 30 of the Agreement on Subsidies and
Countervailing Measures (SCM Agreement) with respect to the EC's Common Organisation of the
Market in sugar and its application and implementation. The measures in question include Council
Regulation (EC) 1260/2001 on the common organization of the markets in the sugar sector of 30 June
2001
1 and measures taken thereunder as well as any amendments thereto or extensions thereof, and
any related measures, including measures pre-dating the above Regulation, and their implementation.
The EC provides under the above measures export subsidies in excess of the export subsidy
commitments that it has specified in Section II of Part IV of its Schedule of Concessions, in relation to
"C sugar" and an amount of 1.6 million tons of suga r per year and possibly also sugar in incorporated
products. The EC may also be paying a higher per unit subsidy on incorporated products than on the
primary product. In addition, under the EC sugar regime refiners are paid a subsidy, in the form of
the intervention price, for refining EC sugar which is not available to imported sugar, thus affording
less favourable treatment to imported products.
The regulation and related instruments and measures taken thereunder appear to be
inconsistent with the EC's obligations under the provisions of the Agreement on Agriculture, the
SCM Agreement and GATT 1994. Specifically, the measures are considered to be inconsistent with
the following provisions, at least:
– Articles 3.3, 8, 9.1, 10.1 and 11 of the Agreement on Agriculture
– Articles 3.1 and 3.2 of the SCM Agreement
– Article III:4 and Article XVI of GATT 1994
Australia reserves the right to raise other claims and factual and legal issues during the
consultations.
As required under Article 4.2 of the SCM Agreement a Statement of Available Evidence is
attached.

1 Published in the Official Journal of the European Communities on 30 June 2001 (L 178/1-45).
WT/DS265/1, G/L/569,
G/AG/GEN/52, G/SCM/D47/1

I look forward to receiving your reply and to fixing a mutually acceptable date for
consultations.
WT/DS265/1, G/L/569,
G/AG/GEN/52, G/SCM/D47/1

Statement of Available Evidence
in Accordance with Article 4.2 of the SCM Agreement
Section II of Part IV of Schedule CXL-European Communities
Council Regulation (EC) No. 1260/2001 of 19 June 2001 on the European Communities’ common
organization of the markets in the sugar sector, published in the Official Journal of the European
Communities on 30 June 2001 (L 178/1-45)
Commission Regulations adopted pursuant to Council Regulation (EC) No. 1260/2001 of
19 June 2001
Commission Regulation (EC) No 1520/2000 of 13 July 2000 laying down common detailed rules for
the application of the system of granting export refunds on certain agricultural products exported in
the form of goods not covered by Annex 1 to the Treaty, and the criteria for fixing the amount of such
refunds (L177/1-48)
Agricultural notifications concerning export subsidy commitments (ES:1 to ES:3) submitted by the
EC to the WTO for marketing years 1995/ 1996 through 2000/2001: G/AG/ N/EEC/5, 11, 20, 23, 32
and 36
Agricultural notifications concerning domestic support commitments (DS:1 and supporting tables)
submitted by the EC to the WTO for marketing years 1995/1996 through 1998/1999:
G/AG/N/EEC/12, 16, 26 and 30
EC Court of Auditors, Special Report No 20/ 2000 concerning the management of the common
organisation of the market for sugar, together with the Commission’s replies
Netherlands Economic Institute (NEI) report entitled Evaluation of the Common Organisation of the
Markets in the Sugar Sector
GATT Panel Report: European Communities – Refunds on Exports of Sugar, 6 November 1979
(L/4833)
GATT Panel Report: European Communities – Refunds on Exports of Sugar – Complaint by Brazil,
10 November 1980 (L/5011)
GATT Working Party Report: European Communities Refunds on Exports of Sugar, Article XVI:1
Discussions, Report to the Council adopted on 10 March 1981 (L/5113)
Organisation for Economic Co-operation and Development (OECD) report entitled Background
Information on Selected Policy Issues in the Sugar Sector
AGR/CA/APM(2001)32/FINAL 7 JUNE 2002