Brasília, 7/15/2004 (Agência Brasil) - Brazilian exports of sugar may get a boost following the decision by the European Commission to reduce its subsidies on sugar gradually.

The EU faces a number of complaints at the World Trade Organization as a result of its agricultural subsidies. According to minister of Agriculture, Roberto Rodrigues, the announced reduction in subsidies on sugar may be a sign that the complaints are having an effect. The EU produces 20 million tons of sugar, of which 17 million tons receive subsidies, making it impossible for Brazil to compete in terms of price with EU sugar.

In practical terms, the EU will decrease its sugar exports by 2 million tons beginning next year. That opens a door for Brazilian sugar exports. "Whether or not Brazil will actually be able to get that particular market share will depend on our competitivity and commercial skills," says Rodrigues.

In the first half of this year, Brazil led world sugar exports with US$1.3 billion.

Repórter:Nasi Brum
(Translator: Allen Bennett)