Thailand plans special negotiations with the European Union to seek compensation for the EU's unfair subsidy on sugar exports.
Deputy Commerce Minister Alongkorn Ponlaboot said a ministry official would hold talks with the EU to work out an effective measure to solve this prolonged problem.
Thailand, Brazil and Australia, the world's three major sugar exporting nations, recently opposed the EU export subsidy on sugar, on the grounds that it affected prices and lowered other countries' export volumes.
Alongkorn said he hoped to find a fair resolution against the EU practice. The three countries may file a case with the World Trade Organisation if the EU does not compensate for its unfair subsidy and review the policy. Under the WTO, EU sugar export volumes reached 1.8 million tonnes last year, exceeding the commitment set at 1.2 million tonnes. It also committed to give a sugar subsidy of ¤499 million (Bt22.6 billion) a year. However, the three countries are in agreement that the EU has spent more than its commitment to subsidise the sugar industry each year.
"Sugar price is on the rise. The EU must compensate for its unfair practice if that is responsible for a drop in the global sugar price and hurts sugarcane farmers in developing nations," he said.
Meanwhile, Thailand has strongly supported wrapping up the marathon Doha round of talks this year in order to help boost global trade and reduce subsidies of developed nations in the farm sectors.
Alongkorn last week joined an unofficial meeting of the WTO in Davos. He said the conclusion of the Doha round this year would increase global trade by US$200 billion (Bt6.6 trillion) to $300 billion.
