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European Communities Export Subsidies On Sugar Complaint By Thailand

6814 words - 27 pages

IntroductionThe world market for sugar is expanding, so is the production and competition. This market is boom due to greater demand tendency on the final product which uses sugar as a main ingredient such as soft drinks, bakery and other industries. These give rise in number of new producer’s entrants however only the strong productive efficient industries can stand in the competitive world. European communities is one of the biggest exporters of sugar both raw and refine sugar as well as Thailand, Australia and Brazil, the complainants party of the dispute on well known successive sugar case issue with very powerful European communities as a respondent to the case.This paper is aiming to discuss mainly about the dispute case between European communities: export subsidies-Thailand as complainant. The rest similar successful-related cases which have Australia and Brazil as complainant are the supported evidence for the major focus on this paper’s discussion.Both policy structures of the EC and Thailand is contained in this report as one section to understand a basic behavior in each market in order to further the reader understanding in the occurrence of this export subsidies dispute between the two focused parties. After the consideration of each market nature, then, the judgment process and the important articles used is necessarily provided in the paper as well as some possible articles which might be used to penalize the EC’s over limit subsidization in the world of equality, no powerful influence over the judgment as the additional thoughts of this report.Analysis of the costs, benefits and impacts in the end of the dispute settlement solution are contained here in this paper by using tables, diagrams and graphs explaining in both in terms of statistical data in some presented years and economic analysis for further result after the judgment is preceded.Concluding the result and effect that is consequently due to the reformation of the European Communities on Thailand, the report concerned complainant, to give the readers the overview of this dispute settlement are contained here also.The occurrence of the disputeMost of developing countries undoubtedly have lower cost of production comparing to developed country including the EC. Developing countries currently produce more than two-third of all sugar. Moreover this developing group is expected to be responsible for almost all of the production growth through 2010. Although, the value of the sugar market was almost 10,000 million dollars, in 2001, the value of sugar exports fell to 6,000 million dollars. The reason of this declining in sugar exports value is said to be because of some government interventions drive the world price of sugar downward. It is also believed that this is occurred due to the influence of the large country. European Communities, which is large enough to influence the world price to lower according to the higher production, intervene their domestic...

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