Australia, Brazil, Thailand decry EU sugar plan

Australia, Brazil and Thailand have criticized the European Union for planning to export an extra 500,000 tons of sugar this year.

The three countries' ambassadors to the World Trade Organization said Monday that the decision could result in a new trade dispute. The two sides have previously clashed over subsidies paid to EU sugar producers.

The 27-nation European Union will approve the exports in the coming days.It says this won't violate WTO rules because of unusual global shortages and high market prices caused by bad harvests in India and Brazil.

The EU is trying to reform a sugar sector that produces too much at costs above world prices. It has paid export subsidies to get millions of tons of sugar off its market every year.

Associated Press