Sugar subsidy deal welcomed
European sugar companies have mostly welcomed a recently made deal between EU agricultural ministers. The EU is to cut subsidies by 36%. Earlier the World Trade Organization has ruled the European Union’s sugar subsidy structure illegal under WTO rules. Shares in major sugar companies were up after the news.
“UK sugar giant Tate & Lyle said the effect of the cut would now be smaller, while Spain’s Ebro Puleva called the deal a “considerable advance”. The cuts come after a ruling by the World Trade Organization that the subsidies breached world trade rules. At present, EU producers are paid a price three times the market rate, while imports are limited. The new deal allots 6.3bn euros ($7.4bn; £4.3bn) in compensation for farmers.
In the UK, Tate & Lyle leapt more than 5% to 555 pence. Ebro shares were up 0.7% to 14.80 euros. ”
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Administrator @ November 25, 2005