Thailand and Brazil have resolved a longstanding dispute at the World Trade Organisation (WTO) regarding the Thai government’s subsidies to sugarcane farmers, which Brazil claimed violated WTO subsidy rules. The agreement, marking the end of an eight-year contention, was signed in Abu Dhabi, United Arab Emirates, during the 13th WTO Ministerial Conference held from February 26 to 29.
Pimchanok Pitfield, Thailand’s permanent representative at the WTO, alongside her Brazilian counterpart, Guilherme de Aguiar Patriota, finalized the deal, highlighting a mutual commitment between the two sides to adhere to WTO regulations.
The conflict originated from a complaint Brazil lodged in 2016, accusing Thailand’s sugarcane and sugar-milling practices of breaching international subsidy standards. In response, Thailand initiated reforms to align its sugar industry with WTO guidelines, an effort closely observed by Brazil. A memorandum of understanding was signed between the two nations in 2021, establishing a bilateral consultation mechanism to oversee Thailand’s industry restructuring, preventing further complaints from Brazil during the process.
With Thailand’s reform efforts culminating in the implementation of the 2022 Sugarcane and Sugar Act in December 2022, the WTO said the two countries have demonstrated a cooperative approach to resolving the dispute.
Thailand, the world’s third-largest sugar exporter after Brazil and India, exported 6.54 million tonnes of sugar in the last year, generating significant revenue from key markets such as Indonesia, the Philippines, South Korea, Cambodia, and Malaysia. (NNT)
