OXFORD, England, April 15 (UPI) -- British development group Oxfam said the European Union's sugar trade policy is hurting poor countries, the Financial Times reports.
A study showed European sugar production mainly benefits big sugar processors including Sudzucker of Germany, U.K. sugar companies British Sugar and Tate & Lyle, and Beghin Say of France. Six of the largest sugar processors received export subsidies equaling $977 million (819 million euros) in 2003 Oxfam said.
"The (sugar) regime maintains a system of corporate welfare, paid for by EU taxpayers, with the human costs absorbed by developing countries," Oxfam said.
The study found that the EU understated export subsidies. The EU said subsidies totaled $1.6 billion (1.3 billion euros), but the study found it provides another $997 million (833 million euros) in extra support. In other words, every 1 euro of exported EU sugar actually costs 3.3 euros in subsidies.
Oxfam estimated the practice has caused Brazil, the world's biggest sugar exporter, to lose $494 million (414 million euros) of potential export earnings in 2002.
