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Now I get confused. That "European Union [...] dump subsidised sugar" does it not give Brazilian drivers cheaper (sugar) fuel? Is it not subsidiesed enough for that to happen? Don't they want our dirty eurosugar?

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by A swedish kind of death on Thu Mar 30th, 2006 at 06:48:29 PM EST
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No, because it was only subsidised in Europe because it was more expensive than the Brazilian one. The subsidy was given to European farmers so that they could sell at Brazilian prices without taking the loss.

The de facto effect is to lower the international price of sugar, and to cut the profits that Brazilian producers could have made. The price that domestic sugar consumers in Brazil would have gotten without European subsidies in place would have depended on whether the government allowed Brazilian producers to sell internally at world prices or at domestic production prices.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Mar 31st, 2006 at 03:04:17 AM EST
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