The World Trade Organisation (WTO) has put off a ruling in a closely watched dispute between Brazil and Brussels over European Union sugar subsidies for two months until early September.
A panel of WTO trade judges, which has to decide whether the EU subsidies break global trade rules as Brazil asserts, said on the Geneva trade body's Web site (www.wto.org) that the delay was due to the complexity of the case.
Under WTO rules, the panel initially had six months from its appointment on April 23 to reach a verdict and an announcement had been expected in early July.
But it is allowed to request a further three months and the judges said they now expected the panel "to complete its work by early September 2004".
Brazil, who is joined in the complaint by Australia and Thailand, argues that EU subsidies have contributed to over supply on the world sugar market and driven down international prices, hurting developing-country growers.
The EU, which last week announced plans to reform its system of sugar support for farmers, denies its programme breaks WTO rules.
Brazil recently won a landmark ruling against US cotton subsidies and says it is confident the WTO will also condemn EU sugar payments.
Another victory for the Latin American country could increase pressure on the rich trading powers to agree to sweeping cuts to their lavish farm subsidies in WTO negotiations on lowering barriers to global commerce.
WTO states are struggling to reach some preliminary outline accords in the negotiations, known as the Doha Round, by end-July.
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