Australia, Brazil and Thailand -- the world's three biggest sugar exporters -- condemned the European Union's plans to sell an extra half a million tons of sugar.

But, in statements to a meeting of the World Trade Organisation's dispute settlement body, the three stopped short of further action against Brussels.

Instead they called for further talks with the European Union in which Brussels should provide data explaining the move.

The three exporters won a WTO dispute against the European Union in 2005 and have threatened to take renewed steps at the global trade umpire over last month's announcement by the EU's executive commission to export sugar over agreed quotas.

Brazil said the upward trend in the sugar price during January had reversed after the EU announcement, and Brazilian sugar exporters had suffered millions of dollars of damage.

"European sugar producers will be stimulated to produce more surplus sugar in the following market years," it said.

"Second, markets will -- in fact, already did -- factor the European Union's new policy of, under certain circumstances, exporting surplus sugar in excess of its WTO commitments in their future prices' expectations

Thailand said the EU move was depressing world prices, hurting the livelihoods of 1.5 million farmers' and sugar workers' households, who mostly live in its poorest regions.

But the EU said the decision was a temporary measure, while world prices had been at a record high and a shortage of sugar was affecting importing developing countries.

"We do not expect these market conditions to last beyond the season 2009-2010," it said, adding that the sugar to be sold was not subsidised.

Australia said the WTO had ruled in the previous report that all sugar exported from the EU enjoyed export subsidies.

"The EU has not released any data that would enable WTO members to make an assessment of the cost of producing sugar in the EU," it said. (Reuters)