EU: Reduction of sugar quota

The Sugar Management Committee has voted in favour of a draft European Commission Regulation to reduce for the 2000/2001 marketing year (beginning on 1 July the production quotas in the sugar sector by 498,800 tonnes. This will bring the quotas to a total of 14 719 786 tonnes compared to 15 218 586 tonnes last year. The reduction is necessary to bring the EU in conformity with their GATT obligations. These GATT commitments limit the exports of sugar and sugar products that may benefit from an export refund to 1 273 500 tonnes and the budget for the refunds to 499,1 million euros in this marketing year. The reduction effectively represents a linear cut of 3.278 % in the existing quotas for the different sugar products (A and B quota for sugar, isoglucose and inulin syrup). The draft regulation still has to be adopted formally by the Commission.