Brussels, 27/05/2011 (Agence Europe) - New measures were given the support of the Management Committee on Thursday 26 May 2011 to make the EU's sugar market more fluid and ensure the EU's supplies of sugar. The measures are expected to be formally adopted by the European Commission shortly.
The European Commission will introduce a further 200,000 tonne import quota (“erga omnes') for raw or refined sugar from anywhere in the world at zero import duty, to be managed in the same way as the initial 300 000 tonnes opened in April 2011.
The second measure introduces the possibility for further imports at reduced import duty via a tendering system. EU operators may submit offers for importing sugar at a reduced import duty, and the Commission will assess the volumes and duties offered and decide which bids to accept based on the evolution of the EU and world sugar market situation. This tender system would start in July, with regular adjudications in the Management Committee until the end of the marketing year (end of September). Import licences issued in accordance with this measure will be valid for 3 months.
EU ending stocks less than 10% of utilisation. The Commission points out that in the wake of this year's market situation, which has seen world market prices higher than EU prices for the first time ever and therefore lower levels of imports than usual in particular from non-EU countries benefiting from certain preferential agreements, the Commission has already implemented measures to ease any supply difficulties. In November 2010, it suspended the 98 €/t import duty on certain import quotas; in March, it released 500,000 tonnes of "out-of-quota" EU sugar and 26,000 tonnes of "out-of-quota" isoglucose onto the EU market (which would otherwise have been held back until next year); and in April it opened an "erga omnes" import quota of 300,000 tonnes at zero import duty. The Commission adds, however, that based on the updated analysis of the EU sugar market, the level of the EU ending stocks would represent less than 10% of the utilisation. In this economic environment the Commission has the responsibility to ensure a fluid functioning of the EU sugar market avoiding any under-supply in the coming months. (L.C./transl.fl)