Brussels, 02/02/2006 (Agence Europe) - In the Official Journal of 2 February, the European Commission announced its intention to reduce provisionally sugar production quotas for the 2006-2007 run, which begins in July, in order to ease the saturated market. This measure was sought by Germany at the 23 January Agriculture Council (see EUROPE 9115).
Excess sugar production could reach two to three million tonnes, an amount impossible to export given the judgment of WTO's appellate body and budgetary constraints. A formal proposal to reduce quotas will be examined at the start of March by Member States in the management committee, in the light of new regulations on common organisation of sugar markets (WTO), due to be formally adopted at the Agriculture Council of 20 and 21 February. Member States are divided on this issue. Italy, Poland and Portugal do not want the reduction to apply to countries like theirs, which are going to have to reduce their production quotas by more than 50% in the light of decisions taken on sector reform. Spain, the Czech Republic and Slovenia oppose this measure.