Reviews of the EU sugar sector

The semi-annual report (October 2002) of the US Department of Agriculture Foreign Agricultural Service on the EU sugar sector highlights the resurgence in EU production and the likely increase in 'C' sugar exports to 3.5 million tonnes, with total EU exports of 5.8 million tonnes in 2002/03. This has occurred despite a reduction in the 'A' and 'B' sugar production quotas by 937,510 tonnes in 2002/03 in order for the EU to remain within its WTO limits on subsidised exports. The annual report of the USDA FAS on the EU sugar sector can also be found on the internet. Comment: WTO constraints do not limit actual EU exports of sugar, they simply determine the basis on which sugar is exported. The constraints only limit the amount of sugar which can be exported with direct subsidies. However, this simply results in increased levels of EU-produced sugar being exported as 'C' sugar, which does not receive any direct export subsidies and which must be marketed outside of the EU within one year of production. Any reduction in exports which the WTO rules might have induced have been counter-balanced by the ending of the EU storage-aid scheme in July 2001, which now encourages the direct export of 'C' sugar.The semi-annual report (October 2002) of the US..