June 17, 2005

USDA: EU dairy industry opposes eliminating export refunds
 

The EU dairy industry has opposed the elimination of export refunds by submitting a position paper to the European Parliament (EP) in the WTO Doha round negotiations.

This paper, dated April 2005, is jointly prepared by the European Dairy Association, which represents the EU milk processing industry, and Eucolait, which represents the EU milk and dairy trade.

The EU dairy industry's position is that the Common Market Organization for dairy can't survive without export refunds, under the current milk production quota system. They believe that the elimination of this "main market management instrument" could result in serious disruptions to the whole EU dairy market.

A reduction in supported volumes of EU dairy export is not acceptable to them, though a reduction in export refund levels and expenditure is.

On market access, the EU industry deems the EU proposal for a 36 percent reduction on bound import tariffs acceptable for all dairy product categories.

Concerning domestic support, the industry wants any outcome of the WTO negotiations to secure all provisions of the last CAP-reform.

Though the European Commission, and not the EP, is responsible for the WTO negotiations, the EU dairy industry is looking for a broader support for their concerns by presenting their position to the EP. Even though the EP has no direct say in the WTO negotiations, European Commission and the Council will consider the EP's stand.

For the full USDA report, click here.