A new ruling brought in this spring is beginning to affect exports of quota sugar from Europe, according to an ODJ report. The regulation states that in order for exporters to receive an export subsidy, they must provide proof of delivery and consumption of the sugar in a non-EU country.
According to the ODJ, some traders believe that this will result in a reduction of as much as 50 to 70 per cent in subsidised exports. Many exporters fear that it is now too risky to export sugar to up to half their usual customers in case the necessary documentation is not produced.
The new regulations were initially introduced to prevent fraudulent sugar trading with Balkan countries. However, many traders say that the measure has far wider implications.
Many exporters believe that while the EU supports their complaints, it is unwilling or unable to change the policy. The result, they fear, may be a build up of sugar stocks within the EU, resulting in production quotas being slashed.