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Monday, 18 April 2016

ACP sugar exporters to EU face challenging post-quota future

African, Caribbean and Pacific sugar producers face a challenging future after EU output quotas end in 2017, with some able to expand into regional markets outside than the bloc but other less cost-efficient countries will struggle to compete. ACP producers have benefited from preferential access to protected EU markets in recent years, but risk losing market share in the EU after production quotas end in October 2017 due to competition from increased EU output and exports. Sub-Saharan Africa, for example, currently exports about 20 percent of its annual sugar production to the EU. ACP countries were allowed to export up to 3.5 million tonnes per year to the EU at zero duty until Sept. 30, 2015. As of October, the quota has been replaced by a clause allowing the European Commission to take measures if there were a severe disturbance to the EU market. However, ACP sugar exports to the EU have been well below the prior quota.