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Wednesday, 18 October 2017

European sugar producers have the African market in their sights

With the quotas for the production and export of sugar coming to an end on 30 September, the European Union, which until now was a net importer of sugar, is poised to become an exporter. African producers, already facing very low prices, will have to deal with this new competition. Since 30 September, there is no longer a limit on the production or export of sugar within the European Union. The decision, taken by Brussels in mid-2014 as part of its reform of the Common Agricultural Policy, is not without consequences for African countries, whose local production will have to compete with European sugar. While the European Commission insists that the preferential terms granted by Brussels to the Least Developed Countries (LDCs) through the Everything But Arms (EBA-EPA) initiative – i.e. duty-free and quota-free import authorisations – will continue to apply, the volumes are expected to decline: whereas Europe has until now imported between 3 and 4 million tonnes of sugar, it is now poised to offer the same amount for export to other countries.

Source: jeuneafrique.com