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The Government of the Republic of Serbia

In the service of citizens

Higher quota for sugar export result of negotiations with EU

Belgrade, 10 February 2005

Serbian Deputy Prime Minister Miroljub Labus confirmed today that the European Commission's Directorate-General for Agriculture proposed that this year's quota for the export of sugar from Serbia-Montenegro is to be increased to 180,000 tonnes, which is the highest amount approved for a western Balkan country under the preferential status.

Miroljub Labus

In a statement to the Tanjug news agency, Labus said that this quota is a result of negotiations with Brussels over which time the position of our country has been improved. He said that the European Commission's decision to again allow Serbia to export sugar to the EU countries shows that the EU regained trust in the Serbian state bodies.

During the negotiations, the quota was increased by 30,000 tonnes from the initial 150,000 tonnes, which is the highest quota in all countries of the western Balkans.

Labus voiced hope that with a quota of 180,000 tonnes it will be possible to export Serbia's entire production surplus to the EU. He also hopes that the Council of the European Union will enact that decision very soon and that the Serbian Ministry of Agriculture, Forestry and Water Management uses this quota to optimal advantage.

The Deputy Prime Minister said that 205,081 tonnes of sugar were exported from August 10, 2004 to the end of January this year. Since the price is €640 per tonne, the revenues exceed €130 million, which is a substantial sum both for sugar beet and sugar producers.

Labus stressed that the present system of control of sugar export prevents a repeat of the previous situation and addresses doubts concerning the domestic origin of sugar.

The customs system has been improved, agricultural inspectors, customs and other services cooperate closely so that it is impossible to repeat the previous situation and that is how we have managed to increase the quota, the Deputy Prime Minister said.

In order for the proposal of the EC Directorate-General for Agriculture for the increase of quota to become effective, the negotiations conducted by the European Commission with all western Balkan countries have to be completed and then the EU Council must examine all proposals submitted. If that process is completed by summer, the decision on the increase of quota could become effective on July 1.