AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 22 January 2009 the EC issued regulations reintroducing maximum export refunds for milk and milk products (Regulation 57/2009) as well as for butter and butteroil (Regulation 58/2009). Previously, exporters of both product categories had not been entitled to a export refund.
In a review in February 2009, the maximum export refunds for milk and milk products were raised (Regulation 140/2009), and were kept at this level in March 2009 (Regulation 233/2009). In subsequent regulations, export refunds for the designated products fluctuated (Regulation 461,523 and 850/2009. In its decision on 22 October 2009, the Eurpean Commission lowered most export refunds, even setting some some back to zero (Regulation 997/2009).
The maximum export refunds for butter and butteroil were also raised in the February 2009 review (Regulation 141/2009) and it was decided to keep them at this level in May 2009 (Regulation 420/2009). On 9 July 2009 refunds for both products were raised yet again (Regulation 604/2009) and confirmed at the higher level in two following regulations (782 and 805/2009). In its latest regulation to date, the Commission terminated export refunds on butter and butteroil on 23 October 2009.
As this measure is an export subsidy it can depress world prices. The "affected trading partners" listed below are those that have exported more than a de minimis amount of milk, butter, and butteroil in one of the last two years for which international trade data is available.
Update: On 20 April 2011, the European Commission suspended the export refunds on milk and dairy products. (Regulation 400/2011)
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