IMPLEMENTATION LEVEL

Supranational

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 23 Jan 2009 | Removal date: 24 May 2011
Still in force

Export subsidy

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)

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

221 Processed liquid milk, cream & whey
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter.
040110 Of a fat content, by weight, not exceeding 1 %
040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %
040140 Of a fat content, by weight, exceeding 6 % but not exceeding 10 %
040150 Of a fat content, by weight, exceeding 10 %
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.
040410 Whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
040221 Not containing added sugar or other sweetening matter
040229 Other
040291 Not containing added sugar or other sweetening matter
040299 Other
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.
040310 Yogurt
040390 Other
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.
040490 Other
0405 Butter and other fats and oils derived from milk; dairy spreads.
040510 Butter
040520 Dairy spreads
040590 Other
0406 Cheese and curd.
040610 Fresh (unripened or uncured) cheese, including whey cheese, and curd
040620 Grated or powdered cheese, of all kinds
040630 Processed cheese, not grated or powdered
040640 Blueveined cheese and other cheese containing veins produced by Penicillium roqueforti
040690 Other cheese

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