ANNOUNCED AS TEMPORARYNo
Import-related non-tariff measure, nes
On 12 April 2016, the European Commission published regulation 558 and 559/2016 allowing milk producers in the EU to temporarily coordinate the volumes produced.
According to article 1 of regulation 559/2016, "recognised producer organisations, their associations and recognised interbranch organisations in the milk and milk products sector are hereby authorised to conclude voluntary joint agreements and take common decisions on planning the volume of milk to be produced during a period of six months".
The Commission justifies this action with "the fact that the closure of the Russian market and lower demand from China have hit the milk and milk products sector at a time where investments in production had been made in view of milk quota expiry on 31 March 2015 and positive prospects on the world market. On the basis of the available market analysis, any significant decrease in production volumes is not to be expected in the next two years" (part of the preamble, 558/2016).
The regulations came into force on the day of their announcement.
On 9 September 2016, the European Commission published regulation 1615/2016 extending the temporay allowance for volume collusion for another six months.
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