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EU Extends Ban on Sugar Exports

Contrary to the statements of Serbian officials so far, the European Anti-Fraud Office (OLAF) decided to extend the ban on the preferential regime over sugar exports.

Despite the adoption of the new customs legislation, the efforts of the Serbian authorities were proved unsuccessful in countering smuggling, which has outweighed in the final decision of OLAF.

According to the estimations of Serbian minister of foreign economic relations Goran Pitic, the government would have to grant some YUD 3.2bn (EUR 50mn) in subsidies to domestic exporters. Thus far, there are no indications whether the EU would be willing to relieve its customs regime towards Serbia and Montenegro.

Naturally, the most likely effect would be increased imports of foods in the country, given the evident government incapacity to set aside additional funds and subsidise local producers.

(IntelliNews 25.vii.03)

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