Maravi

EU increases Zambia’s sugar quota allocation

EU increases Zambia’s sugar quota allocation
Written by Kabanda Chulu
Wednesday, October 29, 2008 3:42:47 PM

THE European Union (EU) has increased the sugar quota allocated to Zambia following the government’s decision to sign the market access offer under the interim Economic Partnerships Agreement (EPAs).

The coming of the EPAs would result in the scrapping of the Everything But Arms (EBA) treaty that allowed least developing countries such as Zambia to be exporting goods to the EU under duty free and quota-free basis.

Announcing the development, Ministry of Commerce and Trade permanent secretary Davidson Chilipamushi said the EU had allocated a quota of 75,000 metric tonnes of sugar to three countries with Zambia getting an allocation of 32,500 metric tonnes.

Currently, under the EBA, Zambia Sugar Plc exports over 25,000 metric tonnes per annum into the EU.

“Since the EBA will be scrapped, all countries including LDCs will be trading at uniform level and some of our exporters will have faced difficulties in finding market for their products,” Chilipamushi said.

“Hence, under the market access offer which government initialled,there are benefits of increased quota allocated to Zambia for sugar amounting to 32.500 metric tonnes and this will also benefit small-scale farmers taking part in the out grower schemes.”

The rest of the countries that would share the 75,000 metric tonnes of sugar quota are Malawi and Zimbabwe.

And the second and final phase of the Zambia Sugar Plc expansion project would be completed for the 2009/10 and would see a major step change in cane and sugar production.

The expanded factory is expected to increase sugar production to around 450,000 metric tonnes by 2009.

Labels: AGRICULTURAL QUOTAS, EPAs, EU, SUGAR

posted by MrK @ 3:44 PM