The European Community appears to be moving towards a two tier dairy export system.
An official, structured mechanism of this type has been ruled out by the Agenda 2000 proposals. But mainten-ance of relatively high market prices and plans to increase the delivery quota after 2000 suggests the EU will be forced to export a substantial quant-ity of produce without subsidy if it is to remain within the subsidised export limits set by the 1994 Uruguay Round agreement (URA).
The Commission has recommended an increase in the milk delivery quota of over 2% while maintaining a domestic price support level above the world market.
In addition to a 15% cut in the intervention price for milk