Warm welcome to Bulgaria and Romania!

On 1st January 2007, the European Union enlarged to encompass 27 member states, and the EU sugar regime expanded accordingly.

In accordance with the treaties of accession, Bulgaria and Romania were allotted sugar and isoglucose production quotas and "traditional refining needs" (refining quotas). The new member states were also included in the support measures for sugar beet farmers, and the sugar restructuring scheme. For the 2006/07 marketing year, transitional measures will apply whereby the provisions on minimum beet prices, inter-professional agreements and quota allocation provided for in Articles 5, 6 and 7 of Regulation (EC) No 318/2006 will not apply. The Commission also spelled out the consequences if the new member states enter the EU with unusually large quantities of sugar in stock.

During the transitional period, special import arrangements will apply until 30 September 2007; the system which will operate after that remains open to negotiation. During the first nine months of EU membership, Bulgarian and Romanian refiners may be able to capture around €70 million of quota rent thanks to the new import arrangements (or approx. €250m until September 2009), but during the Agriculture Council meeting on 19/21 December 2006, Bulgaria and Romania issued a statement reserving their right to return to the issues concerning the position of full time sugar refiners in Bulgaria and Romania and also the phasing-in of the sugar direct payments in Bulgaria and Romania.