Brazil Increases Sugar Exports to the European Union

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Researched by Industrial Info Resources (Sugar Land, Texas)--A new agreement that regulates the export of sugar from Brazil to the European Union seeks to compensate the Latin American country for market losses suffered in 2007, when Bulgaria and Romania became members of the E.U. Starting this month, Brazil is allowed to export 550,000 tons of sugar to the E.U. An initial quota of 300,000 tons of sugar will be provided by producers in Brazil, at a rate of 98 euros ($144) per ton. A second quota of 250,000 tons is open to all countries that export sugar, although most of this quota is expected to be met by technologically advanced sugar producers such as Brazil and Australia.

Since 2008, the E.U. has been a net importer of sugar, after the implementation of European trade reforms. These reforms, which also involve other products such as meat, are expected to increase Brazilian exports between 200 million euros ($293 million) and 280 million euros ($411 million), based on larger product volumes and higher prices.

Brazilian president Luiz Inácio Lula da Silva gave bilateral relations with the E.U. a new boost as the European community is the most important commercial partner for the "Mercado Comun del Sur," a regional trade agreement among Argentina, Brazil, Paraguay and Uruguay.

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