1 November 1996

…Quotas – Brussels hint of two-tier shift

COMMISSION policy seems to be shifting away from a two-tier quota system towards a gradual wind-down of quotas after 2000, with price cuts and compensation .

Commissioners hint

A recent speech by agriculture commissioner, Franz Fischler, in Germany made no mention of A and B quotas. Instead, he hinted at a "regionalised" quota system to maintain output in less advantaged regions, while freeing production in more efficient areas.

All producers would face price cuts, but compensation would be modulated to benefit smaller farmers. Income aid would be based on historic criteria rather than a straight headage payment which might not qualify for the so-called green box.