Export refunds cut to hit Scotch

20 March 2000



Export refunds cut to hit Scotch

SCOTCH whisky makers stand to lose 12 million if EU agriculture ministers vote to cut a 560m (342.7m) exports budget for processed foods and drink manufacturers.

Savings of 145m a year are needed in the fund to enable the EU to meet world trade commitments agreed to in the early 1990s, reports the Financial Times.

The European Commission, encouraged by agriculture ministers, is formulating a strategy cut the processed food export “refunds” budget.

Products most sensitive to the price of agricultural goods will largely escape the cuts, says the FT.

The fund compensates food and drink manufacturers for having to buy cereals and other agricultural raw materials at higher than world prices because of EU support policies for farmers.

• The Financial Times 20/03/2000 page 2