Voluntary Report - public distribution

**Date:** 11/20/2003

**GAIN Report Number:** E23221

E23221

**European Union**

**Grain and Feed**

**EU Commission adopts regulation allowing US greater access to wheat
quotas**

**2003**

**Approved by:**

![](media/image1.wmf)Christine Strossman

U.S. Mission to the European Union, Brussels

**Prepared by:**

Stephanie Frye

**Report Highlights:**

The European Commission has adopted an amendment to the low and medium
wheat import quota system that enables the U.S. and Canada to use part
of the quota previously reserved for other third countries. Roughly 1.4
MMT of additional quota for 2003 will now be available for these two
countries\' exports to the EU. November 24th is the earliest possible
date for bidding for quotas.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Brussels USEU \[BE2\]

\[E2\]

On November 18^th^, the European Commission adopted an amendment that
allows the US larger wheat import quotas for the remainder of 2003. The
regulation went into force on November 19^th^ (Regulation number
2028/2003), and bidding on import licensing may begin at the earliest on
November 24^th^.

The United States and Canada will now have access, for 2003, to the part
previously earmarked for other third countries. For medium and low
quality wheat, there is a global TRQ of 2,981,600 MT per year with a
duty of €12/MT. Of this amount, 572,000 MT has been allocated
exclusively to the U.S. and 38,000 MT to Canada. The remaining 2,371,300
MT is for other third countries and could not be used by the U.S. or
Canada.

The proposed Regulation will only cover the quota for 2003. At the
beginning of November, there was just over 1.4 MMT outstanding left to
be used up during 2003 for the other countries quota. It is reported
that the US has used little of the 572,000 MT available so far in 2003.

Under the EU wheat TRQ system, both the U.S. and Canada may allow their
exclusive portions of the quota to be reallocated if it will not be used
in a given year, however there was no provision for 'other countries' to
have their quota reallocated to enable the US and Canada to use it, thus
requiring the proposed Regulation from the Commission to enable this.

Link to Regulation 2028/2003:

<http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_301/l_30120031119en00030004.pdf>

**Visit our website:** Our website
**[www.useu.be/agri/usda.html]{.underline}** provides a broad range of
useful information on EU import rules and agricultural policy and allows
easy access to USEU reports, trade information and other practical
information.

E-mail: <AgUSEUBrussels@usda.gov>

**Related reports from USEU Brussels:**

  --------------- --------------------------------------------------------------- ------------------
  **Report No.**  **Title**                                                       **Date Released**

  E23207          EU Commission to allow US to access larger wheat quotas for     11/05/2003
                  2003                                                            

  E23146          [EU Commission rejects all new grains export                    8/05/2003
                  licenses](http://intranetapps/GainFiles/200308/145985686.pdf)   

  E23086          [Grain and Feed                                                 6/02/2003
                  Annual](http://intranetapps/GainFiles/200306/145885795.pdf)     
  --------------- --------------------------------------------------------------- ------------------