Supply measures on certain imported products

Akey issue that was discussed during negotiations related to certain agricultural and food products that are not produced in Malta. This concerns sugar, cereals (wheat, barley, maize), rice, semi-processed tomato products and some beef and dairy products (concentrated milk powder, butter and cheese). As a non-EU country, Malta buys these products at international market prices which are cheaper than EU prices. But upon membership, Malta would have to apply EU prices, which are higher. The difference between these two prices normally consists of EU agricultural levies in the case of products imported from outside the EU or the loss of the EU export-refunds (subsidies) in the case of products imported from the EU. Although the EU is working towards a gradual alignment of EU prices with world market prices, at times price differentials are still substantial. Increased prices would have negatively affected the agricultural community but also industry and, of course, consumers.

During negotiations, Malta argued that it wanted to keep buying these products at world prices in order to avoid price hikes that would occur if the EU internal prices prevailed.