Due to the EU’s use of intervention, production quotas and export refunds, ‘internal’ EU prices for dairy products are higher than prices on world markets.

To prevent these markets from being flooded by cheaper imports, the EU has a system of import tariffs, which effectively tax imports so that their prices are at or above ‘internal’ prices.

These import tariffs were last set by the EU Commission in agreement with the WTO under the last GATT deal, and have remain unchanged for several years. They are likely to be reviewed and ultimately reduced under current/future WTO negotiations.

All dairy products are covered by a mixture of up to three different types of import tariff.

• Market access; which allows unlimited volume at the set tariff (which due to the high level of the tariff, al but prevent the economic import of products from outside the EU)
• Minimum Access; which has a lower tariff, but for which there is a limited volume
• Current Access; which also has an even lower tariff and limited volume, and is restricted to specific countries to which there are historical trading links (i.e. New Zealand , Australia , Canada)

As intervention prices and export refunds are reduced (or possibly abolished) and ‘internal’ commodity price become closer to world prices, import tariffs are likely to become less important.