GENERAL AGREEMENT ON TARIFFS AND TRADE

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED DPC/INV/1/Add.9/Suppl.1 10 August 1981 International Dairy Arrangement INTERNATIONAL DAIRY PRODUCTS COUNCIL Reply to Questionnaire 5 Regarding Information on Domestic Policies and Trade Measures SWEDEN Supplement PART 1:2 Agricultural price regulation Negotiations between farmers and consumers for a new agricultural agreement to govern the principles of the price regulation system as from 1 July 1981 could not be successfully concluded. Issues much deliberated upon were the principles for compensating agriculture for increased production costs and for accommodating farmers incomes to those of other occupational groups. Since no agreement was reached the National Agricultural Market Board presented a proposal of its own covering a one-year period and, in most respects, based on the current three-year agreement. The Riksdag on 5 June decided in accordance with the proposal. Producer prices and import levies were adjusted as usual on 1 July, following producerconsumer deliberations. PART II:A:1(b) Levels of guaranteed prices or support prices Middle prices and price limits as from 1 July 1981 (S.ore/kg.) Lower price Middle Upper price limit price limit Butter 1,146 1,219 1,292 Cheese 1,494 1,589 1,684 Skimmed milk powder Low-income farmers and farmers in Northern Sweden are supported in various ways: Delivery additions on milk constitute part of the low-income support. Additions are at their maximum for producers delivering between 1,000 and 7,000 kgs. milk per month and amount in that range to 8 ôre/kg. They are successively reduced up to a level of 16,000 kgs. per month, above which no addition is granted.

2 Page 2 Farmers in Northern Sweden are granted special price additions on milk delivered. Maximum additions currently amount to 1,1 20 ôre/kg. milk fat, corresponding to 44.8 ôre/kg. 4 per cent milk. Dairies in Northern Sweden also receive an extra regional support, currently amounting to a maximum of 9.2 ore/kg.4 per cent milk. PART II:A:1(d) Average returns to producers Average producer prices for milk delivered to dairies in the first quarter of 1981, regional support amounts included, varied between and ore/kg.4 per cent milk for different co-operatives with an average of for all the country. PART II:B:1 Representative retail and wholesale prices on major domestic markets (a) Average wholesale prices 1 January-31 March 1981 Mi Ik: 189 ore/litre (upper price limit for 3 per cent milk for liquid consumption in 1-litre packages).1 Butter: 1,137 ore/kg»(national quotation for Swedish Rune Brand) Cheese: 1,535 ore/kg, (weighted average for the ten mostcommon varieties) Skimmed milk powder: 698 ôre/kg (sales from factories to wholesalers, quantities of 2,500 kgs.or more) (b) Average retail prices 1 January-31 March 1981 Mi Ik: Butter: 275 ore/lit re G per cent milk for liquid consumption) 1,899 ôre/kg (Swedish Rune Brand) Cheese: 2,923 ôre/kg (Herrgard, whole fat) PART II:B:3 Policies and measures and comments on their effects on consumption The price freeze that was introduced in 1973 with regard to certain basic foodstuffs, i.a. to cheese, was lifted in October At the same time the Government decided to reduce for budgetary reasons the consumer food subsidies, also applied from As a result, subsidies for cheese decreased and wholesale and retail prices increased by SKr 0.50/kg, from 1 January 1981 whereas the subsidy for milk was not affected. Further reductions are expected to be made later this year. The small or possibly even negative difference towards producer prices is explained by the food subsidies (cf. B.3).

3 Page 3 PART II:C: Import Levies StatisticaL Heading Code Description of goods Import Levy as from 1 JuLy 1981 (SKr/100 kgs.) Mi Lk and cream, fresh, not concentrated or sweetened: - 1% but Less than 6% - 6% but Less than 20% - 20% but Less than 30% - 30% but Less than 45% - 45% Mi Lk and cream, preserved, concentrated or sweetened: Mi Lk serum: - In solid form - Other Other, in solid form: - Skim milk (containing not more than 1.5% by weight of fat) - Other (containing more than 1.5% by weight of fat): more than 1.5% but Less than 35% 35% but Less than 55% 55% - Other, in other forms: - Concentrated mi Lk - Other: 350. J-' Temporary Levy reductions not taken into account.

4 Page 4 StatisticaL Heading.. Code Description of goods Import Levy as from 1 JuLy 1981 (SKr/100 kgs.) Less than 1% 100 1% but Less than 6% 6% but Less than 20% 20% but Less than 30% 30% but Less than 45% 45% Butter Cheese and curd: 150 Fresh cheese and curd: - fresh cheese and curd - pure curd with no flavouring Processed cheese Cheese made from milk serum MouLd cheese Other: / cheese fondue - vegetable fat cheese - other 1/ 430. ' ±-' ex Casein, caseinates and other casein dérivâtes; casein glues: ' 100 Casein Free Temporary Levy reductions not taken into account Remarks: 1. The expression "milk" means full cream or skimmed milk, buttermi Lk, whey curdled milk, képhir, yoghourt and other fermented or acidified mi Lk. 2. MiLk and cream in hermetically sealed cans are regarded as preserved within the meaning of heading No However, milk and cream are not regarded as so preserved merely by reason of being pasteurised, sten'lised or peptonised, if they are not put up in hermetically-sealed cans.

5 Page 5 PART II:C:3: Export measures Costs of export refunds 1979/1980 SKr million SKr/kg. Butter Cheese