On July 11, the European Union said it was creating a new duty-free import quota for soluble coffee, ending a trade row with Brazil. Brazil has started a World Trade Organisation (WTO) case against EU duties on its exports of soluble coffee to the 15-nation bloc. Because of the introduction of various preferential regimes by the EU, particularly a special reduction of duty for Latin American countries battling illegal drug production, Brazil ended up being the only major EU supplier to pay nine per cent import duties instead of zero or 3.15 per cent like other suppliers, the EU said. This led to an erosion of its market share in the EU. The EU has agreed to create a new tariff rate quota, under which imports of all origins of soluble coffee will be given duty-free access. Brazil will be the main beneficiary of the new quota. The level of the quota will be 10,000 tons in the first year, 12,000 tons in the second and 14,000 tons in the third, and will be reviewed after that.
