Sectors Covered by the CAP Sectors covered by the CAP The common agricultural policy price intervention covers only some agricultural products, which are, by mutual agreement, subject to the organisation of the EU market: * cereal, rice, potatoes * oilseeds * dried fodder * milk and milk products, wine, honey * beef and veal, poultry meat and eggs, pig meat, sheep / lamb meat and goat meat * sugar * fruit and vegetables * cotton * peas, field beans * sweet lupins * olive oil * seed flax * silkworms * fibre flax * hemp * tobacco * hops * seeds * flowers and live plants * animal feed stuffs The coverage of products in the external trade regime (EU) is more extensive than the coverage of the CAP regime. This is to limit competition between a CAP product or any EU product with added-value produced from a CAP covered product with an external product (for example, litchi juice could potentially compete with orange juice). The creation of a common agricultural policy was proposed in 1960 by the European Commission. It followed the signature of the Treaty of Rome in 1958, which established the Common Market. The six member states were to be strongly affected by State intervention, in particular in regards to what was produced, intervention prices and farm structures. Some Member States, in particular France, and all farming professional organisations wanted to maintain strong state intervention in agriculture, however, some of the policies had to be transferred at the European Community leve... ... middle of paper ... ...r the largest sugar beet producer, with annual production 16m - 18m tons. This compares to the levels produced by Brazil and India (the two largest producers of sugar from sugar cane).[3] Sugar was not included in the 1992 MacSharry reform, or in the 1999 Agenda 2000 decisions; sugar was also subject to a phase-in (to 2009) under the Everything But Arms trade deal giving market access to least developed countries. In 2005 the European Commission is planning to cut the minimum beet price by 39% from 2006, over two years.[4] Under the Sugar Protocol to the Lome Convention, nineteen ACP countries export sugar to the EU,[5] and will be affected by price reductions on the EU market. These proposals followed the WTO appellate body largely upholding on 28 April 2005 the initial decision against the EU sugar regime.[6]