Buyer’s Premium

Summary of Buyer’s Premium

A subsidy offered by a member state of the European Economic Community to domestic tobacco processors to encourage the use of EEC, rather than imported, tobaccos. The program, which is a feature of the common AGRICULTURAL POLICY (read this and related legal terms for further details) of the EEC, is designed at least to equalize the price of European tobaccos with imports, notably those of Turkey and the United States.

(Main Author: William J. Miller)