SUGAR beet producers in the region and the British Sugar Factory in York could be hit by new EU trade rules.

The European Commission has announced that sugar would be included in the list of commodities to be subject to its Everything But Arms (EBA) policy, allowing the world's 40 least-developed countries to export it to the EU free of duty and quotas.

John Smith, spokesman for British Sugar said: "Under the EBA proposals every tonne entering the EU will result in a one tonne quota cut.

"If there are further price cuts this will threaten the viability of beet growing and processing in the UK. The weakness of the Euro has already resulted in a 30pc reduction in beet and sugar prices expressed in sterling."

Minister of State at the Department of Agriculture, Joyce Quin, said the Government understood the concerns about the proposals and had raised them with its European partners.

Vale of York MP Anne McIntosh has spoken of the alarm in her constituency about the Government's plans

"Producers in North Yorkshire simply cannot afford either the quota cut of up to 40pc."