RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/EEC/29
1 June 2001
(01-2749)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies to Questions Posed by AUSTRALIA1 Regarding the
Updating Notification of the EUROPEAN COMMUNITIES2
The following communication, dated 29 May 2001, has been received from the Permanent
Delegation of the European Commission.
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General comment:  The EC has provided replies to the following questions to the extent that
the information requested was available and was in fact related to the EC's updating notification
covering the calendar year 1999 in the light of the agreed format of the Committee on Subsidies andCountervailing Measures (G/SCM/6).
MEASURES AFFECTING PRODUCTS PROCESSED FROM PEACHES
Question
Please advise EC production of clingstone peaches for the years 1996 onwards.
• Are clingstone peaches consumed in any way ot her than through proces sing within the EC?
If so, please provide details of consumption and quantities of clingstone peaches used forsuch alternative non-processing consumption.
• Are freestone peaches used in processed peach and/or mixed fruit products within the EC?
If so, please advise quantities used.
• Please advise quantities of fresh peaches (by clingstone and freestone varieties where
appropriate) used for the production of processed peach and mixed fruit products and otherprocessed products, eg, juice, paste, for the years 1996 onwards.
Reply
Quantities of fresh peaches used for canned peaches in 1998/99:  414,336 tons;  in 1999/2000:
582,401 tons.
                                                     
1 G/SCM/Q2/EEC/24
2 G/SCM/N/60/EECG/SCM/Q2/EEC/29
Page 2
Question
Please advise EC production of products  processed from peaches, by CN code as
referred to in Annex I of Council Regulation 2201/96 as amended and Article 1 of Commission
Regulation 449/2001 (previously Regulation 504/97 ), for which production aid was paid for the
years 1996 onwards.
Reply
EC production of canned peaches for which production aid was paid in 1998/99:
480,436 tons;  in 1999/2000:  667,809 tons.
Question
• Please advise total amounts paid as production aid by CN code for the years 1996 onwards.
Reply
This figure can be calculated by multiplying the quantities of peaches (in tons) for which
production aid is paid with the amount of aid ( є/ton) as listed in the table on page 30 of the EC's
updating notification.
Question
Please advise rates of production aid paid in respect of mixed fruit products, and the
relationship of these rates to the production aid for processed peach (and/or pear) products, for
the years 1996 onwards.
Reply
Aid is paid only for canned peaches and pears (see Annex I of Council Regulation 2201/96).
There is no aid for mixed fruit products.  However, processors are free to use canned peaches and/or
pears (after having received aid for those products) to produce mixed fruit products. The EC alsorefers to the table on page 30 of the EC's updating notification which contains an overview of the
production aid figures for the processed fruit and vegetable sector.
Question
• Please advise how mixed fruit products were accounted for within th e guarantee thresholds
for processed peach (and/or pear) products for the years 1996 onwards.
Reply
Total canned peaches benefiting from production aid and pears are accounted for, therefore
quantities which could be reused for mixed products are included.
Question
Please advise, by individual codes, EC domestic consumption of processed peach and
mixed fruit products for the years 1996 onwards.G/SCM/Q2/EEC/29
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Please advise, by individual code, the quantities of processed peach and mixed fruit
products which have been exported from the EC for the years 1996 onwards.
Please advise the quantities of processed peach and mixed fruit products, by CN code,
produced within the EC for which production aid has not been paid for the years 1996 onwards(Commission Regulation 504/97, Article 5, refers).
Please advise the prices at which EC processed peach and mixed fruit products have
been sold on the domestic and expo rt markets for the years 1996 onwards.
Council Regulation 2699/2000 added “mixtures of fruit, whole or in pieces, in syrup and/or
in natural fruit juice, containing at least [60 per cent] peaches and pears”, CN codes ex 2008 92
and ex 2008 99, to the processed products covered by the Community aid scheme under Article 2 of
Council Regulation 2201/96.
What is the significance of the figure 60 per cent being placed in square brackets in
Council Regulation 2699/2000?
Reply
The square brackets are a typographical error and should be ignored.
DISPOSAL ARRANGEMENTS FOR WITHDRAWN FRESH PEACHES
Under Article 30 of Council Regulation No. 2200/96 as amended and Articles 12, 14a and
14b of Commission Regulation No. 659/97 as am ended, fresh peaches withdrawn from the market
may be processed for subsequent distribution to approved charitable organizations.  The cost of
processing such fresh peaches is to be met throug h the supply of an additional quantity of fresh
peaches withdrawn from the market as a payment in kind to the processor.
Please advise whether any peaches withdrawn from the market have been processed for
subsequent distribution to approved charitable organizations under these regulatory provisions.
Reply
No such distribution to charitable associations took place.
Question
• If so, please provide details of the quantities of fresh product processed on behalf of the
charitable organizations, and the quantities of fresh product made available to the relevant
processors as payment in kind.
Under Article 15 and Annex V of Commission Regulation No 659/97 as amended, the
Commission pays the cost of transport of withdrawn products intended for charitable distribution,
including transport costs to, and onwards from, a processing establishment where appropriate.
If withdrawn peaches have been processed for subsequent charitable distribution, please
advise which entity met the costs of transpor t of fresh product provided as payment in kind.
In addition to charitable distributions, under Article 30 of Council Regulation No. 2200/96
as amended, fresh peaches withdrawn from the market may also be disposed of for non-foodG/SCM/Q2/EEC/29
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purposes, use in animal feed, to the processing industry, and for processing into alcohol of a
strength of more than 80 per cent volume  by direct distillation of the product.
Please advise whether any fresh peaches withdrawn from the market have been
disposed of in accordance with this provision.
• If so, please advise the quantities of peaches disposed of to non-charitable destinations, the
recipients of the withdrawn products, and the pric es (if any) paid by the recipient industries,
for the years 1996 onwards.
Further, Article 30.1(d) of Council Regula tion No. 2200/96 as amended provides for the
“disposal of certain classes of product to the pr ocessing industry on condition that there is no
resulting distortion of competition for the industries concerned within the Community or forimported products.  The implementation of this pr ovision shall be decided in accordance with the
procedure laid down in Article 46”.
Please advise whether a regulation to implement this provision has been adopted.
Reply
There is no regulation to implement this provision.
Question
• If so, please advise whether the provision has been used and, if so, provide full details of the
products, quantities and recipients involved.
Reply
This provision has not been used.
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