# CE2004078EN.01030201.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/302 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/302

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(2004/C 78 E/0304)

WRITTEN QUESTION E-3610/03

by Jan Mulder (ELDR) to the Commission

(5 December 2003)

Subject:   Circumvention of sugar import tariffs

Subject:

It was recently reported (in the Dutch newspaper De Telegraaf, 30 September 2003) that, by importing the semi-finished product tomato sugar (consisting of sugar, vinegar and tomato extract) from Switzerland, companies based in the EU are taking advantage of the low world market price of sugar. Producers in Switzerland import European ‘C sugar’ for this purpose, thereby avoiding high sugar prices. The same process is used in the production of soft drinks.

| 1. | Does the Commission view this as an unwanted development? If so, what does the Commission intend to do about it? |
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1.

Does the Commission view this as an unwanted development? If so, what does the Commission intend to do about it?

| 2. | Is the Commission aware of situations involving other third countries or other products where the same problem exists or could arise? |
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2.

Is the Commission aware of situations involving other third countries or other products where the same problem exists or could arise?

| 3. | Does the Commission feel that such imports, which from 1 May 2004 will be directed principally towards the new Member States, are desirable? |
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3.

Does the Commission feel that such imports, which from 1 May 2004 will be directed principally towards the new Member States, are desirable?

| 4. | Does the Commission share the view that the problem outlined above could be solved by setting import quotas on such products? |
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4.

Does the Commission share the view that the problem outlined above could be solved by setting import quotas on such products?

| 5. | Does the Commission share the view that the problem of the circumvention of rules of origin, which has occured with regard to the Balkans and which, it is feared, may occur in the case of the ‘Everything But Arms’ group of countries, could also be solved by setting import quotas? |
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5.

Does the Commission share the view that the problem of the circumvention of rules of origin, which has occured with regard to the Balkans and which, it is feared, may occur in the case of the ‘Everything But Arms’ group of countries, could also be solved by setting import quotas?

Answer given by Mr Fischler on behalf of the Commission

(23 January 2004)

(23 January 2004)

Under the 1972 Agreement the preferential treatment granted to Switzerland includes customs duty exemption for her exports to the Community of certain processed products, such as soft drinks, that may contain sugar.

Whether European sugar or sugar bought on the world market is used when these products are made in Switzerland is of no real importance. This is so for both the cost price of the sugar used and the origin of the finished product.

We are well aware of the impact on the Community sugar market that can be made by imports from various countries of sugar and products containing relatively high proportions of sugar.

Importation taking advantage of preferential rights granted by the Community is of course encouraged by the existence of a Community sugar price that is generally three times higher than the world price.

These issues are one aspect of a situation that has resulted in a Commission Communication to the Council and Parliament (1) setting out three policy options for the sugar organisation. The first is retention of quotas, the second achievement of market balance through lower prices and the third liberalisation of the market. Once discussion of the Communication is over the Commission will submit a proposal on the future organisation for sugar.

1

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(1)  COM(2003) 554 final.

1

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