# CE2004088EN.01006202.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/62 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/62

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(2004/C 88 E/0068)

WRITTEN QUESTION E-2091/03

by Paulo Casaca (PSE) to the Commission

(24 June 2003)

Subject:   Rules for calculating aid for tropical products from ACP countries

Subject:

The central organisation of pineapple and banana producers and exporters in the Ivory Coast has forwarded me a copy of a letter sent to the Commission on 28 May 2003. As for all the ACP countries which export pineapples and bananas, this activity is crucial for the Ivory Coast, and it is also crucial that the EU institutions should have clear, objective and fair rules regarding imports from these countries. I therefore read the above letter, in my capacity as vice-chairman of the Committee on Budgetary Control, with great concern.

Can the Commission draw up a report providing a full explanation of the situation regarding aid and the imposition of customs duties on these tropical fruits in Europe, setting out possible shortcomings and ways of remedying them?

Can the Commission ensure that this report will be available for consideration by Parliament in the context of the discharge procedure for the 2002 budget?

Joint answer

to Written Questions E-2058/03 and E-2091/03

given by Mr Nielson on behalf of the Commission

(31 July 2003)

(31 July 2003)

Commission Regulation No (EC) 1609/1999 lays down detailed rules for the implementation of Council Regulation No (EC) 856/1999 establishing the Special Framework of Assistance (SFA) to traditional African, Caribbean and Pacific States (ACP) supplies of bananas, including the methodology to be applied for calculating the yearly individual amounts. Further to OCAB's letter referred to in both questions, on 20 June 2003 the Commission met representatives from OCAB and discussed at length the issues therein raised. As already clarified in previous contacts, the Commission side once again explained the background of the SFA and its logic. In accordance with it, as stated by the provisions in force, so far the less competitive suppliers (e.g. the Caribbean producers) have received more support and the ones scoring better in competitiveness (like Ivory Coast) have been granted lower allocations. As of 2004, it is foreseen in both Council and Commission regulations that the logic be adjusted. A reduction coefficient will have to be applied to all beneficiaries, but the reduction will be lower for those ACPs having achieved competitiveness gains, and will be proportional to those gains. In that meeting, OCAB themselves stated that in their view the Commission has always applied the method prescribed by the Commission Regulation in a correct and fair manner. It was also clarified to OCAB that the Commission has never considered or suggested that the use of Eurostat data leads to a distorted application of the Commission Regulation. On the contrary, the Commission side drew its counterparts' attention to the need to have objective, comparable and timely available data to calculate the individual allocations every year. At the time when the SFA was established, it was found that only the cost, insurance, freight (CIF) Eurostat prices met all those criteria at once. So far no viable alternative could be suggested by OCAB or by any other concerned parties.

As to the request for a report on the situation of both the aid scheme and the customs duties, the Commission would like to recall that its biennial report to the Council and the Parliament (1) on the operation of the Council Regulation establishing the SFA is currently being examined by the Parliament. Also, not later than 31 December 2004, the Commission will submit a report on the Common Market Organisation for bananas to the Parliament and the Council, as required by Article 32 of Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organisation of the market in bananas (2). This report will in particular examine the evolution of both trade flows in ACP bananas and of their shares in the Community market. The Commission has taken note of OCAB queries on certain specific statistical data and it is presently looking into this matter, aided by both Eurostat and the competent authorities of Member States who collect them.

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On the basis of the above considerations, the Commission does not see any reason for amending the legislation in force. It should be stressed that the current provisions have successfully provided the traditional ACP suppliers, including Ivory Coast, with significant financial assistance throughout a delicate period of transition for this industry.

Although OCAB's remarks only concerned bananas, for the sake of completeness the Honourable Member's attention is drawn to the fact that specific financial assistance for pineapples is presently provided only to Martinique and the Azores in the framework of the legislation in force for the Community's outermost regions. The management of such assistance has not encountered so far any significant problem.

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(1)  COM(2002) 763 final.

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(2)  OJ L 47, 25.2.1993.

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