A4-0220/98

Proposal for a Council Regulation amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas (COM(98)0004 - C4-0046/98 - 98/0013(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital -1 (new)

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(-1) Whereas the quotas of bananas imported into the European Union must comply fully with European Union social and environmental standards with regard to their manner of production, harvesting, transport and storage;

(Amendment 2)

Recital -1a (new)

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(-1a) Whereas the European Union has an interest in supporting producers who adhere to particularly strict environmental and social conditions ('fair trade producers'); whereas the existing Regulation (EEC) No 404/93 does not take sufficient account of this interest;

(Amendment 3)

Recital -1b (new)

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(-1b) Whereas existing distortions in terms of social and environmental standards are giving rise to substantial competitiveness gaps between ACP or European producers on the one hand and Latin American producers on the other;

(Amendment 4)

Recital -1c (new)

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(-1c) Whereas the Commission will place greater emphasis on the use of socially and environmentally acceptable production and marketing methods; whereas, in order to encourage these, the Commission will draw up special rules, possibly within the ambit of the current proposal;

(Amendment 5)

Recital 2

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(2) Whereas the Community¨s international commitments in the framework of the World Trade Organisation (WTO) and to the other signatories of the IVth Lomé Convention should be met simultaneously with achievement of the purposes of the common organisation of the market in bananas;

>Text following EP vote>

(2)

Whereas the Community¨s international commitments in the framework of the World Trade Organisation (WTO) but also its previously existing commitments to the other signatories of the IVth Lomé Convention and to European producers should be met in conjunction with achievement of the purposes of the common organisation of the market in bananas;

(Amendment 6)

Recital 2a (new)

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(2a) Whereas one of the prime objectives of the common organization of the market is the guarantee of disposal at fair prices of Community and ACP production, as well as a guarantee of sufficient revenue for the producers; whereas specific financial aid is to be provided to ACP suppliers in order to enable them to adapt to the new market conditions and to improve their competitiveness; whereas Community producers should also have the means to adapt and improve their competitiveness and whereas, to this end, the flat-rate reference income for the calculation of the compensation granted to Community producers and the maximum quantity of EC bananas should be increased;

(Amendment 7)

Recital 2b (new)

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(2b) Whereas the fundamental principle underlying the introduction of the common organization of the market in bananas was to ensure variety and balance between the market's sources of supply, on the basis of Community preference and the fulfilment of the Community's various international commitments, and particularly those to its ACP partners;

(Amendment 8)

Recital 2c (new)

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(2c) Whereas, when the common organization of the market in bananas was introduced, the Community undertook never to place European and ACP producers in a less favourable situation than in the past or at present; whereas the changes to the COM must be guided by the same principle;

(Amendment 9)

Recital 2d (new)

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(2d) Whereas when it was introduced the common organization of the market in bananas was based on a compromise which respected the interests of the various sources of supply, while taking into account the Union's previous commitments, namely Community preference, preferential access for the ACP countries and the rules of GATT with regard to third countries;

(Amendment 10)

Recital 2e (new)

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(2e) Whereas European Union producers are in ultra-peripheral areas such as the Canaries, Madeira, Crete, Guadeloupe and Martinique, which have special production characteristics and suffer from particular disadvantages; whereas banana producers in these areas of the Community should therefore be eligible for supplementary aid;

(Amendment 11)

Recital 4

>Original text>

(4) Whereas the increase in consumption resulting from enlargement of the Community warrants opening of an autonomous tariff quota of 353 000 tonnes; whereas this autonomous tariff quota should involve reduction to ECU 300 per tonne of the customs duty applicable beyond the above bound tariff quota; whereas this reduction is warranted by the need to guarantee adequate supply of the Community market while preserving competitive balance with banana imports originating in ACP countries;

>Text following EP vote>

(4)

Whereas the increase in consumption resulting from enlargement of the Community warrants opening of an autonomous tariff quota of 100 000 tonnes; whereas this autonomous tariff quota should involve reduction to ECU 300 per tonne of the customs duty applicable beyond the above bound tariff quota; whereas this reduction is warranted by the need to guarantee adequate supply of the Community market while preserving competitive balance with banana imports originating in ACP countries and with bananas produced in the Community;

(Amendment 12)

Recital 5

>Original text>

(5) Whereas for traditional ACP bananas retention of the total quantity of 857 700 tonnes that may be imported at nil duty preserves access to the Community market for the supplier countries of the traditional quantities, in line with Protocol 5 annexed to the IVth Lomé Convention and with WTO rules;

>Text following EP vote>

(5)

Whereas for traditional ACP bananas retention of the total quantity of 857 700 tonnes that may be imported at nil duty preserves access to the Community market for the supplier countries of the traditional quantities, in line with Protocol 5 annexed to the IVth Lomé Convention and with WTO rules; whereas actual deliveries have, however, been less than this amount and provision should be made that import licences can be increased by an expansion co-efficient representing the difference between actual imports and the permitted limit, so that the full ACP amount can be delivered;

(Amendment 57)

Recital 5a (new)

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(5a) Whereas, within this total quantity, access must be guaranteed for the traditional quantities of bananas supplied by individual ACP states;

(Amendment 13)

Recital 5b (new)

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(5b) Whereas the present regime for allocating import licences must be replaced by a new licence system which must preserve the balance of supply of the Community amongst the different production sources, while guaranteeing Community and ACP producers disposal of their production;

(Amendment 14)

Recital 6

>Original text>

(6) Whereas in view of the obligations under the Lomé Convention, particularly Article 168 thereof, and of the need to guarantee proper conditions of competition for non-traditional ACP bananas, application to imports of these of an ECU 200 preference will allow the trade flows in question to be maintained under the new import arrangements introduced by this Regulation;

>Text following EP vote>

(6)

Whereas in view of the obligations under the Lomé Convention, particularly Article 168 thereof, and of the need to guarantee proper conditions of competition for non-traditional ACP bananas, application to imports of these of an ECU 300 preference will allow the trade flows in question to be maintained under the new import arrangements introduced by this Regulation;

(Amendment 15)

Recital 8

>Original text>

(8) Whereas provision should be made for the autonomous tariff quota to be modified to take account of any increased Community demand found when a supply balance is drawn up; whereas provision should also be made for suitable specific action to be taken in response to exceptional circumstances liable to affect supply of the Community market;

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(8)

Whereas Community demand should be monitored constantly by means of a supply balance and where any increase in demand is found, it should be passed on to all sources of supply - European, traditional and non-traditional ACP and non-member States - so that all suppliers benefit fully from the growth in the market; whereas provision should also be made for suitable specific action to be taken in response to exceptional circumstances liable to affect supply of the Community market, in particular the disastrous cyclones that sporadically hit Caribbean producers and the tragic events experienced by Somalia in the past and at present;

(Amendment 16)

Recital 8a (new)

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(8a) Whereas it is vital to lay down special rules to respond immediately and tangibly to the particular and serious situation with regard to banana production in Somalia, so as to enable it to be revived within a reasonable period;

(Amendment 17)

Recital 8b (new)

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(8b) Whereas, due to the civil war and the subsequent persistence of a situation of extreme political, economic and social instability, Somalia has been unable to make full use of the annual quota assigned to it, and whereas it will take years to revive banana production fully and render it competitive with other countries; whereas, because of the specific nature of the situation in Somalia, its traditional commercial operators have suffered enormous economic losses, in addition to which they have now suffered heavy losses as a result of the floods at the end of 1997 and beginning of 1998; whereas Somalia should therefore receive special treatment under the provisions relating to exceptional circumstances;

(Amendment 18)

Recital 8c (new)

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(8c) Whereas the purpose of fair trade with developing countries is to contribute to the fight against poverty and to the promotion of acceptable social and environmental conditions; whereas such initiatives should be encouraged and should benefit from special support measures;

(Amendment 19)

Recital 8d (new)

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(8d) Whereas the purpose of organic production methods in accordance with Regulation (EEC) No 2092/91(1)is to contribute to sustainable production methods with a limited impact on the environment and on the health of agricultural workers and the local population; whereas such initiatives should be encouraged in ACP and third countries and should benefit from special support measures, in conjunction with fair trade rules;

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(1) OJ L 198, 22.7.1991, p. 1.

(Amendment 20)

Recital 9

>Original text>

(9) Whereas operation of the provisions of the present Regulation should be reviewed at the end of an adequate trial period;

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(9)

Whereas operation of the provisions of the present Regulation should be reviewed at the end of an adequate trial period, and no later than 31 December 2005;

(Amendment 21)

Recital 10

>Original text>

(10) Whereas appropriate amendments should therefore be made to Title IV of Regulation (EEC) No 404/93,

>Text following EP vote>

(10)

Whereas appropriate amendments should therefore be made to Titles III and IV of Regulation (EEC) No 404/93,

(Amendment 22)

ARTICLE -1(1) (new)

Article 12(2) (Regulation (EEC) No 404/93)

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>Text following EP vote>

Article -1

Article 12 of Title III of Regulation (EEC) No 404/93 is amended as follows:

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1. Paragraph 2 is replaced by:

"2. The maximum quantity of bananas produced in the Community and marketed for which compensation may be paid shall be fixed at 982 000 tonnes (net weight) to be broken down as follows for each producer in the Community:

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1. 483 000 tonnes for the Canary Islands,

2. 172 500 tonnes for Guadeloupe,

3. 252 000 tonnes for Martinique,

4. 57 500 tonnes for Madeira, the Azores and the Algarve,

5. 17 000 tonnes for Crete, Lakonia and the other regions of Greece.

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Subject to the maximum quantity for the Community, the quantity for each region shall be adjusted regularly.¨

(Amendment 23)

ARTICLE -1(2) (new)

Article 12(2a) (new) (Regulation (EEC) No 404/93)

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2. The following paragraph 2a is inserted:

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'2a. The quantity of Community bananas provided for in paragraph 2 may be increased if Community demand increases, on the basis of the supply balance referred to in Article 16a.'

(Amendment 24)

ARTICLE -1(3) (new)

Article 12(4) (Regulation (EEC) No 404/93)

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3. Paragraph 4 is replaced by:

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'4. The 'flat-rate reference income¨ shall be:

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- the average price of bananas produced in the Community and marketed during a reference period prior to 1 January 1993 to be determined in accordance with the procedure laid down in Article 27;

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- less the average cost of transport and delivery fob.

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To take account of new market conditions caused by modification of the present Regulation and of increased production costs since 1991, the amount of the flat-rate reference income, calculated according to the above system, shall be increased by 20%.

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It shall be reviewed by the Commission when the aid is fixed after three years to take account in particular of increased productivity and trends in the various quality categories.'

(Amendment 25)

ARTICLE -1(4) (new)

Article 12(6) (Regulation (EEC) No 404/93)

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4. Paragraph 6 is replaced by:

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'6. Before 1 March of each year the Commission shall determine compensatory aid for the previous year in accordance with the procedure laid down in Article 27.

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Supplementary aid shall be granted to one or more producer regions when average income from production is significantly lower than the average Community income, in such a way that the final average income in this region is identical to the Community flat-rate reference income.'

(Amendment 27)

ARTICLE 1

Article 16a (new) (Regulation (EEC) No 404/93)

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Article 16a

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1. Each year, a supply balance shall be prepared of production and consumption in the Community and of imports and exports.

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2. The balance shall be prepared on the basis of:

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- available figures concerning quantities of bananas marketed in the Community during the previous year, broken down according to their origin,

- forecasts of the production and marketing of Community bananas,

- forecasts of imports of traditional ACP bananas,

- forecasts of consumption based in particular on recent trends in consumption and the evolution in market prices.

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The balance shall be adopted in accordance with the procedure laid down in Article 27.

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3. Where the balance reveals an increase in Community demand, this should benefit European producers, traditional ACP suppliers and, within the additional tariff quota referred to in Article 18(2) and (7), non-traditional ACP bananas and third country bananas, in proportion to their respective market shares.

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4. Where necessary, if the supply of the Community market is affected by exceptional circumstances affecting production or import conditions, the Commission shall adopt the specific measures that are necessary, in accordance with the procedure laid down in Article 27.

(Amendment 28)

ARTICLE 1

Article 18(2) (Regulation (EEC) No 404/93)

>Original text>

2. An additional tariff quota of 353 000 tonnes (net weight) shall be opened each year for imports of third country and of non-traditional ACP bananas.

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2.

An additional tariff quota of 100 000 tonnes (net weight) shall be opened each year for imports of third country and of non-traditional ACP bananas.

>Original text>

Imports of third-country bananas under this tariff quota shall be subject to duty of ECU 300 per tonne and non-traditional ACP bananas to duty of ECU 100 per tonne.

>Text following EP vote>

Imports of third-country bananas under this tariff quota shall be subject to duty of ECU 300 per tonne and non-traditional ACP bananas

shall be free of duty.

(Amendment 29)

ARTICLE 1

Article 18(4) (Regulation (EEC) No 404/93)

>Original text>

4. Should there be no reasonable possibility of securing agreement of all WTO contracting parties with a substantial interest in the supply of bananas, the Commission may under the procedure set out in Article 27 allocate the tariff quotas provided for in paragraphs 1 and 2 and the traditional ACP quantity between those countries with a substantial interest in the supply.

>Text following EP vote>

4.

Should there be no reasonable possibility of securing agreement of all WTO contracting parties with a substantial interest in the supply of bananas, the Commission may under the procedure set out in Article 27 allocate the tariff quotas provided for in paragraphs 1 and 2 and the traditional ACP quantity between those countries with a substantial interest in the supply. If it does so, any change in allocation must not be at the expense of ACP producers.

(Amendment 45)

ARTICLE 1

Article 18(5) (Regulation (EEC) No 404/93)

>Original text>

5. By derogation from Article 15, non-traditional ACP bananas imported outside the tariff quotas indicated in paragraphs 1 and 2 shall be subject to duty per tonne equal to the duty indicated in Article 15 less ECU 200.

>Text following EP vote>

5. By derogation from Article 15, non-traditional ACP bananas imported outside the tariff quotas indicated in paragraphs 1 and 2 shall be subject to duty per tonne equal to the duty indicated in Article 15 less ECU

300.

(Amendment 30)

ARTICLE 1

Article 18(7) (Regulation (EEC) No 404/93)

>Original text>

7. The additional tariff quota provided for in paragraph 2 may be increased if demand in the Community increases as indicated by a balance sheet of production, consumption, imports and exports.

>Text following EP vote>

7.

The additional tariff quota provided for in paragraph 2 may be changed if demand in the Community changes as indicated by a balance sheet of production, consumption, imports and exports.

>Original text>

Determination of the elements of the balance sheet, its adoption and increase of the additional tariff quota shall be effected under the procedure set out in Article 27.

>Text following EP vote>

Determination of the elements of the balance sheet, its adoption

, and adjustment, of the additional tariff quota shall be effected under the procedure set out in Article 27.

(Amendment 31)

ARTICLE 1

Article 18(8) (Regulation (EEC) No 404/93)

>Original text>

8. Should supply of the Community market be affected by exceptional circumstances affecting production or importation, the Commission shall adopt the specific measures necessary under the procedure set in Article 27.

In such cases the additional tariff quota provided for in paragraph 2 may be adjusted on the basis of the balance sheet indicated in paragraph 7. The specific measures may derogate from the rules adopted under Article 19(1). They must not discriminate between supply origins.

>Text following EP vote>

8. In the exceptional circumstances referred to in Article 16a(4) the additional tariff quota provided for in paragraph 2 may be adjusted on the basis of the supply balance referred to in Article 16a. The specific measures may derogate from the rules adopted under Article 19(1). They must not discriminate between supply origins.

(Amendment 32)

ARTICLE 1

Article 18(8a) (new) (Regulation (EEC) No 404/93)

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8a. In view of its particular situation and with the aim of easing the full restoration of its production and exports, Somalia shall be assigned, within the overall ACP quota, an annual quota equal to the largest quantity it exported to the European Union before 1991.

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Until Somalia is in a position to export to the European Union the whole of its annual quota, and in order to cover the difference between the quantity of bananas actually imported in that year and the quota assigned, Somalia's traditional commercial operators shall be permitted to import any residual quantity, obtaining supplies from any other sources reasonably available on the market.

(Amendment 33)

ARTICLE 1

Article 19(1), 1st subparagraph (Regulation (EEC) No 404/93)

>Original text>

1. The tariff quotas indicated in Article 18(1) and (2) and imports of traditional ACP bananas shall be managed in accordance with the method based on taking account of traditional trade flows ('traditionals/newcomers¨).

>Text following EP vote>

1.

The tariff quotas indicated in Article 18(1) and (2) and imports of traditional ACP bananas shall be managed in accordance with the method based on taking account of traditional trade flows ('traditionals/newcomers¨), using a reference period which should be the latest period for which data are available.

>Original text>

>Text following EP vote>

During a transitional period which shall be limited to two years, licences shall be allocated on the basis of certificates awarded.

(Amendment 34)

ARTICLE 1

Article 19(1a) (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

1a. Where the traditional imports from ACP States are less than the limit set out in Article 16(1), import licences may be increased by an expansion co-efficient representing the difference between actual imports and the permitted limit.

(Amendment 35)

ARTICLE 1

Article 19(2) (Regulation (EEC) No 404/93)

>Original text>

2. The method adopted shall as appropriate take account of the supply requirements of the Community market and of the need to safeguard its equilibrium.

>Text following EP vote>

2.

The method adopted shall as appropriate take account of the supply requirements of the Community market and of the need to safeguard its equilibrium. When deciding on the method to be adopted, particular account shall be taken of the European Union's obligations under the Fourth Lomé Convention.

(Amendment 60)

ARTICLE 1

Article 19(2a) (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

2a. When import licences are being allocated, priority shall be given to bananas from production areas which observe European standards in social and environmental issues.

(Amendment 36)

ARTICLE 1

Article 19a (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

Article 19a

>Original text>

>Text following EP vote>

The Commission shall undertake to encourage diversification in the ACP countries by setting up a special fund.

(Amendment 58)

ARTICLE 1

Article 20(ea) (new) (Regulation (EEC) No. 404/93)

>Original text>

>Text following EP vote>

(ea) provisions concerning fair trade bananas;

(Amendment 37)

ARTICLE 1

Article 20a (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

Article 20a

>Original text>

>Text following EP vote>

Specific provisions shall apply to bananas produced in compliance with Regulation (EEC) No 2092/91 on organic agriculture and certified by independent certification agencies which comply with standard EN 45011.

>Original text>

>Text following EP vote>

A strict system of equivalence with Regulation (EEC) No 2092/91 shall apply to such bananas falling within the traditional ACP, non-traditional ACP or third-country quotas, and to products derived therefrom.

>Original text>

>Text following EP vote>

Producers of and traders in organic bananas, together with the certification agencies, shall be eligible for special support measures associated with technical and financial assistance for this type of production, which seeks to achieve better protection of the environment and of public health.

(Amendment 38)

ARTICLE 1

Article 20b (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

Article 20b

>Original text>

>Text following EP vote>

1. Provisions are hereby established for bananas produced in compliance with the conditions laid down by Fair Trade Labelling Organisations International (FLO) and certified by an organization in accordance with the procedures laid down in paragraph 2. Such bananas shall be designated 'fair trade bananas¨. The conditions laid down by FLO are annexed to this Regulation and shall be applicable irrespective of the developing country of origin.

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>Text following EP vote>

2. Member States shall be responsible for accrediting organizations which provide 'fair trade¨ certification. The organizations shall be responsible for the granting of 'fair trade¨ status to producers and traders who satisfy the conditions set out above.

>Original text>

>Text following EP vote>

They shall also be responsible for monitoring and control to ensure that the 'fair trade¨ conditions are complied with in full. Accreditation by a Member State must be granted to organizations which provide 'fair trade¨ certification who are able to demonstrate that they comply with EN 45011 standards on certification organizations.

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>Text following EP vote>

A transitional period until 31 December 1999 is hereby established, during which certification organizations must demonstrate compliance.

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>Text following EP vote>

3. Producers of and traders in fair trade bananas, together with the organizations which provide 'fair trade¨ certification, shall be eligible for special support measures associated with technical and financial assistance.

(Amendment 39)

ARTICLE 1

Article 20c (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

Article 20c

>Original text>

>Text following EP vote>

The Commission shall undertake to argue within the WTO that the Community banana regime and the relevant trade preferences are bona fide development instruments for the ACP countries and outermost regions concerned.

(Amendment 40)

ARTICLE 1a (new)

Article 30a (new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

Article 1a

The following new Article 30a is added in Council Regulation (EEC) No 404/93:

>Original text>

>Text following EP vote>

'Article 30a

>Original text>

>Text following EP vote>

The Commission shall establish a promotion fund to stimulate the sale of fair trade bananas within the existing quotas.'

(Amendment 42)

ARTICLE 2

Article 32(2) (Regulation (EEC) No 404/93)

>Original text>

2. The report shall in particular analyse the marketing trends for Community, ACP and third country bananas and assess how the import arrangements have worked.

>Text following EP vote>

2.

The report shall in particular analyse the marketing trends for Community, ACP and third country bananas, assess how the import arrangements have worked, and assess in particular the effects on the incomes of European Union and ACP banana producers.

(Amendments 47 and 43)

ARTICLE 2

Article 32(2a)(new) (Regulation (EEC) No 404/93)

>Original text>

>Text following EP vote>

2a. Each year in which the Regulation applies, the Commission shall, not later than 31 March, submit a declaration to the European Parliament, the Council and the ACP-EU Council, incorporating statistics for the last year for which figures are available, indicating in particular whether the rights vested in traditional ACP suppliers pursuant to Protocol 5 to the Fourth Lomé Convention and the rights vested in non-traditional ACP suppliers pursuant to the Lomé Convention, particularly Article 168, may be deemed to have been respected. If this is not the case, the Commission shall propose appropriate measures.

>Original text>

>Text following EP vote>

A similar declaration should be made in respect of European production so as to facilitate a review of the actual economic balance of production conditions and intervention by updating the level of reference income, as well as by allowing for the financial loss attributable to the abolition of B licences.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas (COM(98)0004 - C4-0046/98 - 98/0013(CNS))(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(98)0004 - 98/0013(CNS) ((OJ C 75, 11.3.1998, p. 6.)),

- having been consulted by the Council pursuant to Article 43 of the EC Treaty (C4-0046/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Agriculture and Rural Development and the opinions of the Committee on Budgets and the Committee on Development and Cooperation (A4-0220/98),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.