No C 171/22 Official  Journal  of the European  Communities 9. 7. 79 
Opinion  on the  proposal  for  a Council  Regulation  on the  common  organization  of the 
market  in sheepmeat 
The text  referred  to the Committee  has  been  published  in Official  Journal  of the European 
Communities  No  C 93 of 18 April  1978,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 4 and  5 April  1978,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  47 and  198  of the Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 167th 
plenary  session,  held  in Brussels  on 4 and  5 April  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE,  -
Having  regard  to Articles  47 and  198  of the  Treaty 
establishing  the European  Economic  Community, 
Having  regard  to the  request  made  by the  Council  on 
4 and  5 April  1978  for  an opinion, 
Having  regard  to the decision  which  its Bureau  took  on 
25 April  1978  instructing  the Section  for Agriculture  to 
draw  up an opinion  on the matter, 
Having  regard  to its previous  work  on the matter  and  in 
particular  its  opinion  of 31  March  1976  on  the 
proposal  for  a Regulation  of the  Council  on  the 
transitional  common  organization  of the  market  in 
sheepmeat, 
Having  regard  to the  opinion  issued  by the  Section  for 
Agriculture  on 8 March  1979, 
Having  regard  to  the  report  submitted  by  the 
rapporteur,  Mr Butler, 
Having  regard  to the  discussions  at its 167th  plenary 
session  on 4 and  5 April  1979  (meeting  of 5 April 
1979), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 48 votes  to 7, with  1 abstention: The Committee  could  only  approve  the  Commission's 
proposal  on the  basis  of the  following  remarks  and 
subject  to the changes  set out  below  being  made: 
1. Introductory  remarks 
1.1. The  Economic  and  Social  Committee  demanded 
the establishment  of a common  organization  of the 
market  for  sheep  as long  ago  as 1960.  The  need  for 
such  organization  was  greatly  enhanced  by  the 
accession  of three  new  Member  States  in 1973,  and  the 
Committee  regrets  that  the  Commission  was  unable  to 
make  any  definite  proposal  before  the  transition  of 
those  Member  States  into  the  Community  was 
completed  at the end  of 1977.  The  Committee  considers 
that the  prospect  of  another  enlargement  of  the 
Community  adds  further  urgency  to (i) the  need  for  a 
common  organization  of the  market  in sheepmeat, 
including  goat-meat  and  (ii)  the  need  for  appropriate 
arrangements  for the related  product  wool. 
1.2. The  Committee  notes  that  there  are big differences 
between  the  quality  of sheepmeat  consumed  and  the 
varieties  of livestock  reared  in the  different  Member 
States.  The  market  organization  to be set up should  not 
encourage  a standardization  of quality,  through  an 
alignment  of the most  mediocre  quality  or even  a move 
towards  more  industrialized  forms  of breeding  and 
greater  integration  with  the animal  feed  industries. 
9. 7. 79 Official  Journal  of the European  Communities No C 171/23 
1.3. The  Committee  would  like  the  Commission  to 
examine  ways  of making  transhumance  easier,  including 
health  regulations. 
1.4. Large  areas  within  the  existing  Community  are 
dependent  upon  sheep  rearing,  and  these  will  be 
substantially  augmented  by the  accession  of Greece, 
Spain  and  Portugal.  Sheepmeat  is indeed  the  main 
animal  product  of the Mediterranean  countries.  At the 
same  time,  the  volume  of consumption  and  trade  in 
sheepmeat  has  been  substantially  increased  and  will 
increase  further  with  enlargement.  The  Committee 
believes  that  the  deficit  between  production  and 
consumption  which  will  still  exist  after  enlargement  of 
the Community  points  to the  need  for  encouraging 
sheep  production,  particularly  in those  regions  where  it 
is the main  farming  activity. 
1.5. The  Committee  is concerned,  moreover,  that  the 
continued  operation  of national  market  rules,  creates 
distortions  and  is incompatible  with  the  Common 
Agricultural  Policy  and  the Treaty,  The  Treaty  of Rome 
(Article  43 (3))  states: 
'The  Council  may,  acting  by a qualified  majority 
and in accordance  with  paragraph  2, replace  the 
national  market  organizations  by  the  common 
organization  provided  for in Article  40 (2) if: 
(a) the common  organization  offers  Member  States 
which  are  opposed  to this  measure  and  which 
have  an organization  of their  own  for  the 
production  in question  equivalent  safeguards  for 
the employment  and  standard  of living  of the 
producers  concerned,  account  being  taken  of the 
adjustments  that  will  be  possible  and  the 
specialization  that  will  be  needed  with  the 
passage  of time; 
(b) such  an  organization  ensures  conditions  for 
trade  within  the  Community  similar  to those 
existing  in a national  market.' 
Subject  to  these  conditions  being  respected  the 
Committee  considers  that  the introduction  of a common 
organization  of the  market  is the only  way  to resolve 
satisfactorily  the  legal  difficulties  arising  from  the 
present  situation,  and  to  create  an  environment 
conducive  to sheep  production  in the Community. 
1.6. The  common  market  organization  should  respect 
the following  principles: 
— the need  to  ensure  as  far  as  necessary  the 
implementation  in practice  of the  principle  of 
Community  preference  involving  effective 
supervision  of imports  from  third  countries  which 
supply  major  quantities  of  sheepmeat  to  the 
Community  — while  keeping  a close  eye  on the evolution  of existing  agreements  between  the  EEC 
and third  countries, 
— a common  frontier  with  regard  to third  countries, 
— free  movement  of goods  within  the Community, 
— a common  market  management  and  price  policy, 
— the  introduction  of a policy  for  modernization  of 
production  structures, 
— a policy  guaranteeing  reasonable  prices  for 
deliveries  to consumers. 
1.7. The  Committee  considers  that  any  common 
market  organization  set  up  must  promote,  by  the 
adoption  of common  action,  the  development  of 
consumption  and  production  throughout  the 
Community.  In addition  to regulating  trade,  the market 
organization  should  provide  positive  encouragements  to 
the development  of  greater  efficiency  in sheep 
production  and  marketing,  and  by assisting  in the better 
utilization  of  resources,  improve  the  incomes  of 
producers.  The  measures  provided  for  within  the 
framework  of the Directive  on farming  in mountain  and 
certain  less  favoured  areas  are,  in ihe areas  covered  by 
that Directive,  complementary  to but  not  a substitute 
for appropriate  guidance  action  within  the  framework 
of the market  regulation. 
1.8. The  Committee  believes  that  the  market 
regulation  should  provide  for  a common  price  for 
sheepmeat.  This  would  be fixed  annually  with  possible 
seasonal  differentiations,  at a level  which,  as far  as 
possible,  takes  full  account  of the production  costs  in all 
regions  of the  Community.  Appropriate  measures 
should  be adopted  to ensure  that  producers  throughout 
the Community  receive  an average  price  not  less  than 
the common  price.  The  common  system  of trade  with 
third  countries  must  provide  for the maintenance  of the 
principle  of Community  preference  and  for  safeguard 
measures  if a serious  crisis  arises  on the  Community 
market. 
2. General  observations  on the Commission  proposals 
The Committee,  while  recognizing  the  difficulty 
experienced  by the Commission  in making  proposals  for 
the common  organization  of the  sheepmeat  market 
because  of the  very  great  differences  between  sheep 
production  and  sheepmeat  marketing  in different  parts 
of the  Community,  wishes  to express  its reservations 
about  certain  important  aspects  of the  Commission 
proposals. 
No C 171/24 Official  Journal  of the European  Communities 9. 7. 79 
2.1. The  Commission  proposes  that  the  Community 
should  not  seek  the  deconsolidation  of  the 
GATT-bound  tariff  on sheepmeat  imported  from  third 
countries.  This  means  that  protection  has  to be limited 
to a maximum  of  20%  on  all  main  products. 
Consequently,  the  system  of import  levies  (Articles  6 
to 11)  proposed  by the  Commission  will  not  by itself 
adequately  protect  the  Community  market.  The  results 
of this  are two-fold. 
Firstly,  more  significance  will  attach  to the  pricing 
policies  adopted  by overseas  suppliers  and  to the scope 
for safeguard  action  if the  market  is threatened 
(Article  16) than  is the case  with  most  other  important 
agricultural  products.  Secondly  more  emphasis  will  be 
thrown  upon  the  internal  mechanisms  for  supporting 
producers'  returns.  The  Committee  therefore  thinks  that 
in the long  term  producers'  returns  are more  likely  to be 
adequately  safeguarded  by deconsolidation  than  by the 
Commission's  proposal.  The  Committee  therefore 
suggests  that  the  Commission  should  draw  up  a 
proposal  for  the  deconsolidation  of the  GATT-bound 
tariff. 
2.2. The  proposal  to confine  internal  market  support 
measures  to aids  for  the  private  storage  of sheepmeat 
(Article  4) means  that  it will  not  be  possible  to 
guarantee  Community  producers  an adequate  return 
from  the market  alone.  The  necessary  price  guarantee  to 
producers  must  therefore  be  implemented  by  an 
effective  market  organization  supported  by  direct 
premium  payments  (Article  27)  if necessary.  In case  of 
serious  difficulties  recourse  to storage  by the  public 
authorities  should  be envisaged. 
2.3. The  wide  differences  within  the  Community  in 
sheep  production  and  sheepmeat  marketing  mean  that 
adjustment  will  be slow  and  difficult.  The  Committee 
therefore  endorses  the  provisions  of Article  26 of the 
draft  Regulation. 
2.4. Guidance  expenditure  on structural  improvements 
will have  an  important  role  in  the  process  of 
harmonization  (Article  2),  but  aids  under  Directive 
75/268/EEC  are  designed  primarily  to compensate  for 
permanent  geographical  disadvantages  and  expenditure 
under  that  Directive  should  be treated  as quite  distinct 
from  the budget  of the market  regulation. 
2.5. Provision  should  be  made  for  refunds  on 
Community  exports  of live  sheep  and  fresh  or chilled 
sheepmeat  to assist  with  market  support. 
2.6. Wool  is an important  product  of sheep  but  is not 
classed  as agricultural  in Community  legislation.  The Committee  believes  that  consideration  should  be given 
to the introduction  of specific  Community  measures  for 
the benefit  of wool  producers  concurrently  with  the 
common  organization  of the market  for sheepmeat. 
In particular,  while  emphasizing  that  no action  must  be 
taken  which  has  the effect  of divorcing  the Community 
wool  market  from  international  markets,  the 
Committee  considers  that  it should  be possible  to grant 
a wool  production  aid. 
2.7. The  Commission  considers  that  goatmeat  should 
be covered  by the draft  Regulation,  for the purposes  of 
customs  administration  and  includes  it among  the 
products  listed  in Article  1. This  is logical  since  it is 
virtually  impossible  to make  a distinction  between 
goatmeat  and  sheepmeat,  especially  in the case  of meat 
from  young  animals. 
For this  reason,  and  because  goats  are virtually  the only 
animals  that  can  be kept  in the  poorest  parts  of the 
Mediterranean  regions,  the  Committee  considers  that 
sheep  and  goats  should  be treated  alike  and  that  all 
provisions  of the  future  market  organization  should 
apply  to goats. 
3. Specific  observations  on the Commission  proposals 
Article  1 
The Committee  notes  the  Commission  proposal  to 
include  goats  and  goatmeat  in the common  organization 
of the sheepmeat  market  only  to the extent  and  for  the 
purposes  of customs  administration.  However,  for  the 
reasons  given  in item  2.7 above,  the Committee  believes 
that goats  and  goatmeat  should  be included  with  sheep 
and sheepmeat  in all  the  provisions  of the  market 
organization. 
Article  2 
The Committee  considers  that  the  guidance  measures 
provided  for under  this  Article  are an essential  element 
of market  organization  for  this  sector,  particularly  in 
facilitating  the  adaptation  of sheep  production  to a 
common  market.  The  measures  should  be  pursued 
vigorously  and  adequately  funded  by EAGGF. 
9. 7. 79 Official  Journal  of the European  Communities No C 171/25 
Article  3 
The Committee  emphasizes  that  when  fixing  the basic 
price  the Council  must  pay  full  regard  to the differences 
between  conditions  on the world  market  and  those  on 
the Community  market  and  to the  need  properly  to 
remunerate  sheep  production  in all  regions  of the 
Community. 
Article  4 
The Committee  considers  that  private  storage  aids  are 
not a sufficient  method  of supporting  returns  to 
producers. 
Article  5 
The Committee  believes  that  the price  for sheep  carcases 
should  be established  solely  on the basis  of Community 
production  and  at a uniform  marketing  stage  as close  as 
possible  to sales  ex-farm. 
The Committee  is of the  view  that  the  Commission's 
proposal  does  not pay  sufficient  regard  to the problems 
posed  by the existence  in the Community  of very  diverse 
qualities  of sheepmeat.  To provide  the appropriate  basis 
for a common  Regulation,  the Committee  considers  that 
the Commission  should  take  the opportunity  to define  a 
uniform  system  of price  quotation  for  the  whole 
Community,  drawing  on the  experience  gained  in the 
use of quotation  grids  in many  Member  States. agreements  with  third  countries  additional  to the 
general  GATT  commitment. 
Article  16 
The Committee  emphasizes  that  the  safeguard 
procedure  against  the  disruption  of the  Community 
market  by imported  supplies  is a crucial  feature  of the 
regulation  because  of the  limitations  imposed  upon 
protection  by the GATT  undertaking.  The  Committee  is 
concerned  therefore,  that  safeguard  measures  will 
necessarily  be confined  within  what  is permitted  by 
Article  19 of GATT.  The  Committee  believes  that  the 
Commission  should  specify  what  measures  the 
Community  would  be able  to take  in order  to deal 
promptly  and  effectively  with  an import  situation  which 
threatened  the Community  market. 
Article  20 
The Committee  believes  that  the Commission  should  in 
addition  to a Management  Committee,  establish  an 
Advisory  Committee  for sheepmeat. 
Article  26 
The Committee  believes  that  a period  must  elapse  after 
the making  of a market  regulation  in this  sector  during 
which  production  and  trade  in the  various  national 
markets  of the Community  is progressively  harmonized. 
Measures  to facilitate  this  harmonization  will  be 
essential. 
Article  11 
The Committee  considers  that  if the  special  levies  on 
imports  which  enter  the Community  at abnormally  low 
prices  are limited  to the rate  bound  under  GATT,  these 
will not  provide  an  adequate  protection  of  the 
Community  market.  The  Committee  therefore  suggests 
that the  Commission  be  asked  to  propose  an 
improvement  in the  special  arrangements  to deal  with 
abnormally  low  prices.  Limiting  the levy  increase  in the 
case of dumping  to a maximum  of 20%  ad valorem  is 
not enough  to  prevent  a price  collapse  on  the 
Community  market. In particular,  the Committee  wishes  to draw  attention 
to the  fact  that  the  production  of very  specialized 
qualities  of sheepmeat  in certain  regions  of the 
Community  to  meet  specialized  demands,  e.  g. 
'abbacchio'  in Italy  and  first  quality  house-fed  lamb  in 
France,  may  be imperilled  by the common  organization 
of the market  unless  specific  measures  to safeguard  their 
production  are  provided  in  the  regulation.  The 
Committee  therefore  suggests  that  the  Commission 
should  make  proposals  to  resolve  this  difficulty 
satisfactorily. 
Article  13 
The Committee  is concerned  that  the  purposes  of the 
market  organization  may  be  frustrated  by  prior Article  27 
The Committee  refers  to its comments  in item  1.6  and 
to its specific  comments  on Article  3 of the  draft 
Regulation. 
No C 171/26 Official  Journal  of the  European  Communities 9. 7. 79 
The Committee  considers  that  the  Commission  proposal 
provides  no  assurance  that  the  returns  of  sheep 
producers  from  the  market  in  all  regions  of  the 
Community  will  harmonize  at a level  which  fulfils  the 
obligations  to producers  under  Articles  39 and  43 (3) of 
the Treaty.  Consequently,  the  Committee  emphasizes 
that producers'  returns  throughout  the  Community 
must  be maintained  by an effective  market  organization 
Done  at Brussels,  5 April  1979. supported  by  direct  premium  payments  to the  extent 
necessary  to fulfil  these  obligations. 
Article  28 
The Committee  is  concerned  that  no  adequate 
explanation  is given  for  the  procedures  whereby  the 
provisions  of Articles  6 to 11 will  be implemented. 
The Chairman 
of the Economic  and  Social  Committee 
Fabrizia  BADUEL  GLORIOSO 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
Rejected  amendments 
The following  amendments,  where  rejected  during  the plenary  session  debate. 
Point  1.1 
Delete  the last  part  of the last  sentence  reading 
' . .. including  goat  meat  . ..'. 
and adapt  the rest  of the opinion  accordingly. 
Reasons 
Goat  farming  is often  very  harmful  to soil  fertility.  It has in part  been  responsible  for the desertification 
of certain  regions  in North  Africa.  While  the idea  of having  specific  measures  for goat  farming  should 
not be rejected,  there  is no need  to state  a priori  that  such  measures  should  take  the form  of a market 
organization  for the whole  of the nine  Member  States  (who  will  undoubtedly  be 12 in the near  future). 
Neither  is there  any  need  to adopt  a position  on the wool  issue;  wool  is not an agricultural  product  and 
there  should  first  be a preliminary  examination  of the whole  problem. 
Voting 
For: 15; against:  37; abstentions:  7. 
Page  1 — new  point  1.1.b 
Add a new  point  1.1.b  reading  as follows: 
'1.1.b.  The  Committee  would  like  adequate  support  to be given  to sheepmeat  production  by aiding 
hill regions  and  less-favoured  areas.' 
Reasons 
What  is meant  here  is some  means  of supporting  the production  of quality  meat,  off-setting  natural 
geographical  handicaps  and  maintaining  production  potential  in regions  with  poor  resources,  few  jobs 
to offer  and,  often,  a decline  in population. 
9. 7. 79 Official  Journal  of the European  Communities No C 171/27 
Voting 
For: 24; against:  25; abstentions:  10. 
Point  2.1 
Delete  the last  two  sentences: 
'The Section  therefore  suggests  ... deconsolidation  of the GATT-bound  tariff.' 
Reasons 
This  deconsolidation  is unnecessary.  The  market  has not hitherto  been  disrupted  by cheap  imports  and 
the main  supplier,  New  Zealand,  is eager  to avoid  disruption.  France  is the country  which  has hitherto 
been  closed,  and  New  Zealand  lamb  is of a totally  different  quality  from  French  lamb. 
Every  deconsolidation,  moreover,  costs  the Community  something  in ill-feeling  and in compensation. 
Voting 
For: 13; against:  36; abstentions:  9. 
Opinion  on the  draft  Council  recommendation  on the  ratification  of the  International 
Convention  for Safe  Containers  (CSC) 
The text  referred  to the Committee  has  been  published  in Official  Journal  of the European 
Communities  No  C 44 of 17 February  1979,  page  9. 
A. LEGAL  BASIS  FOP  THE  OPINION 
On 15 February  1979,  the  Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  84 (2)  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 167th 
plenary  session,  held  in Brussels  on 4 and  5 April  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the  European 
Economic  Community  and,  in particular,  the  second 
paragraph  of Article  84 thereof, 
Having  regard  to the  request  made  by the  Council  of 
the European  Communities  on 15 February  1979  for an 
opinion, 
Having  regard  to the  decision  taken  by its Bureau  on 
20 February  1979,  instructing  the Section  for Transport and Communications  to draw  up an opinion  on the 
matter, 
Having  regard  to Articles  29, 46 and  47 of the Rules  of 
Procedure, 
Having  regard  to the  opinion  issued  by the  Section  for 
Transport  and  Communications  at its 125th  meeting, 
held  on 14 March  1979, 
Having  regard  to  the  oral  report  made  by  the 
rapporteur,  Mr Hennig,