20.1.92 OfficialJournaloftheEuropeanCommunities NoC14/29
OpinionontheproposalforaCouncilRegulation (EEC)establishingasupportsystemfor
soyabeans,rapeseedandsunflowerseed (1)
(92/C14/12
On12September1991theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity,onthe
abovementioned proposal.
TheSectionforAgricultureandFisheries,whichwasresponsibleforpreparingtheCom­
mittee'sworkonthesubject,adopteditsOpinionon10October1991.TheRapporteurwas
MrMantovani .
Atits290thplenarysession(meetingof30October1991),theEconomicandSocialCommittee
adoptedthefollowingOpinionwithnovotesagainstand4abstentions .
theincomelostasaresultofthedropinprice.
Thisaidwouldvaryonthebasisofa
regionalization plan,andwouldbebiggerin
high-yieldregions.Itwouldbepaiddirectlyto
theproducer,ratherthan(ashitherto)tothe
processor,
—abalancebetweensupportforoilseedsand
cerealsbasedonapriceratioof2,1:1,toavoid
encouragingprocedurestooptforonecrop
ratherthantheother,
—asystemofmaximumguaranteedareas:ifthe
areaplantedtooilseedsexceedsthemaximum
guaranteedarea,thepremiumperhectarewould
bereducedby1%foreach1%overshoot.1.InframingthisOpinion,theCommitteehasborne
inmind:
a)theconclusionsreachedinDecember1989bythe
paneloftheGeneralAgreementonTariffsand
Trade(GATT)which,inthecaseofoilseeds,advo­
cate:
—theprinciplethat'importedproductsshallbe
giventreatmentnolessfavourablethanthat
accordedtolikedomesticproductsinrespectof
allregulationsaffectingtheirinternalpur­
chase'(2),
—consideration bytheCommunityof'waysand
meanstoeliminatetheimpairmentofitstariff
concessionsforoilseeds'(2),
—modification ,tothisend,ofCommunityregu­
lationsonoilseedsinthelightofArticleIII.4of
theGATT(2);
b)theCommission'stwoCommunications tothe
Council,on1Februaryand11July1991,concerning
thedevelopmentandfutureofthecommonagricul­
turalpolicy(CAP)(3).Theseadvocate:
—anarrowingofthegapbetweenECandworld
pricesinthecereals,oilseedsandproteincrops
sectors,
—compensationforlossofincome,bymeansof
aidperhectarepaiddirectlytotheproducer;
c)theproposalnowunderconsideration ,whichadvo­
cates:
—aprojectedreferencepriceofECU163perton,
basedontheworldmarketprice,
—aidperhectareofECU384foralloilseeds(soya,
rapeandsunflower),designedtocompensate1.1.Hence,ratherthanoptingforaproposalwhich,
whilerespectingtheGATTpanel'sconclusions,intro­
ducestemporaryregulationspendingadecisiononthe
reformofthesectorasproposedbytheCommission's
paperCOM(91)258final,theCommissionhaspre­
ferredadefinitiveregulationgivingconcreteformto
measureswhicharestillthesubjectofevaluationand
debate.
2.TheCommitteeismindfulthattheCommission
hadto
a)respecttheconclusionsoftheGATTpanel;
b)seizetheopportunitytoencourageextensification
ofproduction,onaccountofitseconomicand
environmental aims;
c)encouragegrowingoncontract(boostingtherole
ofproducers'associations).
However,theCommitteeconsidersthattheproposal
hastoomanynegativeaspects;notablythefollowing.(!)OJNoC255,1.10.1991,p.8.
(2)Points155,156and157oftheGATTpanel'sconclusions
(reproducedonpage9oftheCommissionproposal).
(3)CommissiondocumentsCOM(91)100finalandCOM(91)
258final.

NoC14/30 OfficialJournaloftheEuropeanCommunities 20.1.92
2.1.If,asproposed,theregulationistotakeeffect
fromthe1992/1993marketingyear,themarketbalance
betweenoilseedsandcerealscouldshiftinfavourof
thelatter;cerealswillbecomemoreattractive,asthe
guaranteedpricesystemwillremaininforce.
2.2.Theobligationtosowseedby30April
[Art.2(2)]hasagronomicimplicationsforanumberof
crops:someseedvarietiescanbeplantedafterthisdate.
2.2.1.Asecondharvestofsoyawouldnolongerbe
economicallyattractive,andtotalearningswouldfall
significantly .
2.3.TheCommitteerecommendsdiversification by
seedvarietyforthepurposesofperhectareaidcalcu­
lations.TheexceptionalprocedureunderArticle4(5)
shouldthereforebedeleted.
2.4.Thereferencetotheaveragecerealyieldwhich
formsthebasisforcalculatingregionalizedaid
[Art.4(3)]wouldleadtodifferentlevelsofaid,since
regionalproductivityvaries.Inthelessadvantaged
regionswhereaverageproductivityislower,aidper
hectarewouldalsobelower.Inthemoreproductive
areas,thereversewillbethecase.Aidperhectarewill
thereforenothelptoironoutregionalimbalancesin
income.
2.4.1.TheCommitteeisoftheviewthatprovision
shouldbemadebyproposalstodealwithasituation
wherepricesinoneregionoftheCommunityfallsignifi­
cantlybelowtheaverageCommunityprice.
2.4.1.1.Itisoftheviewthatsomeformofregional
pricesafeguardisvital.
2.4.1.2.TheCommitteethereforefavoursregional
pricemonitoringwhichwouldmeanthatiftheaverage
pricepaidinaregionduringaseasonislowerthana
givenpercentageoftheworldmarketpriceascalculated
bytheCommission,anadditionalcompensatory pay­
mentcouldbemade.2.4.2.Itisalsopossiblethatthefixingofreference
pricesatthesamelevelasworldpriceswillleadtoa
furtherdropinthelatter,withanensuingdropin
earnings.
2.5.Itistoocostlytoproducerstoignorepossible
pricevariationsoflessthan8%oftheProjectedRefer­
encePrice[Art.4(4)],whenmakingthefinalcalcu­
lation.IntheCommittee'sview,thelimitcouldbe2or
3%.
2.6.Fixingthemaximumguaranteedareaforsoya
beansat509000hectares[Art.7(1)]penalizesthiscrop,
astheaverageareaundersoyaoverthelastfewyears
hasbeenover600000hectares.
2.7.Thereductionoftheaidperhectarebyacorre­
spondingnumberofpercentagepointswhenthe
maximumguarenteedareaisexceeded[Art.7(2)]is
tooburdensome .TheCommitteeconsidersthatthe
reductionshouldbesignificantlyless.
2.7.1.TheCommitteebelievesthatcaremustbe
takentoensurethattheproposalstopayaidonlyin
respectoflandwhichwasinarableproductionorin
set-asideinthebaseyears1989/1990-1990/1991does
notdisqualifyproducersfromreceivingareapayments
oncropsplantedthisautumn.
3.Conclusion
3.1.Whileacknowledging theautonomyofthedraft
Regulation,interaliahavingregardtotheGATT
decisions,theCommitteenotesthatitestablishesa
supportsystemforoilseedsbasedoncriterialaiddown
intheCommissionCommunication of11July1991
[Doc.COM(91)258final],andconsidersthatno
decisioncanbeadopteduntilthereformpolicyoutlined
intheCommunication hasbeenimplemented .
3.2.Atallevents,theCommitteefeelsthatthe
negativeaspectsoftheproposalaresignificantenough
toobligetheCommissiontoradicallyreviseand
improveit.
DoneatBrussels,30October1991.
TheChairman
oftheEconomicandSocialCommittee
FrancoisSTAEDELIN