B4-0211, 0280, 0281, 0283 and 0284/97

Resolution on the crisis in the rice sector

The European Parliament,

- having regard to Council Regulation (EC) No 3072/95 of 22 December 1995 establishing the common organization of the market in rice ((OJ L 329, 30.12.1995, p. 18.)),

- having regard to Commission Regulations (EC) No. 19/97 and (EC) No. 21/97 of 8 January 1997 ((OJ L 5, 9.1.1997, pp. 19 and 24.)),

- having regard to the concessions made to the USA in order to avoid problems within the World Trade Organization,

A. having regard to the serious situation of the Community rice sector which, following a return to normal conditions after a long period of drought, and for the first time since the reform of the COM, is now facing major problems with regard to marketing its produce,

B. whereas the volume of duty-free imports from Overseas Countries and Territories (OCTs) rose from 58 000 tonnes in 1992 to 300 000 tonnes in 1996; whereas this increase in imports has caused EU rice prices to fall and been extremely detrimental to European producers,

C. whereas these problems stem from the decline in Community preference following the conclusion of the Uruguay Round, the pressure exerted by the United States within the WTO, certain preference agreements, and the additional quota granted to the ACP countries after EU enlargement,

D. whereas, following the entry into force of Council Decision 91/482/EEC of 25 July 1991 on the association of the overseas countries and territories with the European Economic Community ((OJ L 263, 19.9.1991.)), import flows from those countries have been unsustainable,

E. whereas Commission Regulation (EC) No 304/97 of 17 February 1997 ((OJ L 51, 21.2.1997, p. 1.)) for this reason laid down safeguard measures concerning imports into the Community of rice from the OCT, and a customs quota was established as a result; whereas Commission Regulation (EC) No 196/97 of 31 January 1997 ((OJ L 31, 1.2.1997, p. 53.)) also established a customs quota, for each commercial year, of 32 000 tonnes of rice from Egypt, enjoying a 25% reduction in customs duties and whereas Egypt already enjoyed a 25% customs reduction, which means that the Commission's decision totally annuls customs duties for quantities equivalent to 32 000 tonnes,

F. whereas the obstructive attitude of a Member State of the European Union is preventing the revision of the aforementioned Council Decision 91/482/EEC, which is a root cause of this serious crisis,

G. having regard to the importance of increasing the amount of rice supplied as food aid, which would significantly help the sector,

1. Considers it essential for the Union to take steps to remedy the situation in the Community rice market in an effective and durable fashion, by amending Council Decision 91/482/EEC;

2. Calls on the Council to break the deadlock and calls on the Member State responsible for it to cooperate in seeking a fair settlement;

3. Calls on the Commission to consider extending the period of application of Regulation (EC) No. 21/97 should the Council fail to act;

4. Calls on the Commission to assess the impact of the cumulative recovery system, i.e. the mechanism applied in the United States to recover import duties in the event of undue taxation, and regrets the concessions granted by the European Union in response to the blackmail used by the United States;

5. Asks that Community rice be given pride of place in supplies of food aid;

6. Asks that the unused allocation of 75 000 tonnes for the last marketing year be added to the quota available for subsidized export in the 1996/97 marketing year;

7. Considers it essential to ensure that the reform of the common organization of the market in rice succeeds in stabilizing the Community rice market and maintaining the incomes of Union rice-growers and asks the Commission to undertake an analysis of the functioning and efficiency of this market;

8. Instructs its President to forward this resolution to the Council, the Commission, the governments of rice-producing Member States and the United States Government.