B4-1243, 1244 and 1245/96

Resolution on the conclusions to be drawn from the first year of application of the GATT agreements in the agricultural sector

The European Parliament,

- having regard to the communication from the Commission on 'The global challenge of international trade: A market access strategy for the European Union' (COM(96)0053),

- having regard to its resolution of 15 December 1994 on the conclusion of the Uruguay Round and the future activities of the World Trade Organization (WTO) ((OJ C 18, 23.1.1995, p. 165.)),

- having regard to the outcome of the public hearing organized by its Committee on Agriculture and Rural Development on 3 June 1996 on implementing GATT in the agricultural sector,

- having regard to the opinion of the Committee on Agriculture and Rural Development for the Committee on External Economic Relations of 3 October 1996 on the World Trade Organization (PE 218.443),

A. whereas a properly functioning system of exports, with satisfactory prices and organized in a way with which the industry can work, ultimately benefits all primary producers, in both the exporting and the non-exporting Member States,

B. whereas in the agricultural agreement under GATT export subsidies must be reduced by 21% in terms of volume and 36% in terms of value; whereas the volume restriction in particular is not easy to apply and the Commission and the management committees have in many cases opted for a system of export certificates, whereby if demand has exceeded the quantity available the Commission has continuously reduced the levels of refunds, and whereas the implementation period of six years, as agreed in GATT, was intended to facilitate gradual adjustment,

C. whereas, as a result of implementation of the commitments pursuant to the agricultural agreements under GATT, the day-to-day operation of the CAP has significantly increased the administrative and financial burden on the exporting industry, while creating more uncertainty,

D. whereas it is important that world trade should continue to be liberalized, including in the agricultural sector, but whereas this must be achieved within a responsible political framework covering the environment, the social and economic aspects and development cooperation,

1. Supports the efforts of the Commission, as set out in the abovementioned communication, to make more use of the increased scope for access to third country markets;

2. Shares the Commission's approach as set out in its communication;

3. Believes that, at the forthcoming ministerial meeting of the WTO on 9-13 December 1996 in Singapore, the European Union should pay particular attention to the implementation of the Uruguay Round undertakings, particularly in the agricultural sector;

4. Asks the Commission to submit to it as soon as possible a detailed review, particularly of the agricultural aspects of the application of the new WTO rules, and to highlight the disadvantages facing operators and farmers in the Union; calls moreover on the Commission to ensure that this review includes a sector-by-sector analysis, with particular reference to the difficulties encountered by the operators concerned, to be presented by June 1997 at the latest;

5. Asks the Commission, in keeping with the undertakings entered into in the Union in the agricultural sector, to put in place a more active agri-food export policy and to make full use of both subsidized and non-subsidized export opportunities in order to safeguard the Union's share of the world market;

6. Asks the Council for a comprehensive review to be carried out in Singapore not only of import arrangements, export subsidies and domestic aid but also of the implications of the agricultural reform for countries that are net importers of food products;

7. Asks the Council to reaffirm its determination to see better account taken of environmental problems by the WTO and asks that the Singapore conference broaden the terms of reference of the Committee on Trade and the Environment which should be established on a permanent footing in order to guarantee that WTO rules are compatible with the principles of sustainable development;

8. Takes the view that, in several sectors, the standards of the Codex Alimentarius do not need to be considered appropriate for the European Union and that the latter must reserve its express right to apply tougher standards;

9. Believes it to be essential that the Commission should swiftly formulate a strategic approach with an eye to the forthcoming series of multilateral negotiations scheduled for 1999;

10. Calls on the Commission, as a matter of urgency, to carry out a study of the scope for accompanying measures, such as the introduction of a budget for export promotion and an export credit insurance system to supplement the export refund mechanism;

11. Notes that in some third countries exports of certain products from Europe, in particular, are considerably impeded by the introduction of the tariff system and by the use of the 'safeguard clause', and calls on the Commission to take appropriate action to maintain the European share of those markets;

12. Stresses that joint use of the various Commission services involved (DGs I, III and VI) is essential for preserving the EU's share of the world market for agricultural products;

13. Instructs its President to forward this resolution to the Council, the Commission and the WTO.