WRITTEN QUESTION E-3681/00

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Commission

(29 November 2000)

Subject: Milk quotas and EU enlargement

In view of the impact that enlargement of the EU will have on the CAP and the European dairy sector in particular, can the Commission say what accession terms have been laid down, as far as milk is concerned, for the various applicant countries?

How does it think that enlargement will affect the European dairy sector in its current form?

How does it think that enlargement will affect the existing European milk quota system?

How is it proposed to proceed as regards milk quotas for the different applicant countries?

How might those new quotas affect the present Member States?

Answer given by Mr Fischler on behalf of the Commission

(22 January 2001)

In the Common position of the Community on the agricultural chapter agreed in June 2000, the Community underlined a number of key principles governing the negotiations with the candidate countries. First, they must demonstrate, sufficiently ahead of accession, that they possess the administrative capacity for effective implementation and enforcement of the acquis including the necessary mechanisms in place needed for the management of the various common market organisations. Second, they should achieve full compliance by the time of accession with regard to Community requirements for food safety and consumer protection. Third, transitional measures must be exceptional, limited in time and scope, and accompanied by a plan with clearly defined stages for the application of the acquis. Fourth, the acceptance of the acquis entails the obligation to apply Community prices for agricultural products upon accession.

Recent medium term forecasts suggest that milk production levels in the candidate countries will increase very slightly over the next seven years, but that exportable surpluses will remain broadly constant. In this respect, enlargement may add slightly to existing market balance problems for the European dairy sector but should not create new difficulties.

All the candidate countries have accepted the need to fully meet the acquis including the application of all common market organisation (CMO) regulations. Candidate countries have been invited to provide a detailed plan for the setting up of the official administration that will be responsible for the management of the milk quota system, in particular the plans for addressing problems related to farm structure and with regard to direct sales.

As regards setting quotas the reference quantity for milk must be determined taking account of historical production figures during a reference period to be defined, and the need to avoid adding to Community market surpluses, having regard also to World trade organisation (WTO) constraints. It is the Commission's view that this period should be recent to reflect current production and consumption structures as well as improved statistical reliability.

Given these safeguards built into the Community's negotiating position, it is not expected that the inclusion of the new member states in the CMO for milk and milk products will affect the current Member States.

It should be recalled that, regardless of enlargement, Council Regulation (EC) No 1256/1999 of 17 May 1999, establishing an additional levy in the milk and milk products sector(1), in particular Article 3, foresees a mid-term review, worded as follows: The Council undertakes to conduct a mid-term review in 2003, on the basis of a Commission report, with the aim of allowing the present quota arrangements to run out after 2006.

(1) OJ L 160, 26.6.1999.