WRITTEN QUESTION P-2248/00

by Robert Sturdy (PPE-DE) to the Commission

(29 June 2000)

Subject: Non-Annex 1 export refunds

Will the European Commission explain in detail why it deems it necessary to suspend the issue of non-Annex 1 export refund certificates as from 8 May 2000 by means of Regulation (EC) 1066/2000(1)?

On what legal basis has the European Commission suspended the issue of non-Annex 1 export refund certificates, given that Regulation (EC) 1702/1999(2) refers (in paragraph 3a of the new Article 6b set out under Article 15 of said Regulation) to Article 9(2) of the GATT Agreement on Agriculture?

Will the European Commission indicate the maximum amount of export refund available under the GATT Agreement for the current financial year, given the, as yet, continuing right of carry-over from previous years?

Will the European Commission indicate the steps it has taken to identify and given due consideration to the impact of this suspension of the issue of export refund certificates on the value-added processed food industry nearly five months before the end of the current financial year?

The timing of this suspension would imply that the export of products requiring export refunds have increased by some 30 % over 1998-1999. Does the European Commission have any other firm evidence to support this?

What proposals does the European Commission have to ensure that its approach towards the issue of export refund certificates will be more even-handed, predictable and transparent in the coming financial years?

(1) OJ L 119, 20.5.2000, p. 9.

(2) OJ L 201, 31.7.1999, p. 30.

Answer given by Mr Liikanen on behalf of the Commission

(27 July 2000)

The Honourable Member refers in his question to the suspension of the issue of refund certificates for non-Annex 1 processed agricultural products as from 8 May 2000 (Regulation (EC) No 1066/2000).

The GATT limit on the EU for the 1999-2000 financial year is 475 million, plus amounts not used in previous years. By way of information, the budgetary authority has set the 1999-2000 budget for non-Annex 1 refunds at 551 million.

First of all, it should be pointed out that the system of certificates was only introduced as from 1 February. As a result, the current financial year is of a transitional nature because refunds granted before that date have to be added to the certificates issued. It should be noted that the total value of the refund certificates issued in the three months since 1 February 2000 was over 310 million. On account of the large volume of exports (the total amount of refunds paid prior to 1 March 2000 was 229 million) and the substantial sums involved in the certificates requested during the first week of May, the Commission felt that it should exercise caution in running the certificates system, bearing in mind the EU's international commitments and the possibility that these could be jeopardised.

In taking this decision, the Commission was applying paragraph 8 of Article 6B of Regulation (EC) No 1222/94, which stipulates that insofar as the Commission considers that compliance with the international commitments of the European Union may be jeopardised, it may apply a reduction coefficient to applications for certificates currently under examination, taking account, inter alia, of the method of calculation referred to in paragraphs 3 and 4. It may also suspend the issuing of certificates.

The Commission is aware of the impact which the suspension of the issue of certificates has on the food-processing industry. It is continuing to monitor both the market situation and payments made by the Member States, and will not fail to take appropriate measures, including a resumption in the issue of certificates.