WRITTEN QUESTION E-2963/01

by Ilda Figueiredo (GUE/NGL) to the Commission

(25 October 2001)

Subject: EU-Egypt Euro-Mediterranean Agreement

In bilateral commercial agreements at Community level, the sectors most affected by liberalisation of trade are usually the fruit and vegetable, horticultural and preserves industries. These sectors have a significant role both for the GVA and primary sector employment in certain Member States, particularly in numerous Objective 1 regions. Moreover, these sectors have come under heavy pressure from third country imports, affecting employment and development in many EU regions. The Union recently signed a Euro-Mediterranean agreement with Egypt, with fresh customs duties productions and exemptions, which will again affect these sectors.

I would therefore ask the Commission to supply a list of the Community customs duty concessions for the fruit and vegetable, horticultural and preserves industries. I would also ask whether the Commission carried out any study of the socio-economic impact of this new liberalisation? If so, what were the results? Has the Commission, should there be loss of income as a result, have any provision for a support mechanism or compensatory payments? How has the principle of Community preference been ensured in these sectors, which have frequently served as makeweights in agreements concerning other products, particularly industrial products?

Answer given by Mr Fischler on behalf of the Commission

(20 December 2001)

The Honourable Member is advised to consult a newly produced publication covering topical issues linked to the partnership between the Union and Egypt(1) a copy of the publication is sent direct to the Honourable Member and to the Parliament's Secretariat. Chapter II of the publication covers an overview of the agricultural part of the agreement between the parties, as well as all the concessions granted by the Community as well as by Egypt as regards agricultural trade. The brochure furthermore comprises information on the development of the agricultural trade between the parties in 1998 to 2000.

An impact study on the Community-concessions to not only Egypt but to all Mediterranean countries was carried out by the Commission in 1997 and was presented in its final form to the Council at the end of the same year(2).

The Association Agreements concluded between the Union and the respective partners of the Barcelona Process including Egypt have to be seen in the framework of the Barcelona Declaration of 27-28 November 1995. One of the three pillars of the Barcelona Declaration is the progressive establishment of free trade between the Community and its partners, and among themselves. As for agriculture, the Barcelona Declaration states that trade in agriculture is to be progressively liberalised through reciprocal preferential access among the parties, taking as a starting point traditional trade flows, as far as the various agricultural policies allow and with due respect to the results achieved within the general agreement on tariffs and trade (GATT) negotiations. The aim of the whole process is to create a win-win situation to boost the trade between the parties and there is consequently no need to consider any compensation for the farmers.

The Commission would finally like to assure the Honourable Member that the Community-Egypt agreement in the agricultural sector in no way can be considered to have been concluded with the aim to compensate results achieved in other sectors. The agricultural agreement is instead considered to be favourable for operators both in the Community and in Egypt.

(1) 25 years and beyond, the European Union & Egypt in partnership. Delegation of the European Commission in Egypt.

(2) COM(97) 477 final.