WRITTEN QUESTION E-3782/97 by Reimer Böge (PPE), Lutz Goepel (PPE), Agnes Schierhuber (PPE), Honor Funk (PPE), Christa Klaß (PPE), Hedwig Keppelhoff-Wiechert (PPE) and Xaver Mayer (PPE) to the Commission (21 November 1997)

Subject: Export refunds for breeding cattle

The export refunds for live cattle are also granted in respect of breeding cattle, on the basis of their weight. The award procedures and the period of validity of the export licences are similar to those for exports of slaughter cattle. The cuts in export refunds already carried out and the price reductions in the beef and veal sector announced in Agenda 2000, which will lead to further cuts in export refunds, are also hampering the export of breeding animals, even though, as a matter of principle, the export situation for breeding cattle must be looked at differently to that for slaughter cattle. Can the Commission state:

1. whether, in connection with the adjustment of the common organization of the market for beef and veal, there are plans to introduce different arrangements governing export refunds and the award and period of validity of the licences for breeding cattle, on the one hand, and slaughter cattle, on the other?

2. if there are no plans to introduce different arrangements, what are the arguments against:

- retaining, in the case of breeding cattle, the original level of export refunds, based on the animals' live weight, since these exports serve to ease the situation on the internal market in beef and veal and the main reason for cutting export refunds - the increased demand for export licences in respect of slaughter cattle - does not apply in the case of breeding cattle?

- improving the award procedures and extending the period of validity of the export licences to at least four months, since transactions, covering the period from the acceptance to delivery, generally take longer in the case of breeding cattle?

- stipulating that the proof that the animal is being exported for breeding purposes should be provided in the form of a breeding certificate issued by the Member State breeders' association, a certificate which can be sent to that association for checking after export and prior to the payment of the export refund? In that way, such proof would Longer have to be provided by the local breeding association, given that in certain third countries either there is no breeding organization which could confirm the entry in the breeding register, or no such registers are kept.

3. whether the current WTO agricultural trade rules provide for different treatment of breeding and slaughter animals in connection with the promotion of exports and whether the Commission intends to argue in favour of differing treatments at the next trade round?

Answer given by Mr Fischler on behalf of the Commission (7 January 1998)

1. Up until the end of 1994 the refund level for pure-bred animals and for male animals for slaughter was the same. However, since 1995, in order to further maintain the exports of pure-bred breeding animals, there has been a smaller reduction of the refund level in respect of these animals.

Present refund level:

pure-bred breeding animals: 58.50 ECU per kilograms male others: 52.00 ECU per kilograms female others: 28.00 ECU per kilograms

The Commission has met serious problems concerning the respect of the export ceiling imposed by the Uruguay round agreement. This matter was discussed at length with representatives and members of European meat trade organisations in the beginning of 1997. Following these discussions the Commission came to the conclusion that the necessary period of validity of export licences would be 75 days for live bovine animals and processed products and 30 days for beef. Moreover, in the case of an open tender in third countries, the period of validity of the export licence is 4 months from the date that the licence is issued (from the day the application for the licence was lodged).

2. The Commission is of the opinion that exports of pure-bred breeding animals are more dependent on programmes to improve the quality of the herd or to restock the herd in the importing country than on the level of the export refund.

It should be noted that, as stated above, there is a difference in the refund level between pure-bred breeding animals and animals for slaughter. Due to the high number of licence applications the refund level has been reduced as from 27 September 1997 and from 25 October 1997. In the first reduction of 10% there was Change in the refund level for pure-bred breeding animals. In the second reduction there was a lower reduction for pure-bred breeding animals and male cattle (* 5% instead of * 15%).

In 1995 and 1996 the exports of pure-bred breeding animals reached 135 000 and 139 000 animals. With the exception of 1991, these quantities represent new records.

According to the obligations under the World trade organization (WTO) agreement the Community can only export a limited quantity of cattle and beef with export refunds. It is in the Community's interest to use up the GATT quota, but it is not free to exceed it. A balance has to be struck.

According to Article 3(a) and (b) of Commission Regulation (EEC) No 2342/92 on imports of pure-bred breeding animals of bovine species from the third countries and the granting of export refunds thereon and repealing Regulation (EEC) No 1544/79 ((OJ L 227, 11.8.1992. )) the granting of the refund is subject to the presentation of the pedigree certificate issued by the association, organisation or official body of the Member State holding the herd book and the health certificate for pure-bred breeding animals required by the third country of destination. There is no provision in the Regulation that the exported animals should be registered in the herd book in the third country of destination.

Because of the higher refund level for pure-bred breeding animals for heifers and cows compared with the lower refund level for other female live animals, it is necessary to ensure through certain control measures that the exported animals will not be slaughtered directly at arrival in the third country of destination.

3. The WTO agreement gives the possibility to differentiate the refund level. There is a higher refund level for pure-bred breeding animals than for cattle for slaughter. There is therefore no reason to ask for changes in the rules at the next trade round.