WRITTEN QUESTION E-0443/98 by Eryl McNally (PSE) to the Commission (27 February 1998)

Subject: EU-Israel Association Agreement

I should like to draw the Commission's attention to the EU-Israel Association Agreement of November 1995. Is the Commission aware of concerns expressed that Israel is not, in fact, respecting the terms and conditions of the Agreement? In particular, is the Commission aware of:

- Israel's apparent breach of country-of-origin rules involving the re-exportation of Brazilian orange juice into the EU,

- the mislabelling of orange juice from illegal settlements in Gaza,

- an investigation by HM Customs & Excise into the true origin of a wide range of Israeli exports to the UK, such as textile waste and telecommunications equipment?

Given that such conduct has adverse economic consequences and harms the Middle East peace process, what does the Commission propose to do to ensure that all parties comply with the EU-Israel Association Agreement?

Answer given by Mr Marin on behalf of the Commission (2 April 1998)

In 1994 the Commission requested the administrative co-operation of the Israeli customs, provided by the 1975 co-operation agreement between the Community and Israel, in order to clarify cases of alleged exports of non-originating Israeli orange juice into the Community at preferential rates. In accordance with the practice in these cases, the Commission asked the Israeli authorities to verify the authenticity of EUR-1 export certificates issued by Israel for exports of orange juice in the period under investigation.

The Israeli customs however, raising a number of legal, administrative and technical obstacles, declared themselves unable to proceed to the requested verification. The issue was raised at the December 1995 meeting of the Community-Israel customs co-operation committee that had been called in order to find a solution. However, no agreement was reached on that occasion. The lack of co-operation by the Israeli customs and the arguments raised against the repeated Commission's requests to verify EUR-1 export certificates led the Commission to question the overall ability of the Israeli authorities to implement the provisions of the Protocol on rules of origin.

Pending settlement of this issue, the Commission, with a view to protecting the financial interests of Community importers of Israeli goods, published a notice ((OJ C 338, 8.11.1997. )) warning importers of its reservations concerning the effectiveness of the implementation by Israel of the preferential trade arrangements.

This matter was further discussed at the twelfth meeting of the Community-Israel co-operation committee, called at the initiative of the Commission, which took place on 28 November 1997. On that occasion, Israel undertook to put into effect a number of operational steps in order to meet the long-standing requests of the Community.

The Commission is satisfied with the more cooperative attitude shown by the Israeli authorities in fulfilling the commitments undertaken on that occasion. A first batch of results of verification of EUR-1 certificates issued in 1995 has already been transmitted to the Commission within the agreed deadline, together with the relevant Israeli domestic legislation on the matter. A further batch concerning the verification of EUR-1 certificates issued in 1996 and 1997 should be transmitted shortly.

The Commission is prepared to re-examine its position and to withdraw the notice to the Community importers when the commitments made by Israel at the meeting of the cooperation committee in November 1997 are fulfilled.