WRITTEN QUESTION E-0934/02

by Paul Rübig (PPE-DE) to the Commission

(9 April 2002)

Subject: Earlier extension of the Pancum zone to south-east Europe

In order to speed up the inclusion of the Mediterranean countries in the system of pan-European cumulation (Pancum), the variable geometry approach was proposed, i.e. the inclusion of the Mediterranean countries is to take place in stages with agreements with at least two other partners being sufficient for the Pancum rules to be applicable in trade between these countries; in other words, a Mediterranean country would not first to have concluded agreements with all other partners of the existing Pancum area in order to take advantage of the Pancum rules. There is no sign of a comparable initiative on the part of the Commission in relation to the countries of south-east Europe, such as Croatia and Macedonia even though the conditions for applying variable geometry appear favourable. From the point of view of European industry, therefore, a rapid extension of the area of pan-European cumulation to include the countries of south-east Europe, primarily Croatia, would seem a matter of priority since European industrialists, who have in the meantime in large numbers been exploiting the opportunities in the Central and East European countries for manufacturing according to the principle of the division of labour, are often unable to fulfil the requirements of origin in bilateral agreements and are consequently faced with customs duties which would not apply under a PANCUM arrangement.

Why does the extension of the area of pan-European cumulation to the countries of south-east Europe such as Croatia and Macedonia enjoy lower priority in the eyes of the Commission than extending this area to the Mediterranean countries?

Answer given by Mr Patten on behalf of the Commission

(31 May 2002)

The European Council has declared that the countries of the Western Balkans are potential candidates for Union membership and have a clear prospect of accession once the relevant conditions have been met. The Stabilisation and Association process (SAp), which is the overall framework for bringing these countries closer to the standards which apply in the Union, aims to create stronger links between each of the countries and the Union, and to encourage regional co-operation between the countries themselves. Trade is a core element of this strategy.

As a means to foster regional integration, the Stabilisation and Association Agreements (SAAs) with both the former Yugoslav Republic of Macedonia and with Croatia already foresee the possibility of these two countries participating in a system of diagonal cumulation of origin. According to the declarations annexed to the SAAs, the Community is to examine the possibility of extending such a system to both countries once they have met the necessary conditions.

As part of the implementation of the SAAs, the issue of diagonal cumulation is currently being examined with a view to establishing whether the necessary conditions have been fulfilled by both countries. This examination is running parallel to the on-going extension of the Pan-European system of diagonal cumulation to Mediterranean partners party to the Barcelona process.

The Commission supports the extension of diagonal cumulation of origin to the Western Balkans countries, provided that the countries meet the necessary technical conditions, as it would constitute an important element for further economic integration and co-operation between the countries and support the political objectives of the SAp.