WRITTEN QUESTION E-2885/96 by Wolfgang Kreissl-Dörfler (V) to the Commission (31 October 1996)

Subject: Changes to the SGP for agricultuiral products

The EU grants certain states in the Andes region and Central America complete exemption from customs duties within its system of generalized preferences (SGP) in order to encourage a changeover from the cultivation of drugs to the cultivation of flowers, for example.

However, following the Council's new agricultural SGP adopted in June 1966, these preferences are to be withdrawn for certain products.

For example, cut flowers (CN Code 0603) are to be declared 'sensitive goods' with imports subject to a quota system in future.

Is this information correct?

On a number of occasions Parliament has called for preferences for 'fair trade' products, and the reformed SGP already contains environmental and social clauses as incentives.

Is the Commission considering introducing an incentive for ecologically and socially compatible production for drug-producing countries, too, and exempting from this quota system cut flowers produced to basic ecological and social standards?

Answer given by Mr Marín on behalf of the Commission (21 November 1996)

Under Regulation (EC) No 1256/96 of 20 June 1996 ((OJ L 160, 29.6.1996. )), the transitional arrangements laid down in the multiannual scheme of generalized tariff preferences (SGP) applying until 31 December 1996 grant preferences for only two types of fresh cut flowers covered by heading 0603 of the Combined Nomenclature. These are orchids and anthuriums imported from 1 June to 31 October, while the Andean and Central American countries enjoy exemption from customs duties for all flowers under heading 0603 of the Combined Nomenclature whatever the season.

From 1 January 1997 the general arrangements, regardless of period of importation, will cover:

- orchids (code 0603 10 15), in the semi-sensitive category (with a preferential reduction of the customs duty corresponding to 65% of the conventional duty) ((i.e. a conventional duty of 20% and a preferential duty of 7%. )),

- all other fresh flowers, covered by heading 0603, in the very sensitive category (with a preferential reduction of the customs duty corresponding to 15% of the conventional duty) ((i.e. a conventional duty of 20% and a preferential duty of 17% from 1 June to 30 October, and of 14.2% and 12% respectively from 1 November to 31 May. )).

The special arrangements granted to the Andean and Central American countries will be maintained with the present exemption for all flowers covered by heading 0603, whenever imported. However, the conditions for resorting to the safeguard clause laid down in Article 14 of the Regulation will be regarded as fulfilled when a certain quantity of preferential imports is exceeded. ((Namely the figure for preferential imports from one of these countries being half-way between the highest quantity and the average quantity for the last four years for which statistics are available. )) This is therefore definitely not a quota. The Honourable Member's attention is drawn to the fact that the revised SGP has eliminated all quantitative preferential limitations on both industrial and agricultural products.

The special support arrangements (social and environmental clauses) to be applied from 1 January 1998 will take the form of additional preferences. As regards the products for which they do not yet enjoy a total exemption, the Andean and Central American countries will thus also enjoy additional preferences which will if necessary be defined for products which are not already subject to a suspension of the relevant customs duty.