WRITTEN QUESTION P-1862/02

by Joseph Daul (PPE-DE) to the Commission

(24 June 2002)

Subject: Exports of sugar from the Balkans to the European Union

Council Regulation (EC) No 2563/2000(1) of 20 November 2000 extended to the Former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia the exceptional trade measures for countries and territories participating in or linked to the European Union's stabilisation and association process and amending Regulation (EC) No 2820/98.

Under these arrangements, all the Balkan countries have free access to the European Union market, without having to pay customs duties. All agricultural products from these countries, with the exception of certain fisheries products, wines and baby-beef products, to which special provisions apply, may be exported to the European Union without any quantitative restrictions.

Before the introduction of these measures, the Balkan countries did not export sugar to the European Union. However, 70 000 tonnes of sugar were exported to the EU in 2001 and 80 000 tonnes have already been exported in the first three months of 2002.

These exports are having an impact on local markets, in that they have led to sugar shortages. The opening up of the Community market is therefore adversely affecting the local population and is having the direct effect of obliging these countries to import sugar to supply their own markets. These imports will cancel out all the economic benefits deriving from the trade measures adopted by the European Union.

What is the Commission's assessment of the trade concessions granted to the Balkan countries?

How does it intend to ensure that they do not have an adverse effect on the populations of these countries?

(1) OJ L 295, 23.11.2000, p. 1.

Answer given by Mr Lamy on behalf of the Commission

(17 July 2002)

The Commission is aware of the big increase in exports of sugar to the Community from several western Balkan countries in 2001-2002. Against that background, it is keeping a close eye on these imports which are causing concern owing to the disruptive effect they could have at regional level on both sides. A notice has been issued to sugar importers to draw traders' attention to the possibility of irregularities.

The Commission does not think the major increase in sugar exports to the Community will seriously affect domestic sugar supplies. It believes opening up the Community market to imports from the western Balkan countries can only foster lasting economic growth in the region. The effects of this liberalisation should be seen in a wider context that takes the situation of the region's consumers, producers, industries and traders into account.

The autonomous trade preferences introduced by Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's stabilisation and association process, amending Regulation (EC) No 2820/98 and repealing Regulations (EC) Nos 1763/1999 and 6/2000(1) and amended by Council Regulation (EC) No 2563/2000 of 20 November 2000(2), are designed, by asymmetrically opening up markets to the benefit of those countries, to contribute to the region's economic and political stabilisation.

The Commission believes that liberalisation of trade with the Union, coupled with enhanced regional integration in the Balkans and WTO membership, will have a lasting beneficial effect on its partners in south-eastern Europe. This policy was launched by the Cologne European Council in June 1999 and extended at the end of 2000 to the whole region after the lifting of sanctions against the Federal Republic of Yugoslavia (FRY).

(1) OJ L 240, 23.9.2000.

(2) OJ L 295, 23.11.2000.