WRITTEN QUESTION E-1542/02

by Paulo Casaca (PSE) to the Commission

(3 June 2002)

Subject: Discrimination against the most remote regions under the Poseima programme

Under the Poseima regulation and following a parallel reduction in the sugar quotas applying to the Azores refinery under the Act of Accession, the production quota of that refinery was slashed from 20 000 to 10 000 tonnes; by way of compensation, the per-tonne subsidy was increased.

Since then, however, the Commission has, under Regulation 20/2002(1), outlawed sugar consignments from the Azores, while at the same time permitting the dumping of sugar in the islands.

In these circumstances, it is clear that the Poseima programme has placed the Azores sugar industry at a disadvantage vis-à-vis its counterparts on the European mainland, in total contradiction of the objectives of Article 299(2) and the Commission's declared aims.

The notion of supporting the most remote regions has been used as a pretext for introducing de facto discrimination against the Azores sugar industry.

Can the Commission state when it intends to end this discrimination, by restoring Sinaga's authorisation to produce 20 000 tonnes as granted under Portugal's Act of Accession, by putting an end to its exclusion from internal market rights, and by granting it exactly the same subsidies and level as protection as its mainland competitors?

(1) OJ L 8, 11.1.2002, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(4 July 2002)

Article 11 of Council Regulation (EC) No 1260/2001 of 19 June 2001 on common organisation of the markets in the sugar sector(1) allots the Azores a quota (A+B) of 9 953 tonnes. Within the limit of this quantity Azorean beetgrowers receive exceptionally Community aid of EUR 800/hectare and the sugar enterprise receives exceptionally Community aid of EUR 270/tonne of sugar for conversion of this beet into sugar.

On top of this quota the Azorean sugar enterprise can refine raw sugar up to a volume of 10 000 tonnes per year.

In conjunction with this refining quota the Azores is supplied with raw beet sugar at the world market price under the specific supply arrangements (SSA) determined by Council Regulation (EEC) No 1453/2001 of 28 June 2001(2), within the limit of the archipelago's supply requirements and with due account taken of its production of sugar from local beet. Commission Regulation (EC) No 21/2002 of 28 December 2001(3) assessed the Azores' supply requirement under the SSA as the volume of local sugar consumption, i.e. 6 500 tonnes per year.

Given the foregoing the Commission considers that the Community provides an exceptionally favourable level of support for maintaining and expanding sugar production in the Azores. It notes that Azorean beetgrowers restrict their production to a volume corresponding to 700 tonnes/year of sugar. It must accordingly reject the complaint that it has set up arrangements that discriminate against the sugar enterprise in the Azores.

(1) OJ L 178, 30.6.2001.

(2) Council Regulation (EC) No 1453/2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (Poseima), OJ L 178, 30.6.2001.

(3) Commission Regulation (EC) No 21/2002 establishing the supply balances and Community aid for the outermost regions under Council Regulations (EC) Nos 1452/2001, 1453/2001 and 1454/2001, OJ L 8, 11.1.2002.