WRITTEN QUESTION E-3067/98

by Werner Langen (PPE) to the Council

(16 October 1998)

Subject: Negotiating mandate for a European Union free-trade agreement with the Mercosur States and Chile

The negotiating mandate for a European Union free-trade agreement with the Mercosur States and Chile has met with opposition from farmers' organisations.

Can the Council say:

1. What stage has been reached? Has a negotiating mandate already been confirmed by the competent Council of Ministers?

2. What objective is to be pursued by the draft negotiating mandate with respect to agricultural products?

3. What further prospects does the European Council see for an EU free-trade agreement with the Mercosur States and Chile?

4. How does the European Council assess the reservations expressed by farmers' organisations with regard to a further opening-up of agricultural trade with Chile and the Mercosur States?

5. What form has economic cooperation between the EU and the Mercosur States and Chile taken until now, in particular in the agricultural sector?

Reply

(14 December 1998)

At the end of July 1998, the Commission submitted to the Council recommendations authorising the Commission to negotiate an inter-regional association agreement between the EC and its Member States and Mercosur and its Member States and a political and economic association agreement with Chile.

Before starting to examine those recommendations, the Council - in accordance with the arrangements approved by the Amsterdam European Council (16 and 17 June 1997) for the examination of preferential agreements - examined impact studies carried out by the Commission in order to reply in particular to the following preliminary strategic questions:

- Will the proposed agreement be compatible with all relevant WTO rules?

- Will the proposed agreement achieve identifiable offensive economic interests of the EU?

- What would be the political and other benefits of the proposed agreement?

- What would be the impact of the proposed agreement on the Community's other external commitments?

- What would be the impact of the proposed agreement on the Community's common policies?

- What will be the overall economic effect of the proposed agreement?

- Would the proposed agreement be likely to support the development of the multilateral trading system?

It was only after those proceedings that the Council bodies began examining the draft negotiating directives. It is not possible at this stage to say when the Council will be in a position to adopt them.

With regard to the objectives of the draft negotiating directives, it should be stated that the agreements signed with Mercosur and Chile in 1995 and 1996 provide:

i) in Article 4 that "the Parties undertake to forge closer relations with the aim of increasing and diversifying trade, preparing for progressive and reciprocal liberalisation of trade and creating conditions conducive to the eventual establishment of a political and economic association, in conformity with WTO rules and with due allowance for the sensitivity of certain products";

ii) in Articles 34 and 42 respectively that the Parties will determine the suitability and timing of transition to association in the light of progress made under the existing agreements.

When examining the draft directives, which are of course confidential, the Council will take account of all of the Community's interests, including its agricultural interests.

In accordance with the information procedure governing relations with the European Parliament in the field of association agreements and trade agreements, the relevant EP Committees will be informed confidentially of the content of the negotiating briefs.

The Honourable Member is asked to contact the Commission to receive details of current economic cooperation and especially agricultural cooperation between the EC and Mercosur and the EC and Chile.