WRITTEN QUESTION E-0683/02

by Miquel Mayol i Raynal (Verts/ALE) to the Commission

(12 March 2002)

Subject: EU-Algeria trade

On 19 December 2001 the EU and Algeria signed an association agreement.

This agreement provides, in particular, for a trade regime for agricultural products, relating to the EU's exports to Algeria of cereals, sugar and oilseeds and its imports from Algeria of vegetables, olive oil, fruit juice and wine.

Algeria further undertakes to phase out its tariff barriers to enable the entry of industrial exports from the EU.

Although the establishment of these relations is to be welcomed and it is to be hoped that they will contribute to the restoration of peace and respect for human rights in Algeria, it has nonetheless to be stressed that the resultant trade flow will, once again, create competition for the products of southern Europe, which are already in circumstances of crisis, while redounding to the benefit of well-off farmers and industrialists in northern Europe.

Does the Commission agree with this analysis?

If so, what compensatory measures does it intend to take in support of southern European producers?

Answer given by Mr Fischler on behalf of the Commission

(22 April 2002)

The association agreement between the Union and Algeria was initialled on 19 December 2001. Its agriculture section provides for gradually increasing liberalisation of trade between the Union and Algeria in preparation for establishment of the Euro-Mediterranean free trade area indicated in the Barcelona Declaration signed in 1995 by the fifteen Union countries and our Mediterranean partners.

It was on that basis that the two parties negotiated reciprocal concessions on a large number of agricultural products. Provision for further liberalisation is made by a review clause whereby the parties may exchange further concessions from the fifth year after the agreement enters into force.

The preferences in the agreement were negotiated in line with the principles of the Barcelona Declaration, which provides for trade in agricultural products between the Commmunity and the Mediterranean countries to be gradually liberalised by means of preferential reciprocal access agreed on the basis of the traditional trade flows. This means that the concessions are negotiated with reference to existing trade patterns. Algeria accordingly granted import preferences for products of which it is in shortfall, notably milk products, cereals, meat, sugar and oils. The Community did the same for the products traditionally imported, notably fruits and vegetables. It should also be stressed however that Algeria has granted import concessions on certain fruits and vegetables.

A general point to be borne in mind is the modest level of Community imports of agricultural products originating in Algeria.

The liberalisation covered by the agreement is therefore applied on both sides and both parties draw advantages from it.

As the Honourable Member himself indicates, the association agreement has also to be seen in the context of support for Algerian development and the democratic process. If it is to have the effect intended its economic (agricultural etc.) provisions must not be unbalanced but reflect the export possibilities actually open to Algeria and its import requirements.