WRITTEN QUESTION No. 1242/97 by Cristiana MUSCARDINI to the Commission. Reform of the common organization of the market in rice
Date: 1997-04-08
Institutions: European Parliament, MUSCARDINI
Subjects: GATT, aid per hectare, common organisation of markets, competition, competitiveness, overseas countries and territories, protective clause, reduced price, rice, tariff preference













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91997E1242

WRITTEN QUESTION No. 1242/97 by Cristiana MUSCARDINI to the Commission. Reform of the common organization of the market in rice  


Official Journal C 373 , 09/12/1997 P. 0093 





WRITTEN QUESTION E-1242/97 by Cristiana Muscardini (NI) to the Commission (8 April 1997)Subject: Reform of the common organization of the market in riceRegulation (EC) No 3072/95 ((OJ L 329, 30.12.1995, p. 18.)) has altered the common organization of the market in rice in implementation of the GATT agreements. The new rules governing trade arrangements with third countries create the possibility of introducing the 'recovery system', with all the disadvantages which that entails. Furthermore, the basic Regulation has laid down a programme to cut the price per hectare under cultivation. To keep the Community market in balance with the customary import flow, provision has been made to lower the intervention price in line with the gradual reduction in the equivalent tariffs applicable under the GATT agreements. However, the numerous tariff concessions granted by the Community to various third countries and the excessive increase in the import flow from the OCT severely disrupted the normal workings of competition in 1996.In view of this situation and the risk that intervention might be required for a huge volume of the crop in 1997:1. Does the Commission not believe that the recently reformed common market organization is already failing to serve its purpose?2. Does it not believe that the actual prospects for Community rice growing need to be considered carefully, not least in the light of the new directions that the Community has been seeking to impart to its policies, which have led to sweeping changes in terms of regulation and strategy since December 1995?Answer given by Mr Fischler on behalf of the Commission (14 May 1997)The Commission is aware of the difficulties faced by the Community rice sector following the increase in rice production and the upward trend in imports.The Commission has therefore taken several measures to restore market balance and prevent recourse to intervention as much as possible. These measures include, in particular, a safeguard clause for indica rice from the overseas countries and territories and an invitation to tender for exports of indica rice.The first stage of the reform adopted in 1995 enters into force during the 1997/98 marketing year and involves, in particular, a price reduction offset by aid per hectare. This reduction will make Community rice more competitive.Under the circumstances, it is too early to change the system in force. The Commission wishes to assure the Honourable Member that it is monitoring trends on the rice market very closely and that it will propose the necessary measures to ensure harmonious development.