WRITTEN QUESTION No. 3387/97 by Graham WATSON to the Commission. Subsidies to support sale of processed cheese
Date: 1997-10-16
Institutions: European Parliament, WATSON
Subjects: World Trade Organisation, cheese, export refund, export subsidy, food processing, inward processing, restriction on competition, skimmed milk powder

C 134/156

EN

Official Journal of the European Communities

30. 4. 98

(98/C 134/210)

WRITTEN QUESTION P-3387/97

by Graham Watson (ELDR) to the Commission

(16 October 1997)

Subject: Subsidies to support sale of processed cheese

The US Government claims that the European Union has failed to respect its undertaking to limit export refunds
for processed cheese, as agreed at the end of the Uruguay Round. This is deemed by the US to constitute an unfair
trade practice and it is possible that sanctions may be imposed.

How does the Commission react to this accusation and what steps are being taken to resolve the dispute? Is the
Commission  willing  to  open  bilateral  consultations  with  the  US  Government  under  the  international  dispute
settlement procedure, so that a satisfactory solution may be found as quickly as possible?

Answer given by Mr Fischler on behalf of the Commission

(3 November 1997)

This question has been discussed in the committee on agriculture established under the agreement on agriculture
which is included in the Marrakech agreement establishing the World trade organisation (WTO). The processed
cheese in question is produced under the inward processing relief arrangement whereby Community ingredients
such as skimmed milk powder are used together with ingredients such as cheese imported from third countries.
The ingredients from the Community are considered as exported with export refund and are counted against the
ceilings for subsidised export. The United States on 8 October 1997 requested consultations with the Community
under  the  understanding  on  rules  and  procedures  governing  the  settlement  of  disputes  under  WTO.  The
consultations  should  take  place  within  30  days  of  that  date.  On  17  October  1997  the  Community  accepted
consultations. These consultations will take place shortly.

(98/C 134/211)

WRITTEN QUESTION E-3389/97

by Nikitas Kaklamanis (UPE) to the Commission

(23 October 1997)

Subject: Risks posed by condemned beef

According to reports in the European press, an extensive and well-organized trading network has been operating
in  the  EU  since  last  year,  illegally  channelling  thousands  of  tonnes  of  banned  beef  (because  of  (cid:145)mad  cow
disease(cid:146)) from the UK to France, Belgium, the Netherlands, Spain and Greece.

Furthermore, a great many tonnes of condemned beef have reportedly already been dispatched from Belgium to
Russia and Egypt.

This network is trading in dangerous meat which it buys up cheaply and exports at more than 100% profit. The
problem is particularly serious in countries with a beef shortage, such as Greece, where domestic production
covers only 30% of the country(cid:146)s consumption.

What is the Commission(cid:146)s response to this problem, which is a direct threat to public health in the Union and
involves a huge network of fraud based on supplying condemned meat with false documentation and official
stamps from countries such as Belgium, the Netherlands, France etc. and dispatching it to other markets within
and outside the Union?

Answer given by Mrs Bonino on behalf of the Commission

(2 December 1997)

The  Honourable  Member  refers  to  a  fraud,  involving  the  redescription  and  recertification  of  frozen  beef  of
British origin as coming from other Member States.