WRITTEN QUESTION No. 2027/98 by Reimer BÖGE to the Commission. Subsidized agricultural exports in the framework of the WTO Agreements
Date: 1998-07-07
Institutions: BOEGE, European Parliament
Subjects: United States, World Trade Organisation, agricultural product, aid system, export, export subsidy, international agreement, maize, substitute fuel













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91998E2027

WRITTEN QUESTION No. 2027/98 by Reimer BÖGE to the Commission. Subsidized agricultural exports in the framework of the WTO Agreements  


Official Journal C 118 , 29/04/1999 P. 0017 





WRITTEN QUESTION E-2027/98by Reimer Böge (PPE) to the Commission(7 July 1998)Subject: Subsidized agricultural exports in the framework of the WTO AgreementsIn the light of the WTO Agreements, can the Commission state:1. to what extent the EU, in the various product areas, has used the permitted volume of aid for the promotion of agricultural exports and what was the non-take-up rate in the last three years?2. whether direct or indirect subsidies exist in the United States for maize gluten feed exported to Europe and if so, what are they?3. whether there are subsidies in the United States for oilseed producers and, if so, whether they are in compliance with WTO provisions?Answer given by Mr Fischler on behalf of the Commission(17 September 1998)1. Only data on export subsidies covering the first year (1995/1996) and the second year (1996/1997) of implementation of the World trade organisation (WTO) commitments are available. A comparative table including information on used and unused export subsidies for both marketing years 1995/1996 and 1996/1997 is sent direct to the Honourable Member and to the Parliaments' Secretariat. Data on Community notifications to WTO are also available on Internet: www.wto.org.2. and 3. According to commitments it has undertaken, the United States is not granting any export subsidy for corn gluten feed. Domestic support to agricultural products may be granted up to an amount of US$ 23 100 million in 1995. This amount shall be reduced to US$ 19 100 million in the year 2000. There are no ceiling commitments for individual products. The ceiling for domestic support was established on the basis of the average annual support level in the United States in the period 1986 to 1988. During this period support granted to maize was US$ 7 800 million and support for oilseeds was US$ 248 million (de minimis, i.e. less than 5 % of production value). The United States have notified to the WTO that the specific support for 1995 for maize and oilseeds was respectively US$ 3 000 million and US$ 16,5 million (de minimis). The notified support for 1996 was de minimis for both maize and oilseeds (respectively US$ 28 and US$ 14 million). The change in support level for maize is explained by the fact that the United States have replaced former deficiency payments programmes by hectare payments. The amount notified in 1996 for the latter type of support was US$ 5 200 million. The United States notification for 1996 is under discussion within the relevant committee of WTO.In addition to the information provided above, the Commission would like to draw the attention of the Honourable Member to the fact that the United States are applying a system (which is extended to the year 2007) whereby a tax rebate is granted to blenders for adding ethanol which is obtained from maize, to fuel. Corn gluten feed is a by-product from the production of ethanol from maize.