WRITTEN QUESTION No. 2114/98 by Glenys KINNOCK to the Commission. External effects of EU wine subsidies
Date: 1998-07-10
Institutions: European Parliament, KINNOCK
Subjects: budgetary expenditure, customs duties, export policy, export refund, export subsidy, quantitative restriction, reference price, third country, viticulture, wine

C 96/40

Official Journal of the European Communities

EN

8.4.1999

The proposal for reform of the wine sector (submitted to the Council on agriculture of 20 July 1998) envisages an
increase in expenditure in relation to the average for recent years. This increase is due basically to the
introduction of restructuring measures financed by the European Agricultural Guidance and Guarantee Fund
(EAGGF) Guarantee Section under the market organisation. Restructuring was previously financed by the
EAGGF Guidance Section.

The proposed restructuring is in the Commission(cid:146)s view essential for the long-term balance of the sector.
It involves producers whose production is not sufficiently adapted to the market. The aim of restructuring is
primarily qualitative. It is believed that the better quality thus achieved will be accompanied by a limitation of
yields and therefore of wine production and, moreover, will help to halt or even reverse the fall in consumption
which is the principal cause of the difficulties in the sector. If the process of adjustment to the new market
situation succeeds, it is obvious that in the long term expenditure can only be influenced favourably.

(1999/C 96/056)

WRITTEN QUESTION E-2114/98

by Glenys Kinnock (PSE) to the Commission

(10 July 1998)

Subject: External effects of EU wine subsidies

Is the Commission aware that the proposal to further subsidize European wine violates our proposed stance on
assisting poor countries by opening up our markets fairly to their produce?

Will the proposal not have adverse effects on, for instance, Eastern European, Latin American and South African
wine producers?

Answer given by Mr Fischler on behalf of the Commission

(16 September 1998)

In the Uruguay Round negotiations the Community undertook to substantially reduce export subsidies, both in
terms of the quantity of wine involved and in terms of budgetary expenditure. By 2000 the quantity of wine which
may be covered by export refunds will be reduced by 21 % and budgetary expenditure by 36 %. It is worth
pointing out that most wine is exported without subsidies. Only table wine and concentrated grape must are
eligible for refunds. Quality wine produced in a specified region (quality wine psr) is excluded. In the 1996/97
marketing year exports with refunds accounted for less than a quarter of the Community(cid:146)s total exports to third
countries. Moreover, refunds are granted only for certain destinations, and this excludes the whole of both North
and South America, South Africa and nearly all the wine-producing countries in Eastern Europe. Therefore,
Community export refunds on wine have a very limited impact.

Also in the context of the Uruguay Round negotiations, the Community undertook to facilitate access to the
Community wine market by doing away with the system of reference prices (minimum import prices) and by
reducing customs duties by around 20 % by 2000. This will substantially reduce protection at the Community
borders and will make market access easier for imports from third countries, and in particular for the countries
mentioned by the Honourable Member.

(1999/C 96/057)

WRITTEN QUESTION E-2117/98

by Glenys Kinnock (PSE) to the Commission

(10 July 1998)

Subject: Food shortages in Indonesia

Is the Commission aware of the likelihood of severe food shortages which are likely to occur in Indonesia in the
new few weeks?