WRITTEN QUESTION E-1632/99 by Paulo Casaca (PSE) to the Commission. Abuse of a dominant position on the sugar market in the Autonomous Region of the Azores.
Date: 1999-09-15
Institutions: European Parliament, Provisional data
Subjects: Azores, competition law, discriminatory price, dominant position, sugar

C 170 E/58

Official Journal of the European Communities

EN

20.6.2000

Within these limits, each year the Commission draws up the forecast supply balances of the needs of the
Azores and fixes the quantities to be imported, principally with regard to the local production of beet
sugar. At 6 500 tonnes for 1999/2000 (the same as in 1998/99), the maximum quota for sugar
production has not fallen. The maximum quota may always be used for the local production of beet
sugar; only the import of raw sugar is limited under the specific supply arrangements.

It is therefore not correct to talk of a systematic step-by-step reduction in sugar refining quotas for the
Azores and the Commission therefore does not consider application of the Poseima programme to be
incompatible with Article 299(2) (formerly Article 227) of the EC Treaty.

(2000/C 170 E/065)

WRITTEN QUESTION E-1632/99

by Paulo Casaca (PSE) to the Commission

(15 September 1999)

Subject: Abuse of a dominant position on the sugar market in the Autonomous Region of the Azores

The sugar-producing undertaking situated in the Autonomous Region of the Azores accounts for a very
modest and declining portion of the sugar quotas allocated to Portugal by the European institutions.

In recent months sugar produced by mainland-based refineries has been supplied to shops in the Azores at
prices well below those charged in mainland shops, in spite of the cost of transport to the Azores.

Does the Commission not believe that the fact that the leading firms on the market are charging different
prices for sugar on the mainland and in the Azores could constitute an abuse of a dominant position?

What will it do about the matter?

Answer given by Mr Fischler on behalf of the Commission

(18 October 1999)

The market for sugar in the Azores forms part of the Community market and so is open to supplies from
other regions. This is not, however, the case for sugar produced in the Azores since it enjoys specific
preferential conditions, the benefits of which go to the local production of sugar beet, the processing
industry and consumers in the region in accordance with the objectives of the Poseima programme. If
sugar is supplied to the Azores from the mainland, it is because prices in the Azores enable the firms in
question to make a profit comparable to what they can make on the mainland.

Normally, the specific conditions enjoyed by the sugar industry in the Azores should enable it to supply
the local market at competitive prices, since these conditions enable the sugar refinery to buy raw sugar at
the world market price and sell the refined sugar at the Community price.

Because local production of beet sugar is currently at a very low level in the Azores, this high margin on
refining is obtained on the bulk of the sugar produced. The Commission does not therefore think that it
should intervene in the way suggested by the Honourable Member.

The Honourable Member is also requested to refer to the Commission(cid:146)s replies to his Written Questions
E-1630/99 (1) and E-1631/99 (2).

(1)
(2)

See page 56.
See page 57.