WRITTEN QUESTION E-1631/99 by Paulo Casaca (PSE) to the Commission. Sugar quota for the Autonomous Region of the Azores.
Date: 1999-09-15
Institutions: European Parliament, Provisional data
Subjects: Azores, import restriction, processing industry, production quota, sugar

20.6.2000

EN

Official Journal of the European Communities

C 170 E/57

Aid for the processing of sugar beet was increased from € 10 to € 27 per 100 kilograms by Commission
Regulation (EC) 0562/98 of 12 March 1998 adjusting the special aid for the processing of sugar beet into
white sugar in the Azores provided for in Article 25 of Regulation (EEC) 1600/92 (1).

Despite these measures, the sugar beet crop, which was at first given a fresh boost by the Poseima
programme, has been falling since 1994. The processing industry is not, however, directly affected by this
disappointing development since it can import and refine raw sugar to meet the needs of the Azores.
Economic conditions for the industry have not worsened but rather improved since it can import this
sugar at world market prices (or with the equivalent aid if it purchases Community quota sugar).

If farmers in the Azores choose to grow crops other than sugar beet, the reasons must be sought in the
general conditions of agricultural production. The viability of
the sugar industry depends on the
consumption of sugar, which has been falling in recent years. It is the principles of the specific supply
arrangements, and in particular the principle of meeting local needs, which determine the utilisation of the
capacity to refine from imported raw sugar.

If the Portuguese authorities were to request it, the Commission would consider these issues as part of the
revision of Poseima now being undertaken.

(1) OJ L 76, 13.3.1998.

(2000/C 170 E/064)

WRITTEN QUESTION E-1631/99

by Paulo Casaca (PSE) to the Commission

(15 September 1999)

Subject: Sugar quota for the Autonomous Region of the Azores

The Act of Accession of Portugal to the European Union, point XIV(c), Vol. II, pp. 210-213, laid down a
quota of 10 000 tonnes of beet sugar for the (cid:145)sugar-producing undertaking(cid:146) situated in the Autonomous
Region of the Azores, coupled with the right to import a volume of unrefined sugar equal to the difference
between actual production and 20 000 tonnes, subject to payment of a reduced levy.

However, Regulation (EEC) 3484/92 (1) of 27 November 1992 reduced the above quantity to
10 000 tonnes, the figure likewise specified in Regulation (EEC) 1600/92 (2).

More recently, the Commission has interpreted the rules in force in such a way as to cut the quantity
again, to 6 500 tonnes of refined sugar produced from imported unrefined sugar, and, moreover, is not
ruling out the possibility of proposals for further reductions in the quota for the Azores.

Does the Commission believe that this systematic step-by-step reduction in sugar refining quotas for the
Azores is compatible with Article 299(2) of the EC Treaty?

(1) OJ L 353, 3.12.1992, p. 8.
(2) OJ L 173, 27.6.1992, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(18 October 1999)

Before the Poseima programme, the sugar industry in the Azores was authorised to refine raw sugar
amounting to 20 000 tonnes less the production of sugar from local sugar beet. Following the
introduction of the Poseima specific supply arrangements permitting the import of raw beet sugar at
world market prices (or providing equivalent aid if Community raw quota sugar is used), this authorisation
was restricted to a maximum of 10 000 tonnes of sugar to meet the needs of the Azores on preferential
terms.

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.