WRITTEN QUESTION P-2747/00 by Alain Lipietz (Verts/ALE) to the Council. Irregular application of the EC-Israel Agreement.
Date: 2000-09-01
Institutions: European Parliament, Provisional data
Subjects: Israel, association agreement (EU), customs cooperation, customs fraud, customs regulations, originating product

18.4.2001

EN

Official Journal of the European Communities

C 113 E/163

Answer given by Mr Fischler on behalf of the Commission

(13 October 2000)

After closely examining all the possible options, the Commission has concluded that integrating the rice
sector into the arable crop system and abolishing the intervention price will enable a balance to be
achieved between supply and demand while still safeguarding rice growers(cid:146) income.

The proposed changes are expected to make Community rice more competitive and the market more fluid.

As regards environmental impact, the proposed measures are intended to guarantee that rice cultivation
continues in areas where it is important to manage water carefully in order to protect specific environ-
mental features. The 10 % reduction in acreage will be of limited significance, since it does not apply to
small producers.

The proposal on reforming the market organisation was sent to the Council on 7 June 2000. Meetings
with the Council Working Party on arable crops and rice have since been held (during July and September)
in order to examine the proposed measures.

To the Commission(cid:146)s knowledge, the United States has not taken a stance in respect of the Commission
proposal on reforming the market organisation for rice.

(2001/C 113 E/173)

WRITTEN QUESTION P-2747/00

by Alain Lipietz (Verts/ALE) to the Council

(1 September 2000)

Subject: Irregular application of the EC-Israel Agreement

In its May 1998 (1) Communication to the Council and the European Parliament the European Com-
mission stated: (cid:145)Preferential access to Community markets for exports originating in Israeli settlements in
the West Bank and Gaza Strip and those from East Jerusalem and the Golan Heights contravene agreed
rules of origin since these territories do not form part of the State of Israel under public international law.
There are indications that these exports are taking place. The European Community will take steps to
verify the accuracy of this information. Should it be confirmed, such violations of rules should be brought
to an end(cid:146).

Shortly thereafter, Israeli officials confirmed to the European Commission that, as a matter of official
policy, Israeli Customs has been routinely certifying products wholly produced or substantially processed
in Israeli settlements located in the territories occupied by Israel since 1967 as originating in the State of
Israel. In January of this year the Commission informed us that (cid:145)over the last two years, the Commission
has taken a number of steps to find a viable solution to this problem, with meetings at official level in
both 1998 and 1999. These extensive efforts to find a solution to this issue have not yet yielded a
satisfactory result.(cid:146)

Prior to taking the decision to put the new Association Agreement with Israel into effect, has the Council
or the Commission obtained assurances from Israel that its customs services will cooperate with the
Member States(cid:146) customs services in ensuring the proper application of that Agreement(cid:146)s Origin Rules
Protocol as governed by its territorial clause? If the Israeli authorities are not prepared to cooperate with
the EC in ensuring the proper application of the aforementioned, is the Council prepared to mandate
measures that do not rely on Israel(cid:146)s cooperation in order to ensure that (cid:145)such violations of rules(cid:146) are
(cid:145)brought to an end(cid:146)?

(1)

(SEC(1998) 695 final).

C 113 E/164

Official Journal of the European Communities

EN

18.4.2001

Reply

(16 November 2000)

Responsibility for monitoring the implementation of all international agreements entered into by the
1.
Community lies with the Commission. This applies also to the Agreements concluded with Israel as well as
with the PLO. The decision to put into effect the EU-Israel Association Agreement was the result of the
completion of the ratification procedure by both the European Parliament (on 29 February 1996) and the
national Parliaments of EU member States.

2.
Regarding the territorial scope of the Association Agreement, Article 83 applies only (cid:145)to the territory
of the State of Israel(cid:146). The term (cid:145)Israel(cid:146) covers the territorial waters, which surround Israel, and under
certain conditions also some sea-vessels. No further definition is contained in the agreement. For its part,
the EC considers that the agreement applies solely to the territory of the State of Israel within its
internationally recognised borders in accordance with the relevant UNSC resolutions. The EC and its
Member States continue to base their relations with Israel and the Palestinians on the principles of
international law, including the Fourth Geneva Convention on the Protection of Civilians (1949) prohibit-
ing, inter alia, the establishment of settlements. The Israeli authorities have, as the Honourable Member
implies, taken a different view on the definition of the State of Israel, and maintain that the settlements
issue is to be solved in the context of the Middle East Peace Process. This has indeed created difficulties in
the application of the preceding EC-Israel Interim Agreement. Talks have been taking place at a technical
level between the Commission and the Israeli authorities to resolve these difficulties.

No shortcomings under the new EC-Israel Association Agreement have come to the Council(cid:146)s

3.
attention.

4.
in its
On the occasion of the first Association Council on 13 June 2000, the EU Presidency,
statement, expressed its particular attachment to the respect of the territorial coverage of the Association
Agreement with Israel.

(2001/C 113 E/174)

WRITTEN QUESTION E-2750/00

by Hiltrud Breyer (Verts/ALE) and Alexander de Roo (Verts/ALE) to the Commission

(1 September 2000)

Subject: Tax exemption for gas-fired power stations in Germany and legislation on state aid

Following adoption of the law on the ecological tax reform on 16 December 1999, environmentally
friendly combined gas and steam turbines (gas-steam power plants) are to be exempted from the tax on
natural gas. Political negotiations between the German government and the Commission are currently
under way on granting approval for this tax exemption pursuant to the legislation on state aid, and on the
time limit for such an exemption. The Commission has proposed restricting the tax exemption to five
years without degression. Nevertheless, there are significant arguments in favour of a longer period
(around ten years).

On what basis did the Commission take its decision to class the planned tax exemption for combined

1.
gas and steam turbines as selective aid within the meaning of Article 87(1) of the EC Treaty?

2. Would the Commission endorse the view taken by the legal expert Dr Sellner that the planned tax
exemption cannot automatically be classed as selective aid within the meaning of Article 87(1) of the EC
Treaty?

3. What factors led the Commission to regard the planned tax exemption as an aid for undertakings
rather than investment aid?

4.
Does the Commission share the view that restricting the measures to a period of five years should be
seen as problematic, given that the new version of the 1994 Community framework on environmental aid
currently undergoing revision would allow a period of ten years?