WRITTEN QUESTION E-0590/01 by Alexandros Baltas (PSE) to the Commission. Duties imposed by Brazil on canned peaches.
Date: 2001-03-01
Institutions: European Parliament, Provisional data
Subjects: Brazil, Greece, cannery, fishery product, import tax, trade policy

11.12.2001

EN

Official Journal of the European Communities

C 350 E/21

Answer given by Mr Solbes Mira on behalf of the Commission

(20 June 2001)

The Commission forecasts published on 22 November 2000 were based, among other things, on
assumptions of an average oil price in 2001 of USD 30 per barrel Brent and a USD/€ exchange rate of
0,90. So far in 2001 (up to 13 March) the oil price has been around 12 % lower and the USD/€ rate 3 %
higher than previously assumed.

These changes to the oil price and exchange rate are not particularly significant and within the normal
range of volatility for these variables. If this situation were to prevail over the year, it would have a limited
impact on the economic performance of the Community.

In particular:

(cid:129) inflation should be lower than otherwise with unchanged exchange rates and oil prices. Only taking
into account the direct impact on fuel prices (and disregarding possible secondary effects on other
consumer prices), an easing of the harmonised consumer price index (HICP) rise of around 0,1 % to
0,2 % could be expected for 2001. The stronger euro would slightly reinforce this effect on headline
inflation;

(cid:129) as regards gross domestic product (GDP) growth, a lower oil price, on the one hand, stimulates real
household incomes and business profitability and, thus, consumption and investment. On the other
hand, a higher exchange rate weighs on the price competitiveness of exporters, and therefore lowers
exports and growth. Hence, the net effect of the changed oil price and exchange rate on GDP growth
in 2001 is, to some degree, uncertain.

The changes in oil prices and exchange rates are not the only new elements in the external environment
for the Community economy. Most notably, the extent of the American slowdown since late last year was
not fully visible at the time of the last Commission forecast.

(2001/C 350 E/021)

WRITTEN QUESTION E-0590/01

by Alexandros Baltas (PSE) to the Commission

(1 March 2001)

Subject: Duties imposed by Brazil on canned peaches

The Brazilian authorities have imposed duty of 55 % on canned peaches. This duty is a discriminatory levy
on canned peaches exported from Greece to Brazil and was imposed by the Brazilian authorities some five
years ago.

It was to be reduced, however, each year until by December 2000 it would stand at 23 %, and from
1 January 2001, it would be limited to 17 %.

I am informed, however, that in October 2000, the Brazilian authorities increased the duty to 55 % once
again. At the same time, they launched an anti-dumping inquiry, though without imposing an interim
duty. According to the Brazilian authorities, the duty was of a temporary nature and would be abolished
on 31 December 2000 when the original arrangements would be reintroduced and the applicable duty
reduced (on 1 January 2001) to 17 %. On 2 January 2001, however, the Brazilian authorities extended the
validity of the 55 % duty until 30 June 2001 with a view to discussing the rate within Mercosur.

As a result Brazil(cid:146)s action, producers and exporters of canned peaches lost the holiday period business and
suffered a serious setback. In general, the pressure exerted on EU canned peaches from third countries is
growing, threatening an important sector of European industry with disaster, which may snowball into
negative repercussions for society as a whole (higher unemployment), the farming community and, by
extension, the common agricultural policy, the environment, etc.

C 350 E/22

Official Journal of the European Communities

EN

11.12.2001

In the light of the above, will the Commission say:

(cid:129) what measures it has taken to protect the canned peach sector and with what results,

(cid:129) what measures does the Commission propose to take next,

(cid:129) to what extent are the practices adopted by Brazil taken into account and to what extent do they
influence the policy pursued by the Council in talks and negotiations with Mercosur, of which Brazil is
a member?

Answer given by Mr Lamy on behalf of the Commission

(18 May 2001)

The Commission is aware of several measures that have created difficulties for the market access of
imported canned peaches in Brazil. The measures mentioned by the Honourable Member can be divided
into two separate issues: Application of customs duties and anti-dumping investigation.

As regards applicable customs duties,
the 55 % duty is in line with Brazil(cid:146)s
the reintroduction of
commitments on customs tariffs in the framework of the World Trade Organisation (WTO). The legality of
the level of duty cannot therefore be challenged. However, the Mercosur Common External Tariff (CET) for
canned peaches is 17 %. On the basis of a recent Mercosur decision, Brazil may deviate from the CET on
canned peaches (among a number of other goods), but should eventually adjust its duties in line with the
CET. The Commission will clarify with the Brazilian authorities when this will take place.

terms, customs duties are best addressed in the context of

In general
negotiations between the Community and Mercosur.
negotiations will
removal of customs duties on substantially all trade between the Community and Mercosur.

the on-going interregional
these
include principles of standstill and roll-back as regards customs duties and, finally,

is the Commission(cid:146)s objective that

It

The anti-dumping investigation initiated by Brazil on 25 October 2000 has to be finalised under the
Brazilian legislation within twelve months from initiation. This deadline may in exceptional circumstances
be extended by six more months, i.e. a total duration of eighteen months at most. The Commission is
monitoring this procedure closely with a view to reacting swiftly in case of any deviation from WTO
provisions by the Brazilian authorities.

(2001/C 350 E/022)

WRITTEN QUESTION E-0597/01

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Commission

(1 March 2001)

Subject: The standing of the EU fisheries sector in the globalised economy

The fisheries sector is more open than most in the Community economy to globalisation (cid:129) the extension
across the board of exclusion zones around continental shelves to 200 miles in the 1970s led the
Community fisheries sector to actively seek resources in third-country waters, given that Community
production alone had failed to supply even 50 % of the demand for fisheries products. The role played by
the fisheries sector in the economy of Europe and of the world as a whole extends beyond the purely
economic. The sector also influences lifestyles, population patterns, employment and the survival of those
industries on which we depend for the safety of our food, and for these reasons it must be protected.

Can the Commission provide specific and up-to-date figures on:

(cid:129) the current contribution of the EU fisheries sector in the strict sense (i.e. extractive fishing practices)

towards Community GDP?

(cid:129) the current contribution of the EU fisheries sector in the broad sense (i.e. extractive fishing practices,
processing industry, marketing, allied industries and specialised shipbuilding) towards Community
GDP?