WRITTEN QUESTION E-2494/01 by Glenys Kinnock (PSE) to the Commission. TRIPS Council.
Date: 2001-09-13
Institutions: European Parliament, Provisional data
Subjects: TRIPS, medicinal product, pharmaceutical legislation, public health, right to health

C 160 E/16

Official Journal of the European Communities

EN

4.7.2002

In order to improve the internal logic and consistency of VAT policy in relation to environmental and
mobility problems, it seems appropriate to amend the sixth VAT Directive 77/388/EEC with the aim of
promoting cycling. All bicycle products and services, including new bicycles, should be added to Annex H.

Will the Commission act as proposed in its promising communication (2) and will it therefore extend
Annex H of the sixth VAT Directive 77/388/EEC to include all bicycle products and services, including
new bicycles, in order to encourage cycling in the European Union?

If not, why does the Commission refuse to extend Annex H of the sixth VAT Directive 77/388/EEC
toinclude all bicycle products and services,
its promising
communication (2)?

including new bicycles,

in view of

(1) OJ L 145, 13.6.1977, p. 1.
(2) COM(2000) 348.
(3) OJ L 277, 28.10.1999, p. 34.

Answer given by Mr Bolkestein on behalf of the Commission

(29 October 2001)

In its new VAT Strategy (1) the Commission has indicated its intention to review the structure of the
reduced VAT rate after the end of the three-year experiment on the application of a reduced VAT rate to
certain labour intensive services. This experiment already includes a reduced rate for the service of
repairing bicycles. At that time the Commission intends to carry out an overall examination of the rules
for the taxation of both services and goods and to make appropriate proposals where it concedes that
these are necessary to improve the functioning of the Internal Market.

The Commission can assure the Honourable Member that it will consider his suggestion when looking at
the possibility of proposing amendments to the content of Annex H of the Sixth VAT Directive 77/388/
EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes 9
Common system of value addes tax: uniform basis of assessment (2), which determines the goods and
services to which Member States may apply a reduced VAT rate. However, in the taxation field, decisions
are taken by the Council of Finance Ministers acting unanimously.

(1) Communication from the Commission to the Council and the Parliament 9 A strategy to improve the operation of

the VAT within the context of the Internal Market (COM(2000) 348 final.

(2) OJ L 145, 13.6.1977. Directive as last amended by Directive 2001/41/EC (OJ L 22, 24.1.2001) corrigendum

2001/4/CE (OJ L 26, 27.1.2001).

(2002/C 160 E/017)

WRITTEN QUESTION E-2494/01

by Glenys Kinnock (PSE) to the Commission

(13 September 2001)

Subject: TRIPS Council

Would the Commission outline its response to the proposal currently under discussion in the WTO TRIPS
that developed
Council
countries would refrain from challenging cases involving access to medicines under the WTO dispute
settlement mechanism?

for a ‘moratorium’ or ‘due restraint’ on dispute settlement mechanisms,

i.e.

Is it the case that at the TRIPS Council meeting on 25 July 2001 the EU opposed this proposal?

4.7.2002

EN

Official Journal of the European Communities

C 160 E/17

Answer given by Mr Lamy on behalf of the Commission

(24 October 2001)

The proposal for a moratorium or ‘due restraint’ on recourse to dispute settlement procedures in regard to
measures for the protection of public health is one of many proposals which came out of the trade-related
aspects of intellectual property rights (TRIPs) Council’s Special Discussion on Intellectual Property and
Access to Medicines, which took place in Geneva on 20 June 2001. The TRIPs Council
is now
systematically examining all the provisions and issues which were raised with a view to clarifying the
flexibility available under the TRIPs Agreement.

At an informal meeting of the TRIPs Council on 25 July 2001, the Commission confined itself to pointing
out that the mandate of the TRIPs Council
is limited and does not extend to the imposition of a
moratorium, which would necessitate an amendment to Article 64 of the TRIPs Agreement.

More specifically, the Commission believes that careful examination of all the possible implications of such
a proposal is required first. The weakness of a moratorium is that it does not address the real issue, which
is to ensure that the TRIPs Agreement is implemented in a way which allows developing countries to set
up an intellectual property regime that meets their policy needs and is capable of responding to public
health concerns. For this reason, the Commission considers that it is more constructive to attempt to
clarify issues of substance than to paper them over with a procedural expedient. If, as is to be hoped, the
discussions in the TRIPs Council give rise to a consensus on these issues, then arguments as to the merits
or otherwise of a moratorium will no longer be relevant. In the meantime, the position of the least-
developed WTO Member countries will not be affected since they do not have to apply the provisions of
the TRIPs Agreement until 1 January 2006.

(2002/C 160 E/018)

WRITTEN QUESTION E-2501/01

by Esko Seppänen (GUE/NGL) to the Commission

(13 September 2001)

Subject: Oil pipeline from Odessa to Brody

In Ukraine, an oil pipeline has been completed from Odessa to Brody. The Commission had been assisting
the construction of the pipeline since 1995. How much money did the EU provide for the pipeline project,
either directly or indirectly?

Answer given by Mr Patten on behalf of the Commission

(5 November 2001)

The Commission has been assisting Ukraine’s energy sector since 1995 by providing technical assistance
and transfer of know how to Ukrainian national energy companies with an objective of accelerating
reform of the energy sector as well as improving the Ukrainian energy efficiency and security.

As regards the Odessa-Brody oil pipeline, the Commission, through the Inogate programme (Interstate Oil
and Gas Transport to Europe) and the TACIS national programme, has assisted the Ukraine in checking
the safety and integrity of the pipeline as well as the Druzhba pipeline (TACIS national programme € 3,2
million). This project was also instrumental in the transfer of know how to Ukrainian experts in modern
maintenance techniques for the operation of all pipelines crossing Ukraine.

No direct investment from Community funds has been made in the Odessa Brody pipeline.