WRITTEN QUESTION E-2765/01 by Jonas Sjöstedt (GUE/NGL) to the Commission. Future food price increases in Estonia.
Date: 2001-10-09
Institutions: European Parliament, Provisional data
Subjects: Estonia, accession to the European Union, common agricultural policy, consumer price, economic convergence, foodstuff, free movement of goods, liberalisation of the market, price increase

6.6.2002

EN

Official Journal of the European Communities

C 134 E/95

Answer given by Mr Bolkestein on behalf of the Commission

(12 November 2001)

As far as the Commission knows, no case concerning the charging of VAT on exchange trips for young
people has been brought before the Court of Justice.

Any answer to the question whether such exchanges should be subject to VAT depends on the individual
circumstances or conditions under which such trips are organised. Given that we do not have more
detailed information we cannot give a definitive answer.

(2002/C 134 E/098)

WRITTEN QUESTION E-2765/01

by Jonas Sjöstedt (GUE/NGL) to the Commission

(9 October 2001)

Subject: Future food price increases in Estonia

The applicant countries are beginning to realise the new problems they will face under the EU agricultural
policy. EU prices will be a shot in the arm for Estonian farmers, to whom subsidies have in the past been a
completely unfamiliar idea. EU membership will send producer prices soaring. However,
for many
consumers food price rises will come as a shock. The Estonians, in particular the pensioners, have already
been hard hit by price rises as a result of a deregulated market economy. The prices of several Estonian
agricultural products will double or triple. In early 2001 the price of beef for example was only half the
EU price. The EU intervention price procedure will triple the retail price of apples, tomatoes and sugar.
According to a report in the Estonian newspaper Postimees, also in early 2001, the prices of butter and
beef would double.

There will be huge increases in farm incomes and the EU could in principle buy up Estonia’s entire farm
production for a year with a view to raising producer prices to EU levels. Prices for powdered milk, certain
fruit and corn will very probably rise as well. The question is rather what the consumer will be able to do
about it.

How is the Commission planning to tackle this problem so that Estonian consumers are not extremely
hard hit on accession to the common agricultural policy?

Answer given by Mr Verheugen on behalf of the Commission

(14 November 2001)

The Commission is monitoring agricultural price differences between the Community and the candidate
countries. The general trend in recent years has been towards a convergence of farm-gate prices in the
candidate countries with the Community. This is a process expected to continue in the run-up to
accession, reducing the likelihood that consumers in the new Member States will face significant price
shocks upon accession.

In Estonia for most cereals and pigmeat, the price gap has become relatively small at farm-gate levels in
recent years. For a few products such as beef, milk and sugar a significant price gap remains. However, for
beef and milk, this can be explained largely by quality differences.

C 134 E/96

Official Journal of the European Communities

EN

6.6.2002

As regards fruit and vegetables, there are major variations in price across the Community. Furthermore,
intervention is limited to a safety net system set at a very low level. It is therefore important not to
overestimate the likely effects of price alignment on the date of accession.

in many high value added processed products (e.g. milk desserts, cheeses, confectionery, soft
Finally,
drinks), the raw products represent only a small part of the final cost. For this type of product, changes in
agricultural product costs will have only a small effect on the final retail costs.

Significant liberalisation of trade between the Community and Estonia in agricultural and processed
agricultural products has already been agreed: approximately 85 % of
the traditional Community
agricultural
imports from Estonia are now duty-free, while the total of the Community exports of
agricultural products to Estonia continues to be fully liberalised. A second round of bilateral negotiations
for trade liberalisation is presently being prepared, which would cover more sensitive sectors, in which
current trade is low, in particular due to a high degree of tariff protection. The Commission expects that
this liberalisation process will result in de facto free trade on both sides. This could further encourage price
alignment prior to accession and therefore further reduce the likelihood of consumers facing price shocks
upon accession.

(2002/C 134 E/099)

WRITTEN QUESTION E-2770/01

by Jonas Sjöstedt (GUE/NGL) to the Commission

(9 October 2001)

Subject: Anti-dumping duty on fax machines from the Far East

In late April/early May 1998 the Council decided that the anti-dumping duty on personal fax machines
from the Far East should continue to apply. The decision affected fax machines from China, Japan, South
Korea, Malaysia, Singapore, Taiwan and Thailand. The punitive rate of duty made the machines more
expensive to consumers.

What has happened in the meantime, does the anti-dumping duty still apply, and on what grounds?

Answer given by Mr Lamy on behalf of the Commission

(15 November 2001)

On 1 July 2000, before the end of the original five year measures, the Commission initiated an interim
review and invited interested parties to present their comments (on i. a. product definition) and to provide
details of the technical specifications of all personal fax machines. A second Notice of Initiation for the
above proceeding was published on 30 October 2000 (1). This notice contained a proposed new product
definition intended to eliminate circumvention.

This review is still ongoing and the Commission is obviously doing its utmost to bring it to a rapid
conclusion, expected by the end of the year. In the meantime, the anti-dumping duties imposed by Council
Regulation (EC) No 904/98 of 27 April 1998 imposing definitive anti-dumping duties on imports into the
Community of personal fax machines originating in the People’s Republic of China, Japan, the Republic of
Korea, Malaysia, Singapore, Taiwan and Thailand (2) stay in force.

(1) OJ C 311, 31.10.2000.
(2) OJ L 128, 30.4.1998.