WRITTEN QUESTION E-1542/02 by Paulo Casaca (PSE) to the Commission. Discrimination against the most remote regions under the Poseima programme.
Date: 2002-06-03
Institutions: European Parliament, Provisional data
Subjects: Azores, EU aid, economic discrimination, production quota, sugar industry, sugar refining, supply

C 28 E/116

Official Journal of the European Union

EN

6.2.2003

(2003/C 28 E/130)

WRITTEN QUESTION P-1536/02

by Paulo Casaca (PSE) to the Commission

(27 May 2002)

Subject: Commission intervention in favour of the European sugar-refining cartel

Can the Commission confirm that it has intervened against the Portuguese government in support of the
position submitted to the Court of Justice (Case C-282/00) by a sugar refinery situated on the European
mainland?

Does the Commission not consider this intervention to be in flagrant breach of the principle of the
separation of powers and a clear manifestation of the existence of a totally unacceptable democratic deficit
in the EU?

Answer given by Mr Prodi on behalf of the Commission

(21 June 2002)

Case C-282/00, to which the Honourable Member refers, was brought before the Court of Justice by the
Portuguese court hearing a dispute between two Portuguese sugar refineries, by way of reference for a
preliminary ruling under Article 234 of
the EC Treaty (1).
It concerns the interpretation of various
provisions of Council Regulation (EEC) No 1600/92 of 15 June 1992 concerning specific measures for the
Azores and Madeira relating to certain agricultural products (2).

Under the second paragraph of Article 20 of the Statue of the Court of Justice, the parties, the Member
States, the Commission and, where appropriate, the Parliament, the Council and the European Central
Bank are entitled to submit statements of case or written observations to the Court.

In its capacity of guardian of the Treaty, the Commission traditionally and systematically invokes this right,
conferred on it by the Court of Justice, in matters relating to the interpretation of European law. It submits
its observations to the Court in complete independence and objectivity as an amicus curiae, proposing the
solution which, in its view, is the one most compatible with Community law and the general Community
interest. It is for the parties to defend their own positions before the Court of Justice, which obviously may
or may not coincide, fully or partially, with the Commission’s position.

(1) OJ C 247, 26.8.2000.
(2) OJ L 173, 27.6.1992.

(2003/C 28 E/131)

WRITTEN QUESTION E-1542/02

by Paulo Casaca (PSE) to the Commission

(3 June 2002)

Subject: Discrimination against the most remote regions under the Poseima programme

Under the Poseima regulation and following a parallel reduction in the sugar quotas applying to the
Azores refinery under the Act of Accession, the production quota of that refinery was slashed from 20 000
to 10 000 tonnes; by way of compensation, the per-tonne subsidy was increased.

Since then, however, the Commission has, under Regulation 20/2002 (1), outlawed sugar consignments
from the Azores, while at the same time permitting the dumping of sugar in the islands.

In these circumstances, it is clear that the Poseima programme has placed the Azores sugar industry at a
disadvantage vis-à-vis its counterparts on the European mainland, in total contradiction of the objectives of
Article 299(2) and the Commission’s declared aims.

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Official Journal of the European Union

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The notion of supporting the most remote regions has been used as a pretext for introducing de facto
discrimination against the Azores sugar industry.

Can the Commission state when it intends to end this discrimination, by restoring Sinaga’s authorisation to
produce 20 000 tonnes as granted under Portugal’s Act of Accession, by putting an end to its exclusion
from internal market rights, and by granting it exactly the same subsidies and level as protection as its
mainland competitors?

(1) OJ L 8, 11.1.2002, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(4 July 2002)

Article 11 of Council Regulation (EC) No 1260/2001 of 19 June 2001 on common organisation of the
markets in the sugar sector (1) allots the Azores a quota (A+B) of 9 953 tonnes. Within the limit of this
quantity Azorean beetgrowers receive exceptionally Community aid of EUR 800/hectare and the sugar
enterprise receives exceptionally Community aid of EUR 270/tonne of sugar for conversion of this beet
into sugar.

On top of this quota the Azorean sugar enterprise can refine raw sugar up to a volume of 10 000 tonnes
per year.

In conjunction with this refining quota the Azores is supplied with raw beet sugar at the world market
price under the specific supply arrangements (SSA) determined by Council Regulation (EEC) No 1453/
2001 of 28 June 2001 (2), within the limit of the archipelago’s supply requirements and with due account
taken of
from local beet. Commission Regulation (EC) No 21/2002 of
28 December 2001 (3) assessed the Azores’ supply requirement under the SSA as the volume of local
sugar consumption, i.e. 6 500 tonnes per year.

its production of sugar

Given the foregoing the Commission considers that the Community provides an exceptionally favourable
level of support for maintaining and expanding sugar production in the Azores. It notes that Azorean
beetgrowers restrict their production to a volume corresponding to 700 tonnes/year of sugar. It must
accordingly reject
the
sugar enterprise in the Azores.

that discriminate against

set up arrangements

the complaint

it has

that

(1) OJ L 178, 30.6.2001.
(2) Council Regulation (EC) No 1453/2001 introducing specific measures for certain agricultural products for the

Azores and Madeira and repealing Regulation (EEC) No 1600/92 (Poseima), OJ L 178, 30.6.2001.

(3) Commission Regulation (EC) No 21/2002 establishing the supply balances and Community aid for the outermost

regions under Council Regulations (EC) Nos 1452/2001, 1453/2001 and 1454/2001, OJ L 8, 11.1.2002.

(2003/C 28 E/132)

WRITTEN QUESTION E-1543/02

by Paulo Casaca (PSE) to the Commission

(3 June 2002)

Subject: Discrimination against Azores refinery promoted by the Commission

The Act of Accession of Portugal to the European Communities allows the sugar refinery in the Azores a
production level of 20 000 tonnes, under market protection conditions compatible with those applying in
the rest of the EU. This quantity was, already in 1986, approximately double the consumption level in the
Azores themselves.