WRITTEN QUESTION E-3233/02 by Caroline Lucas (Verts/ALE) to the Commission. Coffee trade.
Date: 2002-11-15
Institutions: European Parliament, Provisional data
Subjects: agri-foodstuffs, coffee, economic consequence, fair trade, world market price

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3. The Commission has not received a request from the Greek authorities to introduce more flexible
procedures. The Commission is of the opinion that the fiscal obligations outlined are not a particular
impediment to tobacco growers setting up a production of fine-cut tobacco.

As regards other than fiscal requirements laid down in Community legislation, such as those concerning
the labelling of tobacco products, the Commission would point out that marketing, presentation and sale
of fine-cut tobacco is subject to the labelling requirements set out in Article 5, of Directive 2001/37/EC (4),
concerning the manufacture, presentation and sale of tobacco products, in particular paragraphs 2, 5, 6
and 7 thereof.

(1) Council Directive 2002/10/EC of 12 February 2002 amending Directives 92/79/EEC, 92/80/EEC and 95/59/EC as

regards the structure and rates of excise duty applied on manufactured tobacco, OJ L 46, 16.2.2002.

(2) OJ L 316, 31.10.1992.
(3) Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty
and on the holding, movement and monitoring of such products, OJ L 76, 23.3.1992, as last amended by Directive
2000/47/EC of 20 July 2000, OJ L 197, 29.7.2000.

(4) Directive 2001/37/EC of the Parliament and of the Council of 5 June 2001 on the approximation of the laws,
regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale
of tobacco products (cid:1) Commission statement, OJ L 194, 18.7.2001.

(2004/C 11 E/042)

WRITTEN QUESTION E-3233/02

by Caroline Lucas (Verts/ALE) to the Commission

(15 November 2002)

Subject: Coffee trade

Does the Commission consider it fair that, according to ‘The Economist’, coffee companies in Europe are
making up to 40 % profit on coffee, whilst the coffee producers on which they depend fall further into
poverty?

Does the Commission intend to raise the issue of corporate social responsibility with the four coffee giants
in Europe: Nestlé, Sara Lee, Kraft and Tchibo?

Answer given by Mr Lamy on behalf of the Commission

(17 December 2002)

The Commission is clearly not in a position to judge the profit levels of individual companies (cid:1) although
it must be said that these figures are approximately double those quoted by Oxfam in their recent report
on the coffee crisis. However, the Commission would be the first to accept that volatility in the coffee
market is indeed a major problem for producers and is well aware of the development implications of the
fall in coffee prices and the very real problems which coffee farmers are facing. With a view to help
the Commission is currently working within the International Coffee
alleviate the immediate crisis,
Organisation on how best to support their quality scheme, which should help to improve world prices. It
is also supporting a number of projects to encourage the development of markets for ‘fair trade’ to help
poor producers gain a greater share of the international market.

The question of what further measures the Commission may take on coffee in the immediate future is
being considered by an inter service working group in consultation with non-governmental organisations,
including Oxfam and large coffee roasters. Parliament will be kept informed of any progress.

Over the longer term, diversification of the economy is a key element of a coherent development strategy
aimed at the eradication of poverty and integration of developing countries into the world economy.
Diversification requires a comprehensive approach to trade and development (1). With the Everything But
Arms Initiative (cid:1) as well as its commitment to a successful trade round, the Commission is helping to
create greater market opportunities for developing countries to diversify.
is also providing the
development support to help turn opportunity into reality.

It

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The Commission has discussed the current crisis with several corporate actors, who are also concerned
about the long term implications for their supply chain. This dialogue will continue in the coming months.
Clearly private sector action would be part of any long term strategy to balance supply and demand.

In relation to the broader issue of Corporate Social Responsibility, the overall aim of the Commission is to
foster Corporate Social Responsibility by promoting innovation, transparency and innovation of CSR
practices and instruments. The newly created European Multi-Stakeholder Forum on CSR will
indeed
address ‘Development aspects of CSR’ with the aim of establishing common guiding principles for
businesses and stakeholders to co-operate to address social or environmental challenges.

(1) COM(2002) 513 final.

(2004/C 11 E/043)

WRITTEN QUESTION E-3234/02

by Caroline Lucas (Verts/ALE) to the Commission

(15 November 2002)

Subject: Implementation of fair trade clause in the chocolate directive

As stated in the preamble of Directive 2000/36/EC (1), cocoa, cocoa butter and a series of other vegetable
fats used in the manufacture of chocolate are mainly produced in developing countries, therefore it is in
the interests of people living in developing countries that agreements of as long a duration as possible
should be concluded. The preamble also specifically calls on the Commission to consider the role which
‘fair trade’ could play in such agreements.

In light of this, what is the Commission intending to do to establish long-term commodity agreements and
promote ‘fair trade’ with such developing countries?

(1) OJ L 197, 3.8.2000, p. 19.

Answer given by Mr Nielson on behalf of the Commission

(18 December 2002)

The Community is a member of all major commodity agreements. The Commission plays an active role in
negotiating, implementing and managing these agreements. The Community has been a member of the
agreements concerning cocoa since the first such agreement was negotiated in 1972. The new agreement
for cocoa, which was negotiated in 2001, is scheduled to enter into force in 2003 for a maximum period
of nine years. Provisions have been made to adjust the agreement throughout its lifespan to ensure it
remains relevant to changing market conditions.

The Commission is working to promote ‘Fair Trade’ with developing countries in two main ways, namely
by:

(cid:1) Raising public awareness of ‘Fair Trade’ among Union citizens, which, even if in growing numbers,
continue to buy only limited amounts of
this activity, a budget of
EUR 15 million from the budget line B7-6000 has been allocated for this purpose over the past five
years; and

‘Fair Trade’ goods. For

(cid:1) Organising frequent contacts with the main interested parties involved in ‘Fair Trade’.

Public confusion over the concept of ‘Fair Trade’, due to a number of different private labels, represent a
major obstacle to its further development. The European Multistakeholder forum, recently launched
following the Communication on Corporate Social Responsibility, will discuss way to facilitate the correct
labelling of such products.

The Commission is investigating ways to strengthen its participation in commodity agreements and further
develop ‘Fair Trade’ as part of its efforts to reduce poverty in developing countries.