Opinion of the European Economic and Social Committee on the "Proposal for a Council Regulation setting aid rates in the seeds sector for the 2004/2005 marketing year" (COM(2003) 552 final — 2003/0212 (CNS))
Date: 2003-12-10
Institutions: European Economic and Social Committee
Subjects: ESC opinion, aid to agriculture, marketing, seed

30.3.2004

EN

Official Journal of the European Union

C 80/59

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council
Regulation setting aid rates in the seeds sector for the 2004/2005 marketing year’

(COM(2003) 552 final — 2003/0212 (CNS))

(2004/C 80/17)

On 7 October 2003 the Council decided to consult the European Economic and Social Committee, under
Articles 36 and 37 of the Treaty establishing the European Community, on the above-mentioned
proposal.

On 23 September 2003, the Bureau of the European Economic and Social Committee instructed the
Section for Agriculture, Rural Development and the Environment to undertake the preparatory work.

In view of the urgency of the matter, at its 404th plenary session held on 10 and 11 December 2003
(meeting of 10 December), the European Economic and Social Committee appointed Mr Bros as its
rapporteur-general and adopted the following opinion by 63 votes in favour and 3 abstentions.

1.

Introduction

3. General comments

On 26 October 1971, the Council of the European
1.1.
Communities established a common organisation of
the
market in seeds (Regulation (EEC) No 2358/71) (1). This CMO
provides, in particular, for the possibility of giving aid to the
production of certain types of seed, according to how they are
produced.

1.2.
The amount of aid is determined taking into account
the need, on the one hand, to ensure a balance between the
volume of production required in the Community and the
amount that can be marketed in the light of prices for these
products on third-country markets and, on the other, to ensure
a fair income for seed producers.

1.3. Within the framework of CAP reform, and in accord-
ance with Article 37 and Annex VI of Regulation (EC)
No 1782/2003 of 29 September 2003 (2), the amount of aid
to seed production is included in the calculation under the
single payment scheme. However, Article 70 gives Member
States the option of not applying the single payment scheme
to one or more species listed in Annex XI of the regulation.
This new scheme should be implemented by the 2005/2006
marketing year at the latest.

2. The Commission proposal

The Commission proposes extending the validity of
2.1.
Article 3 of Regulation (EEC) No 2358/71 to the 2004/2005
marketing year and to freeze the amount of production aid,
taking into account the situation on the European Union
market.

(1) OJ L 246, 5.11.1971, p. 1-5.
(2) OJ L 270, 21.10.2003, p. 1-69.

3.1.
The seed sector is of primary importance for the
agricultural sector in that it is the guarantor of quality and
consistency of plant produce in future years. For this reason,
the Committee draws the Commission’s attention to the risks
inherent in abolishing production subsidies for seeds given the
costs of seed production. Certain plants could be grown mainly
from imported seeds, which would not necessarily be subject
to the same standards of production and inspection as those
applicable in the European Union. This fear is all the more
justified by the statement under ‘Whereas (2)’ in the Com-
mission proposal.

3.2.
There is a risk that reform of the CAP will introduce
significant distortions into the seed sector in terms of compe-
tition between farmers and between Member States.

3.3.
On the one hand, the choice given to Member States
as to whether or not to apply the single payment scheme to
the species covered by the common organisation of the market
in seeds will lead to differences in the level of aid between
Member States. These differences could lead to the penalisation
of some national sectors for species that can easily be traded
between countries because of their low density.

3.3.1.
Production of garden and beet seed do not attract
Community subsidies under the current arrangements. As
these seeds are produced in arable regions, the Committee
finds it regrettable that the Commission has not taken into
consideration the risk that the application of the new single
payment scheme may distort competition. The Commission
should have ruled out the possibility of producing these types
of seed with payment entitlement by including these crops in
the list of exceptions in Article 51 of Regulation (EC) No 1782/
2003. In order to avoid these distortions, the Committee
proposes that the Member States harmonise their position in
the context of the implementing regulations.

C 80/60

EN

Official Journal of the European Union

30.3.2004

4. Specific comments

4.1.
Due to the development of agro-environmental (inter-
crop and anti-erosion) or sanitary measures (e.g. nematode
traps), demand for seed of the species Brassica napus and
Sinapis alaba has increased and, in the absence of subsidies,
this has led to an increase in imports. For this reason, the
Committee requests that these species be included in the annex
to the proposed regulation.

5. Conclusions

5.1.
The Committee takes due note of the Commission’s
proposal aimed at extending the regime of production aid for

seeds (Article 3 of Regulation (EEC) No 2853/71) until the
2004/2005 marketing year.

5.2.
The Committee draws the attention of the Council and
the other institutions to its comments concerning, on the one
hand,
the risks of distorting competition carried by the
application of Regulation (EC) No 1782/2003 to seeds of
species affected by Regulation (EEC) No 2358/71 and to
garden seeds and beet seed, and, on the other, the inclusion of
two species (Brassica napus and Sinapis alba) in the regime of
production subsidies for seeds.

Brussels, 10 December 2003.

The President

of the European Economic and Social Committee

Roger BRIESCH