Opinion of the European Economic and Social Committee on the  Proposal for a Council Regulation on the common organisation of the market in seeds (COM(2005) 384 final — 2005/0164 (CNS))
Date: 2005-10-26
Institutions: European Economic and Social Committee
Subjects: common organisation of markets, seed

C 28/66

EN

Official Journal of the European Union

3.2.2006

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council Regu-
lation on the common organisation of the market in seeds’

(COM(2005) 384 final — 2005/0164 (CNS))

(2006/C 28/12)

On 21 September 2005 the Council decided to consult the European Economic and Social Committee,
under Article 36 of the Treaty establishing the European Community, on the abovementioned proposal.

On 27 September 2005, the Committee Bureau instructed the Section for Agriculture, Rural Development
and the Environment to prepare the Committee's work on the subject.

Given the urgent nature of the work, the European Economic and Social Committee appointed Mr Bros as
rapporteur-general at its 421st plenary session, held on 26 and 27 October 2005 (meeting of 26 October),
and adopted the following opinion nem. con. with 61 votes in favour and 3 abstentions.

1. Conclusions and recommendations

1.1
The Committee approves the drafting of a new regu-
lation, incorporating the numerous amendments to Regulation
No 2358/71. However, the Commission's proposal is restrictive
and should be amended.
In particular, the safeguard clause
should not be limited to non-member countries of the World
Trade Organisation, but should apply to all third countries.

The Committee proposes that Recital 2 of Regulation

1.2
(EEC) No 2358/71 should be reinserted:

‘Whereas the situation of the market in seeds is charac-
terised by the need to keep prices competitive with world
prices for these products; whereas appropriate measures
should therefore be taken to stabilise the market and to
ensure a fair income to the producers concerned;’

1.3
The Committee proposes that Recital 6 of Regulation
(EEC) No 2358/71 should be reinserted and made applicable to
all sensitive products:

‘Whereas, in respect of hybrid maize for sowing in respect
of the production of’ sensitive ‘seeds, it is necessary to
avoid disturbances on the Community market caused by
offers made on the world market at abnormally low prices;
whereas to this end reference prices should be fixed for
thisese products and a countervailing charge should be
added to the customs duties when free-at-frontier offer
prices plus customs duties are lower than the reference
prices.’

The Committee proposes the following amendment to

1.4
Article 7(1):

‘If, by reason of imports or exports, the Community market
in one or more of the products listed in Article 1 is affected
by, or is threatened with, serious disturbance likely to

jeopardise the achievement of the objectives set out in
Article 33 of the Treaty, appropriate measures may be
applied in trade with non-member third countries of the
World Trade Organisation until such disturbance or threat
of it has ceased.’

2. General comments

2.1
The European Commission's proposal reviewing the
common market in seeds largely aims to consolidate Regulation
(EEC) No 2358/71, in the wake of numerous amendments and
the recent CAP reform. However, the proposal reduces the agri-
cultural policy for seeds to its most basic form: the retention of
a safeguard clause and a request for Member States to exchange
statistical information.

2.2
Seeds are more than just a basic agricultural commodity.
They form a strategic input not only for adapting the agri-
cultural and agri-food sectors, but also for responding to
consumer expectations (for example, GMO-free production).
Due to their make-up and properties, seeds are the first link in
the chain for achieving a competitive market and meeting
consumer demands relating to food safety and respect for the
environment. The common market in seeds must define more
ambitious ways to safeguard, steer and work alongside Euro-
pean agricultural production.

3. Specific comments

The redrafting of

3.1
the regulation should take proper
account of Articles 33 and 34 of the Treaty. At the very least,
Recitals 2 and 6 of the Regulation (EEC) No 2358/71 should be
reinserted to enable the European Commission to take action,
in the event of difficulties in the seeds markets, in accordance
with the Treaty and European consumers' requirements.

3.2.2006

EN

Official Journal of the European Union

C 28/67

3.2
From a legislative standpoint, it is more logical to list
the relevant CMO products (Article 1) with references to the
1966 Directives 66/401 and 66/402 (1)
the
marketing of seeds, in tandem with the Customs Nomenclature.

governing

In the Commission's proposal

3.3
the safeguard clause,
which authorises the Commission to take action in the event of
serious disturbance likely to jeopardise the achievement of the
objectives set out in Article 33 of the Treaty, has been reduced
significantly to non-member countries of the WTO. The EU's
current competitors in high-tech products, such as seeds, are all
developed countries
(United States, Chile, Australia, New
Zealand, etc.) and members of the WTO. It is therefore not
appropriate to restrict the use of the safeguard clause to non-
member countries of the WTO.

3.4
In Member States, seed quality and quality checks are
governed by Directives 66/401, 66/402, 2002/54 and
2002/57. The same level of quality should be guaranteed for
seed from third countries. This matter comes under the equiva-
lency negotiations between the European Union and third
countries, and the CMO should mention this quality require-
ment in the Recitals, for example.

Brussels, 26 October 2005.

3.5
The CMO should draw up a real support policy for
producer organisations. It is mandatory for the seed company
and farmer to have a contractual agreement relating to seed
In line with the 1994 Regulation (2) governing
production.
plant variety rights, the seed farmer (producer) is required to
supply the company, to which he is bound by contract, with
the entire harvest. It would be useful for the CMO to help
producer organisations, who are often powerless in the face of
the companies, and define the minimum contractual regula-
tions.

3.6
The CMO should establish ways to consolidate the
compilation of statistical information, in line with the objec-
tives in Recital 8 of the proposal.

3.7
The Commission should draw up an operational proce-
dure for implementing the safeguard clauses. It is difficult to
prove that
‘jeopardise the
achievement of the objectives set out in Article 33’ as stated in
the Commission's draft, or fail to meet European consumer
demands.

isolated imports at

low prices

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

(1) OJ P 125 of 11.7.1966.

(2) Council Regulation (EC) No 2100/94 of 27.7.1994 – OJ L 227 of

1.9.1994.