Council Regulation (EC) No 304/97 of 17 February 1997 introducing safeguard measures in respect of imports of rice originating in the overseas countries and territories

COUNCIL REGULATION (EC) No 304/97 of 17 February 1997 introducing safeguard measures in respect of imports of rice originating in the overseas countries and territories
THE COUNCIL OF THE EUROPEAN UNION
,
Having regard to the Treaty establishing the European Community,
Having regard to Council Decision 91/482/EEC of 25 July 1991 on the association of the overseas countries and territories with the European Economic Community (1), and in particular Article 109 thereof in conjunction with Annex IV, Article 1 (7) thereof,
Whereas, on 29 November and 10 December 1996, the Italian and Spanish Governments respectively applied to the Commission, pursuant to Article 109 of Decision 91/482/EEC, for safeguard measures to be introduced in respect of imports of rice from the overseas countries and territories (OCT);
Whereas the Italian and Spanish Governments have pointed out that increased imports of cheap rice from the OCT have caused serious disruption in the Community rice sector and may cripple this sector of the Community economy;
Whereas on 8 January 1997 the Commission adopted Regulation (EC) No 21/97 introducing safeguard measures in respect of imports of rice originating in the overseas countries and territories (2);
Whereas the Government of the United Kingdom referred that Commission Decision to the Council in accordance with Article 1 (5) of Annex IV to Decision 91/482/EEC;
Whereas, pursuant to paragraph 7 of that Article, the Council may adopt a different decision within the period indicated therein;
Whereas rice originating in the OCT, which is exempt from the levy on import into the Community in accordance with Article 101 (1) of Decision 91/482/EEC, is sold on the Community market at a lower price than that at which Community rice can be sold, given the level of processing involved;
Whereas the combined effect of the quantities and low prices of those imports is causing a disturbance on the Community market in rice, which has experienced a normal harvest of Indica rice in 1996/97 after two years of drought;
Whereas the Community has provided aid per hectare on a temporary basis to encourage Community producers to grow more Indica rice; whereas imports of cheap rice from the OCT may undermine these attempts to diversify production, leading European producers initially to put enormous quantities into intervention and subsequently to return to growing Japonica rice, for which there is already a surplus;
Whereas the quantities of rice imported from the OCT are likely to increase still further owing to the region's unrealized potential;
Whereas, consequently, the threat of damage to a sector of the Community economy exists; whereas safeguard measures should therefore be applied to imports into the Community of rice from the OCT pursuant to Article 109 of Decision 91/482/EEC;
Whereas priority should be given to measures which would least disturb the functioning of the association and the Community, in accordance with Article 109 (2) of Decision 91/482/EEC; whereas such measures must, moreover, be limited to what is strictly necessary to remedy the difficulties that have arisen;
Whereas the introduction of a tariff quota would guarantee OCT rice access to the Community market within the limits compatible with the stability of that market while preserving the greatest possible degree of preferential treatment for that product consistent with the objectives of Decision 91/482/EEC;
Whereas the quota should be opened for a period sufficient to monitor trends on the Community market and long enough to be compatible with the stability and predictability of trade; whereas a period of four months from 1 January 1997 would meet those requirements; whereas, before that period expires, there should be an evaluation of the situation to determine whether the measures need to be extended or adjusted;
Whereas the quota should be opened for a quantity of 36 728 tonnes of husked rice equivalent originating in the OCT, other than the least-developed OCT, corresponding to the quantities imported over the last four years for which statistics are available;
Whereas, in accordance with Article 110 of Decision 91/482/EEC, particular attention should be paid to the interests of the least-developed OCT listed in Article 230 of that Decision, amongst which appear Montserrat and the Turks and Caicos Islands;
Whereas, moreover, as a result of major volcanic activity on Montserrat, rice-milling is the most significant source of employment for that island apart from Government service,