WRITTEN QUESTION No. 1729/97 by Esko SEPPÄNEN to the Commission. Free economic area across the Finnish-Russian border to increase trade between the EU and Russia
10. 2. 98 EN Official Journal of the European Communities C 45/91 While the quantity of cheese exports to Ceuta and Mellila may appear relatively small compared to the total quantity of Community cheese exported with subsidies it represents a significant part of the annual volume reduction required to respect the General agreement on tariffs and trade (GATT) limits. For that reason the Commission considers that the fixing of a zero refund for Ceuta and Mellila makes a significant contribution to achieving the Uruguay round objectives. 2. The Commission believes that the reductions in refunds for liquid milk exports will not result in a substantial drop in exports of these products to Ceuta and Melilla but will reduce the pressure on demand for export licences for the other milk products category. The exports from the Community to Ceuta and Mellila in 1996 amounted to about 20 000 tonnes. 3. The Commission has never considered its export refund policy as having a social dimension. It also recalls that the gradual reduction of export subsidies (worldwide) that was agreed in the Uruguay Round, will bring substantial benefits to consumers. It therefore maintains its position that the refunds for cheese and milk for Ceuta and Melilla, as for certain other countries, should remain unchanged. (98/C 45/110) WRITTEN QUESTION E-1729/97 by Esko Seppa¤nen (GUE/NGL) to the Commission (23 May 1997) Subject: Free economic area across the Finnish-Russian border to increase trade between the EU and Russia One of the biggest challenges for the future of Europe is to find ways of fostering the market economy and economic stability in Russia. Finland is the only EU Member State which has a common border with Russia. It would be in the EUís own interests to exploit this fact, which is important from the point of view of trade strategy, by promoting financially trade between the EU and Russia and the development of cooperation in the Finnish-Russian border region. The EU has previously approved the establishment of many special tax-free areas, including some which are far from its external borders. Does the Commission believe that it would be justified to establish a special free economic area across the Finnish-Russian border to increase trade and develop the market economy in Russia? Answer given by Mr Van den Broek on behalf of the Commission (11 July 1997) Like the Honourable Member, the Commission welcomes the developments in Russia towards a market economy. The Commission is of the opinion that the increase in trade between Finland and Russia in recent years contributes considerably to economic stabilisation in the northern part of Russia. However, a range of difficulties continue on the Russian side of the border between Finland and Russia. Russia is still in a process of adaptation to international trade procedures. Should the Commission be informed of concrete plans to create a special free-tax area at the border, it would forthwith carefully examine the possible consequences of such plans. The Commission points out that the creation of such a zone could lead to trade distortion and act against the objective of normalisation of trade activities between the Community and Russia. The Commission will continue to monitor progress and under various TACIS projects it supports action to improve the situation at the border region in such fields as customs training and construction of border crossings