WRITTEN QUESTION P-2497/99 by Isidoro Sánchez García (ELDR) to the Commission. The Millennium Round, the ultraperipheral regions and changes in the COM in bananas.
C 225 E/150 Official Journal of the European Communities EN 8. 8. 2000 (2000/C 225 E/163) WRITTEN QUESTION P-2497/99 by Isidoro SÆnchez García (ELDR) to the Commission (16 December 1999) Subject: The Millennium Round, the ultraperipheral regions and changes in the COM in bananas The Millennium Round in Seattle is going to be thrashing out trade issues involving agriculture, and there is considerable social concern in the Communityís banana-producing regions, all of which are designated ultraperipheral under the Amsterdam Treaty, with regard to the Commissionís announcement that the COM in bananas is to be reformed because of hypothetical conflicts with the rules of international trade. What are the fundamental background reasons underpinning the Commissionís proposal to change the COM in bananas, and what measures, if any, does it intend to adopt when laying down the conditions for the application of the Community provisions included in the CAP to the ultraperipheral banana growing regions, pursuant to Article 229(2) of the EC Treaty, above all in view of these regionsí vulnerability thanks to their fragile environments and their dependency on outside energy sources? Answer given by Mr Fischler on behalf of the Commission (11 January 2000) In April 1999 a World Trade Organisation disputes settlement panel found that some aspects of the Community banana scheme were not entirely compatible with the rules of the WTO. After wide-ranging consultations with all the parties concerned, on 10 November 1999 the Commission adopted a proposal (1) for the amendment of Council Regulation (EEC) No 404/93 of 13 February 1993 on introducing arrangements the common organisation of complying with the WTO rules, at the same time respecting the commitments entered into under the LomØ Convention in relation to the African, Caribbean and Pacific (ACP) countries, with due regard for the interests of Community producers and consumers. in bananas (2) with the aim of the market As far as Community banana producers are concerned, it should be borne in mind that the decision of the WTO panel did not call into question the system of Community compensatory aid under Commission Regulation (EEC) No 1858/93 of 9 July 1993 laying down detailed rules for applying Council Regulation (EEC) No 404/93 as regards the aid scheme to compensate for loss of income from marketing in the banana sector (3). The Commission considers that the earnings of Community banana producers are assured by the present compensatory aid scheme with the amount being set each year to reflect the difference between the flat- rate reference income ü increased by 5 % in 1998 and from 1999 by up to 8 % ü and the average prices achieved during the banana marketing year. The scheme ensures the disposal of Community output on the market through the grant of full compensation irrespective of the trend of prices on the European Union market. The effectiveness of these arrangements was borne out in 1999 when banana prices on the world market experienced a sharp fall. The compensatory aid scheme made it possible to dispose of the entire Community output and in this way secured the earnings of growers of bananas. (1) COM(1999) 582 final. (2) OJ L 47, 25. 2. 1993. (3) OJ L 170, 13. 7. 1993