Proposal for a Council Regulation on measures in retaliation to the Russian Federation's import ban on fresh eggs for human consumption originating in the European Community
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 04. 2000 COM(2000) 255 final 2000/0105 (ACC) Proposal for a COUNCIL REGULATION on measures in retaliation to the Russian Federation’s import ban on fresh eggs for human consumption originating in the European Community (presented by the Commission) 1. 2. 3. 4. 5. 6. EXPLANATORY MEMORANDUM In May 1996, Finland was informed by the Russian authorities, without any explanation being given, that the imports of fresh eggs for human consumption (CN 0407 00 30) into Russia were prohibited. It was later explained that the ban was applicable to all third countries (erga omnes) and that it was based on human health protection. Imports into Russia of fresh eggs originating in the United States have however increased substantially since the introduction of the ban. Consultations on the Russian import ban on eggs originating in the Community has been held at several occasions on the basis of Article 102 of the Partnership and Cooperation Agreement without any concrete results (e. g. during the first Cooperation Council on 27 January 1998; the first Cooperation Committee on 22 April 1998; technical consultations on 15 September 1998; second Cooperation Committee on 16 December 1998; first Sub-Committee on Agriculture 8-9 February 1999; third Co-operation Committee 8 October 1999). The Commission has also transmitted Aide-Mémoires on the subject to the Russian authorities, without receiving any adequate response. Despite the agreement made in the framework of the Memorandum of Understanding on free deliveries of food products from the Community to Russia to advance formal consultations on the Russian import ban on eggs in order to resolve the problem swiftly, no solution has been found. the negotiations of Without evidence of human health problems, as referred to in Article 19 of the Partnership and Cooperation Agreement, the Russian import ban on eggs constitutes a disguised restriction on trade between the Parties. As such, it violates the provisions of Article 15(2) of the aforementioned Agreement, stipulating that goods originating in the Community shall be imported into Russia free of quantitative restrictions. Following the entry into force of the Russian import ban on eggs, the Community’s operators suffer substantial economic losses due to the fact that they no longer are able to export any fresh eggs to Russia. In order to protect the Community’s interest, the Commission proposes that measures shall be taken in retaliation to the Russian import ban on eggs. Consequently, this Regulation proposes the introduction of tariffs on sunflower seeds and rape seeds originating in the Russian import Federation. The aforementioned products enter today free of duty into the Community when imported from third countries. The measure will be applied until the import ban has been abolished, or until the Commission has received scientific evidence that the ban imposed by the Russian Federation on imports of eggs originating in the Community is justified on health grounds. 7. The Council is requested to adopt the proposed Regulation. 2 2000/0105 (ACC) Proposal for a COUNCIL REGULATION on measures in retaliation to the Russian Federation’s import ban on fresh eggs for human consumption originating in the European Community THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof, Having regard to the proposal from the Commission1, Whereas: (1) (2) (3) (4) (5) The Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part2 lays down as one of the main objectives the promotion of trade and investment and harmonious economic relations between the Parties. This aforementioned objective of the agreement is seriously threatened by the Russian import ban on eggs originating in the Community, introduced in May 1996. Article 19 of the Partnership and Cooperation Agreement stipulates that import prohibitions or restrictions on grounds of the protection on health and life of humans, animals or plants shall not be precluded. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties. The Russian authorities have not been able to provide evidence that imports into Russia on eggs originating in the Community provoke the need to protect the health and life of humans, animals or plants. The Russian import ban on eggs can therefore be considered as a disguised restriction on trade between the Parties. As such, it violates Article 15(2) of the Partnership and Cooperation Agreement, stipulating that goods originating in the Community shall be imported into Russia free of quantitative restrictions. At the request of the Community, several consultations have been held between the Parties on the basis of Article 102 of the Partnership and Cooperation Agreement to discuss the interpretation and implementation of the Agreement, and in particular Article 19 and 15(2). These consultations have not permitted the Parties find an adequate solution. 1 2 OJ C …, …, p. OJ L 327, 28. 11. 1997, p. 1. 3 (6) (7) (8) (9) (10) As a consequence of the measure taken by the Russian Federation, the Community’s exports of fresh eggs have been seriously restricted, with substantial economic impact on the Community operators. Under the Partnership and Cooperation Agreement with Russia this situation gives raise to the application of Article 107(2) thereof, stipulating that if any Party considers that the other Party has failed to fulfil an obligation under the Agreement it may take appropriate measures. The Community considers that the Russian Federation has failed to fulfil its obligations with regard to trade in eggs as set out in the Agreement. The Community considers that an appropriate reaction to the failure by Russia to fulfil the obligations of the Partnership and Cooperation Agreement the Community’s trade interests by increasing the import duties on sunflower seeds and rape seeds originating in the Russian Federation by 7 per cent. As required in Article 107(2) of the Partnership and Cooperation Agreement with Russia, priority must be given to those which least disturb the functioning of the Agreement. The counter measures are proportionate to the negative impact on the Community trade in fresh eggs caused by the Russian import ban. is to protect Before taking the measures, the Commission supplied the Cooperation Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. this Regulation are Since the measures necessary for management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission3, they should be adopted by use of the management procedure provided for in Article 4 of that Decision, the implementation of HAS ADOPTED THIS REGULATION: Article 1 A customs duty shall be applied on imports into the Community of products originating in the Russian Federation as follows: CN code 1205 00 90 1206 00 91 1206 00 99 Description Rate of duty (%) Rape or colza seeds, whether or not broken, other than for sowing Sunflower seeds, whether or not broken, not sowing, shelled in grey and white stripped shell for Sunflower seeds, whether or not broken, not sowing, other for 7. 0 7. 0 7. 0 3 OJ L 184, 17. 7. 1999, p. 23. 4 Article 2 The Commission shall repeal the measures set out in Article 1, in accordance with the procedure laid down in Article 3(2) once the import ban has been abolished or when the Commission has received scientific evidence that the ban imposed by the Russian Federation on imports of eggs originating in the Community is justified on health grounds. Article 3 1. 2. 3. The Commission shall be assisted by the Management Committee for Cereals instituted by Article 23 of Council Regulation (EC) No 1766/1992 on the common organisation of the market in cereals4. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) thereof. The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month. Article 4 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall not apply to import licences already issued prior to the entry into force of this Regulation. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council The President 4 OJ L 181, 1. 7. 1992, p. 21. 5 FINANCIAL STATEMENT 1. 2. 3. 4. BUDGET HEADING: Chapter 10 APPROPRIATIONS: 1 102,2 Mio EUR TITLE: Council Regulation on measures in retaliation to the Russian Federation’s import ban on fresh eggs for human consumption originating in the European Community. LEGAL BASIS: Article 133 of the Treaty AIMS: In order to protect the Community’s interest, the Commission proposes the introduction of import tariffs on sunflower seeds and rape seeds originated in the Russian Federation, in retaliation to the Russian import ban on eggs. 5. FINANCIAL IMPLICATIONS 5. 0 5. 1 CHARGED TO THE EC BUDGET NATIONAL AUTHORITIES OTHER EXPENDITURE - (REFUNDS/INTERVENTIONS) - - REVENUE - (LEVIES/CUSTOMS DUTIES) NATIONAL - OWN RESOURCES OF THE EC 12 MONTH PERIOD (EUR million) -- CURRENT FINANCIAL YEAR [2000] (EUR million) -- FOLLOWING FINANCIAL YEAR [2001] (EUR million) -- -- -- -- 2002 2003 2004 2005 5. 0. 1 ESTIMATED EXPENDITURE 5. 1. 1 ESTIMATED REVENUE 5. 2 METHOD OF CALCULATION: See annex. 6. 0 6. 1 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 6. 2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 6. 3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? YES YES NO NO OBSERVATIONS: It is assumed that the introduction of an import tariff on sunflower seeds and rape seeds will totally discourage the import of these products into the Community. The financial incidence of the proposed measure on the EU budget is therefore considered to be negligible. 6 ANNEX EU exports of fresh eggs (CN 0407 00 30) to Russia (000 EUR) CN code Description 19945 1995 19966 1997 1998 0407 00 30 Poultry eggs, in shell, fresh preserved or cooked 393 3 225 2 759 108 40 EU imports of sunflower seeds and rape seeds from Russia (000 EUR) CN Code Description 1996 1997 1998 Average 1996-1998 1205 00 90 Rape or colza seeds, whether or not broken, other than for sowing 1206 00 91 Sunflower seeds, whether or not broken, not for sowing, shelled in grey and white stripped shell 1206 00 99 Sunflower seeds, whether or not broken, not for sowing, other 9 103 8 473 19 178 12 251 5 978 1 774 1 160 2 971 253 651 130 719 124 984 169 785 5 6 EU-12. The import ban was introduced in May 1996. 7 Trade value of the Russian import ban on eggs (000 EUR), 1996-20007 Year 1996 1997 1998 1999 Total Value 3 225 3 225 3 225 3 225 12 900 Value in terms of duty collection of the measure imposed against Russia (000 EUR) CN Code Average trade 1996-1998 (000 EUR) New rate of duty (%) Duty collection (000 EUR) 1205 00 90 1206 00 91 1206 00 99 Total 12 251 2 971 169 785 185 007 7,0 7,0 7,0 858 208 11 885 12 951 7 The trade value has been calculated on the basis of anticipated constant export volume, in value, since 1995. 8