Raad Landbouw 17 november: Hervormingen in de sectoren Tabak, Olijfolie Suiker en Katoen

Part 1 : Agriculture

The Council had a policy debate on the reform proposals for tobacco, cotton, olive oil and sugar.

Tobacco reform

The Commission proposed that the support for tobacco would be decoupled and integrated into the single farm payment. However the decoupling and integration in the single payment scheme should be carried out gradually, in order to avoid a disruptive effect on production. This gradual integration should be accompanied by the setting up, in the framework of rural development, of a financial envelope for restructuring tobacco producing areas. "I believe that this proposal provides the most sustainable policy for the future in line with the European Union's strategy for sustainable development. In fact the Communication on the European Union's strategy for sustainable development (May 2001), presented by the Commission at the Göteborg European Council, specifically referred to the sustainability of tobacco sector. These concerns were shared by the Council, which insisted on encouraging the production of healthy products", Mr Fischler said.

"Taking into account the impact of tobacco growing in some production regions, our aim has been to maintain the producers' income in a situation where the product support would be phased-out. Decoupling the support to the tobacco sector would make it possible to keep unchanged the financial support to the sector, whilst breaking the link with production. At the same time, a better coherence with other EU policies would be achieved. Thus, in the Commission proposal, the gradual de-coupling of the current aid scheme for raw tobacco would be accompanied by the setting up of a financial envelope for the restructuring of the concerned areas. In this framework, the Member States and the Regions would establish programmes enabling a smooth conversion of the tobacco producing regions to the new production situation", the Commissioner concluded.

Cotton reform

"We fully subscribe to the principle that cotton should be put into a long term development perspective. It is obvious that on the world market the EU is not a price maker but a price taker. It has little, if any, influence on world prices. "The EU is not a net exporter of cotton, but the largest importer of cotton world wide. Increased African sales of cotton to Europe depend on their competitiveness compared with our largest suppliers from Central Asia. However I agree it is important that the present proposal give a positive message to African countries in order to show our willingness to help them.

That is why the EU cotton subsidy system should turn EU support into more trade friendly mechanisms. It will eliminate the more trade-distorting subsidies, those classified in the amber box, and is likely to bring a reduction in the areas sown in the EU", Mr Fischler stressed.

Olive oil

Some Member States have voiced doubts on the percentage (60%) of current production aids to be transferred to the Single Payment while the remaining part (40%) would be allocated to national envelopes. "According to our estimates, this distribution provides for an olive grove aid sufficient to cover, for the various producing regions of the Community, the average minimum maintenance costs. A significantly lower percentage of transfer to the national envelopes would imply smaller national envelopes which would not guarantee the maintenance of all olive groves of social and environmental value across the EU. The maintenance of these groves is of paramount importance for the sustainable development of the regions concerned, including its social, environmental and economic dimensions", Mr Fischler said.

Sugar reform

The Council discussed the reform options the Commission tabled. "In view of of the reform decisions in other sectors, the current sugar regime is hardly sustainable. Preferential imports will rise and export possibilities will be limited. Hence, a reduction of EU exports and import tariffs is unavoidable. The objective of the sugar reform is to take account of the internal and external challenges and to maintain sugar production in the EU. Given that the current sugar regime expires in 2006, we need swift decisions. The Commission will table its conclusions of the ongoing discussion mid-2004", Mr Fischler underlined.

Set-aside

Commissioner Fischler presented the proposal to reduce the set-aside rate from 10% to 5%. "The 2003/2004 marketing year for cereals in EU-15 is characterised by very low production due to a severe drought in many main production regions of the EU. EU15, EU25 and world stocks will decline further to very low levels by the end of the 2003/2004 campaign. A poor harvest 2004 would expose the internal market to potentially serious risks. I do not think that it would be wise to be too exposed to such risks. I am aware that farmers are already busy with the autumn sowing for harvest 2004 or rather have finalised this to a large extent. For this reason a rapid decision is necessary", he said.

Cereal market situation in Southern Europe

Spainpresented an information note on the cereals market in the south of the EU, concluding that the Commission should open tenders for the sale of rye from intervention targeted upon specific Member States. "We clearly cannot expect the EU to be an oasis of stable prices in a world of market tension. We have, of course, a tender open for operators in all Member States. There are no clear unambiguous differences between member States that can serve as the basis for such differentiation. I therefore do not think that the conditions prevailing on the EU internal market justify such an action", Commissioner Fischler responded.

Situation of the rice market

Portugal raised concerns of the situation of the rice market. Commissioner Fischler responded that the weekly prices for paddy rice did not show a market disturbance. "In Portugal, the market price is not 20% lower than the intervention price, but only between 2 and 3%. We are currently establishing the current rice balance sheet to find whether there is oversupply. Then we will be in a position to decide whether the actual intervention limit of 100.000 tonnes", he said.

WTO

Over lunch, the Council informally discussed the state of play of the WTO agriculture negotiations. « We expect that all parties respect to stick by the Doha declaration, not to go beyond it. In two weeks time, I will be in Rome for the World Food Summit. There, I will try to pass our messages for the conditions for a successful re-launch of negotiations not only to the wider public, but also to many developing countries, with which we have arranged a series of bilateral meetings », Fischler stressed.

Truffles

The Council discussed a French information paper on truffles. The Commission had the occasion recently to support the drafting at international level of standards for truffles, which will for sure help to allow better and fairer competition in this sector, which indeed contributes to rural development in some less favoured areas. "Concerning the issues raised by the French paper, I must stress that most of the actions described are already eligible either to rural development programmes or to financial instruments of the Common Organisation of the Market in the sector of fruit and vegetables. The Commission's programme of work for 2004 foresees a simplification of this COM for fruit and vegetables which could help truffle growers to better concentrate the supply". Mr Fischler said.

Surplus stocks in acceding countries

Some acceding countries raised concerns about a regulation regarding the prevention of speculative trade movements due to enlargement. This may lead to the piling of abnormal stocks in the new Member States. According to this regulation, the new Member States shall levy charges on individual holders of surplus stocks. The revenue of the charges shall be assigned to the national budget. This measure will have a deterrent effect, in particular on speculation on the differences in prices and lower import duties in the new Member States before accession, i.e. artificial stocks are pilled before accession and sold at higher prices after accession in the enlarged EU.

"It is simply not correct and has to be rejected that the imposition of charges on surplus stocks due to the Commission Regulation would prevent growth in the sales of agricultural products within the EU for a period of 3 years. The Commission Regulation clearly stipulates that only surplus stocks at the date of accession are subject to charges. Despite of the fact that the product list has been established on a well founded basis the Commission is willing to examine any new element raised by the new Member States which would justify a revision of the list. I would like to invite the new Member States to deliver concrete arguments for the products in the list which should be removed in their view. I would also like to express the Commission's willingness to examine how to alleviate the administrational burden related to the inventory of surplus stocks", Mr Fischler said.

Salzburg-Conference on the future of rural development

Mr Fischler briefly presented the conclusions of the Salzburg-Conference. More information at:

<A onclick="popup(this.onclick="popup(this.href+'&noframes=1',0,0);return false" href+'&noframes=1',0,0);return false" HREF="http://europa.eu.int/comm/agriculture/events/salzburg/index_en.htm">http://europa.eu.int/comm/agriculture/events/salzburg/index_en.htm

Part 2 : Fisheries

Scientific advice for fisheries management in 2004

Commissioner Franz Fischler presented the Commission's analysis of the latest scientific advice delivered by the International Council for the Exploration of the Sea (ICES) and the Scientific, Technical and Economic Committee on Fisheries (STECF). Mr Fischler said that that the news was bad, particularly for demersal species (living close to sea floor). Pelagic stocks (mid-water) and shellfish were in a somewhat better state. However, the number of stocks seen as being in a critical state continued to grow. ICES now identified 14 stocks as compared with 9 last year.

Mr Fischler said that it was clear that fisheries management by Total Allowable Catches (TACs) and quotas alone was not sufficiently effective in controlling the rate of exploitation in mixed demersal fisheries. Fishing effort had to be controlled to reduce fishing mortality (the amount of fish taken out the sea by fishing) and to rebuild endangered stocks. He added that the advice showed that the Commission was fully justified in proposing recovery plans for the stocks concerned.

"Recovery plans not only offer a better prospect for the future, they also allow for more progressive measures to be applied. Since they set long-term targets, measures do not have to be as severe as they are under annual decisions.", Commissioner Fischler reminded Council.

Turning to scientific advice which is generally questioned when the news is bad, Mr Fischer said: "I find it unacceptable that, despite the obligations of Member States in this area, the data provided are often incomplete or unreliable, in some cases, preventing scientists from carrying out certain assessments. Earlier this year, the Commission adopted an Action Plan to improve scientific advice. But we must all act responsibly to ensure that there is a better basis for the advice."

Proposals for Council Regulations establishing measures for the recovery of cod stocks and the northern hake stock

The Council had an exchange of views on two aspects of the Commission proposals on recovery plans for cod (COM(2003)237 IP/03/631 and MEMO/03/97) and northern hake (COM(2003)374 IP/03/910). After reminding Council that the first proposals on these plans had been tabled almost 2 years ago, Mr Fischler outlined the outstanding points: the harvest rules and fishing effort limitations.

The targets set in the cod plan seek to ensure an annual increase of 30% in the quantities of adult fish in the stocks concerned, while this annual increase has been set at 10% in the case of northern hake. The measures would be applied until stock sizes reach the targets set in the respective plans. With regard to the control of fishing effort, Mr Fischler said that a system involving Kilowatt/days would provide more flexibility - as called for by the sector and the administrations alike than set days at sea. The former would be more equitable and more effective at reducing by-catches.

Concluding the exchange of views, Commissioner Fischler said that the proposals had been discussed many times and that the Commission had paved the way for a Council decision.

Fisheries agreement with Greenland: decision on the modified fourth Protocol

Mr Fischler said that changes to the current Protocol, covering the period 1 January 2001 to December 2006, included the elimination of paper fish, the setting of the financial compensation at € 31,760,679 and the allocation of some €11 million to support Greenland in the restructuring of its fisheries sector (ME 26/06/2003). The changes also involve the possibility for EU vessels to undertake experimental fisheries for trial periods in Greenland waters since 1 July 2003. Other changes such as the introduction of licence fees for ship owners operating under this Protocol will be discussed in an ad hoc regulation which will be submitted to the Council at a later stage.

The Council gave its agreement, pending the lifting of a parliamentary reserve by the UK to the Commission proposal which covers the changes to fishing possibilities, budgetary support and experimental fisheries (COM(2003)601).