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11277/99 (Presse 284)

PROVISIONAL VERSION
PRESS RELEASE
Subject :

2202nd Council meeting
- AGRICULTURE -
Brussels, 27 September 1999

 

President :
Mr Kalevi HEMILÄ
Minister for Agriculture of the Republic of Finland

 

CONTENTS

PARTICIPANTS
ITEMS DEBATED
WTO Millennium Round - Council conclusions
BANANAS
FOOD AID TO RUSSIA
DIOXIN
Labelling of GMO Feed
ITEMS APPROVED WITHOUT DEBATE
Internal market
·      Orphan medicinal products
Audiovisual policy
TRANSPARENCY
·      Public access to Council documents
EXTERNAL RELATIONS
·      UNRWA
·      Slovenia - participation in EC programmes
TRADE
·      Anti-dumping - wood pallets from Poland
·      Anti-subsidy - stainless steel bars from India
_________________
For further information call 285.78.33 or 285.63.19PARTICIPANTS
The Governments of the Member States and the European Commission were represented as follows:
Belgium :


Mr Jaak GABRIËLS
Minister for Agriculture and Small and Medium-sized Businesses

Denmark :

Mr Henrik DAM KRISTENSEN
Minister for Food, Agriculture and Forestry

Mr Poul OTTOSEN
State Secretary, Ministry of Food, Agriculture and Fisheries

Germany :

Mr Martin WILLE
State Secretary, Federal Ministry of Food, Agriculture and Forestry

Greece :

Mr Yiorgos ANOMERITIS
Minister for Agriculture

Mr Konstantinos VRETTOS
State Secretary for Agriculture

Spain :

Mr Jesus POSADA MORENO
Minister for Agriculture, Fisheries and Food

France :

Mr Jean GLAVANY
Minister for Agriculture and Fisheries

Ireland :

Mr Joe WALSH
Minister for Agriculture and Food

Italy :

Mr Paolo DE CASTRO
Minister for Agriculture Policies

Luxembourg :

Mr Fernand BODEN
Minister for Agriculture, Viticulture and Rural Development

Netherlands :

Mr Laurens-Jan BRINKHORST
Minister for Agriculture, Nature Management and Fisheries

Austria :

Mr Wilhelm MOLTERER
Federal Minister for Agriculture and Forestry

Portugal :

Mr Luís VIEIRA
State Secretary for Agricultural Modernisation and Food Standards

Finland :

Mr Kalevi HEMILÄ
Minister for Agriculture

Sweden :

Ms Margaret WINBERG
Minister for Agriculture

United-Kingdom :

Mr Richard PACKER
Permanent Secretary General, Ministry of Agriculture, Fisheries and Food

* * *



Commission :

Mr Franz FISCHLER
Member

Mr David BYRNE
Member




WTO Millennium Round - Council conclusions
The Agriculture Council stresses that safeguarding the future of the European model of agriculture, as an economic sector and as a basis for sustainable development, is of fundamental importance because of the multifunctional nature of Europe's agriculture and the part agriculture plays in the economy, the environment and landscape as well as for society. Thus the contribution of agriculture remains vital to the European economy and society.
With this view and within the preparation of the European Union's position in view of the upcoming Seattle Ministerial Conference of the WTO the Agriculture Council has held an intensive discussion on the agricultural aspects of these negotiations. At the end of its deliberations, the Council has drawn the following conclusions:

I. General Aspects
The Council recognises the importance of the further liberalisation in and expansion of trade for agricultural products as a contribution to sustained and continued economic growth, and as foreseen in Article 20 of the Agreement on Agriculture.
The Council also confirms that it is firmly resolved to continue developing the existing European model of agriculture based on its multifunctional character, as endorsed by the European Council, and to act to assert its identity both inside and outside the European Union.
European agriculture as an economic sector must be versatile, sustainable, competitive and spread throughout Europe, including the regions with specific problems. It must be capable of maintaining the countryside, conserving nature and making a key contribution to the vitality of rural life. It must also be able to respond to consumer concerns and demands regarding food quality and safety, environmental protection and the safeguarding of animal welfare.
The Council recalls the scale of the efforts made to curb the budget and exercise rigour in implementing the Common Agricultural Policy. It underlines that the efforts made notably in terms of reducing support prices, represent an essential contribution by the European Union in stabilising the world's agricultural markets.
Therefore, as was decided by the European Council in Berlin, the decisions adopted regarding the reform of the CAP within the framework of Agenda 2000 constitute essential elements of the European Union's position for the future multilateral trade negotiations at the WTO.
Accordingly, the Union's policy in the forthcoming negotiations shall be founded on the full Agenda 2000 package decided by the European Council.
The Council recalls that negotiations on agriculture will be based on the principles enshrined in Article 20 of the Agreement on Agriculture. This implies that the long-term objective of substantial progressive reductions in support and protection resulting in fundamental reforms is an ongoing process. Moreover, this process is conditioned by other concerns which must also be taken into account, notably: the experience and effects of implementing reduction commitments agreed in 1994, special and differential treatment of developing countries, the objective to establish a fair and market oriented agricultural trading system, and non-trade concerns.
The Council sees a need to take an offensive line within the fourthcoming WTO negotiations. This is necessary in order to achieve inter alia the following aims: taking full advantage of the expansion in world trade while maintaining and developing the European model of agriculture with its multifunctional characteristics and with high quality and safety standards; placing market liberalisation in a setting which brings international recognition of the constraints imposed on European farmers and agricultural products and does not call into question the principle of the Community preference.

II. Negotiating modalities
The Council fully subscribes to the idea of a new comprehensive WTO Round. Indeed, only a comprehensive approach can produce substantive and balanced results which will be for the benefit of all WTO members.
The Council also welcomes the approach already stated by the European Union which is based on the principle of a "single undertaking", i.e. nothing is decided until agreement has been reached on all issues; all participants must accept and implement all agreements.

III. European Union's objectives in the negotiations
Bearing in mind the above considerations, the main objectives of the European Union in the agricultural sector should be the following:
7. With regard to the improvement in access, the European Union, as a major food exporter, must act with a view to sharing in the expansion of world trade, which will be offered as a result of the new Round. The European Union therefore, is prepared to negotiate for lowering trade barriers in agriculture, bearing in mind that this process is more advanced in some agricultural sectors than in others. However, it must also obtain, as a counterpart, improvements in market opportunites for its exporters. In connection with the improved market access, protection for Community products, whose reputation for quality is linked to geographical origin or indication, should also be obtained.
8. The "Peace Clause" and the "Special Safeguard Clause" have proved to be very useful instruments in the implementation of the Uruguay Round. Similar instruments will be needed in the future. This is necessary in order to provide legal security for the outcome of the negotiation and to enable abnormally low price offers or import surges to be dealt with without frequent recourse to more disruptive action under the general safeguard clause.
9. It is essential, for the affirmation of the CAP to maintain the balance of the present elements of the Agreement on Agriculture, in particular those which concern modalities relating to domestic support. This remains an essential element in providing assistance to WTO members to move away from price support towards more transparent and non-distorting policies. Furthermore, direct aids can contribute to some of the missions of multifunctional agriculture particularly in the field of rural development.
The Council is prepared to continue to negotiate the process of reductions in export subsidies provided that all such support is treated on equal basis. Modalities of export support commitments should be reviewed. For the Council, it is imperative to introduce discipline on the use of export credits. Moreover, appropriate solutions must be found to other less transparent forms of export support such as state trading and the provisions of food aid.
The Council considers that the European Union should be prepared to negotiate reductions in support provided that, in particular, the concept of "blue and green" boxes will continue.
The Council considers that an appropriate balance has to be struck in the outcome of the negotiations between trade and non-trade issues, most of which result from the multifunctional role of agriculture or are intended to answer the legitimate concerns of the rural world and of consumers. This applies in particular to the multifunctional role of agriculture including environmental protection, safety and quality of food and animal welfare.
The Council considers it essential to ensure that progress on trade issues does not damage the ability of those employed in agriculture to supply public goods, in particular as regards the environment and the sustained vitality of rural areas. For the Council, direct aid measures with no or minimal trade impact must have an important role to play in this context.
With regard to food safety and quality, the European Union should seek solutions which assure consumers that the WTO will not be used to force onto the market products about whose safety there are legitimate concerns and which allow the European Union to establish the appropriate level of protection. Without prejudice to the provisions of the disputes settlement procedure, it would be useful to obtain clearer general recognition of the precautionary principle.
Additional concerns of consumers can also in part be met by providing more information through inter alia the development of labelling schemes.
Without prejudging at this stage the nature of possible solutions, the Council, stressing the need to ensure equal conditions of competition between European Union and third country producers, considers that international acknowledgement of animal welfare rules must be one of the key points of the negotiating brief for the WTO Millennium Round.

IV. Other aspects of the negotiations
Recognising the need for a special and differential treatment for the developing countries, the Council shares the view that the new Round should provide benefits to developing countries and assist the integration of those countries, particularly the least developed countries, into the international trade system. To this effect, the European Union should be prepared, within the context of a joint effort amongst developed countries, to go beyond the regime already applied to them within the GSP and the Lomé Agreement. Furthermore, the Council recalls that the European Community has proposed that WTO Ministers meeting at Seattle enter into the committment to ensure duty-free market access no later than the end of the new round of negotiations for essentially all products exported by the least-developed countries.
The Council recalls that the enlargement of the EU will have a profound impact on European agriculture and should contribute to the stabilisation and development of world markets through the application of Community policies. Without prejudice to Article XXIV (6) of the GATT, this should be given its due weight in the negotiations.
The Agriculture Council intends to play an active role in the forthcoming negotiations and therefore expects to be regularly informed on their evolution in order that it can provide an appropriate input when necessary.

BANANAS
The Council took note of an assessment by Commissioner FISCHLER on the Commission's contacts with the interested parties in the banana dispute and of the statements made by Member States. With these in mind the Council encouraged the Commission to continue its talks with the parties concerned and to submit, as soon as possible and in the light of the outcome of these talks, formal proposals on the adaptation of the banana regime.

FOOD AID TO RUSSIA
The Council was informed by the Commission on a possible new request for food aid by Russia and on the elements resulting from an analysis of the present situation which need to be taken into account in responding to such request.

DIOXIN
The Council
- has been informed by Commissioner BYRNE on the various developments since its July meeting linked with the dioxin crisis and on the progress reached within the Commission on the implementation of the legislative work programme announced in July with a view to implementing the June Council conclusions;
- welcomed the confirmation by the new Commission of its intention to act rapidly and thoroughly to adapt animal nutrition legislation and to propose measures on animal waste;
- instructed the Permanent Representatives Committee to ensure a rapid and timely examination of the proposals announced by the Commission, bearing in mind the Council's stated objective of adopting those proposals within the shortest possible delay.
- has taken note of the concerns expressed by Belgium on the economic impact of the dioxin crisis and on the income losses incurred by producers.

Labelling of GMO Feed
The Council recalled the importance it attaches to the issue of the labelling of genetically modified animal feed bearing in mind the concerns of both the farming sector and consumers and confirmed its commitment to address rapidly the issue when it receives a proposal from the Commission.
The Council urged the Commission to press ahead with the ongoing preparatory work on a novel feedingstuffs Regulation and to make every effort to submit the announced proposal as soon as possible.


ITEMS APPROVED WITHOUT DEBATE

Internal market

Orphan medicinal products
The Council adopted its common position on the modified proposal for a Regulation on orphan medicinal products. The common position will be transmitted to the European Parliament, for second reading in accordance with the co-decision procedure. A political agreement on the common position had already been reached at the "Internal Market" Council on 21 June 1999.
The aim of the proposal is to establish a Community procedure for designating orphan medicinal products and to introduce incentives for research, development and marketing in respect of such products, in particular by granting exclusive marketing rights for a 10 year period. "Orphan drugs" are medicinal product to diagnose, prevent or treat conditions which occur so infrequently that the cost of developing and bringing to the market a drug would not be recovered by the expected sales figures. The pharmaceutical industry therefore is generally reluctant to develop such drugs under normal market conditions.

Audiovisual policy
Further to the approval of the texts on 28 June 1998 by the "Culture/Audiovisual" Council, the Council has now formally adopted its conclusions on "The Results of the Public Consultation on the Convergence Green Paper" and "The Role of Self-Regulation in the Light of the Development of New Media Services" respectively. Both texts were published in full in the Press release (No 9409/99 - Presse 206) issued following the above-mentioned Council session.

TRANSPARENCY

Public access to Council documents
The Council approved the replies
- to the eleventh and twelfth confirmatory requests for access to documents made by Mr Steve PEERS in 1999.
- to the fourth and fifth confirmatory requests for access to documents made by Mr Ben HAYES in 1999.
- to the fourth confirmatory request for access to documents made by Mr Tony BUNYAN in 1999.
The Danish and Swedish delegations voted against the replies.

EXTERNAL RELATIONS

UNRWA
The Council adopted a Decision on the conclusion of the new Convention between the EC and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), governing the Community's contribution for 1999-2001.
The Convention stipulates that the EC will make annual contributions to education programmes of 32.45 Meuro in 1999, 34.07 Meuro in 2000 and 35.77 Meuro in 2001, and to health programmes of 5.88 Meuro in 1999, 6.17 Meuro in 2000 and 6.48 Meuro in 2001. Furthermore, taking into account the annual evaluation of the needs of the refugee population, other EC resources may also be mobilised for UNRWA's food aid programme to meet the specific needs of vulnerable groups.

Slovenia - participation in EC programmes
The Council approved on behalf of the EU the draft Decision of the EU/Slovenia Association Council setting the terms and conditions for the participation of Slovenia in the third multiannual EC programme for small and medium-sized enterprises.

TRADE

Anti-dumping - wood pallets from Poland
The Council adopted a Regulation amending Regulation (EC) No 2334/97 imposing a defintive anti-dumping duty on imports of flat pallets of wood from Poland.
The new Regulation adds 13 companies to the list of those subjected to the weighted average duty of 6.3% (cooperating companies not included in sample), as they were able to demonstrate that they were "new exporters" (i.e. they did not export the product to the Community during the investigation period; they are not related to companies subject to the duties; they have exported to the EC after the investigation or have entered into any irrevocable contractual obligation to export a significant quantity to the EC).
5 of these 13 companies have also offered undertakings with regard to EUR-pallets which were accepted by the Commission. These companies are therefore added to the list of those whose exports of EUR-pallets will not be subject to the anti-dumping duty.

Anti-subsidy - stainless steel bars from India
The Council adopted a Regulation amending Regulation (EC) No 2450/98 imposing a definitive countervailing duty on imports of stainless steel bars from India and collecting defintively the provisional duty imposed.
Further to a request for an accelerated review made by two Indian companies which claimed they were new exporters and that therefore they should be subjected to an individual rate of duty, this Regulation sets the rate at 12% for Sindia Steels Ltd and 5.5% for Meltroll Engineering Ltd, Mumbai.

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