Conclusies raad Landbouw en Visserij: actieplan voor organische landbouw, rijstimporten, wijnexport naar VS, bananen, schoolmelk, visserij (en)

Agriculture

Fruit and vegetables

The Council held an orientation debate on the fruit and vegetables market organisation. Commissioner Fischler observed that there was a consensus to continue on the path started with the reform of 1996. For transformed products, the Commissioner said that the picture was less clear and a deepened analysis was needed. Regarding crisis management, he pointed out that the Commission was actually working on a communication covering all sectors which could also be useful for the fruit and veg sector. He showed himself sceptical vis-à-vis suggestions to introduce specific promotion tools in this sector, taking into account that horizontal promotion tools already exist.

Organic Action Plan

The Council adopted conclusions to kick-start the action plan for organic farming. Welcoming the decision, Mr Fischler said "The fact that Council shares our analysis of the situation illustrates that we have now a solid and workable platform on which to build organic farming policy. I have consistently maintained that organic farming, with its focus on care for the environment, high standards of animal welfare, and production of higher-value added quality foods tailored to consumer demands, should occupy a central place in the new CAP. And with these Conclusions, you give the Commission the necessary support to do our part of the job. I also note with satisfaction the explicit support for measures to improve consumer confidence and the functioning of the internal market."

WTO DDA

Commissioner Fischler informed Ministers about the recent state of play of the Doha Round. "The framework decided on 1 August in Geneva locks in the recent reforms of the EU's Common Agricultural Policy (CAP). Overall levels of the most trade distorting domestic support will have to be substantially reduced and down payment of 20% of this reduction is foreseen in the first year of the implementation of the agreement. The Blue Box and the Green Box have been preserved. Now technical discussions have started in order to prepare an agreement on more detailed modalities in Hongkong end 2005."

Mercosur negotiations

The Commissioner have an update on the EU-Mercosur negotiations. Mercosur unilaterally presented a new offer on 24 September. "Unfortunately, the offer turned out to be degraded in global terms compared to the offer from May this year.

In Mercosur's offer on agriculture, there were some disappointing elements such as Mercosur coming back to the issue of EU internal subsidies, the refusal of all elements which would protect geographical indications and the back-stepping in market access conditions for some EU key export products. Consequently, the EU side decided to reciprocate by presenting an offer meeting the same level of ambition as the Mercosur offer (i.e. a reduced offer). In agriculture, our offer has also been reduced in certain areas. No increase was made in the tariff quota volumes. We will now see whether the Ministerial Meeting in Lisbon on 20 October will lead to progress.", the Commissioner underlined.

Rice imports

Mr. Fischler updated his colleagues on the state of play of the new import regime for rice under GATT Article XXVIII. The new regime adopted in July is now in force as from 1 September and is based on a duty of 65 €/t for husked rice and 175 €/t for milled rice.During the negotiations, it was possible to conclude an agreement with India and Pakistan, but not with the other two partners having rights in the negotiations, i.e. the USA and Thailand. "We will therefore pursue the negotiations with both countries in order to arrive at a mutually satisfactory agreement, bearing in mind the sensitiveness of both our producers and our importers.", he stated.

Wine agreement with US

Informing the Council about the latest developments regarding the EU/US negotiations to conclude a wine and spirits agreement, Commissioner Fischler recalled that the objective of the current negotiations was to agree on an agreement which will be a first step agreement. "This means that the level of ambition of this first step agreement cannot and should not be compared to other important bilateral negotiations on trade in wine in which the EU is currently engaged. The negotiations on the conclusion of an agreement on trade in wine resumed in September 2004. The discussion so far has been rather constructive. And the Commission will continue these talks. We are aiming at consolidating progress made so far and resolving outstanding issues with a view to reaching a mutually acceptable first step agreement as soon as possible.", he pointed out.

Bananas

The Commission said that following the adoption by the Council of the GATT Article XXVIII mandate to negotiate the move to tariff only for bananas in the WTO on 12 July, the Commission have proceeded immediately with the relevant notification to the WTO. "We intend to start discussions with Ecuador, Costa Rica, Colombia and Panama on Article XXIV.6 to discuss compensation for enlargement and on Article XXVIII for the move to tariff-only, in the coming weeks.", Mr. Fischler explained.

US Bioterrorism Act

Commissioner Fischler made clear that while the Commission shared the overriding objective to improve the security of citizens by preventing bio-terrorist acts, it believed that there were other ways of reaching this objective without impeding trade. He said that the Commission will continue to follow this issue closely with a view to having a clear picture of actual impact on EU trade in foodstuffs.", he said.

School milk

As to the discussion on changing the current school milk regime, Mr. Fischler pointed out that there was a review four years ago which led to skimmed milk products and yoghurts being made eligible for the EU subsidy and a new calculation of the subsidy putting more emphasis on the protein content of milk products instead of on fat. "From the Commission's point of view, the health aspects have already been addressed and there are no obstacles to offer low fat products to schools under the scheme. Although I understand the Danish point of view, I believe that the only objective basis to fix the aid amounts is to base ourselves on the value of the milk components of the products concerned. Any other criteria would be arbitrary and be contrary to the general principles in our market organisations.", the Commissioner underlined.

Implementation of CAP reform

The negotiations on the CAP reform resulted in June 2003 in various decoupling models: the historical model (the one proposed by the Commission), the regional model and within the regional model the so-called hybrid model (requested by some Member States) where regional and historic elements can be combined. In certain exceptional cases under the hybrid model (chosen by some Member States, including Denmark), there is the possibility to concentrate the individually allocated historical payments (payments received during the reference period 2000-2002) on very few hectares (the hectares declared by the farmer the first year of application of the Single Payment Scheme). It is clear that such practices would not be desirable. However, there are instruments in place to keep such practices under control.

Export refunds for cereals

Regarding Hungary's request for a special export tender for wheat, Mr. Fischler acknowledged that the surplus situation is particularly serious in Hungary and other Central European Member States, where historical record harvest were attained. However, Fischler said that the Commission could not accept the requests to open a special export. "We have a Single Market and the heavy surplus situation is rather the norm than the exception. There is no justification to single out Hungary or any other Central Europe Member State in this context. Moreover, EU wheat is competitive internationally. The Commission accepts however that such crop levels may cause some disturbance in the organisation of cereal storage. That is why the Commission put forward a proposal to accept the Hungarian requests linked to payment of transport costs from intervention stocks to the Romanian port of Constanza. Furthermore, the Commission is also preparing a proposal to the Council adopting favourable conditions for reimbursement of intervention storage costs.", Mr. Fischler stated.

State aids for Lithuanian fruit producers

Last week the Lithuanian authorities have notified to the Commission a project of State aid aimed at compensating the damages suffered by owners of apple orchards, strawberry and black currant plantations in the areas affected by spring frosts which occurred in May 2004.

Mr. Fischler explained that the services of the Commission were examining this measure in co-operation with the Lithuanian authorities.

Co-existence

Mr. Fischler welcomed the recent adoption by the Danish Parliament of national legislation for the co-existence of genetically modified crops with conventional and organic agriculture. The Danish law, which has recently been formally notified to the Commission, is currently being inspected by the Commission services. As regards the Task Force for co-existence he stressed that the Commission was strongly committed to help Member States in their process of developing national approaches to co-existence. "The Commission is currently in the preparation of setting up a coordination network among the Member States. Even though I believe that co-existence is best addressed on a national or regional level, this does not mean that everybody has to re-invent the wheel. The network will provide the means for mediating the exchange of information on best practices and scientific results obtained by the Member States."

Concerning the labelling thresholds for the adventitious presence of GM seeds in conventional seed lots, the Commissioner explained that since no thresholds for the adventitious presence of GMOs in conventional seed lots have been established, any seed lot containing GM seeds authorised for the cultivation in the EU has to be labelled as containing GMOs. Seed lots containing GM seeds that are not authorised for cultivation, can not be marketed in the EU.

Fisheries

Commissioner Fischler spoke briefly about the early indications from the latest scientific advice from the International Council for the Exploration of the Sea (ICES). This advice on fishing possibilities for 2005, which is yet to be finalised, seems to provide both good news and bad news. The Commission will carefully examine the scientific advice in detail once it has been finalised and published. It is committed to engaging in a dialogue with the fisheries sector on this issue and will be looking to hear ideas on how to ensure stable and sustainable fisheries for the future.

Proposal for a Council Regulation establishing a Community Fisheries Control Agency and amending Regulation (EC) N° 2847/93 establishing a control system applicable to the Common Fisheries Policy

The Council held a policy debate on the Commission proposal to establish a Community Fisheries Control Agency as a key part of the EU drive to improve compliance with the fisheries rules under the 2002 reform of the Common Fisheries Policy. The debate was organised around the five following topics:

• The extent of the Agency's tasks and the balance between these tasks. The proposed task of the Agency is to provide support to Member States in fulfilling their monitoring and control obligations in EU waters, within the framework of EU bilateral fisheries agreements as well as of international control and inspection schemes within Regional Fisheries Organisations. This would be done by organising the joint deployment of the means of control and inspection in the Member States on the basis of an agreed EU strategy. Joint Deployment Plans (JDPs) would be developed.
• How to take account of the specificities of monitoring and control in the various geographical areas covered by the CFP. Under the Commission proposal, a specific monitoring programme has to be developed before a Joint Deployment Plan is adopted by the Agency.

Member States would be directly involved in the development of this programme which should include a definition of the objectives, the measures to be implemented and the strategy required to ensure that the inspections concerned are as effective and economical as possible.

• The decision-making procedure on the Joint Deployment Plans. The Commission has proposed that JDPs be prepared by the Agency in co-ordination with the Member States concerned and adopted by the Agency. However, a JDP could only be adopted by the Agency if it has been included in the annual work programme established by the Agency's Administrative Board.
• The extent of the powers of the inspectors from the Member States assigned to multi-national inspection teams in the context of a Joint Deployment Plan. Under the Commission proposal, a list of inspectors from the Member States concerned authorised to carry out inspections in Community waters and on Community fishing vessels would be established for the implementation of the Joint Deployment Plans. Commission inspectors would only join such teams in the context of their responsibility to ensure that the inspections carried out by the Member States are in compliance with CFP rules.
• The composition and voting rights in the Agency's Administrative Board. The Commission recalled that the proposed composition and voting rights of the administrative board were based on the necessity to strike a balance between the part played by the Member States and the need to ensure that the Agency acts in the interest of the Community.

The Council stated its support for the creation of the Agency as a tool to make enforcement of CFP rules more effective and uniform. Questions focused on the need for more clarity in the decision-making process on the setting up of Joint Deployment Plans and on the proposed composition and voting rights of the Agency. Work will continue on these issues.

Bilateral Agreement EU-Norway

Commissioner Fischler informed the Council that early indications showed that a number of changes in the annual EU swap of fishing possibilities with Norway will be necessary for next year. This, he warned, would make negotiations with Norway more difficult than in previous years.

This swap, based on agreed values in "cod equivalent" for each of the species of fish to be transferred between the two Parties, is balanced as the fishing possibilities transferred from Norway to the EU are equal to the transfers from the EU to Norway.

From the initial indications of the latest scientific advice, it will be more difficult to reach a balance for next year due to expected significant reductions in certain fisheries both in EU waters and in the waters of Greenland under the EU/Greenland bilateral fisheries agreement. Part of the fishing possibilities allocated to the EU under this agreement have traditionally been transferred to Norway in exchange for fishing possibilities for EU vessels in Norwegian waters.

The Commission is anxious for agreement to be reached before the end of the year so that EU fishermen operating in Norwegian waters can start fishing in January 2005. It stressed the need for all Member States concerned to be prepared to share the burden of the current situation in order to ensure a sustainable and balanced arrangement with Norway for 2005.

Underlining the fact that this was a separate issue, Mr Fischler regretted the lack of co-operation on the part of Norway in two areas of interest to the two Parties. First, there is the continued reluctance in Norway's part to reach agreement on a much needed arrangement on the management of the blue whiting fishery.

Recalling the sustained EU efforts in this area, Mr Fischler also pointed out that while the EU had kept its catches of blue whiting under strict control over the past few years, Norway had not had regulatory measures in place and consequently had tripled its catches. This, he said, was unfair to the EU.

He also regretted Norway's decision to discontinue the coastal states agreement on Atlanto-Scandian herring and its refusal to renew the 2003 bilateral agreement on this stock for 2004. Furthermore, Norway had banned landings of Atlanto-Scandian herring by EU vessels in 2004.

Mr Fischler reiterated the Commission's willingness to show flexibility on all these issues but stressed that to be successful there had to be a desire on both sides to find a solution.

Proposals for Council Regulations establishing measures for the recovery of a) the Southern hake and Norway lobster stocks in the Cantabrian Sea

and Western Iberian peninsula and amending Regulation (EC)

N° 850/98

b) the sole stocks in the Western Channel and the Bay of Biscay

The Council held a policy debate on the Commission proposals for these two recovery plans. The Commission reminded Council that southern hake was a fundamental species in the Iberian Peninsula. Though it did not represent a high percentage of total catches in the mixed fisheries in this region, it was an indicator of the general state of demersal resources (living close to the sea floor) around the Iberian Peninsula. Norway lobster had to be given particular attention and be subject to specific measures over and beyond those in place for southern hake in this area, too.

Sole in the Bay of Biscay and in the western Channel are depleted stocks. However, the provisional scientific advice seems to indicate that ICES would not view the Bay of Biscay sole as a recovery stock. In the light of this and other information, it may be that the proposed recovery plans could be replaced by long-term management plans.

Miscellaneous

Consequences of the increase of oil prices on fisheries

The French Delegation wished to draw the attention of the Council to the consequences of the substantial increase in oil prices on the economic situation of fishing enterprises. It also called for measures to be taken at the European level to alleviate the difficulties faced by the fisheries sector. It provided details of the measures that France is to take in favour of the French sector.

While acknowledging these difficulties, the Commission reminded the Council that any State aid towards the running costs of enterprises is incompatible with the EU Treaty. As fishing fleets from different Member States fish on the same fishing grounds and supply a common market, any operational aid would particularly distort competition. Moreover, the effects of the increase in oil prices are felt world-wide and affect all fishing industries.

Only restructuring aid, involving a plan to reduce fleet capacity, could be allowed. Apart from that, aid for social purposes is, of course, always possible, including with EU co-financing under the FIFG.

Fisheries Agreement EU-Angola

The Spanish Delegation wished to convey Spain's concern regarding the difficulty facing the EU fleet which used to operate in Angolan waters under the Fisheries Agreement between the EU and Angola. The latest protocol to this Agreement expired last August. Negotiations with the Angolan authorities with a view to concluding a new fisheries protocol have hitherto not been successful. The Spanish Delegation raised the question of compensation for the fleets concerned if negotiations failed.

Recapping on the negotiations so far, Mr Fischler pointed out that Angola's Fisheries Minister had expressed confidence in reaching agreement on a new protocol. Angola had also announced that is was preparing a new proposal which would provide a basis on which to continue negotiations.