(2004/C 88 E/0643)

WRITTEN QUESTION E-2527/03

by Glenys Kinnock (PSE) to the Commission

(29 July 2003)

Subject:   Rum

The EU has recognised the importance of the rum sector for the economic and social development of some ACP countries. Special provisions for rum are contained in the EU-US Agreement on White Spirits to back up this recognition. The terms of the Special Memorandum on rum attached to this zero for zero agreement establishes a residual tariff that provides both ACP and EU rum producers in the French DOM a small measure of continuing preference in the European market until such time as traditional suppliers might move from the production of commodity rums to value-added branded products able to compete with large and often subsidised producers in third countries.

Would the Commission, therefore, outline what measures it intends to take during the upcoming GSP review to ensure its commitments to ACP rum producers are kept? Would the Commission confirm that rum is excluded from the GSP review?

Answer given by Mr Lamy on behalf of the Commission

(22 August 2003)

The Joint Declaration on Rum (Declaration XXV) of the African, Caribbean and Pacific Countries (ACP) — Union Partnership Agreement recognises the importance of the rum sector for the economic and social development of several ACP countries and regions and the challenges it faces, inter alia, from the liberalisation of the European rum market.

In the aim of honouring the declaration and providing support to enable ACP rum exporters to increase competitiveness and notably to assist the ACP rum industry to move out of bulk commodity production into higher-value branded rum products, the Union has approved a EUR 70 million programme. This programme is now fully operational, the regional association of Caribbean rum producers, Wirspa, having been strengthened in order to take care of the management of the different programme activities.

Rum is not included in the general arrangements of the Union's current General system of preferences (GSP) scheme which ends on 31 December 2004 although it is included in the GSP's scheme for the least developed countries for which imports of all products except arms and ammunition are duty-free (under the so-called Everything but arms (EBA) scheme). The Commission does not foresee a change to the situation with regards to rum even after the review of the current GSP.