91997E4038

WRITTEN QUESTION E-4038/97 by Joaquín Sisó Cruellas (PPE) to the Commission (14 January 1998)

Subject: Anti-subsidy investigation into cochineal

The Commission has launched an anti-subsidy investigation into imports of cochineal from Peru following a complaint by Xantaflor SA (Spain), which produces most of the Community's output of this colouring substance. In the complainant's view the Peruvian manufacturers have received various public subsidies that have helped the rise in Peruvian imports and price levels have damaged Community production.

Could the Commission say what are the initial findings of this investigation?

Answer given by Sir Leon Brittan on behalf of the Commission (4 February 1998)

On 22 September 1997, Xantoflor SA lodged an anti-subsidy complaint alleging that imports of cochineal carmine originating in Peru were being subsidised and causing material injury to the Community producers. Pursuant to Council Regulation (EC) No 2026/97 of 6 October 1997 on protection against subsidized imports from countries not members of the European Community ((OJ L 288, 21.10.1997. )), the Commission found that the complaint contained sufficient prima facie evidence of subsidisation and material injury and published a notice of initiation of an anti-subsidy investigation in the Official journal ((OJ C 335, 6.11.1997. )).

After the publication of the notice of initiation, the Commission sent out questionnaires to all parties concerned. The replies to these questionnaires are due by the end of January 1998 and these replies will be verified in the course of February 1998. Therefore, it will only be possible to give a first assessment of this case after the verification and the analysis of the questionnaire replies, in accordance with the normal decision-making procedure. It should be stressed that this investigation is conducted according to the provisions of Council Regulation (EC) No 2026/97, which is the implementation into Community legislation of the World trade organisation (WTO) agreement on subsidies and countervailing measures.