92001E1511

WRITTEN QUESTION P-1511/01

by Jeffrey Titford (EDD) to the Commission

(15 May 2001)

Subject: New Banana Import Regime

On 2 May the European Commission adopted a regulation to implement a new Banana Import Regime, following agreements reached between the EU, the US and Ecuador. In view of the great concerns being expressed by British banana importing companies, could the Commission indicate what the effects of this Regime will be on British companies. If the effects on British companies are not currently available, please specify when they will be available.

Please explain why this new Regime has been agreed, despite strenuous objections from many interested parties including the European Community Banana Trade Association, the Banana Plantation Workers' Union (SITRAP) of Costa Rica, The National Chamber of Independent Banana Producers SA, the CSIB (Higher Council of Banana Importers France), the Banana Consultative Committee and many others?

In view of the Banana Consultative Committee's strong objections to the Regime on the grounds that it is seriously damaging the UK/EU banana trade, damaging to Caribbean sources and discriminatory and that the timetable for implementation does not give sufficient time to renegotiate the necessary substantial amendments to fruit purchase and logistical contracts, why is the Commission proceeding with this Regime in such haste and without proper consultation?

Answer given by Mr Fischler on behalf of the Commission

(19 June 2001)

The new regime has been agreed because it resolves the longstanding dispute with the United States and Ecuador on the Community banana import regime and the United States have agreed to suspend sanctions from 1 July 2001. Also, most parties concerned preferred a system based on historical references, although the Commission had, until the Understandings were reached, pursued an approach based on First Come First Served since it had been the only viable option up to that time.

The Regulation adopted by the Commission on 28May 2001 was published on 8 May 2001 (Commission Regulation (EC) No 896/2001 of 7 May 2001 laying down detailed rules for applying Council Regulation (EEC) No 404/93 as regards the arrangements for importing bananas into the Community(1)). This Regulation must apply from 1 July 2001 as required by Council Regulation (EC) No 216/2001 of 29 January 2001 amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas(2). Therefore, following the Understandings with the United States and Ecuador it was necessary to act quickly since it was important that companies were aware of the new requirements in advance of the July 2001 application date. In addition, the Commission has had continual contacts with the banana industry on the new regime.

In the process of developing the Understandings the Commission has taken into account the necessity to maintain an equilibrium in the market particularly between traditional operators and non-traditional operators. It is for this reason that 17 % of the quota is reserved for non-traditional operators.

(1) OJ L 126, 8.5.2001.

(2) OJ L 31, 2.2.2001.