91999E0393

WRITTEN QUESTION E-0393/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(1 March 1999)

Subject: Reallocation of resources saved by COM in fruit and vegetables

Exports of citrus fruits have run up against severe problems in Greece, which is particularly affected by the devastating economic crisis in Russia - previously the destination for the bulk of Greek exports - leaving citrus fruit growers in a dire financial situation. At the same time, export subsidies for fruit and vegetables have been slashed by more than the GATT-agreed figure, producing huge savings amounting to ECU 76 million for 1997-98.

The citrus fruit sector is in need of support in order to improve and increase its export activities and restructuring. Will the Commission, therefore, reallocate the amount of ECU 76 million in savings made in 1997-98 through excessive cutbacks in export subsidies in order to implement measures to help that sector cope with the severe problems it faces?

Answer given by Mr Fischler on behalf of the Commission

(7 April 1999)

The Commission has provided export subsidies for all the quantities permitted by the General Agreement on Tariffs and Trade (GATT) within the budgetary limits imposed by that Agreement. Its aim is to maintain export flows, rather than to spend at all costs the total budget permitted by the GATT Agreement. During the 1997/98 marketing year, oranges accounted for 52 % of the total volume of fruit and vegetables receiving export subsidies, and lemons 17 %. In response to the crisis in Russia, which particularly affected Greek oranges, the indicative rates of refund for certain products were increased and, in the case of oranges, the rate has stood at EUR 50 per tonne since January 1999.

The Council is currently examining a proposal for a Regulation prepared by the Commission on measures to promote and provide information on agricultural products in third countries(1). These measures, once implemented, could help support exports of agricultural products, and in particular citrus fruits.

(1) COM(98) 683 final.