91997E3867

WRITTEN QUESTION E-3867/97 by José Valverde López (PPE) to the Commission (5 December 1997)

Subject: Olive oil exports

Olive oil exports are now subject to the limits imposed by the GATT agreements on refunds, which are to be reduced by 20% in volume and 36% in value, on a cumulative basis, by the year 2000.

What measures does the Commission envisage to offset these losses and support the opening-up of new export markets?

Answer given by Mr Fischler on behalf of the Commission (7 January 1998)

The GATT agreements provide for an export quota with Community refunds of 145 000 tonnes, to be reduced to 115 000 tonnes in 2000. Under the rules, the Commission is responsible for managing the quota and ensuring that the Uruguay Round agreement is properly implemented.

The Commission does not agree with the Honourable Member that these restrictions are causing a loss of market share. Indeed, only exports with refunds are restricted. The most recent data show that despite this quota, the level of refund necessary to export has fallen from ECU 40/100 kg at the beginning of the 1996/97 marketing year to ECU 18.50/100 kg at the end of the current marketing year. This shows that markets in non-member countries will pay a price which does not require large refunds.

The Community helps to open up new markets through the promotion policy of the International Olive Oil Council, which is mainly financed by the Community's promotion fund.