(2004/C 70 E/018)

WRITTEN QUESTION E-3734/02

by Caroline Lucas (Verts/ALE) to the Commission

(19 December 2002)

Subject:   Aid and the survival of the Caribbean banana industry

In June 2002 the ACP Council of Ministers meeting sent a resolution to the European Parliament, Council and Commission which drew attention to the fact that the new banana regime had ‘resulted in prices plummeting to levels which threaten to displace ACP suppliers, most of whom have no alternative markets’ and were ‘already creating tremendous social and economic dislocation and eroding the achievements in the fight against poverty’.

This problem results from the implementation of phase 2 of the EU-US Agreement which transfers 100 000 tonnes of quota from ACP (quota C) suppliers to dollar (quota B) suppliers, which effectively increased the total volume of bananas entering the market by 100 000 tonnes, enabling EU supermarkets to pursue a highly competitive price policy.

Will the Commission permit the Special Framework of Assistance and Stabex funds to be used more flexibly to permit aid to be used, temporarily, in part to enable growers to have help in essential inputs pending the economic benefits from improved productivity?

Answer given by Mr Nielson on behalf of the Commission

(28 February 2003)

The Commission has already discussed the price situation in the banana industry in several meetings with its African, Caribbean and Pacific (ACP) partners and addressed their concerns.

The objectives of the Special Framework of Assistance (SFA), set out in Article 3 of Council Regulation (EC) No 856/1999 of 22 April 1999 establishing a special framework of assistance for traditional ACP suppliers of bananas (1), are improvement of competitiveness and/or support to diversification. So far, no project was refused on the grounds of its non-eligibility. In parallel with the technical assistance aimed at modernising the ACP banana industry, projects approved so far have included different forms of aid targeted at growers, including social support and training programmes. However, direct income support could not be allowed under the SFA, and therefore if support for inputs took this form, it too would not be allowed.

As a complement to SFA, Stabex funds are being used, with a great degree of flexibility, to support social and human development such as housing schemes, pensions, schools, and private initiatives.

The new instrument FLEX, which is included in Envelope Β of the Financial Protocol of the Cotonou Agreement and replaces Stabex, might well constitute a possible source of funds in the future, provided the banana sector fulfils the requirements foreseen.

(1)  OJ L 108, 27.4.1999.