91999E0976

WRITTEN QUESTION P-0976/99

by Georges Garot (PSE) to the Commission

(7 April 1999)

Subject: Unfair competition between French and Spanish tomato producers

I have received complaints from the tomato producers of southwest France (Marmande) who say they are the victims of unfair competition from their Spanish counterparts in the Almería region. According to the results of a study they have carried out the difference between the cost price of Spanish tomatoes and French tomatoes is due essentially to differences in labour costs caused by the employment of illegal immigrants who work without a contract. As a result, the continued existence of the French tomato producers' businesses is threatened. At the same time the number of producers in the Iberian Peninsula continues to grow, assisted by structural aid from the authorities (for water, greenhouse extensions, etc.) and Europe (structural funds).

Is the Commission aware of these distortions of competition which are the direct result of the completion of the single market and the lack of social harmonisation in the Union? Does it have the power, in particular as a result of the new provisions of the Amsterdam Treaty which will shortly enter into force, to control illegal immigration more effectively? Lastly, can it consider the possibility of reparation in the form of compensation or a refusal to grant European aid in the event of social or indeed fiscal dumping?

Answer given by Mr Fischler on behalf of the Commission

(26 April 1999)

The Commission has contacted the Honourable Member to obtain a copy of the study quoted, which must be examined before any position can be taken on whether the situation described suggests a breach of Community law. Once the Commission has received the study, it will answer the substance of the Honourable Member's question as quickly as possible.