(Rule 52)

A3-0273/94

Resolution on trade with the Central and Eastern European countries in agricultural products

The European Parliament,

-having regard to the motion for a resolution tabled by Mr De Clercq on trade with the Central and Eastern European countries in agricultural products (B3-0999/93),

-having regard to the Council and Commission decision of 13 December 1993 on the conclusion of the Europe Agreement between the European Communities and their Member States on the one hand and the Republic of Poland on the other,

-having regard to the Council and Commission decision of 13 December 1993 on the conclusion of the Europe Agreement between the European Communities and their Member States on the one hand and the Republic of Hungary on the other,

-having regard to the interim Europe Agreements between the European Communities and their Member States on the one hand and the Republic of Bulgaria, the Republic of Romania, the Republic of Slovakia and the Czech Republic on the other,

-having regard to Rule 45 of its Rules of Procedure,

-having delegated the power of decision to its Committee on External Economic Relations, pursuant to Rule 52 of its Rules of Procedure,

-having regard to the report of the Committee on External Economic Relations and the opinion of the Committee on Agriculture, Fisheries and Rural Development (A3-0273/94),

A.whereas the previous existing deficit of the EU with the CEECs (Central and Eastern European Countries) has been transformed into a positive balance of trade, and whereas capital goods, manufactured goods and foodstuffs have contributed to the large growth in imports of the CEECs, which is due to the greater demand for high-quality imported goods and other marketing aspects,

B.whereas the hitherto existing deficit in agricultural trade of the EU with the CEECs has gradually decreased and recently turned into a surplus,

C.whereas four-fifths of the EU agricultural imports from the CEECs are in two sectors, notably in livestock/meat and fruit/vegetables,

D.whereas the total arable land of the six CEECs is equal to approximately 50% of the arable land in the European Union, and whereas this may result in surpluses of agricultural products in the CEECs once productivity has improved; whereas further, the yields in 1990 for cereals, meat and milk products were about two-thirds of the yields in the EU, which demonstrates the present low level of productivity,

E.whereas the EU's willingness to open its market for agricultural products is limited in view of the oversupply, and whereas the CEECs' possible future 'surplus' production will remain difficult to absorb for the same reason,

F.whereas the CEECs cannot exploit their current agricultural quotas to the full as a result of the lack of market information in the CEECs, the strict health and quality requirements laid down by Western firms and consumers, the conversion process which is hampering agricultural production in the CEECs and the low productivity levels which are making processed agricultural products more expensive than in the EU,

1.Welcomes the gradual expansion of agricultural trade with the countries of Central and Eastern Europe as an important contribution to consolidating the economic and political reforms they have undertaken;

2.Advocates that trade relations with the CEECs should be expanded in preparation for their accession to the EU, although this must not lead to serious disruption of the European market in agricultural products; such disruption could largely be prevented by bringing agricultural policy in these countries into line with Union agricultural policy, in conjunction with the Europe Agreements;

3.Takes the view that, in the longer term, moves to bring the agricultural policy of the CEECs into line with that of the EU will pave the way for greater liberalization of agricultural trade, as occurred in the 1960s among the EEC Member States;

4.Takes the view that the more effective use of their quotas by the CEECs, by means of measures to bring the quality of their agricultural products into line with EU market requirements, must not be regarded as a governmental task, but rather one for firms in the importing and exporting countries, which must ensure that production and shipment methods tailored to market needs are employed;

5.Calls on the Commission, in view of the need to render the principal elements in the agricultural quotas provided for in the Europe Agreements more transparent and manageable and convert them into a more dynamic system, to draw up a report on the functioning of the current quotas, the way in which they are implemented and the earnings which the exporting CEECs generate from their exports to the EU;

6.Takes the view that the decision to apply the principle of asymmetry fails to take adequate account of the phenomenon referred to in paragraph 4, whereby the CEECs are now building up larger export markets for certain agricultural products which they are suddenly supposed to exploit when they reach the take-off phase: increased tariff quotas for these products are therefore not required at present; the EU export refunds for most agricultural products could be temporarily reduced in order to restore the balance of trade;

7.Recognizes that, in the longer term, when productivity in the CEECs has reached Western levels, the reformed CAP combining lower producer prices with income support payments can provide a framework for the expansion of trade; the income support payments in the EU and, if necessary, in the CEECs may vary during a lengthy transitional period, not least in view of the disparities in income requirements and the price of agricultural land; points out that, in view of the considerable potential for growth in the agricultural sector in Central and Eastern Europe, it appears possible that, in the medium to long term, surpluses considerably in excess of domestic requirements will also be produced there and that an early start should be made on seeking common solutions through a policy aimed at establishing market equilibrium in order to prevent such surpluses;

8.Points out that trade is still possible under a quota system in certain agricultural sectors;

9.Proposes that the quotas granted to the CEECs in the next few years leading up to their accession should no longer be based on historical export levels but, with one eye to the market situation in the EU, should anticipate as far as possible post-accession trade patterns;

10.Proposes that the EU and the CEECs should ideally offer each other reciprocal market access in line with the GATT provisions, a development which is feasible, since all the parties are GATT members and have thus given an undertaking to comply with GATT rules in all cases;

11.Takes the view, since the EFTA countries as a group have not awarded any agricultural quotas, having gone over to a disparate system of bilateral negotiations, that any quotas awarded by future EU Member States and their associated countries must be brought into line with the agricultural quota policy of the EU and its associated countries;

12.Stresses that the EU's high veterinary and phytosanitary standards as regards trade with non-Member countries do not constitute barriers to trade, but that, on the contrary, in addition to guaranteeing essential consumer protection, they prevent unilateral competitive advantages and any resulting distortions of trade by placing all trading partners on an equal footing;

13.Urges that veterinary agreements should speedily be concluded between the CEECs and the EU, given that livestock and meat make up a large proportion of EU imports from the CEECs, and will continue to do so, and that efforts should be made to reduce the risk that veterinary problems in the CEECs may lead to a sudden interruption of trade;

14.Is of the opinion that full account must also be taken in agricultural trade with Central and Eastern Europe of welfare requirements in relation to the transportation, keeping and slaughter of animals;

15.Recommends, with regard to the use of hormones, including bovine somatotropin (BST), that the countries of Central and Eastern Europe base their policies on that of the EU;

16.Observes that these agricultural concessions must be administered carefully and in particular that the rules on origin must be applied strictly to prevent fraudulent rerouting of goods flows;

17.Takes the view that the wide disparities in environmental regulations may result in environmental dumping and that the CEECs should therefore revise their policies; although they may continue to export to the EU in the meantime, an additional levy reflecting these environmental disparities may be imposed on their exports, a levy which should, however, be refunded in order to finance environmental enhancement programmes in the relevant sector in the CEEC concerned;

18.Proposes that, in preparation for their future joint EU membership, energetic measures should be taken from the outset to foster trade in agricultural products among the CEECs themselves; this problem should also be tackled by means of a programme, if necessary with support from EU instruments;

19.Points out that technical assistance from the EU in the agricultural sphere will bring the CEECs more closely into line with market requirements, priority being given to equipment for and revisions of veterinary and plant health control agencies and programmes of and assistance with environmental improvement measures;

20.Advocates the establishment of an Agricultural Committee in which EU Ministers of Agriculture would consult with the Ministers of Agriculture of the Countries of Central and Eastern Europe within the framework of the Association Council and in which the Ministers of Agriculture of EFTA/EEA countries might also participate, either as members or as observers; Parliament delegations might also be involved, the aim being to develop a coherent approach to agricultural trade quotas and agricultural policy;

21.Takes the view that the development of trade with the CEECs is a process of vital importance to agricultural policy which should be monitored closely and on which the European Parliament should draw up two-yearly reports and opinions;

22.Instructs its President to forward this resolution to the Commission, the Council and the governments of the Member States, the EFTA countries and the CEECs.