REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 19/2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its Member States, of the one part, and Colombia and Peru, of the other part, and amending Regulation (EU) No 20/2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other
29.9.2016 - (COM(2015)0220 – C8-0131/2015 – 2015/0112(COD)) - ***I
Committee on International Trade
Rapporteur: Marielle de Sarnez
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 19/2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its Member States, of the one part, and Colombia and Peru, of the other part, and amending Regulation (EU) No 20/2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other
(COM(2015)0220 – C8-0131/2015 – 2015/0112(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2015)0220),
– having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0131/2015),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to Rule 59 of its Rules of Procedure,
– having regard to the report of the Committee on International Trade (A8-0277/2016),
1. Adopts its position at first reading hereinafter set out;
2. Approves the joint declarations by Parliament and the Commission annexed to this resolution;
3. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;
4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1 Proposal for a regulation Recital 4 a (new) | ||||||||||||||||||||||
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(See: Commission communication COM(2008)0642 / The outermost regions: an asset for Europe – Commission communication COM(2012)0287 / The outermost regions of the European Union: towards a partnership for smart, sustainable and inclusive growth) | ||||||||||||||||||||||
Amendment 2 Proposal for a regulation Recital 4 b (new) | ||||||||||||||||||||||
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Amendment 3 Proposal for a regulation Article 1 – paragraph 1 – point 2 a (new) Regulation (EU) No 19/2013 Article 1 – point h | ||||||||||||||||||||||
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Amendment 4 Proposal for a regulation Article 1 – paragraph 1 – point 4 a (new) Regulation (EU) No 19/2013 Article 15 – paragraph 2 | ||||||||||||||||||||||
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(http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0019) | ||||||||||||||||||||||
Justification | ||||||||||||||||||||||
The EP and the Council have to get monthly information about banana imports and the proceeds in an analysis of the impact of those imports before the threshold is attained. The EU-Colombia/Peru agreement provides that: ‘once the trigger volume is met ... the EU party may temporarily suspend the preferential customs duty’ (Annex I, Appendix 1, section A). This means that the mechanism could be triggered automatically once the trigger volume is met. | ||||||||||||||||||||||
Amendment 5 Proposal for a regulation Article 1 – paragraph 1 – point 4 b (new) Regulation (EU) No 19/2013 Article 15 – paragraph 2 a (new) | ||||||||||||||||||||||
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Amendment 6 Proposal for a regulation Article 1 – paragraph 1 – point 4 c (new) Regulation (EU) No 19/2013 Article 15 – paragraph 3 | ||||||||||||||||||||||
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(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R0019&qid=1472813829241&from=EN) | ||||||||||||||||||||||
Amendment 7 Proposal for a regulation Article 1 – paragraph 1 – point 4 d (new) Regulation (EU) No 19/2013 Article 15 – paragraph 3 a (new) | ||||||||||||||||||||||
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Amendment 8 Proposal for a regulation Article 1 – paragraph 1 – point 4 e (new) Regulation (EU) No 19/2013 Article 15 – paragraph 7 a (new) | ||||||||||||||||||||||
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Amendment 9 Proposal for a regulation Article 2 – point 1 a (new) Regulation (EU) No 20/2013 Article 15 – paragraph 2 | ||||||||||||||||||||||
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(http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0020) | ||||||||||||||||||||||
Justification | ||||||||||||||||||||||
The EP and the Council have to get monthly information about banana imports and the proceeds in an analysis of the impact of those imports before the threshold is attained. The EU-Central America agreement provides that: ‘once the trigger volume is met, the EU party may temporarily suspend the preferential customs duty’. This means that the mechanism could be triggered automatically once the trigger volume is met. | ||||||||||||||||||||||
Amendment 10 Proposal for a regulation Article 2 – point 1 b (new) Regulation (EU) No 20/2013 Article 15 – paragraph 2 a (new) | ||||||||||||||||||||||
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Amendment 11 Proposal for a regulation Article 2 – point 1 c (new) Regulation (EU) No 20/2013 Article 15 – paragraph 3 | ||||||||||||||||||||||
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(http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0020) | ||||||||||||||||||||||
Amendment 12 Proposal for a regulation Article 2 – point 1 d (new) Regulation (EU) No 20/2013 Article 15 – paragraph 3 a (new) | ||||||||||||||||||||||
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Amendment 13 Proposal for a regulation Article 2 – point 1 e (new) Regulation (EU) No 20/2013 Article 15 – paragraph 7 a (new) | ||||||||||||||||||||||
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ANNEX TO THE LEGISLATIVE RESOLUTION
JOINT DECLARATION
The European Parliament and the Commission agree on the importance of close cooperation in monitoring the implementation of the Agreement and Regulation (EU) No 19/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its Member States, of the one part, and Colombia, Ecuador and Peru, of the other part [1]. To that end they agree on the following:
– Upon request by the responsible committee of the European Parliament, the Commission shall report to it on any specific concerns relating to the implementation by Colombia, Ecuador or Peru of their commitments on trade and sustainable development.
– If the European Parliament adopts a recommendation to initiate a safeguard investigation, the Commission will carefully examine whether the conditions under Regulation (EU) No 19/2013 for ex-officio initiation are fulfilled. If the Commission considers that the conditions are not fulfilled, it will present a report to the responsible committee of the European Parliament including an explanation of all the factors relevant to the initiation of such an investigation.
– The Commission shall, by 1 January 2019, assess the situation of European banana producers as provided for in Article 15(7a) of this Regulation. If a serious deterioration in the state of the market or the situation of European producers is found to have occurred or is in danger of occurring, appropriate measures may be considered, whether in the form of an extension in the period of validity of the mechanism, with the agreement of the parties to the Agreement, or in the form of compensatory measures. The Commission shall continue to carry out annual analyses of the state of the market and the situation of European producers after 2020, which may lead to support measures, where necessary.
JOINT DECLARATION
The European Parliament and the Commission agree on the importance of close cooperation in monitoring the implementation of the Agreement and Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its Member States, on the one hand, and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama on the other [1]. To that end they agree on the following:
– Upon request by the responsible committee of the European Parliament, the Commission shall report to it on any specific concerns relating to the implementation by Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, or Panama of their commitments on trade and sustainable development.
– If the European Parliament adopts a recommendation to initiate a safeguard investigation, the Commission will carefully examine whether the conditions under Regulation (EU) No 20/2013 for ex-officio initiation are fulfilled. If the Commission considers that the conditions are not fulfilled, it will present a report to the responsible committee of the European Parliament including an explanation of all the factors relevant to the initiation of such an investigation.
– The Commission shall, by 1 January 2019, assess the situation of European banana producers as provided for in Article 15(7a) of this Regulation. If a serious deterioration in the state of the market or the situation of European producers is found to have occurred or is in danger of occurring, appropriate measures may be considered, whether in the form of an extension in the period of validity of the mechanism, with the agreement of the parties to the Agreement, or in the form of compensatory measures. The Commission shall continue to carry out annual analyses of the state of the market and the situation of European producers after 2020, which may lead to support measures, where necessary.
EXPLANATORY STATEMENT
1. State of play on the EU banana market
1.1 Consumption
Bananas are eaten in greater quantities than any other fruit in the world. The EU is the biggest market, accounting for roughly a third of global exports. EU banana consumption in 2015 amounted to 5.8 million tonnes, and demand has been rising in recent years. European imports come mainly from Central and Latin American countries. Ecuador is the largest exporter to the EU, with banana exports totalling 1 360 811 tonnes in 2015. Next come Colombia (1 314 955 tonnes in 2015) and Costa Rica (947 749 tonnes in 2015). All in all the EU imports 5.2 million tonnes of bananas, including 1.1 million tonnes imported duty-free from ACP countries. These imports are equivalent to 88.7% of European banana consumption. The remaining market share, that is to say, 11.4% of consumption, is left for European producers. This has declined over time, having stood at 12.6% three years ago. The fall has worked solely to the advantage of non-ACP countries, as the proportion of ACP bananas, compared with European imports as a whole, has shrunk by 1.2% during the same period.
1.2 Production
In 2015, European banana producers supplied 669 673 tonnes to the single market, the only one for which their production is intended. There are five banana-producing European countries. Spain is the largest producer, accounting for half of the European supply (381 827 tonnes in 2015); France is the second largest producer (263 022 tonnes in 2015); and Portugal, the third largest (18 645 tonnes in 2015). Production in these three countries is confined to their outermost regions, namely the Canary Islands (Spain), Guadeloupe and Martinique (France), and Madeira and the Azores (Portugal). Cyprus and Greece are the other two European producer countries, but their production volumes are smaller.
In the above-mentioned island territories, the banana industry plays a key economic role. It has 37 000 jobs depending on it, directly or indirectly, and is thus one of the main sectors of activity in these regions. It makes shipping services viable, enabling the regions to be regularly provisioned from mainland Europe and helping to offset the cost of living on an island. The industry is, moreover, a model of sustainability. The social, health, and environmental standards which European producers observe are among the highest in the world. In the French West Indies, leading players in the industry have invested in vocational training with a view to promoting best practice in sustainable farming and in research and development.
2. Protecting bananas, a ‘sensitive’ agricultural product, under trade agreements
2.1 Change on the European market
The European banana market has gradually been opened up to competition from non-EU producers. Under the common organisation of the markets in agricultural products, adopted in February 1993, the EU decided to grant duty-free access to ACP banana producers. However, this trade preference, which was considered discriminatory according to WTO law, was challenged by several Latin American countries and the United States. Following a WTO ruling, the EU was obliged to grant annual tariff elimination in order to bring the rate down to EUR 114 per tonne for bananas from non-ACP countries by 2017, and undertook to do so under the 2009 Geneva Agreement.
In addition, in December 2012 it concluded a free trade agreement with Colombia and Peru and an association agreement with Central America, whereby the customs tariffs applied to bananas are to be gradually cut to the rate of EUR 75 per tonne, which has to enter into force by 1 January 2020. Ecuador, which will accede to the agreement with Colombia and Peru once this has been ratified by the parties, will likewise be covered by the tariff elimination process.
As a result of the tariff preferences granted to countries competing with the EU on the banana market, imports have increased, rising by 3% in 2015, 6% in 2014, and 5% in 2013,
2.2 European instruments to protect bananas under the agreements
The keener international competition brought about by the tariff cuts for non-ACP bananas has led the Commission to include bananas on the list of ‘sensitive’ EU agricultural products and provide protection through trade instruments. The agreement between the EU and Colombia and Peru, along with Ecuador, and the agreement establishing an association between the EU and Central America each have two protective mechanisms to prevent mass imports from one or more of those countries from destabilising the European market and harming EU producers. Parliament and Council regulations (EU) Nos 19/2013 and 20/2013 are the acts which specify how the mechanisms are to function, thereby giving effect to the free trade and association agreements. The amendments being proposed by the Commission allow for Ecuador’s accession to the agreement with Colombia and Peru.
The first of the two instruments is a bilateral safeguard clause, in force for the first ten years of application of the agreements. It stabilises tariff elimination or would allow customs duties to be raised again if a substantial rise in imports from Colombia, Peru, Ecuador, or Central America were likely to cause serious injury to EU producers. Because Ecuador is acceding later, the application of the clause will be correspondingly shifted in time, and Ecuador will, to that extent, be out of step with Colombia and Peru, but the period of application will be the same – ten years – for each of the three trading partners.
The second instrument is termed a ‘stabilisation’ mechanism. It has the same effect as the clause, the only difference being that there is no requirement – in order to activate it – to open an investigation to determine whether damage has occurred. It can be activated when banana imports into the EU have exceeded a given volume threshold, which is reset every year for the parties to the agreements. This makes the mechanism easier to use, as the Commission is obliged to respond if the threshold has been exceeded. Once it has ascertained the effect of the overrun on the European market, the Commission can trigger the mechanism directly. In practice it has never taken that step, even though Peru exceeded the threshold for three years running, between 2013 and 2015, and Guatemala did so once, in 2015. It took the view in those cases that the overruns had not destabilised the European market and did not warrant the use of the mechanism. Like the safeguard clause, the mechanism is temporary and should cease to apply on 1 January 2020.
3. Better protection for European producers
3.1 Increasing transparency
The amendment of the regulations must serve to genuinely protect European producers. It must ensure that rises in banana imports into the EU can be predicted more accurately and anticipate change more promptly and respond to more useful effect.
Your rapporteur is therefore proposing that the Commission should from now on always keep Parliament and the Council informed about the trend in banana imports to the EU market, thereby making it possible to forestall the risks of overruns. Accordingly, if imports from any one country were to increase substantially, giving reason to suppose that the triggering threshold for the stabilisation mechanism might be reached, the Commission would have to alert Parliament and the Council. The alert should be passed on in writing.
Furthermore, the Eurostat databases used by the Commission to gauge the trends regarding bananas on the European market should be improved and harmonised so as to enable the state of the market to be accurately assessed.
Lastly, your rapporteur believes that the Commission should consider whether the stabilisation mechanism might remain in force beyond 2020 in order to protect European producers from rises in imports from non-EU countries. One way to bring this about would be a joint declaration co-signed with Parliament, and which the Council could likewise endorse. If the parties did not all give their consent to continuation of the mechanism, the Commission would have to think about corrective measures.
3.2 Maintaining high standards in the European banana industry
Bearing in mind that the banana industry is important to economic development in many European outermost regions and has been endeavouring to make banana production as sustainable as possible, we should seek to preserve the industry and ensure that international agreements entered into will not jeopardise banana production.
The high social and environmental standards that the EU requires should be an asset to our producers.
Our trading policy should therefore help to keep European standards high and aim for compliance with equivalent standards at global level, rather than encouraging a race to the bottom.
That is why bananas, a ‘sensitive’ European product, need to be properly and effectively protected.
PROCEDURE – COMMITTEE RESPONSIBLE
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Title |
Bilateral safeguard clause and stabilisation mechanism for bananas of the Trade Agreement between the EU and its Member States, of the one part, and Colombia and Peru, of the other part |
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References |
COM(2015)0220 – C8-0131/2015 – 2015/0112(COD) |
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Date submitted to Parliament |
26.5.2015 |
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Committee responsible Date announced in plenary |
INTA 8.6.2015 |
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Committees asked for opinion(s) Date announced in plenary |
AGRI 8.6.2015 |
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Not delivering opinion(s) Date of decision |
AGRI 17.6.2015 |
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Rapporteurs Date appointed |
Marielle de Sarnez 15.6.2015 |
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Discussed in committee |
30.11.2015 |
31.8.2016 |
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Date adopted |
26.9.2016 |
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Result of final vote |
+: –: 0: |
32 1 2 |
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Members present for the final vote |
Laima Liucija Andrikienė, David Campbell Bannerman, Daniel Caspary, Marielle de Sarnez, Eleonora Forenza, Karoline Graswander-Hainz, Alexander Graf Lambsdorff, Bernd Lange, David Martin, Emmanuel Maurel, Emma McClarkin, Anne-Marie Mineur, Sorin Moisă, Alessia Maria Mosca, Franz Obermayr, Inmaculada Rodríguez-Piñero Fernández, Tokia Saïfi, Marietje Schaake, Helmut Scholz, Joachim Schuster, Joachim Starbatty, Iuliu Winkler, Jan Zahradil |
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Substitutes present for the final vote |
Eric Andrieu, Reimer Böge, José Bové, Edouard Ferrand, Gabriel Mato, Frédérique Ries, Jarosław Wałęsa |
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Substitutes under Rule 200(2) present for the final vote |
Werner Kuhn, Verónica Lope Fontagné, Francisco José Millán Mon, Cláudia Monteiro de Aguiar, Milan Zver |
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Date tabled |
29.9.2016 |
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