REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union

23.3.2010 - (COM(2009)0510 – C7‑0255/2009 – 2009/0138(COD)) - ***I

Committee on Agriculture and Rural Development
                       Rapporteur: Luís Paulo Alves

Amendments

• 001-015 (PDF - 155 KB)
• 001-015 (DOC - 89 KB)
• 016-016 (PDF - 133 KB)
• 016-016 (DOC - 85 KB)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union

(COM(2009)0510 – C7‑0255/2009 – 2009/0138(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2009)0510),

–   having regard to Articles 36, 37 and 299(2)of the EC Treaty, pursuant to which the Council consulted Parliament (C7‑0255/2009),

–   having regard to the Communication from the Commission to the European Parliament and the Council entitled "Consequences of the entry into force of the Treaty of Lisbon for ongoing interinstitutional decision-making procedures" (COM(2009)0665),

–   having regard to Article 294(3) and Articles 42, 43(2) and 349 of the Treaty on the Functioning of the European Union,

–   having regard to the opinion of the European Economic and Social Committee,

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Regional Development (A7‑0054/2010),

1.  Adopts at first reading the position hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council to the Commission and to the national parliaments.

Amendment  1 Proposal for a regulation – amending act Recital -1 (new)
Text proposed by the Commission	Amendment
	(-1) The importance and specificity of the outermost regions is underlined by Article 349 of the Treaty on the Functioning of the European Union (TFEU), which, taking account of their structural, social and economic situation, which is compounded by their remoteness, insularity, small size, difficult topography and climate, and economic dependence on a few products, the permanence and combination of which severely restrain their development, provides for specific measures aimed, in particular, at laying down the conditions of application of the Treaties to those regions, including common policies. The measures concerned include agriculture and fisheries policies, conditions for supply of raw materials, State aids and conditions for access to structural funds and to horizontal Union programmes. Moreover, the Lisbon Treaty has incorporated for the first time the regions referred to in Article 349 TFEU into Article 107 TFEU, so that aid to promote their economic development may be considered to be compatible with the internal market.
Amendment  2 Proposal for a regulation – amending act Recital -1 a (new)
Text proposed by the Commission	Amendment
	(-1 a) Under Article 4(3) of Regulation (EC) No 247/2006, the Azores are entitled to dispatch, by way of derogation from Article 4(2)(a) of that Regulation, yearly maximum quantities of sugar (CN code 1701) to the rest of the Union. Given that sugar beet production could become a very significant complement to milk production in the Azores, in particular on S. Miguel island, and in view of the uncertain outlook regarding the milk market following the decision to abolish the milk quotas and progressively increase them in the meantime, it is necessary to offer producers and processors, if that decision to abolish the quota system is maintained, an alternative to that system which can guarantee the sustainability and the development of the milk sector in the Azores, as well as long-term complementary agricultural prospects, to enable economic operators to reach a level of industrial and commercial activities which stabilises the economic and social environment in the Azores. The existing derogation should therefore be extended until 31 December 2019.
Amendment  3 Proposal for a regulation – amending act Recital 2
Text proposed by the Commission	Amendment
(2) Article 6 of Regulation (EC) No 247/2006 provides for a transitional period during which the Canary Islands may continue to receive supplies of determined quantities of milk-based preparations falling within CN codes 1901 90 99 and 2106 90 92 intended for industrial processing. This transitional period expires on 31 December 2009. The product falling within CN code 1901 90 99 – skimmed milk powder with vegetable fat – is a traditional product for the local consumers, including the most deprived, and has been sold in the Canary Islands during the last 40 years. The supply of this product has generated a specific local industry ensuring employment and added value. In the current situation of economic crisis it is appropriate to maintain the supply of this specific product and to extend the transitional period set by Article 6 of that Regulation to 31 December 2013.	(2) Article 6 of Regulation (EC) No 247/2006 provides for a transitional period during which the Canary Islands may continue to receive supplies of determined quantities of milk-based preparations falling within CN codes 1901 90 99 and 2106 90 92 intended for industrial processing. This transitional period expires on 31 December 2009. However, the product falling within CN code 1901 90 99 – skimmed milk powder with vegetable fat – has become a traditional product for the local consumers, including the most deprived. Its supply has generated a specific local industry ensuring employment and added value. Therefore, it is appropriate to maintain the supply of this specific product, which is used for local consumption only.
Justification
Due to the structural milk deficit of the Canary Islands, skimmed milk powder containing vegetable fat has become a traditional product used by local consumers, especially the most needy, as a substitute for milk. Therefore, the existing derogation should not only be extended but be made permanent.
Amendment  4 Proposal for a regulation – amending act Recital 5
Text proposed by the Commission	Amendment
(5) The second subparagraph of Article 18(2) of Regulation (EC) No 247/2006 foresees gradual elimination, by 31 December 2013, of vineyards planted with prohibited direct-producer hybrid vine varieties in the Azores and Madeira. The third subparagraph of Article 18(2) of that Regulation obliges Portugal to notify each year progress made in converting and restructuring areas planted with such vine varieties. These provisions are stricter than the rules laid down in Article 120a(5) of Regulation (EC) No 1234/2007, namely that prohibited direct-producer hybrid vine varieties shall be grubbed up except when the resulting wine is intended exclusively for the wine producers' family. Therefore Article 18(2) and 18(3) of Regulation (EC) No 247/2006 should be deleted in order to eliminate the disparity of treatment between the regions of the Azores and Madeira on one hand and the rest of the Community on the other.	(5) The second subparagraph of Article 18(2) of Regulation (EC) No 247/2006 foresees gradual elimination, by 31 December 2013, of vineyards planted with prohibited direct-producer hybrid vine varieties in the Azores and Madeira. The third subparagraph of Article 18(2) of that Regulation obliges Portugal to notify each year progress made in converting and restructuring areas planted with such vine varieties. These provisions are stricter than the rules laid down in Article 120a(5) of Regulation (EC) No 1234/2007, namely that prohibited direct-producer hybrid vine varieties shall be grubbed up except when the resulting wine is intended exclusively for the wine producers' family. Therefore the date of 31 December 2013 in Article 18(2) of Regulation (EC) No 247/2006 should be deleted in order to eliminate the disparity of treatment between the regions of the Azores and Madeira on one hand and the rest of the Union on the other and to allow the continuing conversion of vineyards planted with prohibited vine varieties.
Amendment  5 Proposal for a regulation – amending act Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) Because of the limited nature of their local markets and because of their conditions of production, which entail substantial additional costs, Guadeloupe, French Guiana and Martinique have been unable to develop dairy sectors meeting local needs. The development of the dairy sector in Madeira, brought about by means of milk reconstituted from milk powder, could serve as a development model for that sector in outermost regions sharing common characteristics. The waiver granted to Madeira under the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006 should therefore be extended to apply, without delay, to Martinique, Guadeloupe, and French Guiana in the context of the revision of Regulation (EC) No 247/2006 expected for mid-2010.
Amendment  6 Proposal for a regulation – amending act Recital 7
Text proposed by the Commission	Amendment
(7) The conditions for further extension of the local milk production of the outermost regions, which benefit from the waiver foreseen by the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006, are very limited due to the topography of the islands concerned. Though the obligation to ensure the collection and outlet of the local milk production is maintained, it is appropriate to delete the Commission’s obligation, foreseen by the second subparagraph of that Article, to determine an incorporation rate for fresh milk produced locally.	(7) The conditions for further extension of the local milk production of the outermost regions, which benefit from the waiver provided for in the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006, are very limited or still uncertain due to the topography of the islands concerned and the fact that those local dairy sectors have emerged only recently. Though the obligation to ensure the collection of, and outlets for, the local milk production is maintained, it is appropriate to delete the Commission’s obligation, as set out in the second subparagraph of that Article, to determine an incorporation rate for fresh milk produced locally.
Amendment  7 Proposal for a regulation – amending act Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a) The retroactive application of the provisions of this Regulation as from 1 January 2010 should ensure continuity in the specific measures for agriculture in the outermost regions of the Union and should also meet the legitimate expectations of the operators concerned.
Justification
The proposed changes to Regulation 247/2006 need to enter into force on 1st January 2010 in order to allow some continuity in existing derogations. An additional recital needs therefore to be included in order to justify the retroactive application of the new Regulation.
Amendment  8 Proposal for a regulation – amending act Article 1 – point -1 (new) Regulation (EC) No 247/2006 Recital 4
Text proposed by the Commission Amendment   (-1) Recital 4 is replaced by the following:   "(4) Since the quantities covered by the specific supply arrangements are limited to the supply requirements of the outermost regions, those arrangements do not impair the proper functioning of the internal market. Nor should the economic advantages of the specific supply arrangements provoke diversions of trade in the products concerned. Dispatching or exportation of those products, which have not been processed, from the outermost regions should therefore be prohibited. However, dispatch or exportation of those products should be authorised where the advantage resulting from the specific supply arrangements is reimbursed or, in the case of processed products, to permit regional trade or trade between the two Portuguese outermost regions. Account should also be taken of traditional trade flows with third countries in all the outermost regions, and exports of processed products corresponding to traditional exports for all those regions should accordingly be authorised. Nor should the restriction apply to the traditional dispatching of processed products to the rest of the Union. For the sake of clarity and better adjustment to the evolution of the market, the reference period for defining the maximum quantities for traditional exports or dispatches should be calculated in accordance with this Regulation."
Justification
This amendment aims at adding clarity to the current regulation on conditions under which unprocessed and processed products, in the framework of specific supply arrangements, can be exported or dispatched. Furthermore it adjusts the regulation to the realities of the market by mentioning the need for a regular update of the maximum quantities for traditional export and dispatch as per Amendment 5 to Article 4(2).
Amendment  9 Proposal for a regulation – amending act Article 1 – point -1 a (new) Regulation (EC) No 247/2006 Article 2 – paragraph 2
Text proposed by the Commission Amendment   (-1a) Article 2(2) is replaced by the following:   “2. A forecast supply balance shall be drawn up stating the quantity of the agricultural products referred to in paragraph 1 needed to meet supply requirements each year. A separate forecast balance may be drawn up for the requirements of undertakings packaging and processing products intended for the local market, for traditional consignment to the rest of the Union or for export as part of regional trade or traditional trade flows. In the event that a separate forecast balance is drawn up, the quantities specified shall be updated regularly so as to reflect the market trend described in Article 4(2).”
Justification
Amendment 5 to Article 4(2) implies a need for regular updating of the maximum quantities of processed products that may be exported or dispatched annually from the outermost regions, whether as part of local trade or in traditional consignments.
Amendment  10 Proposal for a regulation – amending act Article 1 – point -1 b (new) Regulation (EC) No 247/2006 Article 4 – paragraph 2 – point a
Text proposed by the Commission Amendment   (-1b) Article 4(2)(a) is replaced by the following:   "(a) exported to third countries or dispatched to the rest of the Union within the limits of traditional exports and traditional dispatches. Those quantities shall be specified by the Commission in accordance with the procedure laid down in Article 26(2), on the basis of the average of exports or dispatches during the three years before the current year, subject to a minimum threshold equal to the average of exports or dispatches during the years 1989, 1990 and 1991. Those quantities shall be managed and presented as a single sum, which includes quantities exported to third countries and quantities dispatched to the rest of the Union.
Justification
This amendment incorporates the average of exports or dispatches of the previous three years in the formula of the annual maximum quantities of processed products which can be exported or dispatched from the outermost regions for regional trade and traditional consignments. The limits of those quantities currently in effect are stifling local industries and employment as they prevent enterprises from benefitting of economies of scale as they face enormous transportation costs.
Amendement  11 Proposition de règlement – acte modificatif Article 1 – point -1 c (new) Règlement (EC) No 247/2006 Article 4 – paragraph 3
Texte proposé par la Commission Amendement   (-1c) Article 4(3) is replaced by the following: 3. By way of derogation from paragraph 2(a), a maximum quantity of 3 000 tonnes of sugar (CN code 1701) may be dispatched each year from the Azores to the rest of the Union for the period from 1 January 2010 to 31 December 2019.
Justification
Due to the foreseeable end of the milk quotas system, it is urgent to find alternative cultures for farmers in the Azores. The existing sugar beet production may constitute a diversification solution, provided that long term perspectives for the stability and viability of this sector are given to producers and economic operators to allow them to reach a production and trade level able to make farming in this outermost region sustainable from a social, environmental and economic point of view.
Amendment  12 Proposal for a regulation – amending act Article 1 – point 2 Regulation (EC) No 247/2006 Article 6
Text proposed by the Commission Amendment By way of derogation from Article 2, for the period from 1 January 2010 to 31 December 2013 the Canary Islands may continue to receive supply of milk-based preparations falling within CN code 1901 90 99 (skimmed milk powder with vegetable fat) intended for industrial processing of up to 800 tonnes per year. Aid granted for supplies of this product from the Community may not exceed EUR 210 per tonne and shall be included in the limit laid down in Article 23. This product shall be used for local consumption only. By way of derogation from Article 2, the Canary Islands may continue to receive supply of milk-based preparations falling within CN code 1901 90 99 (skimmed milk powder with vegetable fat) intended for industrial processing of up to 800 tonnes per year. Aid granted for supplies of this product from the Union may not exceed EUR 210 per tonne and shall be included in the limit laid down in Article 23. This product shall be used for local consumption only.
Justification
Due to the structural milk deficit of the Canary Islands, skimmed milk powder containing vegetable fat has become a traditional product used by local consumers, especially the most needy, as a substitute for milk. Therefore, the existing derogation should not only be extended but be made permanent.
Amendment  13 Proposal for a regulation – amending act Article 1 – point 4 Regulation (EC) No 247/2006 Article 18 – paragraph 2 – subparagraph 1 a (new)
Text proposed by the Commission Amendment   Portugal shall gradually eliminate vineyards planted with prohibited direct-producer hybrid vine varieties, with, where appropriate, the support provided for in Article 103q of Regulation (EC) No 1234/2007.
Justification
By removing this part of Article 18(2) the Commission proposal goes beyond the objectives of aligning the POSEI regulation with corresponding provisions in the single CMO regulation.
Amendment  14 Proposal for a regulation – amending act Article 1 – point 5 Regulation (EC) No 247/2006 Article 19 – paragraph 4 – subparagraph 1
Text proposed by the Commission Amendment 4. Notwithstanding Article 114(2) of Regulation (EC) No 1234/2007, the production in Madeira and in the French overseas department of Reunion of UHT milk reconstituted from milk powder originating in the Community shall be authorised within the limits of local consumption requirements, insofar as this measure does not hinder that locally produced milk is collected and finds outlets. This product shall be used for local consumption only. 4. Notwithstanding Article 114 of Regulation (EC) No 1234/2007, the production in Madeira and in the French overseas department of Reunion of UHT milk reconstituted from milk powder originating in the Union shall be authorised within the limits of local consumption requirements, insofar as this measure ensures that locally produced milk is collected and finds outlets and does not hinder efforts to encourage the development of that production. This product, whose quality must be maintained, shall be used for local consumption only.
Amendment  15 Proposal for a regulation – amending act Article 1 – point 5 Regulation (EC) No 247/2006 Article 19 – paragraph 4 – subparagraph 2
Text proposed by the Commission Amendment Detailed rules for the application of this paragraph shall be adopted in accordance with the procedure referred to in Article 26(2) of this Regulation. The method by which the UHT milk thus reconstituted has been obtained shall be clearly indicated on the sales labelling.

EXPLANATORY STATEMENT

Commission proposal COM 2009(510) foresees some amendments to Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union. The main changes are related to the introduction, extension or adaptation of some derogations in the sugar, milk and wine sectors.

Your rapporteur is of the opinion that the changes proposed will be beneficial to the outermost regions concerned. Nevertheless, he believes that some further amendments are needed now due to the difficult economic situation of these regions, especially in times of crisis.

The situation is especially critical in the Azores where the milk sector, which is the main agricultural activity of this region, has been hardly hit by the recent crisis on dairy markets. While milk production in the Azores currently accounts for 30% of the total production of Portugal, a recent report from the European Court of Auditors[1] based on Commission figures points out to the expected "disappearance at a steady pace" of dairy farms in less-favoured areas as a result from the decisions taken in the context of the Health Check of the CAP and to the socio-economic challenges implied by this situation.

Sugar beet production is the best viable alternative to milk production in the Azores, both from an economic and environmental point of view. However, in order to encourage such diversification, it is necessary to give a long-term perspective to producers and processors and enable economic operators to reach an adequate level of industrial and commercial activities. Therefore, your rapporteur suggests that the existing derogation in Article 4(3) of Regulation (EC) No 247/2006, which allows the Azores to dispatch maximum quantities of sugar to the rest of the Community should be extended until 31 December 2019 and the quantity should be set at 3 000 tonnes each year during the whole period. Taking into account local market needs which are estimated at about 4 500 to 5 000 tonnes by year, maximum dispatch quantities of 3 000 tonnes would ensure the sugar sector the minimum critical threshold needed for a viable and sustainable industry. That derogation would not have much impact on competition since the sugar production of the Azores represents about 1% of Portugal's production and less than 0.05% of the EU production. Furthermore, responding to the consequences of the Health Check measures and to the necessity of preserving this instrument of diversification of the regional agricultural policy, the regional government of the Azores has just acquired a majority share of the region's only sugar transformation unit, which was facing deep economic difficulties.

Also, currently, the local sugar beet production is not sufficient to allow the industry of the Azores to fulfil their allocated quota and no significant quantities are available on the market. It is therefore necessary to allow the Azores to benefit from an exemption regarding imports of raw can sugar, as proposed by the Commission.

Furthermore, due to the structural milk deficit of the Canary Islands, skimmed milk powder containing vegetable fat has traditionally been used as a substitute for milk by local consumers, especially the most needy, and that since decades. The Commission proposes to allow for the prolongation, until 31 December 2013, of the derogation allowing for the supply of such preparations to this region. As this product has become a basic element of the local alimentation and considering that it shall be used for local consumption only, your rapporteur believes that the existing derogation should be made permanent.

Local milk production is also insufficient in the French overseas department of Reunion and Madeira. The rapporteur therefore supports the extension to Reunion of the derogation granted to Madeira to reconstitute milk powder in order to obtain UHT milk for human consumption as well as the removal of the obligation to incorporate locally produced fresh milk into the reconstituted milk.

As regards wine, a provision providing for support to the elimination of vineyards in Portugal was missing in the changes proposed by the Commission in order to adapt Regulation 247/2006 to the new provisions incorporated in the Single CMO Regulation. This provision therefore needs to be reinstated.

The remaining amendments are linked to the entry into force of the Lisbon Treaty during the legislative process on this proposal. They are related to the necessary changes in the legal basis and procedure, previous "comitology" procedures, and the need to ensure a retroactive application of the amended regulation so that changes to the derogations can enter into force on 1^st January 2010 as expected by the operators concerned.

• [1]  "Have the management instruments applied to the market in milk and milk products achieved their main objectives?", Special report 14/2009, http://eca.europa.eu/portal/pls/portal/docs/1/3400301.PDF

OPINION of the Committee on Regional Development (24.2.2010 )

for the Committee on Agriculture and Rural Development

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 247/2006 laying down specific measures for agriculture in the outermost regions of the Union
(COM(2009)0510 – C7‑0255/2009 – 2009/0138(COD))

Rapporteur: Nuno Teixeira

SHORT JUSTIFICATION

The economic and social development of the EU's outermost regions is determined by their periphery, insularity, small territory, difficult climate and geography and economic dependence on a short range of goods and services.

Your draftsman believes that those permanent hindrances should lead to permanent support aiming at better social cohesion and a more sustainable economy and environment.

Article 349 of the Treaty of Lisbon incorporates the possibility of specific measures targeted at outermost regions which should continue to be made a reality through tailored initiatives that respond to their specific needs namely in the agriculture sector.

The financial framework post-2013 should be based on the principles of solidarity with the goal of social and territorial cohesion. Support measures for outermost regions, in which supply arrangements are included, should not be understood as unfair advantages as they mostly relate to goods and services locally produced and consumed which could hardly lead to distorted competition.

The evolution of the agri-food industry in the outermost regions and the know-how gained with the application of Regulation (EC) 247/2006 have also proved necessary to adjust other regulations directly linked to this one. Commission Regulation (EC) 793/2006, which defines certain rules for applying regulation (EC) 247/2006, should be reviewed regarding, for instance, maximum quantities for the export and dispatch of products that have been processed in the outermost regions from products having benefited from specific supply arrangements in the context of regional trade and traditional consignments. Additionally, given that Angola is currently part of trade flows with the Autonomous Region of Madeira, this country should be added in Annex VI of Regulation (EC) 793/2006 as a third country to which processed products are exported from Madeira in the context of regional trade.

Additionally, in Commission Regulation 793/2006 there are other technical details, like the deadline for the payment of aid, which could also be subject to change following the proposal for a recast of the directive on combating late payment in commercial transactions (Commercial transactions: combating late payment (repeal. Directive 2000/35/EC). Recast, COD/2009/0054).

Your draftsman broadly agrees with the current proposal namely in what concerns the following aspects:

Adjustment of Article 5 of Regulation 247/2006 which reflects the new provisions of Regulation (EC) 1234/2007 and permits the Azores to incorporate raw cane sugar in its forecast supply balance.

Extension until 31 December 2013 of the derogation from article 2 which allows the Canary islands to continue to receive supplies of certain milk-based preparations which are a fundamental piece of local nutrition and industry.

Deletion of the references to provisions for checks and penalties in point (f) of Article 12 following experience with the implementation of Community support programmes. Your draftsman draws attention to the fact that, according to Article 27 of regulation (EC) 247/2006, Member States will inform the Commission regarding such measures.

Extension of the derogation, already granted to Madeira, to the French overseas department of Reunion to produce UHT milk reconstituted from milk powder originating in the Community within the limits of local consumption requirements.

Nonetheless, your draftsman would like to propose the amendments explained below which tackle outstanding issues that could enhance the development of the outermost regions:

Recital 5 of the current Commission's proposal should mention the deletion of the date 31 December 2013 from Article 18 (2) of Council Regulation (EC) 247/2006 in order to eliminate asymmetrical treatment between the regions of the Azores and Madeira on one hand and the rest of the Community on the other.

An additional recital should be added (7a) in the current proposal referring to the retroactivity of the application of the regulation.

A continued effort should be made to improve flexibility in the management of supply arrangements aiming at swift and effective adjustments to the regions’ specific characteristics and to the evolution of the local market. Therefore, recital 4 and Article 2(2) of Council Regulation (EC) 247/2006 should mention the need for a regular update of the maximum quantities of processed products which can be exported or dispatched annually from the outermost regions in the context of regional trade and traditional consignments.

Accordingly, Article 4(2) of the same Regulation should be amended with the purpose of incorporating the average of exports or dispatches during the previous three years in the formula of those annual maximum quantities the threshold being maintained as the average of the exports or dispatches in the years 1989, 1990 and 1991 which are the reference years of the Council Regulation (EC) 247/2006. This change also targets better adjustment to market realities. The limits of the quantities currently in effect are stifling local industries and employment as they prevent enterprises from benefitting of economies of scale as they face enormous transportation costs. Those quantities shall be managed and presented as a single sum that incorporates both quantities exported to third countries, and quantities dispatched to the rest of the community.

Article 18(2) of the current Commission's proposal should refer that the phase-out of prohibited direct-producer hybrid vine varieties in Portugal shall have the possibility of Community support as per Regulation (EC) 1234/2007.

AMENDMENTS

The Committee on Regional Development calls on the Committee on Agriculture and Rural Development, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation – amending act Recital 5
Text proposed by the Commission	Amendment
(5) The second subparagraph of Article 18(2) of Regulation (EC) No 247/2006 foresees gradual elimination, by 31 December 2013, of vineyards planted with prohibited direct-producer hybrid vine varieties in the Azores and Madeira. The third subparagraph of Article 18(2) of that Regulation obliges Portugal to notify each year progress made in converting and restructuring areas planted with such vine varieties. These provisions are stricter than the rules laid down in Article 120a(5) of Regulation (EC) No 1234/2007, namely that prohibited direct-producer hybrid vine varieties shall be grubbed up except when the resulting wine is intended exclusively for the wine producers' family. Therefore Article 18(2) and 18(3) of Regulation (EC) No 247/2006 should be deleted in order to eliminate the disparity of treatment between the regions of the Azores and Madeira on one hand and the rest of the Community on the other.	(5) The second subparagraph of Article 18(2) of Regulation (EC) No 247/2006 foresees gradual elimination, by 31 December 2013, of vineyards planted with prohibited direct-producer hybrid vine varieties in the Azores and Madeira. The third subparagraph of Article 18(2) of that Regulation obliges Portugal to notify each year progress made in converting and restructuring areas planted with such vine varieties. These provisions are stricter than the rules laid down in Article 120a(5) of Regulation (EC) No 1234/2007, namely that prohibited direct-producer hybrid vine varieties shall be grubbed up except when the resulting wine is intended exclusively for the wine producers' family. Therefore the date of 31 December 2013 in Article 18(2) of Regulation (EC) No 247/2006 should be deleted in order to eliminate the disparity of treatment between the regions of the Azores and Madeira on one hand and the rest of the Community on the other.
Amendment  2 Proposal for a regulation – amending act Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) Because of the limited nature of their local markets and because of their conditions of production, which entail substantial additional costs, Guadeloupe, French Guiana, and Martinique have been unable to develop dairy sectors meeting local needs. The development of the dairy sector in Madeira, brought about by means of milk reconstituted from milk powder, could serve as a development model for that sector in outermost regions sharing common characteristics. The waiver granted to Madeira under the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006 should therefore be extended to apply, without delay, to Martinique, Guadeloupe, and French Guiana.
Amendment  3 Proposal for a regulation – amending act Recital 7
Text proposed by the Commission	Amendment
(7) The conditions for further extension of the local milk production of the outermost regions, which benefit from the waiver foreseen by the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006, are very limited due to the topography of the islands concerned. Though the obligation to ensure the collection and outlet of the local milk production is maintained, it is appropriate to delete the Commission’s obligation, foreseen by the second subparagraph of that Article, to determine an incorporation rate for fresh milk produced locally.	(7) The conditions for further extension of the local milk production of the outermost regions, which benefit from the waiver provided for in the first subparagraph of Article 19(4) of Regulation (EC) No 247/2006, are very limited or still uncertain due to the topography of the islands concerned and the fact that those local dairy sectors have emerged only recently. Though the obligation to ensure the collection of, and outlets for, the local milk production is maintained, it is appropriate to delete the Commission’s obligation, as set out in the second subparagraph of that Article, to determine an incorporation rate for fresh milk produced locally.
Amendment  4 Proposal for a regulation – amending act Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a) The retroactive application of the provisions of this Regulation should ensure continuity in the specific measures for agriculture in the outermost regions of the Union and should also meet the legitimate expectations of the operators concerned.
Amendment  5 Proposal for a regulation – amending act Article 1 – point -1 (new) Regulation (EC) No 247/2006 Recital 4
Text proposed by the Commission Amendment   (-1) Recital 4 is replaced by the following:   "(4) Since the quantities covered by the specific supply arrangements are limited to the supply requirements of the outermost regions, those arrangements do not impair the proper functioning of the internal market. Nor should the economic advantages of the specific supply arrangements provoke diversions of trade in the products concerned. Dispatching or exportation of those products, which have not been processed, from the outermost regions should therefore be prohibited. However, dispatch or exportation of those products should be authorised where the advantage resulting from the specific supply arrangements is reimbursed or, in the case of processed products, to permit regional trade or trade between the two Portuguese outermost regions. Account should also be taken of traditional trade flows with third countries in all the outermost regions, and exports of processed products corresponding to traditional exports for all those regions should accordingly be authorised. Nor should the restriction apply to the traditional dispatching of processed products to the rest of the Community. For the sake of clarity and better adjustment to the evolution of the market, the reference period for defining the maximum quantities for traditional exports or dispatches should be calculated in accordance with this Regulation."
Justification
This amendment aims at adding clarity to the current regulation on conditions under which unprocessed and processed products, in the framework of specific supply arrangements, can be exported or dispatched. Furthermore it adjusts the regulation to the realities of the market by mentioning the need for a regular update of the maximum quantities for traditional export and dispatch as per Amendment 5 to Article 4(2).
Amendment  6 Proposal for a regulation – amending act Article 1 – point -1 a (new) Regulation (EC) No 247/2006 Article 2 – paragraph 2
Text proposed by the Commission Amendment   (-1a) Article 2(2) is replaced by the following:   “2. A forecast supply balance shall be drawn up stating the quantity of the agricultural products referred to in paragraph 1 needed to meet supply requirements each year. A separate forecast balance may be drawn up for the requirements of undertakings packaging and processing products intended for the local market, for traditional consignment to the rest of the Community or for export as part of regional trade or traditional trade flows. In the event that a separate forecast balance is drawn up, the quantities specified shall be updated regularly so as to reflect the market trend described in Article 4(2).”
Justification
Amendment 5 to Article 4(2) implies a need for regular updating of the maximum quantities of processed products that may be exported or dispatched annually from the outermost regions, whether as part of local trade or in traditional consignments.
Amendment  7 Proposal for a regulation – amending act Article 1 – point -1 b (new) Regulation (EC) No 247/2006 Article 4 – paragraph 2 – point a
Text proposed by the Commission Amendment   (-1b) Article 4(2)(a) is replaced by the following:   "(a) exported to third countries or dispatched to the rest of the Community within the limits of traditional exports and traditional dispatches. Those quantities shall be specified by the Commission in accordance with the procedure laid down in Article 26(2), on the basis of the average of exports or dispatches during the three years before the current year, subject to a minimum threshold equal to the average of exports or dispatches during the years 1989, 1990 and 1991. Those quantities shall be managed and presented as a single sum, which includes quantities exported to third countries and quantities dispatched to the rest of the Community.
Justification
This amendment incorporates the average of exports or dispatches of the previous three years in the formula of the annual maximum quantities of processed products which can be exported or dispatched from the outermost regions for regional trade and traditional consignments. The limits of those quantities currently in effect are stifling local industries and employment as they prevent enterprises from benefitting of economies of scale as they face enormous transportation costs.
Amendment  8 Proposal for a regulation – amending act Article 1 – point 4 Regulation (EC) No 247/2006 Article 18 – paragraph 2
Text proposed by the Commission Amendment 2. Notwithstanding Article 120a(2) of Regulation (EC) No 1234/2007, grapes from prohibited direct-producer hybrid vine varieties (Noah, Othello, Isabelle, Jacquez, Clinton and Herbemont) harvested in the Azores and Madeira may be used for the production of wine which must remain within those regions. 2. Notwithstanding Article 120a(2) of Regulation (EC) No 1234/2007, grapes from prohibited direct-producer hybrid vine varieties (Noah, Othello, Isabelle, Jacquez, Clinton and Herbemont) harvested in the Azores and Madeira may be used for the production of wine which must remain within those regions. Portugal shall gradually eliminate vineyards planted with prohibited direct-producer hybrid vine varieties, with, where appropriate, the support provided for in Article 103q of Regulation (EC) No 1234/2007.
Amendment  9 Proposal for a regulation – amending act Article 1 – point 5 Regulation (EC) No 247/2006 Article 19 – paragraph 4 – subparagraph 1
Text proposed by the Commission Amendment 4. Notwithstanding Article 114(2) of Regulation (EC) No 1234/2007, the production in Madeira and in the French overseas department of Reunion of UHT milk reconstituted from milk powder originating in the Community shall be authorised within the limits of local consumption requirements, insofar as this measure does not hinder that locally produced milk is collected and finds outlets. This product shall be used for local consumption only. 4. Notwithstanding Article 114(2) of Regulation (EC) No 1234/2007, the production in Madeira and in the French overseas department of Réunion of UHT milk reconstituted from milk powder originating in the Community shall be authorised within the limits of local consumption requirements, in so far as this measure does not hinder locally produced milk from being collected and finding outlets or impede efforts to encourage the development of that production. This product shall be used for local consumption only.

PROCEDURE

Title	Specific measures for agriculture in the outermost regions of the Union (amendment of Regulation (EC) No 247/2006)
References	COM(2009)0510 – C7-0255/2009 – 2009/0138(COD)
Committee responsible	AGRI
Opinion by        Date announced in plenary	REGI 12.11.2009
Rapporteur        Date appointed	Nuno Teixeira 4.11.2009
Discussed in committee	25.1.2010
Date adopted	22.2.2010
Result of final vote	+: –: 0:	38 0 2
Members present for the final vote	François Alfonsi, Luís Paulo Alves, Charalampos Angourakis, Catherine Bearder, Jean-Paul Besset, Sophie Briard Auconie, Zuzana Brzobohatá, Alain Cadec, Ricardo Cortés Lastra, Tamás Deutsch, Rosa Estaràs Ferragut, Seán Kelly, Evgeni Kirilov, Constanze Angela Krehl, Petru Constantin Luhan, Elżbieta Katarzyna Łukacijewska, Ramona Nicole Mănescu, Iosif Matula, Miroslav Mikolášik, Lambert van Nistelrooij, Franz Obermayr, Jan Olbrycht, Wojciech Michał Olejniczak, Markus Pieper, Georgios Stavrakakis, Nuno Teixeira, Michael Theurer, Michail Tremopoulos, Viktor Uspaskich, Oldřich Vlasák, Kerstin Westphal, Hermann Winkler, Joachim Zeller
Substitute(s) present for the final vote	Vasilica Viorica Dăncilă, Karin Kadenbach, Heide Rühle, Peter Simon, László Surján, Evžen Tošenovský, Sabine Verheyen

PROCEDURE

Title	Specific measures for agriculture in the outermost regions of the Union (amendment of Regulation (EC) No 247/2006)
References	COM(2009)0510 – C7-0255/2009 – 2009/0138(COD)
Date submitted to Parliament	2.10.2009
Committee responsible        Date announced in plenary	AGRI 12.11.2009
Committee(s) asked for opinion(s)        Date announced in plenary	REGI 12.11.2009
Rapporteur(s)        Date appointed	Luís Paulo Alves 30.9.2009
Discussed in committee	10.11.2009		22.2.2010
Date adopted	17.3.2010
Result of final vote	+: –: 0:	40 0 2
Members present for the final vote	John Stuart Agnew, Richard Ashworth, José Bové, Luis Manuel Capoulas Santos, Vasilica Viorica Dăncilă, Michel Dantin, Paolo De Castro, Albert Deß, Diane Dodds, Herbert Dorfmann, Hynek Fajmon, Lorenzo Fontana, Iratxe García Pérez, Béla Glattfelder, Martin Häusling, Esther Herranz García, Peter Jahr, Elisabeth Jeggle, Jarosław Kalinowski, Elisabeth Köstinger, Giovanni La Via, Stéphane Le Foll, George Lyon, Gabriel Mato Adrover, Mairead McGuinness, Krisztina Morvai, James Nicholson, Rareş-Lucian Niculescu, Wojciech Michał Olejniczak, Georgios Papastamkos, Marit Paulsen, Britta Reimers, Ulrike Rodust, Giancarlo Scotta’, Czesław Adam Siekierski, Alyn Smith, Csaba Sándor Tabajdi, Janusz Wojciechowski
Substitute(s) present for the final vote	Luís Paulo Alves, Spyros Danellis, Lena Ek, Maria do Céu Patrão Neves, Daciana Octavia Sârbu