The European Commission will present the much-delayed “pharma package” on December 10 at a press conference.
Ton van Liero, spokesman for Gunter Verheugen, European Commissioner for Enterprise and Industry, told me, “We foresee a press conference on Wednesday on the pharma package.”
Moreover, the Commission announced that the College of Commissioners (27 Commissioners) will be presented with it next Wednesday.
Commission spokesman Amadeu Altafaj Tardio told journalists: “On the agenda of the Commission meeting next Wednesday, will be a major pharmaceutical package. It has been subject of many draft directives, amendments, existing directives and Commission communications by Mr. (Gunter) Verheugen and various proposals and drafts and regulations, so the whole package that is for pharmaceutical industry.”
Earlier today addressing a joint press conference with health ministers from G7 countries (Canada, France, Germany, Italy, Japan, UK, US), Mexico and the World Health Organisation, European Health Commissioner Andrroulla Vassiiou also had expressed hope that the pharma package will come out soon.
The Commissioner was hosting Global Health Security Initiative (GHSI) to forge stronger global collaboration on health security.
VASSILIOU ADDRESSES DIFFERENCES
Replying to a question about disagreements within the Commission, Commissioner Vassliou said, “It (Pharma package) is one of the most difficult packages and it is natural that all cabinets are very interested about it and there is a lot of discussion so that our purpose is to reach a final agreement on a package which will be in agreement with everybody,” adding, “I am hopeful that it will come up with something which will be satisfactory to everybody and useful to everybody.”
The European Commission has repeatedly delayed since October 21, the publishing draft regulations which could overhaul the pharmaceutical sector, amid rumours that divisions within the Commission are leading to the delays.
VERHEUGEN STAYS CONFIDENT
European Commissioner for Enterprise and Industry Gunter Verheugen had denied that his package of proposed new regulations for the pharmaceutical industry will be substantially altered despite its publication being delayed but APM understands there are disagreements within the College over such subjects as banning the repackaging of medicines, which is widely practiced by parallel traders.
The pharma industry has been pushing to ban repackaging of medicines saying it is the only way to stop trade in counterfeit products.
But supporters of parallel trade believe it could damage the legitimate practice of traders buying low-price drugs in markets such as Greece and selling them at a profit in other countries where they can command a higher price.
A report published recently on the website of the Commission's directorate general for Enterprise and Industry said that repackaging and relabelling medicines posed an inherent risk to patients but banning the practice would result in a dramatic reduction in the level of parallel trade and in the loss or redeployment of some 10,000 jobs across Europe.
The sources recently told me that a revamped package is now being prepared that will not ban repackaging. "Those proposals are history," said one.
This is in line with comments from a Commission spokesman earlier. "There is no ban foreseen on repackaging or relabelling ... Parallel trade is a legal economic activity in the European Union (and) the commission does not intend to change that."
INFORMATION TO CONSUMERS FACTOR
But other measures in the pharmaceuticals package are also controversial, such as a proposal to allow companies to provide information on their drugs to patients, which some commentators believe is tantamount to permitting direct-to-consumer advertising.
The Association Internationale de la Mutualité, Health Action International (HAI) Europe and Medicines in Europe Forum today in an open letter to European Commission President Jose Manuel Barroso said: “The proposals on “information to patients” represent yet another tactic to delay generic competition by enabling the pharmaceutical companies to communicate directly to the public on their respective prescription-only medicines, thereby building "brand loyalty" and market share for their own originator products at the expense of affordable medicines for the public.”
Greg Perry, Director General, European Generic Medicines Association (EGA) had told me: "We understand the reason for the delay is due to lack of agreement on ITP (information to patients virtual network) proposal."
Perry said the EGA's main concern was now that the proposed legislation will not make it through this session of the European Parliament, particularly the pharmacovigilance package which is "a good proposal in terms of improving patients safety, harmonisation and better regulation."
Showing posts with label European Commission. Show all posts
Showing posts with label European Commission. Show all posts
Friday, December 5, 2008
Sunday, November 16, 2008
Commissioner Borg tries to clear murky waters of EU fishing industry
The European Commission proposed today (Nov 14) tougher measures including crackdown on illegal fishing with a penalty point system to restore threatened fish stocks.
Launching the Commission plans, European Fisheries Commissioner told journalists in Brussels, “Control and enforcement should be the cornerstone of the Common Fisheries Policy. Instead it is our Achille's heel,” adding, “the proposed framework we have adopted today will provide effective deterrence, reduce the administrative burden and costs, and ensure we have a system in place which is simple, transparent, and fair.”
Expanding the range of powers of EU inspections, the Commissioner said: “The new control regulation will ensure that inspection activities are no longer almost only focused on operations at sea, where the chances of detecting a breach of the rules are often remote, but are present at every link of the chain - in port, during transport and whilst marketing.”
Calling on all the stakeholders in the sector to give their inputs and then respect the rules, Borg said, “the rules we make are seen to be fair and for the common good,” adding, “we need to ensure that there is a genuine level playing field for all operators.”
Reiterating the importance of the role of member states in the implementation of the rules, Commissioner Borg also proposed, “to give the Commission itself the power it needs to do the job.”
The Commission has pointed that even after spending 400 million Euro a year on fishing controls, there is no reliable data on fish catches. Commissioner Borg told journalists, “without accurate data on catches and landings, the very scientific advice on which we depend becomes unreliable.”
Under the new tough system, the holders of fishing permits face losing their basic right to fish if suspended for six and then 12 months. The point system will govern EU vessels even outside EU waters and non-EU vessels in EU waters and it will be applicable to the fishing vessel, and to the crew's master and officers.
Expanding the present system of “only own country” inspections, Borg proposals will give power to each EU country to inspect other country vessels, if or when needed.
The points register will be maintained in the vessel’s flag country with the EU countries asked for mandatory inspection of fish landings, processing, transport and marketing, as well as to monitor criteria such as a vessel's fishing capacity and its engine power.
Toughening the stand against lenient EU countries, the Commission threatened to cut or suspend the EU subsidies, cut quotas or in an extreme case forbidding fishing in the EU waters, Commissioner Borg said.
The Commissioner concluded, “Control is not the solution to all fisheries management problems. But there can be no sustainable fisheries, without a fair, effective and transparent control system.” The proposals still await agreement from fisheries ministers from all 27 member states.
Launching the Commission plans, European Fisheries Commissioner told journalists in Brussels, “Control and enforcement should be the cornerstone of the Common Fisheries Policy. Instead it is our Achille's heel,” adding, “the proposed framework we have adopted today will provide effective deterrence, reduce the administrative burden and costs, and ensure we have a system in place which is simple, transparent, and fair.”
Expanding the range of powers of EU inspections, the Commissioner said: “The new control regulation will ensure that inspection activities are no longer almost only focused on operations at sea, where the chances of detecting a breach of the rules are often remote, but are present at every link of the chain - in port, during transport and whilst marketing.”
Calling on all the stakeholders in the sector to give their inputs and then respect the rules, Borg said, “the rules we make are seen to be fair and for the common good,” adding, “we need to ensure that there is a genuine level playing field for all operators.”
Reiterating the importance of the role of member states in the implementation of the rules, Commissioner Borg also proposed, “to give the Commission itself the power it needs to do the job.”
The Commission has pointed that even after spending 400 million Euro a year on fishing controls, there is no reliable data on fish catches. Commissioner Borg told journalists, “without accurate data on catches and landings, the very scientific advice on which we depend becomes unreliable.”
Under the new tough system, the holders of fishing permits face losing their basic right to fish if suspended for six and then 12 months. The point system will govern EU vessels even outside EU waters and non-EU vessels in EU waters and it will be applicable to the fishing vessel, and to the crew's master and officers.
Expanding the present system of “only own country” inspections, Borg proposals will give power to each EU country to inspect other country vessels, if or when needed.
The points register will be maintained in the vessel’s flag country with the EU countries asked for mandatory inspection of fish landings, processing, transport and marketing, as well as to monitor criteria such as a vessel's fishing capacity and its engine power.
Toughening the stand against lenient EU countries, the Commission threatened to cut or suspend the EU subsidies, cut quotas or in an extreme case forbidding fishing in the EU waters, Commissioner Borg said.
The Commissioner concluded, “Control is not the solution to all fisheries management problems. But there can be no sustainable fisheries, without a fair, effective and transparent control system.” The proposals still await agreement from fisheries ministers from all 27 member states.
Saturday, November 8, 2008
Opportunity to air opinions on state funding for public service broadcasting
The European Commission today (Nov 4) opened public consultations on a draft Communication laying down the rules that it intends to apply to state funding of public service broadcasting.
Announcing the proposals, Competition Commissioner Neelie Kroes said in a statement: "I am pleased to submit the draft Broadcasting Communication for public consultation. My goal is to help stakeholders in the broadcasting sector to meet the challenges of the new media environment, allowing a high quality and modern public service, while at the same time maintaining a fair level playing field between the different actors."
Putting the deadline of submissions at January 15, 2009, the Commission invited member states and stakeholders to submit their views on the proposed text, listing the key issues for discussion as, "more flexibility for public broadcasters to meet the challenges of the new media environment, the principles underpinning the definition of the public service remit by the member states as well as supervision of public service activities at national level."
On the basis of the comments received, the Commission is expected to adopt a modernised Broadcasting Communication in the first half of 2009.
According to the submitted draft there would be "increased flexibility for public service broadcasters to build up reserves to help them deliver on their public service mission and to withstand cost fluctuations." "At the same time, the suggested rules would require reinforced control mechanisms at the national level to avoid overcompensation and cross-subsidisation of commercial activities," the draft added.
Citing that the media sector is an important area for the Commission's state aid policy, the Commission stated, "Public broadcasters receive more than 22 billion Euro annually from license fees or direct government aid, placing them third, after agriculture and transport companies, among recipients of state aid."
Based on an earlier public consultation between January and March 2008, on the general principles of the Broadcasting Communication, Commissioner Kroes announced in July her intention to modernise the current Communication, which dates back to 2001.
Announcing the proposals, Competition Commissioner Neelie Kroes said in a statement: "I am pleased to submit the draft Broadcasting Communication for public consultation. My goal is to help stakeholders in the broadcasting sector to meet the challenges of the new media environment, allowing a high quality and modern public service, while at the same time maintaining a fair level playing field between the different actors."
Putting the deadline of submissions at January 15, 2009, the Commission invited member states and stakeholders to submit their views on the proposed text, listing the key issues for discussion as, "more flexibility for public broadcasters to meet the challenges of the new media environment, the principles underpinning the definition of the public service remit by the member states as well as supervision of public service activities at national level."
On the basis of the comments received, the Commission is expected to adopt a modernised Broadcasting Communication in the first half of 2009.
According to the submitted draft there would be "increased flexibility for public service broadcasters to build up reserves to help them deliver on their public service mission and to withstand cost fluctuations." "At the same time, the suggested rules would require reinforced control mechanisms at the national level to avoid overcompensation and cross-subsidisation of commercial activities," the draft added.
Citing that the media sector is an important area for the Commission's state aid policy, the Commission stated, "Public broadcasters receive more than 22 billion Euro annually from license fees or direct government aid, placing them third, after agriculture and transport companies, among recipients of state aid."
Based on an earlier public consultation between January and March 2008, on the general principles of the Broadcasting Communication, Commissioner Kroes announced in July her intention to modernise the current Communication, which dates back to 2001.
Sunday, October 5, 2008
EU proposes a month addition to maternity leave
The European Commission proposed last week to extend EU-wide mandatory maternity leave from 14 weeks to 18 weeks giving women “longer and better” maternity leave with full salary benefits. Today, maternity leave currently varies from 14 weeks in Germany to 18 months in Sweden, with many countries offering less than 18 weeks.
Aimed at improving the “work-life balance” of the Europeans, the proposals called for stronger protection against threat of dismissal and safeguards to make sure the person returns to the same job or an equivalent one after the maternity leave.
Presenting his social package in Brussels, Vladimir Spidla, European Commissioner for Employment, Social Affairs and Equal Opportunities told journalists, “Our proposals to improve maternity leave will help women to combine work and family life, improving their and their family's quality of life.”
“Juggling work, family and private life is a huge challenge for millions of Europeans, men and women,” noted Spidla, adding, “But having children too often costs women their income and their job prospects. Only 65.5 percent of women with dependent children are in work, compared to 91.7 percent of men.”
Philip Bushill-Matthews MEP, Conservative leader in the European Parliament, argued, “The best social policy for Europe is one that creates opportunities and jobs. Member states have a primary responsibility to address social issues, where what we need is more delivery and less rhetoric.”
Critics have said small businesses will struggle to meet the costs and that national governments should decide on such matters, not the EU.
Germany and the Czech Republic, the home state of Commissioner Spidla already issued statements undermining the proposals.
Media reports quoted German Family Affairs Minister Ursula von der Leyen as saying they (the proposals) would "increase financial risks for employers who hire young women." She added the conditions would have a "boomerang" effect and prove to be a handicap for young women looking for jobs.
CTK news agency in a report cited Petr Necas, Czech Labour Minister as saying, "I'm strongly convinced that it is an unrealistic attempt and it does not respect differing conditions in various member states.”
British MEP Bushill-Matthews said, “Small businesses will struggle to afford this extra cost,” warning, “Ultimately some of the smallest businesses may think twice about employing young women through fear of them going on maternity leave.”
“The EU cannot solve all the ills of society with more one-size-fits-all legislation as determined by big business and big Trade Unions,” the Conservative European lawmaker added.
Commissioner Spidla, however had the opinion, “(The proposals) should also help increase women’s participation in the labour market and help face up to the challenges of demographic ageing: indeed countries with more women in employment also have higher birth rates.”
In a separate report “Childcare services in the EU,” the Commission reported that only five Member States -- Belgium, Denmark, the Netherlands, Sweden, and Spain, -- had reached 33 percent of coverage for kids aged under three, as providing the minimum number of certified daycare spaces for children. There were five more Member States - Portugal, United Kingdom, France, Luxembourg, Slovenia - approaching this target, it added.
While seven Member States (Finland, Italy, Cyprus, Estonia, Germany, Ireland, Latvia) had reached a coverage level of 16 to 26 percent, there were eight Member States (Greece, Hungary, Malta, Slovakia, Lithuania, Austria, the Czech Republic and Poland) had less than 10 percent coverage.
The report concluded that with the ongoing “huge imbalance between men and women in the sharing of domestics and family responsibilities, leaving women - much more so than men - to opt for flexible working arrangements or even give up work altogether.”
At the end of the press conference, Katharina von Schnurbein, spokesperson for Commissioner Spidla announced that she was going on maternity leave from this Monday.
(Published in www.neurope.eu)
Aimed at improving the “work-life balance” of the Europeans, the proposals called for stronger protection against threat of dismissal and safeguards to make sure the person returns to the same job or an equivalent one after the maternity leave.
Presenting his social package in Brussels, Vladimir Spidla, European Commissioner for Employment, Social Affairs and Equal Opportunities told journalists, “Our proposals to improve maternity leave will help women to combine work and family life, improving their and their family's quality of life.”
“Juggling work, family and private life is a huge challenge for millions of Europeans, men and women,” noted Spidla, adding, “But having children too often costs women their income and their job prospects. Only 65.5 percent of women with dependent children are in work, compared to 91.7 percent of men.”
Philip Bushill-Matthews MEP, Conservative leader in the European Parliament, argued, “The best social policy for Europe is one that creates opportunities and jobs. Member states have a primary responsibility to address social issues, where what we need is more delivery and less rhetoric.”
Critics have said small businesses will struggle to meet the costs and that national governments should decide on such matters, not the EU.
Germany and the Czech Republic, the home state of Commissioner Spidla already issued statements undermining the proposals.
Media reports quoted German Family Affairs Minister Ursula von der Leyen as saying they (the proposals) would "increase financial risks for employers who hire young women." She added the conditions would have a "boomerang" effect and prove to be a handicap for young women looking for jobs.
CTK news agency in a report cited Petr Necas, Czech Labour Minister as saying, "I'm strongly convinced that it is an unrealistic attempt and it does not respect differing conditions in various member states.”
British MEP Bushill-Matthews said, “Small businesses will struggle to afford this extra cost,” warning, “Ultimately some of the smallest businesses may think twice about employing young women through fear of them going on maternity leave.”
“The EU cannot solve all the ills of society with more one-size-fits-all legislation as determined by big business and big Trade Unions,” the Conservative European lawmaker added.
Commissioner Spidla, however had the opinion, “(The proposals) should also help increase women’s participation in the labour market and help face up to the challenges of demographic ageing: indeed countries with more women in employment also have higher birth rates.”
In a separate report “Childcare services in the EU,” the Commission reported that only five Member States -- Belgium, Denmark, the Netherlands, Sweden, and Spain, -- had reached 33 percent of coverage for kids aged under three, as providing the minimum number of certified daycare spaces for children. There were five more Member States - Portugal, United Kingdom, France, Luxembourg, Slovenia - approaching this target, it added.
While seven Member States (Finland, Italy, Cyprus, Estonia, Germany, Ireland, Latvia) had reached a coverage level of 16 to 26 percent, there were eight Member States (Greece, Hungary, Malta, Slovakia, Lithuania, Austria, the Czech Republic and Poland) had less than 10 percent coverage.
The report concluded that with the ongoing “huge imbalance between men and women in the sharing of domestics and family responsibilities, leaving women - much more so than men - to opt for flexible working arrangements or even give up work altogether.”
At the end of the press conference, Katharina von Schnurbein, spokesperson for Commissioner Spidla announced that she was going on maternity leave from this Monday.
(Published in www.neurope.eu)
Saturday, September 6, 2008
Canada reacts as EU moves to ban seal products
Brussels, July 28 - The European Commission, the executive arm of the European Union last week floated proposals for EU wide ban on seal products from countries that fail to meet high animal welfare standards. Calling for a ban on all seal products obtained through “cruel hunting methods,” European Environment Commissioner Stavros Dimas labelled them as “repugnant.”
In the EU, sealhunting is practised in Sweden, Finland, the Danish territory of Greenland and in the UK while in Canada it is the biggest hunt in the world with thousands killed annually off its east coast. Commenting on the EU proposed regulations to ban seal products, Loyola Hearn, Canadian Minister of Fisheries and Oceans, reiterated in a statement, “Once again, we would like to caution European decision-makers: adopting broad regulations to ban products from a responsible, sustainable and well-regulated hunt is a slippery slope. To bow to misinformation and emotional rhetoric in restricting the trade of humanely harvested animals would set a dangerous precedent for all wild hunts.”
While announcing the total allowable catch (TAC) and other management measure for the 2008 Atlantic seal hunt, Hearn said in early March, “The seal hunt is an economic mainstay for numerous rural communities in Atlantic Canada, Quebec and the North.” The minister had stressed, “The government has taken further steps to ensure the hunt continues to be conducted in a humane manner, adopting recommendations of the Independent Veterinarians Working Group.”
The European Commission explained that it is just addressing concerns expressed by the European Parliament and the general public, “that seals are being killed and skinned using practices that unnecessarily inflict pain and suffering.” Neil Parish, Conservative MEP and President of the European Parliament’s Animal Welfare intergroup had earlier this year urged the Commission to take action: “As the culling season gets underway, the time has come for the Commission to take action. The slaughter of seals in Canada, including seals that are just a few weeks old, is barbaric and the EU should not condone it.”
The Commission also cited the European Food Safety Authority (EFSA) scientific opinion as saying, “that seals can be killed rapidly and effectively by a number of methods without causing avoidable pain, distress and suffering, but evidence shows that effective killing does not always happen in practice.”
Clarifying this EFSA point, one reliable Canadian government source familiar with the hunt told New Europe, “Canada’s seal hunt is humane, sustainable and responsible. The recommendations made in the recent report by the European Food Safety Authority (published in December 2007) uphold the legitimacy and humaneness of the hunting practices and techniques that are used, regulated and enforced in Canada’s annual commercial seal hunt. Canada has also supplied information to the authors of a study commissioned by the European Commission on the socio-economic and animal welfare aspects of seal hunting.”
Warning that the Canadian government will “continue to stand up for sealers to protect the Canadian sealing industry and our markets,” the Canadian minister said, “While we are encouraged that the hard work of the Prime Minister, Fisheries Conservation Ambassador Sullivan, and the international team from the provinces and territories has led us to successfully secure exemptions from the proposed ban, our position remains that any ban on a humanely conducted hunt, such as Canada’s, is without cause.” “In the weeks and months ahead, the federal government - along with our provincial and territorial governments and sealing industry leaders - will be reviewing how the proposed regulations and any exemptions would apply to Canada. Canada expects the EU to quickly begin discussions on the conditions for exemption from the draft regulations so that any trade restriction would have no impact on market access for products from Canada’s humane, regulated and responsible hunt,” Hearn added.
Canada’s annual culling of seals attracts the ire of international environmental campaigners and animal protection groups. With Belgium and the Netherlands already banning the import of seal-derived products while Germany and Austria are considering closing their markets too, the industry pundits predict that proposed EU wide ban will devastate the seal product industry as one-third of the products head for the EU. The EU proposals still need to be debated and cleared by the European parliament and then Council of Ministers made of 27 Member States.
In the EU, sealhunting is practised in Sweden, Finland, the Danish territory of Greenland and in the UK while in Canada it is the biggest hunt in the world with thousands killed annually off its east coast. Commenting on the EU proposed regulations to ban seal products, Loyola Hearn, Canadian Minister of Fisheries and Oceans, reiterated in a statement, “Once again, we would like to caution European decision-makers: adopting broad regulations to ban products from a responsible, sustainable and well-regulated hunt is a slippery slope. To bow to misinformation and emotional rhetoric in restricting the trade of humanely harvested animals would set a dangerous precedent for all wild hunts.”
While announcing the total allowable catch (TAC) and other management measure for the 2008 Atlantic seal hunt, Hearn said in early March, “The seal hunt is an economic mainstay for numerous rural communities in Atlantic Canada, Quebec and the North.” The minister had stressed, “The government has taken further steps to ensure the hunt continues to be conducted in a humane manner, adopting recommendations of the Independent Veterinarians Working Group.”
The European Commission explained that it is just addressing concerns expressed by the European Parliament and the general public, “that seals are being killed and skinned using practices that unnecessarily inflict pain and suffering.” Neil Parish, Conservative MEP and President of the European Parliament’s Animal Welfare intergroup had earlier this year urged the Commission to take action: “As the culling season gets underway, the time has come for the Commission to take action. The slaughter of seals in Canada, including seals that are just a few weeks old, is barbaric and the EU should not condone it.”
The Commission also cited the European Food Safety Authority (EFSA) scientific opinion as saying, “that seals can be killed rapidly and effectively by a number of methods without causing avoidable pain, distress and suffering, but evidence shows that effective killing does not always happen in practice.”
Clarifying this EFSA point, one reliable Canadian government source familiar with the hunt told New Europe, “Canada’s seal hunt is humane, sustainable and responsible. The recommendations made in the recent report by the European Food Safety Authority (published in December 2007) uphold the legitimacy and humaneness of the hunting practices and techniques that are used, regulated and enforced in Canada’s annual commercial seal hunt. Canada has also supplied information to the authors of a study commissioned by the European Commission on the socio-economic and animal welfare aspects of seal hunting.”
Warning that the Canadian government will “continue to stand up for sealers to protect the Canadian sealing industry and our markets,” the Canadian minister said, “While we are encouraged that the hard work of the Prime Minister, Fisheries Conservation Ambassador Sullivan, and the international team from the provinces and territories has led us to successfully secure exemptions from the proposed ban, our position remains that any ban on a humanely conducted hunt, such as Canada’s, is without cause.” “In the weeks and months ahead, the federal government - along with our provincial and territorial governments and sealing industry leaders - will be reviewing how the proposed regulations and any exemptions would apply to Canada. Canada expects the EU to quickly begin discussions on the conditions for exemption from the draft regulations so that any trade restriction would have no impact on market access for products from Canada’s humane, regulated and responsible hunt,” Hearn added.
Canada’s annual culling of seals attracts the ire of international environmental campaigners and animal protection groups. With Belgium and the Netherlands already banning the import of seal-derived products while Germany and Austria are considering closing their markets too, the industry pundits predict that proposed EU wide ban will devastate the seal product industry as one-third of the products head for the EU. The EU proposals still need to be debated and cleared by the European parliament and then Council of Ministers made of 27 Member States.
EU shows unity, Thaci gets another dole of billions for Kosovo
Brussels, July 14 - The European Union maintained its facade of unity towards Kosovo at a donor’s conference held in Brussels on July 11 as the seven EU countries, which have not recognised Kosovo, also participated in the conference. Speaking to journalists on the conditions of anonymity, their representatives said that they must maintain silence and observer status.
Confirming to journalists, Pierre Mirrel, Director for the Western Balkans in the enlargement section of the European Commission said that none of those countries pledged any financial assistance, adding he expected “the pledges from those countries in coming period.” Trying to allay concerns raised by journalists, Mirrel said, “The Member States (which) even have not recognised, have agreed with other 20 Member States, with the EU willingness, to support economic and financial development of Kosovo.” “Kosovo has a European perspective,” he stressed. Out of a total pledge of 1.2 billion Euro to Kosovo’s socioeconomic development, 508 million Euro came from the EU.
Addressing the audience, EU enlargement Commissioner Olli Rehn said, “I am proud that by pledging half a billion Euro, the EU today clearly demonstrates its commitment to Kosovo and to the stability of the Western Balkans.” “I am also thankful to our international partners for their contribution and engagement. The 1.2 billion Euro pledged today will help to bring about a better future for all living in Kosovo,” added Rehn.
Thaci happy
A visibly happy Kosovo Prime Minister Hashim Thaci said: “This is a great success for my country and its citizens. The conference marks a new chapter for the economic development of Kosovo.” On the question of rampant corruption, staggering unemployment figures and earlier embezzlement episodes, Thaci told the audience, “We will start and implement the projects in shortest possible time - by providing good governance we will succeed in implementing this investment.” “This kind of support would not have come if donors were not convinced that good governance had been established,” he added.
On the subject of democratic reforms in the country and state of minorities, Thaci was upbeat saying he was proud to lead a multiethnic, European and democratic state. “We are well aware of our responsibilities,” said Thaci. “We will never disappoint you,” he added. Thanking the European Union, the US and other donor countries, Thaci said, “Kosovo’s vision is very clear: Integration into EU and NATO.”
Watching the money flow
Replying to a question on the financial mechanisms to alleviate concerns about the absorption capacity and corruption, Mirrel listed three delivery modes:
- Through agreed budget support but does not mean funds are sent to the government, there are conditions attached
- A trust fund which was launched by the World Bank last week and welcomed by donors and pledged to be used
- Classical Project Support: Pre-accession programmes
Part of the dole (1.1 billion Euro) will be used for investing in the infrastructure to connect Kosovo with the rest of the region, improving the conditions for education of Kosovo’s extremely young population, and developing Kosovo’s institutions to consolidate democracy and rule of law in a multi-ethnic society. Another “100 million that have been pledged will be used to build up a contingency reserve,” explained Mirrel. To the question of debt obligations, he said this reserve may be used to service those.
Uncertain future
Moreover, Kosovo under UN administration since 1999, when NATO bombing ended Serbian ethnic-cleansing in the region, is now at a crossroads. The EU is in a dilemma as it now aims to take on a leading role in helping rebuild its administration and judiciary through its EULEX mission which has run into legality problems. Kosovo, with a predominantly ethnic-Albanian population of two million, declared unilateral independence from Serbia in February and adopted a new constitution in June.
Serbia, along with its strong allies like Russia, is not letting Kosovo take baby steps toward nation-building as the tiny nation struggles to survive on dole-outs and prop-ups from the US and fractured EU. According to International Monetary Fund data, there was a meagre economic growth of three percent between 2003 and 2007 and the IMF found it much below the average for the region.
Wahhabism on the rise
With unemployment running at around 50 percent and rampant corruption coupled with organised crime networks mushrooming all over, the region is one of the poorest and most dangerous to live in Europe. As reported earlier in New Europe Issue 749 (http://www.neurope.eu/articles/7 8326.php), the grip of Wahhabism, a fundamentalist form of Islam being exported out of Saudi Arabia and alleged booster of terrorism is tightening its vicious grip on Kosovo population at an alarming rate as money is allegedly being offered to families depending on the way the women use veils to cover in orthodox Islamic traditions.
Thaci did not have time to comment on the subject, his spokesman told New Europe at the end of the press conference. The donors’ conference was called at the behest of the European Commission which explained that it was responding to the European Council statement of December 2007 when it called for EU’s readiness to assist Kosovo on the road towards sustainable stability.
Among the participants were representatives from all EU Member States, members of the European Parliament, international donors such as the US, Switzerland, Norway, Japan, Canada, Israel, Kuwait, Korea, Turkey, Saudi Arabia, as well as international financial institutions, UN agencies and regional organisations such as OSCE, NATO, and the OECD.
Confirming to journalists, Pierre Mirrel, Director for the Western Balkans in the enlargement section of the European Commission said that none of those countries pledged any financial assistance, adding he expected “the pledges from those countries in coming period.” Trying to allay concerns raised by journalists, Mirrel said, “The Member States (which) even have not recognised, have agreed with other 20 Member States, with the EU willingness, to support economic and financial development of Kosovo.” “Kosovo has a European perspective,” he stressed. Out of a total pledge of 1.2 billion Euro to Kosovo’s socioeconomic development, 508 million Euro came from the EU.
Addressing the audience, EU enlargement Commissioner Olli Rehn said, “I am proud that by pledging half a billion Euro, the EU today clearly demonstrates its commitment to Kosovo and to the stability of the Western Balkans.” “I am also thankful to our international partners for their contribution and engagement. The 1.2 billion Euro pledged today will help to bring about a better future for all living in Kosovo,” added Rehn.
Thaci happy
A visibly happy Kosovo Prime Minister Hashim Thaci said: “This is a great success for my country and its citizens. The conference marks a new chapter for the economic development of Kosovo.” On the question of rampant corruption, staggering unemployment figures and earlier embezzlement episodes, Thaci told the audience, “We will start and implement the projects in shortest possible time - by providing good governance we will succeed in implementing this investment.” “This kind of support would not have come if donors were not convinced that good governance had been established,” he added.
On the subject of democratic reforms in the country and state of minorities, Thaci was upbeat saying he was proud to lead a multiethnic, European and democratic state. “We are well aware of our responsibilities,” said Thaci. “We will never disappoint you,” he added. Thanking the European Union, the US and other donor countries, Thaci said, “Kosovo’s vision is very clear: Integration into EU and NATO.”
Watching the money flow
Replying to a question on the financial mechanisms to alleviate concerns about the absorption capacity and corruption, Mirrel listed three delivery modes:
- Through agreed budget support but does not mean funds are sent to the government, there are conditions attached
- A trust fund which was launched by the World Bank last week and welcomed by donors and pledged to be used
- Classical Project Support: Pre-accession programmes
Part of the dole (1.1 billion Euro) will be used for investing in the infrastructure to connect Kosovo with the rest of the region, improving the conditions for education of Kosovo’s extremely young population, and developing Kosovo’s institutions to consolidate democracy and rule of law in a multi-ethnic society. Another “100 million that have been pledged will be used to build up a contingency reserve,” explained Mirrel. To the question of debt obligations, he said this reserve may be used to service those.
Uncertain future
Moreover, Kosovo under UN administration since 1999, when NATO bombing ended Serbian ethnic-cleansing in the region, is now at a crossroads. The EU is in a dilemma as it now aims to take on a leading role in helping rebuild its administration and judiciary through its EULEX mission which has run into legality problems. Kosovo, with a predominantly ethnic-Albanian population of two million, declared unilateral independence from Serbia in February and adopted a new constitution in June.
Serbia, along with its strong allies like Russia, is not letting Kosovo take baby steps toward nation-building as the tiny nation struggles to survive on dole-outs and prop-ups from the US and fractured EU. According to International Monetary Fund data, there was a meagre economic growth of three percent between 2003 and 2007 and the IMF found it much below the average for the region.
Wahhabism on the rise
With unemployment running at around 50 percent and rampant corruption coupled with organised crime networks mushrooming all over, the region is one of the poorest and most dangerous to live in Europe. As reported earlier in New Europe Issue 749 (http://www.neurope.eu/articles/7 8326.php), the grip of Wahhabism, a fundamentalist form of Islam being exported out of Saudi Arabia and alleged booster of terrorism is tightening its vicious grip on Kosovo population at an alarming rate as money is allegedly being offered to families depending on the way the women use veils to cover in orthodox Islamic traditions.
Thaci did not have time to comment on the subject, his spokesman told New Europe at the end of the press conference. The donors’ conference was called at the behest of the European Commission which explained that it was responding to the European Council statement of December 2007 when it called for EU’s readiness to assist Kosovo on the road towards sustainable stability.
Among the participants were representatives from all EU Member States, members of the European Parliament, international donors such as the US, Switzerland, Norway, Japan, Canada, Israel, Kuwait, Korea, Turkey, Saudi Arabia, as well as international financial institutions, UN agencies and regional organisations such as OSCE, NATO, and the OECD.
EU aims to become a bastion of equality
Patients could travel abroad for treatment
Brussels, July 7 - Patients will be able to seek healthcare abroad and get reimbursed up to the level their governments normally would have paid in their own country, the European Commission announced. As part of the overall Renewed Social Agenda for the benefit of EU citizens, the Commission reiterated what the European Court of Justice in its several rulings over a period of time has confirmed - that the EU Treaty gives individual patients the right to seek healthcare in other Member States and be reimbursed at home. Announcing the proposals, Androulla Vassiliou, European Health Commissioner told journalists: “Patients will be able to receive treatment in any member state, which will be reimbursed at home up to the level of the same or similar treatment in their health system,” adding, “There will be a fair and quick reimbursement.”
Saying, “They will not need prior authorisation,” the Commissioner added, “Patients from any country will enjoy equal treatment with the nationals of the country in which they are being treated and cannot be discriminated against.” The Commissioner stressed that the directive was aimed at the patients in small cities or towns on border areas and also in specified specialised cases. To calm the doubts raised by the Member States, the Commissioner said, “However, if unpredictable cross-border healthcare becomes a problem, the system could put into place a system of prior authorisation to safeguard the system.” She added: “It will allow excessive demand from one country to be met by excessive capacity in another country.
This is the essence of the co-operation,” but it was also clarified that in countries with long waiting lists, patients from abroad will have to join the queue. Moreover, the new measures will allow the Member States to require that the citizens get prior authorisation for hospital treatment abroad and the Member States will have to deal with them on a case by case basis with provisions for “right to review” and explanations to justify any denial of such requests. On the part of the host Member State, the quality and safety standards of the treatment will be their responsibility while the new directive is set to facilitate European cooperation on healthcare.
The Commissioner said, “All Member States should define standards and those should be made public and ensured that they are effectively implemented.” Around one percent of treatment is currently provided abroad in Europe and the number is very low, the Commission said. Today, the European Health Insurance Card (EHIC) provides only emergency care across the European Union in case a traveling EU citizen falls ill while abroad but has health insurance in the home country. “This is about patient’s rights. Patients should be entitled to treatment in another EU member state if necessary, with no worry about costs, safety and quality.
Whereas today complex rules and legal uncertainty can be a barrier for people without many resources, this directive will ensure equal access for all patients to cross border health services,” said Jules Maaten, a Member of the European Parliament from the Netherlands. Covering other broad range of subjects like old age, sexual orientation, religious beliefs and disability the overall legal proposals promised all equal treatment. Launching the Renewed Social Agenda, Vladimir Spidla, European Commissioner for Equal Opportunities told journalists, “There is an inequality in (EU) legislation because people are protected from discrimination outside the workplace only on grounds of gender and race or ethnic origin.
We must ensure equal treatment for all grounds.” Aiming to ensure equality in all fields and sectors, the Commission said in a statement that the proposal should “ensure equal treatment in the areas of social protection, including social security and health care; education; and access to and supply of goods and services which are commercially available to the public, including housing.” Clarifying doubts raised by journalists, the Commission officials said under the new rules, for example, a hotel will not be able to refuse a room to a gay couple because of their sexuality or other facilities like restaurants which refused to provide adequate access for wheelchair-bound customers will have to do so under the new legislation.
There will, however be no imposition in cases of sensitive subjects like teaching about homosexuality in the school curricula or the ban on religious symbols. As a result, the intolerant behaviour of countries like France, which since 2004 banned the open showing of religious symbols such as Christian crosses, Muslim headscarves or Sikh turbans in state schools on the grounds of state secularism, could not be forced to change their laws. The proposals under this new directive must now be examined by the European Parliament and the Council of Ministers before becoming EU law.
Brussels, July 7 - Patients will be able to seek healthcare abroad and get reimbursed up to the level their governments normally would have paid in their own country, the European Commission announced. As part of the overall Renewed Social Agenda for the benefit of EU citizens, the Commission reiterated what the European Court of Justice in its several rulings over a period of time has confirmed - that the EU Treaty gives individual patients the right to seek healthcare in other Member States and be reimbursed at home. Announcing the proposals, Androulla Vassiliou, European Health Commissioner told journalists: “Patients will be able to receive treatment in any member state, which will be reimbursed at home up to the level of the same or similar treatment in their health system,” adding, “There will be a fair and quick reimbursement.”
Saying, “They will not need prior authorisation,” the Commissioner added, “Patients from any country will enjoy equal treatment with the nationals of the country in which they are being treated and cannot be discriminated against.” The Commissioner stressed that the directive was aimed at the patients in small cities or towns on border areas and also in specified specialised cases. To calm the doubts raised by the Member States, the Commissioner said, “However, if unpredictable cross-border healthcare becomes a problem, the system could put into place a system of prior authorisation to safeguard the system.” She added: “It will allow excessive demand from one country to be met by excessive capacity in another country.
This is the essence of the co-operation,” but it was also clarified that in countries with long waiting lists, patients from abroad will have to join the queue. Moreover, the new measures will allow the Member States to require that the citizens get prior authorisation for hospital treatment abroad and the Member States will have to deal with them on a case by case basis with provisions for “right to review” and explanations to justify any denial of such requests. On the part of the host Member State, the quality and safety standards of the treatment will be their responsibility while the new directive is set to facilitate European cooperation on healthcare.
The Commissioner said, “All Member States should define standards and those should be made public and ensured that they are effectively implemented.” Around one percent of treatment is currently provided abroad in Europe and the number is very low, the Commission said. Today, the European Health Insurance Card (EHIC) provides only emergency care across the European Union in case a traveling EU citizen falls ill while abroad but has health insurance in the home country. “This is about patient’s rights. Patients should be entitled to treatment in another EU member state if necessary, with no worry about costs, safety and quality.
Whereas today complex rules and legal uncertainty can be a barrier for people without many resources, this directive will ensure equal access for all patients to cross border health services,” said Jules Maaten, a Member of the European Parliament from the Netherlands. Covering other broad range of subjects like old age, sexual orientation, religious beliefs and disability the overall legal proposals promised all equal treatment. Launching the Renewed Social Agenda, Vladimir Spidla, European Commissioner for Equal Opportunities told journalists, “There is an inequality in (EU) legislation because people are protected from discrimination outside the workplace only on grounds of gender and race or ethnic origin.
We must ensure equal treatment for all grounds.” Aiming to ensure equality in all fields and sectors, the Commission said in a statement that the proposal should “ensure equal treatment in the areas of social protection, including social security and health care; education; and access to and supply of goods and services which are commercially available to the public, including housing.” Clarifying doubts raised by journalists, the Commission officials said under the new rules, for example, a hotel will not be able to refuse a room to a gay couple because of their sexuality or other facilities like restaurants which refused to provide adequate access for wheelchair-bound customers will have to do so under the new legislation.
There will, however be no imposition in cases of sensitive subjects like teaching about homosexuality in the school curricula or the ban on religious symbols. As a result, the intolerant behaviour of countries like France, which since 2004 banned the open showing of religious symbols such as Christian crosses, Muslim headscarves or Sikh turbans in state schools on the grounds of state secularism, could not be forced to change their laws. The proposals under this new directive must now be examined by the European Parliament and the Council of Ministers before becoming EU law.
Europe to get more gas
Commission to support Norwegian commitments
The European Commission will nod the government subsidies in the Norwegian case for the development of Carbon capture and storage (CCS) as a means to curb emissions from coal power plants by burying carbon dioxide (CO2) deep underground, according to European energy commissioner Andris Piebalgs.
Outlining the Norway’s efforts, Norwegian Energy Minister Marie Haga Aslaug told journalists, “We have three concrete projects in Carbon capture and storage in the pipeline and it has been very useful to us to have a close cooperation with the Commission on these projects. Also in order to create an understanding that for the time being government funding is required in order to make these projects work out.”
Aiming to make the technology commercially viable, the Norwegian minister urged “some countries are willing to put governmental funding in a substantial way,” adding, “I am looking forward to the day when we have the technological breakthrough where we can have co2 not only from gas powered power plants but also coal powered power plants.”
“I’m optimistic that we’ll get a yes for a notification which is made for the test centre,” she said. Commenting on the subject at the joint press conference with Norwegian minister, Piebalgs told journalists, “I believe that state aid is eligible if it’s scrutinised according to the rules. It (may be) given as much as necessary if it corresponds to the conditions.” “We need this technology not only for the EU but also globally and Norwegian efforts are very much appreciated,” he said.
Commending the “high ambitions of the colleagues on the Continent,” about renewable energy sources, the Norwegian minister spoke of windmills saying, “We have decided to establish more formal cooperation in this field. The potential is huge but it’s still some years ahead of us.”
“Floating windmills which could be placed on any continental shelf and we see a great potential from floating windmills. As of now, we do not have the technology, it has to be developed and there are major issues that have to be resolved in terms of grid so we are speaking of the future. But I think it’s very important to develop all possibilities in the renewable fields,” added Norwegian minister.
Replying to a question “on gas export,” she said, “In the years to come we will have a decline in oil production but we will have an increase in gas production over the next decade and obviously the market on the Continent, first and foremost will receive that gas.”
Negating the possibility of building new gas pipelines to the European continent, the Norwegian minister emphatically told journalists, “Pipeline capacity will never stop our supply.” Norway is the second biggest gas supplier to the EU with 18 percent, compared to Russia with 23 percent.
Depending on developments with Russia, Piebalgs hoped that with projected deliveries of up to 125 to 140 billion cubic metres of gas by 2018-2020, “that could mean that, by that time, Norway could be the biggest supplier of gas for the European Union.”
The European Commission will nod the government subsidies in the Norwegian case for the development of Carbon capture and storage (CCS) as a means to curb emissions from coal power plants by burying carbon dioxide (CO2) deep underground, according to European energy commissioner Andris Piebalgs.
Outlining the Norway’s efforts, Norwegian Energy Minister Marie Haga Aslaug told journalists, “We have three concrete projects in Carbon capture and storage in the pipeline and it has been very useful to us to have a close cooperation with the Commission on these projects. Also in order to create an understanding that for the time being government funding is required in order to make these projects work out.”
Aiming to make the technology commercially viable, the Norwegian minister urged “some countries are willing to put governmental funding in a substantial way,” adding, “I am looking forward to the day when we have the technological breakthrough where we can have co2 not only from gas powered power plants but also coal powered power plants.”
“I’m optimistic that we’ll get a yes for a notification which is made for the test centre,” she said. Commenting on the subject at the joint press conference with Norwegian minister, Piebalgs told journalists, “I believe that state aid is eligible if it’s scrutinised according to the rules. It (may be) given as much as necessary if it corresponds to the conditions.” “We need this technology not only for the EU but also globally and Norwegian efforts are very much appreciated,” he said.
Commending the “high ambitions of the colleagues on the Continent,” about renewable energy sources, the Norwegian minister spoke of windmills saying, “We have decided to establish more formal cooperation in this field. The potential is huge but it’s still some years ahead of us.”
“Floating windmills which could be placed on any continental shelf and we see a great potential from floating windmills. As of now, we do not have the technology, it has to be developed and there are major issues that have to be resolved in terms of grid so we are speaking of the future. But I think it’s very important to develop all possibilities in the renewable fields,” added Norwegian minister.
Replying to a question “on gas export,” she said, “In the years to come we will have a decline in oil production but we will have an increase in gas production over the next decade and obviously the market on the Continent, first and foremost will receive that gas.”
Negating the possibility of building new gas pipelines to the European continent, the Norwegian minister emphatically told journalists, “Pipeline capacity will never stop our supply.” Norway is the second biggest gas supplier to the EU with 18 percent, compared to Russia with 23 percent.
Depending on developments with Russia, Piebalgs hoped that with projected deliveries of up to 125 to 140 billion cubic metres of gas by 2018-2020, “that could mean that, by that time, Norway could be the biggest supplier of gas for the European Union.”
Saturday, April 12, 2008
EU awaits official WTO ruling
Leaked documents suggest US can impose sanctions
The year 2008 has brought another loss to the European Union in its more than a decade-old tariff dispute with Latin American banana producers and the US, as a leaked interim report from the World Trade Organization (WTO) clearly sided with the US on who can then levy sanctions on European imports equal to damages incurred by US companies.
Have patience, do not react and this too shall pass! The mantra advocated by many in the labyrinths of power in Brussels seems to have slipped badly as 11 years down the road the “Banana Wars” of the late 1990s came back knocking on the doors of the European Commission.
Joining the fray, the US had said in a statement: “The US request relates to the EU’s apparent failure to implement the WTO rulings in a 1996 proceeding initiated by Ecuador, Guatemala, Honduras, Mexico and America.”
After the 1996 WTO ruling, the EU had committed to bring its tariff-quota regime for bananas in compliance with the ruling no later than January 1, 2006, said the US statement, lamenting the fact that “the EU banana regime put in place on January 1, 2006 features a zeroduty tariff quota that is allocated exclusively to bananas from African, Caribbean and Pacific (ACP) countries. Bananas of Latin American origin do not have access to this duty-free tariff rate quota and are subject, instead, to a 176 Euro/ton duty.”
During a press conference later, the European Commissioner for Agriculture and Rural Development Mariann Fischer Boel had wondered why in the first place the US was interested in the banana sector as it is not a banana producer, but then she answered her own doubts with the mention of Chiquita, a major banana company, as the possible cause for US to intervene.
The Commissioner, however, added that the EU will look into the matter and take appropriate steps. Chiquita, based in Cincinnati in the US, could not be contacted for their immediate reaction but it had said in its annual report last year that the tariff added USD 75 million in net costs in 2006.
European banana sector sources told New Europe that other US exporters, including Del Monte and Dole, are also affected, adding that the European Commissioner has her facts correct that no bananas are grown in the US, but in the trade circle of today’s era of globalisation everyone is aware of the large farming interests of these leading world exporters globally, especially in the Latin American region.
The US statement pointed out that WTO ruling had said “the EU’s regime discriminates against bananas originating in Latin American countries and against distributors of such bananas, including several US companies,” adding “The EU was under an obligation to bring its banana regime into compliance with its WTO obligations by January 1999.”
The EU’s tariff-only banana policy took effect in 2006, after a nearly five-year transition from a license-and-quota system that the US and Latin American producers had fought since its introduction in 1993.
The WTO ruled against the old system in 1997 and upheld US sanctions of European goods in 1999.During negotiating for a single tariff system to modify its complex web of duties and quotas for imports, the European Commission had suggested EU duties of 230 Euro and then scaling them down to 187 Euro, but WTO panels had rejected the proposals arguing that those were discriminatory against Latin American (Latam) nations.
Out of that deadlock emerged the figure of 176 Euro, but the conflict simmered on.Even after the introduction of the new EU single tariff system, there was widespread dissatisfaction, and Norwegian Foreign Minister Jonas Gahr Stoere got into the driver’s seat to find a political solution based on a thorough monitoring of the EU banana imports and various price systems in force.
But, after waiting nearly for a year, Ecuador decided to go ahead with the WTO route culminating in a victory late last year. On November 23, 2006 Ecuador was joined by Colombia as a third party. Panama and the US followed and more countries are set to join in the fray according to sector insiders.
The EU’s current banana import policy significantly differentiates access treatment as a tariff-quota volume of 775,000 tonnes is exclusively reserved for bananas of ACP origin. ACP bananas within the quota enter duty-free (i.e., at a 176 Euro/tonne margin of preference), with unlimited ACP over-quota access authorised at a tariff of 176 Euro/tonne.
On the other hand, an “autonomous” tariff of 176 Euro/tonne (a rate more than double the previously-applicable rate of 75 Euro/tonne) applies to all other bananas.Bananas are the most important agricultural product in Ecuador, and its exports account for 25 percent of all Ecuador’s agricultural exports. Some 22 percent of all banana output is aimed for the European Union market but this share to EU 27 today is down by 3.3 percent.
On the other hand, in Europe it is a “sensitive” commodity and there is a protection regime for the sector.While bananas grown within the bloc have shrunk to only 11 percent of the total EU supply, highly-subsidised production is important to the Spain’s Canary Islands, the French overseas departments of Martinique and Guadeloupe and Portugal’s Madeira and Azores islands.In 2007, Europeans ate some 4.9 million tonnes of bananas, making the bloc the world’s biggest banana market but consumption per capita remains two kilogrammes below the average consumed in the US.
Over two-thirds of the fruits consumed come from Latin America, earning a total of approximately 637 million Euro in tariffs for EU coffers and a further “duty-free” 16.3 percent from Africa and Caribbean countries.
It’s interesting to note that only on Colombian bananas is there a taxation of 200 million Euro, and social pundits along with market observers agreed that this money could be utilised to aid rural communities, such as Colombia, where former presidential candidate and Colombian-French citizen Ingrid Betancourt is kept as a hostage.
Bananas are set to be prominent in the upcoming finalisation of Association Agreements with Central American and Andean countries while appearing on the radar of WTO Development Round but according to reliable WTO sources in Geneva, the latest leaked ruling can be appealed against by the European Union only when these are finalised and published.
The year 2008 has brought another loss to the European Union in its more than a decade-old tariff dispute with Latin American banana producers and the US, as a leaked interim report from the World Trade Organization (WTO) clearly sided with the US on who can then levy sanctions on European imports equal to damages incurred by US companies.
Have patience, do not react and this too shall pass! The mantra advocated by many in the labyrinths of power in Brussels seems to have slipped badly as 11 years down the road the “Banana Wars” of the late 1990s came back knocking on the doors of the European Commission.
Joining the fray, the US had said in a statement: “The US request relates to the EU’s apparent failure to implement the WTO rulings in a 1996 proceeding initiated by Ecuador, Guatemala, Honduras, Mexico and America.”
After the 1996 WTO ruling, the EU had committed to bring its tariff-quota regime for bananas in compliance with the ruling no later than January 1, 2006, said the US statement, lamenting the fact that “the EU banana regime put in place on January 1, 2006 features a zeroduty tariff quota that is allocated exclusively to bananas from African, Caribbean and Pacific (ACP) countries. Bananas of Latin American origin do not have access to this duty-free tariff rate quota and are subject, instead, to a 176 Euro/ton duty.”
During a press conference later, the European Commissioner for Agriculture and Rural Development Mariann Fischer Boel had wondered why in the first place the US was interested in the banana sector as it is not a banana producer, but then she answered her own doubts with the mention of Chiquita, a major banana company, as the possible cause for US to intervene.
The Commissioner, however, added that the EU will look into the matter and take appropriate steps. Chiquita, based in Cincinnati in the US, could not be contacted for their immediate reaction but it had said in its annual report last year that the tariff added USD 75 million in net costs in 2006.
European banana sector sources told New Europe that other US exporters, including Del Monte and Dole, are also affected, adding that the European Commissioner has her facts correct that no bananas are grown in the US, but in the trade circle of today’s era of globalisation everyone is aware of the large farming interests of these leading world exporters globally, especially in the Latin American region.
The US statement pointed out that WTO ruling had said “the EU’s regime discriminates against bananas originating in Latin American countries and against distributors of such bananas, including several US companies,” adding “The EU was under an obligation to bring its banana regime into compliance with its WTO obligations by January 1999.”
The EU’s tariff-only banana policy took effect in 2006, after a nearly five-year transition from a license-and-quota system that the US and Latin American producers had fought since its introduction in 1993.
The WTO ruled against the old system in 1997 and upheld US sanctions of European goods in 1999.During negotiating for a single tariff system to modify its complex web of duties and quotas for imports, the European Commission had suggested EU duties of 230 Euro and then scaling them down to 187 Euro, but WTO panels had rejected the proposals arguing that those were discriminatory against Latin American (Latam) nations.
Out of that deadlock emerged the figure of 176 Euro, but the conflict simmered on.Even after the introduction of the new EU single tariff system, there was widespread dissatisfaction, and Norwegian Foreign Minister Jonas Gahr Stoere got into the driver’s seat to find a political solution based on a thorough monitoring of the EU banana imports and various price systems in force.
But, after waiting nearly for a year, Ecuador decided to go ahead with the WTO route culminating in a victory late last year. On November 23, 2006 Ecuador was joined by Colombia as a third party. Panama and the US followed and more countries are set to join in the fray according to sector insiders.
The EU’s current banana import policy significantly differentiates access treatment as a tariff-quota volume of 775,000 tonnes is exclusively reserved for bananas of ACP origin. ACP bananas within the quota enter duty-free (i.e., at a 176 Euro/tonne margin of preference), with unlimited ACP over-quota access authorised at a tariff of 176 Euro/tonne.
On the other hand, an “autonomous” tariff of 176 Euro/tonne (a rate more than double the previously-applicable rate of 75 Euro/tonne) applies to all other bananas.Bananas are the most important agricultural product in Ecuador, and its exports account for 25 percent of all Ecuador’s agricultural exports. Some 22 percent of all banana output is aimed for the European Union market but this share to EU 27 today is down by 3.3 percent.
On the other hand, in Europe it is a “sensitive” commodity and there is a protection regime for the sector.While bananas grown within the bloc have shrunk to only 11 percent of the total EU supply, highly-subsidised production is important to the Spain’s Canary Islands, the French overseas departments of Martinique and Guadeloupe and Portugal’s Madeira and Azores islands.In 2007, Europeans ate some 4.9 million tonnes of bananas, making the bloc the world’s biggest banana market but consumption per capita remains two kilogrammes below the average consumed in the US.
Over two-thirds of the fruits consumed come from Latin America, earning a total of approximately 637 million Euro in tariffs for EU coffers and a further “duty-free” 16.3 percent from Africa and Caribbean countries.
It’s interesting to note that only on Colombian bananas is there a taxation of 200 million Euro, and social pundits along with market observers agreed that this money could be utilised to aid rural communities, such as Colombia, where former presidential candidate and Colombian-French citizen Ingrid Betancourt is kept as a hostage.
Bananas are set to be prominent in the upcoming finalisation of Association Agreements with Central American and Andean countries while appearing on the radar of WTO Development Round but according to reliable WTO sources in Geneva, the latest leaked ruling can be appealed against by the European Union only when these are finalised and published.
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