Brussels, 13/11/2002 (Agence Europe) - Negotiations headed by the European Commission, initiated end July within the WTO framework to modify access to the Community market for cereals, finally came to an end Tuesday evening with an agreement with the United States and Canada on the establishment, from 1 January 2003, of two quotas, one for medium and low quality wheat and the other for barley. The Commission therefore renounced total abolition of the regime in place, probably under pressure from the United States. The aim of the negotiating brief granted to the Commission by the Fifteen consisted in finding a solution to contain low price imports to the EU of cereals from Ukraine and Russia, countries with which discussions are to be continued (see EUROPE of 21 September, 2002). The Council has still to approve proposals forwarded to it on the establishment of these quotas.
From 1 January 2003, a tariff quota of 2 981 600 tonnes will be opened for wheat, of which 572 000 tonnes will be for the United States and 38 000 tonnes for Canada (the rest of the quota being open to other importers) with customs duties of 12 euro/tonne within the quota limits. Outside the quota, duties will be fixed at 95 euros/tonne. It is also foreseen that a quota of 50 000 tonnes of malting barley (for brewing) will be opened, with a duty of 8 euro/tonne, as well as a quota of 300 000 tonnes for the other varieties of barley (fodder), with a duty of 16 euro/tonne. Outside the quotas, the current duty of 93 euro/tonne will be maintained.
For all other cereals, the current system for calculating Community import duties will remain applicable. Washington will have finally managed to convince European negotiators to modify only the Community regime for medium and low quality wheat and barley and to keep the rule of 155% for high quality wheat and for durum wheat unchanged. The customs duty currently imposed by the Community on imported cereals is equal to the difference between 155% of the intervention price (101.31 euro/tonne) and the stock market quotations for raw materials from Chicago, including transport costs.
Commissioner Franz Fischler considers the new system "will help stabilise the EU cereal market, whilst keeping our markets open to imports of all cererals and especially of high quality cereals from all countries. This deal also accommodates recent exporters interests, as it provides Russia and Ukraine with reasonable export opportunities that go even beyond their average exports in recent years".