Bananas: common organisation of the market CMO (amend. Regulation (EEC) No 404/93)

The European Parliament approved, with numerous amendments, the resolution by Mr Michel J.M. DARY (PES, F). It is proposed by the Parliament that in establishing and managing the licensing system for 'C' quota, the Commission should aim to make license availability compatible with the volume of a country's exportable production, particularly by making adjustments to the allocation between traditional and non-traditional operators (a readjustment of 'C' quota in favour of traditional operators to achieve a minimum allocation of 94% for traditional ACP producers, 6% for non-traditional producers seems appropriate) and in defining historical reference periods (the 1996/1998 period offers the best correlation between license availability and volume of production). These rules should apply on a transnational basis pending the entry onto force on January 2006 of the common customs tariff rate applicable to products covered by the common organisation of the market. Before the conclusion of the negotiations on this subject which are being conducted with the Community's partners in accordance with the WTO procedures, the Commission should submit a progress report to the European Parliament and the Council which focuses in particular on trends in consumption and procedures' income within the Community and on the Union's commitments vis-à-vis the ACP countries, and which enables an assessment to be made of the a possible single customs duty to be negotiated at a level which can be borne by the most vulnerable producers and of the putting forward of the many compensatory measures. The Parliament also stipulates that there may be occasions when special measures are needed to accommodate the adverse effects of hurricanes. The Council should give the Commission leave to discuss the nature of these measures with individual Member States. In addition, in the event of increased Community demand, quotas B and C should be increased proportionately. Technical and financial assistance should be introduced without delay for traditional suppliers of ACP bananas, under measures, laid down in Council Regulation 856/1999/EC, which were adopted in 1999 with the aim of improving their competitiveness and easing their transition to the common customs tariff. Other aspects of the aid scheme for Community producers should also be modified so as to enable those producers to prepare for the 2006 deadline. The Parliament also notes that it is unjustified that aid granted to Community producers for loss of earnings should be used to develop new crops which may cause widespread environmental damage in banana producing areas. Aid should be primarily maintained to support banana production in traditional growing areas with the aim of helping the rural populations living there. In addition, Member States that so wish shall be authorised from 1 January 2002 to introduce national limits on the production for which compensation may be paid, on the basis of quotas currently authorised, without prejudice to the possibility of future revision of the national limits should the quotas be modified. The House also proposed that supplmentary aid shall be granted to one or more producers regions whe average income from production is 5% lower than average Community income. The supplementantary aid shall amount to 75% of the difference between average Community income and the income recorded when the products of the regions concerned are sold on the market. Before the conclusion of the negotiations with the Community'strading partners on the rate of the common customs tariff, and in any case before 31 December 2004, the Parliament proposes that the Commission shall submit a report to the European Parliament and Council on the foreseeable impact on the incomes of Community producers and ACP producers of the move to a common customs tariff, and shall propose appropriate compensatory measures. Lastly, the imports of products originating in the ACP countries shall be subject to a zero duty until 31 December 2007.�