The European Commission (EC) wants to replace the current EU import regimes for rice and cereals, which are no longer working correctly and replace them with a more linear system, possibly based on tariff rate quotas and fixed duties.
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In this context, the EC has adopted a proposal to open negotiations with its WTO partners to modify the EU system of duties charged by the EU for rice and cereals imports.
The current system to calculate EU import duties for cereals takes US Commodity Exchange quotations as representative for world cereal market prices, but lower prices in other regions of the world are not reflected. This has led to increased imports at abnormally low duties, and market imbalances in the EU. If the proposal is accepted by the Council, the EC will start negotiations with relevant WTO members to replace the current import system, which is based on representative prices and linked to the EU intervention price.
“The present regime for importing rice and cereals to the EU does not work. Representative prices used for calculating import duties no longer adequately represent world market prices”, commented Franz Fischler, European Commissioner for Agriculture, Rural Development and Fisheries: “This is why we need to modify the system, in full compliance with the WTO procedures and Article XXVIII GATT.
“This means that we will negotiate with those WTO trading partners, which are key exporters to the EU. We have no intention to be more restrictive concerning access of cereals and rice to the EU market, and GATT provisions fully provide for the maintenance of the rights of our WTO partners. Our objective in these negotiations, therefore, is to improve the system to more accurately fulfil our WTO obligations and protect our rights.
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