1998/0027(CNS)

Agenda 2000: raw tobacco, reform of the common organisation of the market COM (amend. regul. 2075/92/EEC)

Procedure completed

1998/0027(CNS) Agenda 2000: raw tobacco, reform of the common organisation of the market COM (amend. regul. 2075/92/EEC)
RoleCommitteeRapporteurShadows
Lead AGRI ROSADO FERNANDES Raúl Miguel (UPE)
Opinion BUDG WYNN Terence (PSE)
Opinion CONT GARRIGA POLLEDO Salvador (PPE)
Opinion ENVI KESTELIJN-SIERENS Marie-Paule (Mimi) (ELDR)
Opinion REGI
Lead committee dossier: AGRI/4/09906
Legal Basis EC before Amsterdam E 043
Subjects
Links

Activites

  • 2004/07/21 Court of Auditors: opinion, report
    • RCC0007/2004 summary
    • OJ C 041 17.02.2005, p. 0001-0034
  • 2002/11/06 Follow-up document
    • SEC(2002)1183 summary
  • 1998/07/28 Final act published in Official Journal
  • 1998/07/20 Act adopted by Council after consultation of Parliament
  • #2115
  • 1998/07/20 Council Meeting
  • 1998/07/20 End of procedure in Parliament
  • #2110
  • 1998/06/22 Council Meeting
  • 1998/06/16 Text adopted by Parliament, 1st reading/single reading
    • T4-0352/1998 summary
    • OJ C 210 06.07.1998, p. 0021-0079
  • 1998/06/03 Committee report tabled for plenary, 1st reading/single reading
  • 1998/04/29 Committee draft report
    • PE226.538
  • #2082
  • 1998/04/20 Council Meeting
  • 1998/03/30 Committee referral announced in Parliament, 1st reading/single reading
  • 1998/03/18 Document attached to the procedure
  • #2069
  • 1998/02/16 Council Meeting
  • 1998/01/28 Legislative proposal
    • COM(1998)0019 summary
    • OJ C 108 07.04.1998, p. 0087

Documents

History

(these mark the time of scraping, not the official date of the change)

2012-02-10
activities added
  • date
    1998-01-28
    docs
    body
    EC
    commission
      type
      Legislative proposal
    • date
      1998-02-16
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      CSL
      type
      Council Meeting
      council
      Agriculture and Fisheries
      meeting_id
      2069
    • date
      1998-03-18
      docs
      • url
        http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1998&nu_doc=0182
        type
        Document attached to the procedure
        title
        COM(1998)0182
      body
      EC
      commission
        type
        Document attached to the procedure
      • date
        1998-03-30
        body
        EP
        type
        Committee referral announced in Parliament, 1st reading/single reading
        committees
      • date
        1998-04-20
        body
        CSL
        type
        Council Meeting
        council
        Agriculture and Fisheries
        meeting_id
        2082
      • date
        1998-04-29
        docs
        • type
          Committee draft report
          title
          PE226.538
        body
        EP
        type
        Committee draft report
      • body
        EP
        committees
        docs
        text
        • The Committee has adopted the report by Raúl ROSADO FERNANDES (UFE, P). The report calls for changes entailing a variation of EU aid in line with product quality, greater flexibility and simplicity in the setting of quotas, stricter control procedures and improved observance of public health and environmental protection requirements.
          The common organisation of the market in tobacco (COM) contains rules on a system of premiums, measures on guiding and limiting production, and rules on trading with non-EU countries. The maximum overall guarantee threshold for the Community is 350 600 tonnes of raw leaf tobacco per Harvest. The Commission is proposing that, within that quantity, the Council should set individual guarantee thresholds for each variety group for three consecutive harvests. The Agriculture Committee wants the Council to set these thresholds for four consecutive harvests. Member States would be responsible for distributing the production quotas among their producers, in proportion to the average amounts delivered for processing over the three years preceding the last harvest year.
          As regards the premiums to be paid, these would consist of a fixed component, plus a variable component depending on quality. While the Commission would make the variable component account for between 35% and 45% of the premium, the Agriculture Committee believes it should not exceed 25% of the total.
          The Committee is also calling for the creation of an interprofessional institute to establish objective quality criteria for classification, in cooperation with the Commission. In addition, it wishes to see a Community Tobacco Fund set up, financed by a deduction of 1% of the premium. The deduction might be increased to 2% of the premium following an annual assessment of the operation and utilisation of the fund (the Commission proposes 2% from the outset).
          Lastly, the committee calls for measures to facilitate voluntary departures from the tobacco-growing sector by individual producers. It believes that a system should be set up to allocate any quotas thus released to a national "reserve", so that young farmers from poorer regions could then be enabled to move into tobacco growing. The Commission is instead proposing to set up a quota buy-back programme with a corresponding reduction of the guarantee thresholds.
        date
        1998-06-03
        type
        Committee report tabled for plenary, 1st reading/single reading
      • date
        1998-06-16
        docs
        body
        EP
        type
        Text adopted by Parliament, 1st reading/single reading
      • date
        1998-06-22
        body
        CSL
        type
        Council Meeting
        council
        Agriculture and Fisheries
        meeting_id
        2110
      • date
        1998-07-20
        body
        type
        Act adopted by Council after consultation of Parliament
      • date
        1998-07-20
        body
        CSL
        type
        Council Meeting
        council
        Agriculture and Fisheries
        meeting_id
        2115
      • date
        1998-07-20
        body
        EP
        type
        End of procedure in Parliament
      • date
        1998-07-28
        text
        • OBJECTIVE: to reform the COM in tobacco in order to better adapt supply to demand through greater flexibility in premiums.
          COMMUNITY MEASURES: Council Regulation (EC) No 1636/98 amending Regulation (EEC) No 2075/92 on the common organization of the market in raw tobacco.
          CONTENT: the new regulation proposes a radical reform of the raw tobacco sector, the main aims of which are to:
          - gear Community aid to the quality of production,
          - make the quota system simpler and more flexible,
          - allow controls to be stepped up,
          - improve compliance with public health and environmental protection requirements.
          1) Encouraging the production of better quality tobacco: a new system of premiums has been introduced with effect from the 1999 harvest. The amount of these premiums will be set for all varieties of tobacco in the various groups. However, a supplement will be granted for certain varieties of so-called "flue-cured", "light air-cured" and "dark air-cured" tobaccos cultivated in Belgium, Germany, France and Austria.
          In order to encourage an improvement in quality and to the value of Community production, the regulation links payment of part of the premium to the value of the tobacco produced. The premium will therefore consist of a fixed component, a variable component and specific aid:
          - the fixed component of Community aid will be paid either to the group of producers, which will distribute it to the members of the group, or to each individual producer;
          - the variable component, which will account for 30 to 45% of the total premium, will be paid solely to groups of producers, which will distribute it to individual producers on the basis of the purchase price paid by the initial processing company for the tobacco produced (this system will be implemented gradually and will be fully operational by 2001). It should be noted that the level of this component may vary depending on the varieties and the Member States in which the tobacco is grown;
          - the specific aid, which is limited to 2% of the premium, will be paid to the group of producers in order to help them carry out their new administrative tasks and to finance more ecological methods;
          2) Making the quota system simpler and more flexible: the new system will allow production quotas to be transferred between producers in order to improve production structures. The regulation also makes provision for the implementation of a quota buy-back system for the benefit of producers who decide to leave the sector or who cannot find a buyer for their quotas.
          Provision is also made for a new auction system for culture contracts so that contract prices better reflect market trends (this system will be introduced on a voluntary basis in the Member States in order to take account of different national production structures);
          3) Stepping up controls: the new regulation introduces a processing company approval system to enable Member States to impose more appropriate penalties for non-compliance with Community law. Provision is also made for a new series of compulsory controls (mainly on production and processing installations, areas planted by individual producers etc.);
          4) Improving compliance with public health and environmental requirements: the regulation makes provision for the deduction from the premium for financing the Community tobacco research and information fund to be doubled. Environmental actions should also be financed by groups of producers using the specific aid paid to them (2% of the premium).
          Finally, it should be noted that, by replacing the present allocation of quotas to individual producers by a system whereby quotas are distributed to producer groups every three years and making provision for the variable component of the premium also to be distributed to groups of producers, the regulation considerably reduces the number of operations which need to be carried out by the national authorities, thereby considerably simplifying the administration of the sector.
          ENTRY INTO FORCE: 4 August 1998. The regulation will apply from the 1999 harvest.
        type
        Final act published in Official Journal
        docs
      • date
        2002-11-06
        docs
        • text
          • Article 26 of Regulation 2075/92/EEC on the common organisation of the market in raw tobacco stipulates that the Commission shall submit a report to the European Parliament and to the Council on the functioning of the common organisation of the market in raw tobacco. This report fulfils that obligation.
            The broad trends in the sector can be summarised as follows:
            - a gradual decline in the cultivated area and the number of producers;
            - a substantial increase in agronomic yields, resulting in stable production levels;
            - as regards production structures, the following points should be noted: tobacco continues to be cultivated by a large number of small producers (99 811, or approximately 98% of all tobacco producers), in particular for varieties in groups VI to VIII and in Greece;
            - a small number of large and medium-sized holdings (1 775, i.e. 1.7%) account for a large proportion of quotas (26.8%).
            Two structural trends can be identified in the sector: a reduction in the number of small producers (except in Greece) and an expansion of large and medium-sized specialised holdings (particularly in Italy).
            Community tobacco production seems to be increasingly polarised between two production models which exist side by side and show a regional pattern which depends on land structure and the type of tobacco produced.
            The Community tobacco market can be described as follows:
            - prices increased sharply between 1993 and 1997 and then fell in 1998 and 1999, but have rallied in 2000 and 2001. However, the prices for tobacco in group III (darkair cured) and, especially, group V (sun-cured) have fallen sharply, reflecting a fall-off in demand for these types of tobacco;
            - there was a sharp improvement in the price/premium ratio between 1993 and 1997, as a result of the rise in prices; The price/premium ratio for most groups of varieties fell sharply from 1998, but has improved since 2000, except for groups III and V;
            - the tobacco stocks held by first processors have fallen since 1993. This reduction was particularly marked between 1999 and 2000;
            - trade with third countries is tending to stabilise, following a substantial drop in exports. However, the unit value of exported products has been increasing more sharply since 1993.
            Transfers of quantities inside the national thresholds have led to a change in the profile of Community production between types of tobacco. Thus, a substantial proportion of tobacco in groups III and V has been converted to varieties commanding the highest prices on the market.
            On the whole, application of the mechanism for modulating the premium has produced rather mixed results, but apart from a few exceptions, modulation has been kept within very narrow margins.
            The national quota reserves have not had the expected impact on the restructuring of holdings. In 2002, the Council therefore decided that creation of these reserves should be left to the discretion of the Member States.
            Very limited quantities were definitively bought back under the buy-back programme.
            Transfers of quotas between producers accounted for 5% ofproduction quotas.
            Since its creation in 1992, the Tobacco Fund has spent EUR 43.8 million on financing 28 projects including: nine research projects on steering production towards less harmful varieties; 19 information projects to improve knowledge of the harmful effects of tobacco and on preventive and curative measures. In 2002, the scope of the Fund was modified: agronomic research projects were abolished and support for production conversion projects was introduced.
          type
          Follow-up document
          title
          SEC(2002)1183
        body
        EC
        commission
          type
          Follow-up document
        • date
          2004-07-21
          docs
          body
          type
          Court of Auditors: opinion, report
        committees added
        • body
          EP
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          True
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          AGRI
          date
          1997-11-26
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          Agriculture and Rural Development
          rapporteur
          • group
            UPE
            name
            ROSADO FERNANDES Raúl Miguel
        • body
          EP
          responsible
          False
          committee
          BUDG
          date
          1998-03-17
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          Budgets
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          • group
            PSE
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            WYNN Terence
        • body
          EP
          responsible
          False
          committee
          CONT
          date
          1998-05-19
          committee_full
          Budgetary Control
          rapporteur
          • group
            PPE
            name
            GARRIGA POLLEDO Salvador
        • body
          EP
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          False
          committee
          ENVI
          date
          1998-03-18
          committee_full
          Environment, Public Health and Consumer Protection
          rapporteur
          • group
            ELDR
            name
            KESTELIJN-SIERENS Marie-Paule (Mimi)
        • body
          EP
          responsible
          False
          committee_full
          Regional Policy
          committee
          REGI
        links added
        European Commission
        other added
          procedure added
          dossier_of_the_committee
          AGRI/4/09906
          reference
          1998/0027(CNS)
          subtype
          Legislation
          legal_basis
          • EC before Amsterdam E 043
          stage_reached
          Procedure completed
          instrument
          Regulation
          title
          Agenda 2000: raw tobacco, reform of the common organisation of the market COM (amend. regul. 2075/92/EEC)
          type
          CNS - Consultation procedure
          final
          subject

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