Select Committee on European Scrutiny Seventh Report


1 Common organisation of agricultural markets


(28197)
16715/06
COM(06) 822
Draft Council Regulation establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products

Legal baseArticles 33 and 36 EC; consultation; QMV
Document originated18 December 2006
Deposited in Parliament5 January 2007
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 17 January 2007
Previous Committee ReportNone
To be discussed in CouncilJune 2006
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

1.1 As the Common Agricultural Policy (CAP) has evolved over the years, the Council has adopted numerous Regulations establishing a common organisation of the market for individual commodities.[1] These have tended to follow a similar structure, with provisions (such as intervention and private storage) to support the internal market, corresponding provisions (such as import duties and export refunds) relating to trade with third countries, and rules on competition, including state aids: but they often contain as well different approaches to comparable questions, which have been developed to address sector-specific issues, or which simply reflect the particular policy background at the time of their adoption.

1.2 With the reforms of the CAP introduced in 1992, there has been a decline in the emphasis placed on these traditional market support measures, with a correspondingly greater reliance on direct support payments to producers. In particular, the Council introduced in 2003 the Single Payment Scheme, which de-coupled support from production, and which applies to most producers.

The current proposal

1.3 In the light of these developments, and of its simplification programme, the Commission has now proposed that the plethora of Regulations relating to individual commodities should be repealed and replaced by a single instrument establishing a common organisation of agricultural markets — a step which it says should streamline and simplify the legal framework and increase its transparency and accessibility, but without changing the underlying policies. The proposal also includes horizontal (cross-sector) competition and state aid rules in the agricultural sector, but not those regimes — notably wine, and fruit and vegetables — which are still subject to substantive policy reviews. However, it also appears to introduce a new element, in that the Commission points out that, in a number of cases, the Council may currently adopt legal acts without consulting the European Parliament, and says that "in accordance with the institutional balance laid down in the third indent of Article 202 of the Treaty, it is proposed to either adopt such acts in accordance with the procedure laid down in Article 37 of the Treaty, ie after consulting the Parliament, or to confer the relevant powers on the Commission."

The Government's view

1.4 In his Explanatory Memorandum of 17 January 2007, the Minister for Sustainable Farming and Food at the Department of Environment, Food and Rural Affairs (Lord Rooker) says that the UK supports both technical and policy simplification in line with its better regulation objectives, and thus supports this proposal, which he describes as having important, but relatively modest, benefits. He says that the Government's aim is to try and retain these benefits, whilst ensuring that undesirable elements, such as increased market distortion, are not introduced through the negotiation process, where he points out that there is likely to be some debate among Member State about the detail of the proposal. He adds that some Member States may also have concerns that this proposal is a stepping stone to further reform of the CAP, or that it might shift the balance of power in favour of the Commission if it resulted in the sector-specific expertise of national officials being lost (though he says that the Commission has indicated that it intends to hold sector-specific meetings of the single Management Committee which would be established, in order to ensure the presence of the relevant experts).

Conclusion

1.5 Though the proposal would result in an extremely long and complex Regulation, the underlying aim appears to be sound, and should lead to the sort of benefits suggested by the Commission. In general, therefore, we do not see that the document gives rise to major issues, but, before taking a final view on it, we would welcome the Government's comments on the potential significance of steps which the Commission proposes to take in relation to the current locus of the European Parliament, and in particular the suggestion that it itself should assume some of the relevant powers.





1   Beef and veal, sheep meat and goat meat, pig meat, poultry meat, eggs, milk and milk products, cereals, hops, sugar, olive oil and table olives, rice, wine, fruit and vegetables, seeds, dried fodder, processed fruit and vegetables, processed goods (cakes, biscuits and confectionery), tobacco, bananas, flax and hemp, and live trees, plants etc. Back


 
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