PAF PROACTIVE FILE
Regular News Update From Eurostep No. 80 Friday 20 February 1998

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1. IVORY COAST PROPOSES COMPROMISE TO THE CHOCOLATE DIRECTIVE

The EU draft chocolate directive which aims to grant the authorisation to use the up to 5% vegetable fat, other than cocoa butter, in the making of chocolate has again be challenged by the Ivory Coast. Following a study carried out on behalf of the Ivory Coast last year challenging the legal basis to the Commission decision, the Ivory Coast has again presented a memorandum, this time, on behalf of the ACP group defending the interests of African cocoa producing countries.

The memorandum concludes that the vast majority of the actors along the cocoa producing chain, including chocolate makers and consumers in Europe, would not benefit from a ruling that allows the addition of vegetable fats other than cocoa butter in the production of chocolate. The memorandum argues that, the EU directive if adopted will: a) make cocoa an unimportant or minimum ingredient in the process of chocolate making; b) result in a massive fall in cocoa prices with detrimental effects on the economies of 31 cocoa producer countries from the ACP; c) result in disaster for the cocoa bean processing industries; and d) provide consumers with a product of inferior quality that would reduce attraction and world demand of chocolate.

The memorandum proposes a compromise in the use of vegetable fats where: 1) only the addition of substitute vegetable matters of tropical origin (5%) is allowed; 2) the use of fats obtained by enzymatic is banned; 3) the presence of vegetable fats other cocoa butter should be indicated clearly on the packaging; 4) Ireland and UK be denied the right to maintain the name milk chocolate for products containing less than 25% cocoa and 14% milk fats; 5) the application of the new directive be subject to reliable methods of measuring quantities of substitute vegetable fats.

2. EU WILL NOT CONDEMN CHINA ON HUMAN RIGHTS

The EU political directors of foreign affairs decided at a meeting this week to agree on a common position not to condemn China's human rights record in the United Nations this year. Last year the EU failed to adopt a common position on China when the Netherlands and Denmark adopted bilateral resolutions condemning China after other EU Members refused to do so. This year's decision is all the more surprising given the UK's (which holds the EU Presidency) pledge to keep a close eye on human right's in China after last year's hand over of Hong Kong.

It has been reported that, following a recent trip to Beijing, UK Foreign Minister, Mr Robin Cook, expressed his satisfaction that Beijing had shown a willingness to discuss human rights questions. According to European press reports it is unlikely that this time the Netherlands and Denmark will be adopting bilateral positions after the political directors decision.

The US will now decide if it is to pursue a resolution unilaterally. The US Government had earlier sought support from Scandinavian countries in co-sponsorship of a resolution against China and will thus be disappointed at the Union's decision. The US based organaisation, Human Rights Watch, has pointed out that while China has signed UN convenants on human rights it has not shown the willingness to implement them.

The European Commission has alleged that UN resolutions are not an effective instrument in influencing China and claim that constructive dialogue with Beijing is a better method. EU Commissioner for Trade, Sir Leon Brittan, who is drafting a new EU strategy for the country stated on the issue, “What I am in favour of is a comprehensive policy towards China not a piece meal one. ... Our objective is clear: it is to support liberalisation and the opening up of the Chinese economy, to encourage the rule of law and to advance human rights. How you go about it is another question.”

3. EU MEMBER STATES CONTINUE TO DIFFER ON BANANA REGIME

The EU Agricultural Council, this week, began negotiations on reforming the Community rules on banana imports from ACP countries to comply with World Trade Organisation rules by latest 1 January 1999. You may recall that the Commission proposed a reform of the banana regime following the WTO ruling agaainst the EU banana regime last year which the Member States have not been able to agree on. Germany, Austria, Belgium, Luxembourg, the Netherlands, Sweden and Finland are opposing the Commission's proposal of simply just abolition the banana licencing agreement. They have called for a regime that is no longer based on quotas and based exclusively on customs duties. The Commission has firmly rejected this option. Negotiations are to deal with :1) The level of quotas and in particular the level of additional autonomous quotas. Some Member States believe that volume subjected to quotas be raised to up 3 million tonnes to secure market supply while others have taken the view that the level of additional autonomous quotas present the risk of a structural surplus.

2) The level of custom duties on the autonomous quota. Concerning this procedure, several Member States find the level too high while others are critical of tariff preferences handed out to non-traditional ACP bananas.

3) The mechanism for the breakdown of the different quantities subject to quota. The Commission plans to reserve a system of shares for every supplier country. Concerning this procedure certain Member States want the power to distribute quotas if negotiations with third countries fail.

4) Arrangements for the import management in the absence of a licence system. Regarding this procedure some Member States suggest inquiring into how to make the two management systems co-exist.

5) The impact of the reform on Community producers. On this issue some Member states have suggested financial compensation for Community producers of bananas to lessen the impact of the reform of the regime.

6) Measures in favour of the marketing incentive of bananas of 'equitable trade' bananas as interest among European consumers on these bananas grows. Germany has rejected this proposal on the grounds that it is not marketable while France as well as the Commission state that they have verified the impracticability of a special quota for equitable bananas.

7) The eventual increase in the import volumes in the case of an increase in demand or in exceptional circumstances. On this several delegations have emphasised on the need to distribute import duties equitably in exceptional circumstances.

4. IN BRIEF

The European Parliament, this week, adopted the resolution on the respect of human rights in the Union in 1996 by MEP Aline Pailler (MEP). The report included requests on a wide range of areas including racism and xenophobia where the Member States were asked to base their anti-racist laws on the principle that racism is a crime.

The EU special envoy to the Great Lakes Region, Mr Aldo Ajello, this week began a three week tour of Africa. He will visit Uganda to discuss problems in Burundi before moving on to Angola, the Democratic Republic of Congo and Burundi.

The European Centre for Conflict Prevention is organising a platform meeting in London on March 15-16 1998. For more information please contact the Centre directly at euconfliantenna.nl as soon as possible.


Updated on February 20, 1998
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