On 19.05.00, an initial exchange of views took place within the EP's Agriculture Committee about how the EU should allocate monies in order to pursue an active export policy for processed goods. Whilst awaiting the opinion of the Parliament, the Commission is using the pretext of WTO commitments in order to take unjustifiably restrictive measures.

Indeed, as from 19.05.00, the Commission decided to suspend issuing certificates for refunds for processed agricultural products, the so-called "Non-Annex I" products. This decision comes at a time when the industry has already been subjected to cut-backs varying between 30 and 80% on a weekly basis during the months of April and May on the number of certificates being issued.

These measures have resulted in a wave of protest on the part on the food and drink industry. How can such measures be justified when the GATT ceiling for the year 1999/2000 could amply cover refund requirements up to 30 September 2000?

Industry strongly deplores the fact that EU internal budgetary pressure is putting obstacles in the way of using the GATT budget. The Commission's decision is detrimental to food and drink companies, and especially to SMEs. In the absence of alternative solutions to refunds, European companies risk losing parts of the international market.

Within this context, CIAA would like to remind the Parliament that a decision on the draft concerning the use of imported raw materials under inward processing (COM(99) 717) must be taken rapidly. It is urgent that systems offering an alternative to refunds be set up

now. In this way, should companies wish to do so, they will be able to use this tool, within the strict limits of quantities foreseen in the provisional assessment. This would provide the necessary budgetary margin to enable SMEs, in particular, to draw benefit from refunds, as much as is needed.

In order to contribute to the discussion on the Precautionary Principle, CIAA has proposed, as a first step, the following definition of the Principle:

"The Precautionary Principle is an approach in risk management for consumer health protection that is applied in the case of an unknown risk of a potentially significant hazard whilst awaiting further results of scientific research."

CIAA sees the Precautionary Principle as part of a structured approach to risk analysis that will only be applicable in exceptional cases.

CIAA is now urging that guidelines be developed on the use of the Precautionary Principle that:

1. ensure that the decision-making process controls perceived health risks without resort to excessively restrictive measures and without abuse of the Principle;
2. do not lead to unwarranted recourse to the Precautionary Principle.

Hence, CIAA is looking for such an approach to be based on Guidelines whereby:

• - the implementation of a process based on the Precautionary Principle should start with an objective risk assessment which identifies at each stage the degree of scientific uncertainty;
• - all the stakeholders are involved in the study of the various management options that may be envisaged once the results of the risk assessment are available;
• - measures based on the Precautionary Principle must be proportionate to the risk and the hazard which is to be limited or eliminated;
• - measures and available alternatives based on the Precautionary Principle must include a cost/benefit assessment;
• - measures based on the Precautionary Principle must always be of a provisional nature pending the results of scientific research.

The Council, under the French Presidency, will further reflect on the application of the precautionary principle and will hopefully recommend guidelines at the December Summit in Nice.

The prospect of enlarging the EU by 12 new countries is an unprecedented challenge. The process has now entered a concrete phase for the food and drink industry, due particularly to the commencement of negotiations on the agricultural chapters, scheduled to occur before the end of the Portuguese Presidency.

One of the priorities of CIAA during this initial period is to assist the candidate countries to bring their legislation into line with that of the EU. This concerns both the implementation of the CAP into the relevant legislation and to the control of the quality of products, labelling and hygiene. CIAA has already committed itself to working for a full and complete implementation of the acquis. In particular, CIAA is participating in the "Business Support Programme" under Phare, which aims at reinforcing the structures of the CEECs' food and drink federations and their role in implementing the acquis.

Efficient preparation during the pre-accession phase will enable the candidate countries to play a full part in the EU's internal market from the date of accession. Nevertheless, transitional measures will probably be unavoidable in some instances, but should be limited with respect to their duration and their scope. It is nonetheless clear that some areas, such as sanitary and phytosanitary areas, must not be entitled to derogations since trade within the internal market could not be properly ensured.

Finally, CIAA urges the EU to put into place a system of reliable, operational indicators to verify the effective take-up of the acquis between now and accession.

In accordance with the IPPC directive, the Commission is setting up an exchange of information between Member States, the various industries, Commission representatives and environmental NGOs to identify the Best Available Techniques (BATs) to prevent and reduce pollution emanating from industrial installations. The outcome of these exchanges of information will be a set of reference documents (BREFs), produced by the Commission's IPPC Bureau in Seville, on each industry sector laying down guidelines for granting permits to industrial installations en-abling them to use certain processing methods.

CIAA is co-operating with the Commission in drawing up in drawing up a reference list of the best available pollution control techniques that are flexible enough to take account of the wide range of activities used within the industry.

At its Board meeting in May, CIAA presented its annual report giving an appraisal of the year 1999, an eventful year both for the Food and Drink Industry and for the European Institutions.

CIAA is to hold its annual Evening Reception on Monday 18th September in the Parliament. The evening will focus on the White Paper on Food Safety and the European Food Agency. Mr John Bowis MEP, Parliament's rapporteur on the White Paper, has kindly agreed to sponsor the evening.

For further information, please contact Ms Nicky Denning, Communications Officer, at the CIAA secretariat.