The enlargement negotiations are now entering their final and crucial stage. Last year's Regular Reports by the European Commission noted significant progress by candidate countries in the adoption of legislation for alignment with the acquis in most candidate countries and for most areas. However important difficulties in transposing parts of the acquis must be overcome before accession. In the field of agriculture, the reports stressed in particular "the need to upgrade inspection arrangements according to veterinary and phyto-sanitary legislation, in particular to ensure food safety, and the capacity to implement and enforce the management mechanisms of the Common Agricultural Policy". At this final stage of negotiations, CIAA wishes to recall and up-date the main elements of its positions.

1. Implementation and enforcement of the acquis are the keys to success for enlargement.

• Creation of a large single market, without delay at the moment of accession.

The smooth operation of the enlarged market is essential to provide the full benefits of expanding the internal market to include various EU candidate countries. Therefore, candidate countries must be able to establish that they can effectively implement and enforce both CAP legislation and food laws by the date of their entry. This concern is a priority for the food and drink industry EU constitutes a priority for the European food and drink industry. It is important for CIAA that the application of the food law acquis is in place before the date of accession. It is anticipated that the complexity of certain food regulations will require an adaptation stage, for both operators and administrations, before effective implementation can be guaranteed.

2. Transitional periods must be exceptional and strictly limited in scope and duration.

• Food safety : a sensitive issue requesting strict measures.

First of all, there should be no derogation from the EU acquis in the sanitary and phytosanitary field. Products circulating within or exported from the EU must respect EU standards. The sensitivity of the consumer on food safety matters does not provide for any room to manoeuvre. Derogation from this principle could put intra-community trade at risk, undermine the competitiveness of companies within the internal market and raise serious image problems for EU products in third countries. For the same reasons, processing sites that will be given the possibility to adjust to EU safety and quality standards during a certain transitional period must be only allowed to supply national markets.

• Customs control needs to be efficient.

With respect to common EU customs procedures, candidate countries should apply Community customs controls to their external borders, as efficiently as the current Member States from the date of accession. No transitional measures should be granted.

• Agricultural markets : transitional measures should be exceptional.

With respect to market regulations, transitional periods, for certain sectors, could be granted, following a case by case examination, as long as the principles of the internal market are respected and the regulations do not lead to market disruption. Transitional measures should be exceptional in respect to both duration and scope, and must not constitute a means for delaying the application of the acquis. Any transitional period must be accompanied by a plan explicitly defining the steps to be taken for the enforcement of the acquis.

• Environment.

With respect to environment, there is a clear need to further strengthen administrative, monitoring and enforcement capacity. In particular, the fields of water and waste, notably packaging waste, require particular attention. CIAA acknowledges that derogation and transitional arrangements will be needed for a number of accession countries, especially in the areas of recovery and recycling of packaging waste, and IPPC.

3. Promoting and monitoring of the effective application of the acquis with the support of business is indispensable.

• The implementation, by candidate countries, of Community legislation must continue to be closely monitored and assessed during the remaining time before accession.
• It is essential that candidate countries continue to develop rapidly both their structures and their administrative capabilities in order to implement and enforce Community law.
• Companies and federations from the EU and candidate countries must actively support the preparations for enlargement. CIAA, through its participation in the "Business Support Programme" (Phare), is actively committed to promoting understanding and effective implementation of the EU acquis as well as upcoming EU legislation.

4. Prevent or at least limit disruption on agricultural markets.

• Implementing the reforms for common market organisations will help bridge price differences between the EU and the CEECs.
• Considering the limited impact of the Agenda 2000 decision, it is important that the mid-term review provides a clear orientation on further development of the CAP.
• To achieve competitiveness within the EU as well as in third countries requires a progressively more market-oriented CAP and de-coupled support to farmers. In the context of enlargement, CIAA re-emphasises that structural aid to CEEC farmers is preferable to direct aid.
• CIAA supports the Commission approach on the setting of production references that should be based on reliable production statistics and not on a perceived evolution of demand.

5. Soften the impact of accession through further liberalisation during the pre-accession phase.

• Trade relations between CEECs and EU.

The European Agreements are the basis for the current relations between the EU and the candidate countries. From now until their accession it is crucial that the parties involved satisfy the obligations arising from these agreements. In particular, any new tariff barriers that would be imposed by the candidate countries are not acceptable in the context of the pre-accession.

CIAA supports reciprocal improvement of bilateral concessions to increase trade liberalisation in agricultural and processed agricultural products. Industry has, however, voiced concern at the Commission's approach to implementing the so-called "double-zero" approach, more recently renamed "double profit", i.e. elimination of export refunds and import duties for both parties. This could potentially be an interesting idea, but in practice the specific provisions that are linked to the "double-zero" will cause problems with competitiveness and management costs. For example, it will lead to generalise the request for proof of arrival, introduce new customs documents, and with respect to agricultural products, there will be a loss of refund payments when exports continue at full tariff rates because they exceed agreed zero tariff quotas. Despite stated intentions to find simple practical solutions, nothing to that extent has been confirmed yet and CIAA considers that this important aspect must be clarified before commencing negotiations. Finally, there is serious doubt whether the measure will bring about the anticipated profits through enhanced trade and investment during so short a period before accession.

• Barriers to trade.

Barriers to trade persist between the EU and CEECs. For example, complex import documents are required which are not in accordance with EU trade practices. Unjustified border sanitary controls are also a concern. These obstacles must be eliminated and new legislation in line with EU acquis must be introduced quickly to create an environment of reliable access to markets.

• Investment in CEECs.

The investments by Community food and drink companies in candidate countries play a major role in economic relations. Improving the context of investments in candidate countries by extending the EU legal framework should continue so as to guarantee operators stability and transparency. It might be appropriate, when setting quantitative restrictions in specific sectors, to consider to some degree investments made by Community companies in CEECs.

• Trade relations between the CEECs and third countries.

Whenever candidate countries negotiate new trade agreements with third countries before accession, the CEEC concessions must not exceed applied EU import tariffs for products originating from these third countries. Otherwise the EU will be requested to grant supplementary compensations to third countries within the framework of GATT Article XXIV.6.