The common organisation of the market in bananas will allow the Community market to receive satisfactory supplies of quality bananas at fair prices for producers and consumers and ensure a balance between the various sources of supply. This market organisation had already been amended to take account of the switch to a tariff-only system from 1 January 2006,. At the end of 2006, the Council adopted a thorough-going reform of the CMO aimed primarily at allowing measures to reflect differing regional circumstances.
The products concerned are fresh and dried bananas (excluding plantains), frozen, provisionally preserved and prepared bananas, banana juice and banana flour, meal and powder.
The marketing year runs from 1 January to 31 December.
Common quality and marketing standards
The Commission lays down quality standards for bananas that are to be sold fresh to the consumer. The adoption of standards for products processed from bananas is optional. The Member States, through control bodies, must ensure that these rules are observed.
Producer organisations and the consultation mechanism
The existing provisions on producer organisations were repealed as part of the December 2006 reform.
Previously, support to encourage the setting-up of producer organisations recognised by the Member States had been granted for a period of five years.
Producer associations or organisations (which could also include processors and traders) could carry out measures of common interest, including applied research or training, and participate in the preparation of operational programmes. The rules adopted by these associations could be extended to non-members on condition that the rules of competition contained in the Treaty were observed.
As from 1 January 2007, the aid arrangements for the setting-up and administrative operation of producer organisation have been dropped. As compensatory aid no longer exists, having been incorporated into the single payment scheme under Regulation (EC) No 1782/2003, one of the reasons for supporting producer organisations has ceased to apply.
Nevertheless, aid will continue to be paid to recently-recognised producer organisations that had already started to receive the support.
The December 2006 reform wound up the compensatory aid scheme that had applied until then. Production had been supported through operational programmes drawn up under the Community support frameworks and implemented by the competent authorities in the Member States in association with the Commission and producer organisations, associations and groups of operators. At least two of the following objectives had to be achieved:
- improvements in the preparation of the marketing of products;
- greater competitiveness;
- utilisation of resources which is mindful of the environment.
In order to offset any drop in income, associations of producers and individual producers unable to participate in a producer group on account of their geographical remoteness could receive compensation. The guaranteed Community quantity for which compensation could be claimed was 854 000 tonnes, allocated among the producer regions (Canary Islands, Guadeloupe, Martinique, Madeira, Azores, Crete, Algarve and Lakonia). A guaranteed quantity of 13 500 tonnes had been granted to Cyprus in the accession negotiations. The Commission would determine the amount of the compensation each year in the spring.
As from 1 January 2007, there has been a switch from supporting production to supporting producers. This has involved dropping the compensatory aid arrangements and incorporating the associated funds into the single payment scheme established under Regulation (EC) No 1782/2003.
An additional envelope of EUR 278.8 million will be added to the budget for the POSEI programme (programme d'options spécifiques à l'éloignement et à l'insularité) for the outermost regions.
Banana-producing areas other than the outermost regions (and thus not covered by the POSEI programme) will receive an additional EUR 4.5 million and come under the single (decoupled) payment scheme. The overall financial envelope will be based on average aid granted over an historical reference period of a number of years. It will be allocated according to relative shares in the year 2000.
Trade with non-EU countries (fresh bananas)
The customs tariff rate for imports of fresh bananas, as established under the General Agreement on Tariffs and Trade, entered into force on 1 January 2006.
Switch to the single system (or tariff-only system)
On 1 January 2006, the market organisation for bananas switched to a tariff-only system with a single tariff of EUR 176 per tonne and a zero-duty tariff quota of 775 000 tonnes for bananas from the ACP countries.
The CMO reform adopted in December 2006 also involved repealing a number of provisions under Regulation (EC) No 404/93 that had become obsolete; these related to trade with non-EU countries prior to the entry into force of the tariff-only import system.
The common customs tariff rates for all products apply.
Charges having an effect equivalent to customs duties and the application of quantitative restrictions on imports or measures having equivalent effect are as a rule prohibited in trade with third countries.
Save where the Regulation contains provisions to the contrary, the Treaty rules on State aid apply to the banana sector.
The Member States and the Commission notify one another of the information necessary for implementing the Regulation.
The old Management Committee for Bananas, made up of representatives of the Member States and chaired by a Commission representative, was wound up under the December 2006 reform. The Commission will now be assisted by the Management Committee for Fresh Fruit and Vegetables.
In 2009, the Commission will present a report to the European Parliament and the Council on the implementation of the POSEI programmes. This will enable an in-depth analysis to be conducted as to the effectiveness of the reform and will cover the banana sector, as far as the main areas of production are concerned.
In view of the fact that the coverage of the CMO was extended to ten new Member States in 2004 and given the previous arrangements agreed with Ecuador and the United States in 2001, the Commission decided in 2005 that it would the following year propose a reform of the internal aspects of the CMO. In the reform, it places particular emphasis on the rules concerning the granting of aid to European producers.
The aim is also to undertake a thorough overhaul of the banana CMO so that it can be incorporated more easily into the Commission's proposal to subsume all existing sectoral CMOs into one single CMO.
Following an impact study carried out by the Commission on the various options for reforming the banana CMO, it was decided that the POSEI option - i.e. abolishing the existing system of producer support and transferring the funds previously devoted to the compensatory aid to the POSEI programmes - would be the most effective, as it means that the support can be given in the form most suited to regional circumstances.
|Act||Entry into force - Date of expiry||Deadline for transposition in the Member States||Official Journal|
|Regulation (EEC) No 404/93||26.2.1993||26.2.1993||OJ L 160 of 26.6.1999|
|Amending act(s)||Entry into force||Deadline for transposition in the Member States||Official Journal|
|Regulation (EC) No 3518/93||29.12.1993||-||OJ L 320 of 22.12.1993|
|Regulation (EC) No 3290/94||1.1.1995||-||OJ L 349 of 31.12.1994|
|Regulation (EC) No 1637/98||31.7.1998||-||OJ L 210 of 28.7.1998|
|Regulation (EC) No 1257/99||24.5.1999||-||OJ L 160 of 26.6.1999|
|Regulation (EC) No 216/2001||5.2.2001||-||OJ L 31 of 2.2.2001|
|Regulation (EC) No 2587/2001||1.1.2002||1.1.2002 Partial application||OJ L 345 of 29.12.2001|
|Regulation (EC) No 2036/2003||20.11.2003||-||OJ L 302 of 20.11.2003|
|Regulation (EC) No 414/2004||7.3.2004||-||OJ L 068 of 6.3.2004|
|Acts concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the EU.||1.2.2004||-||OJ L 236 of 23.9.2003|
|Regulation (EC) No 2013/2006||1.1.2007||-||OJ L 384 of 29.12.2006|