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FRUCOM Joint Working Groups: Dried Fruit & Nuts

FRUCOM Joint Working Groups: Dried Fruit & Nuts. Brussels, 26 January 2017. Statement on observance of competition law.

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FRUCOM Joint Working Groups: Dried Fruit & Nuts

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  1. FRUCOM Joint Working Groups:Dried Fruit & Nuts Brussels, 26 January 2017

  2. Statement on observance of competition law All FRUCOM meetings need to be conducted in accordance with the relevant competition and antitrust laws. You are therefore reminded that you will at all times refrain from discussing any information which is confidential to your company and/or which is likely to affect the commercial strategy or activities of your company. You are in the best position to judge what is, and what is not, commercially sensitive or confidential and so responsibility lies with you in the first place. You are also reminded not to discuss topics outside the previously circulated and reviewed agenda. Failure to follow these guidelines may bring with it serious consequences for you as an individual, your companies and the trade association itself. Such consequences include heavy fines and in certain cases, under national laws, the imposition of criminal penalties and sentences.

  3. Content • Part I: • EDC • Glyphosate • Fosetyl-Al • Review of Reg 396/2005 and 1107/2011 • Part II: • FRUCOM call for data • FRUCOM activities • Meeting with DG SANTE

  4. PART I

  5. Endocrine disrupters (EDC) (1) Discussions at the EU level: • Standing Committee: There were already 4 discussions by Member States at the Standing Committee: 22 June, 21 September, 18 November and 21 December. Discussions at the WTO level: • Over 20 members of the World Trade Organisation (WTO) voiced concerns at the end of October. A group of developed and developing countries said the proposed changes could result in bans on food imports. The US said the definition could have far-reaching and detrimental consequences to food and agricultural production worldwide.

  6. Endocrine disrupters (EDC) (2) Pesticides identified as POTENTIAL EDCs based on the Commission impact assessment report relevant to all commodities: 2,4-D, 8-hydroxyquinoline, Boscalid,Cypermethrin, Desmedipham, Fenamidone, Flubendiamide, Iprodione, Lenacil, Malathion, Mancozeb, Maneb, Metiram, Myclobutanil, Oxadiazon, Pendimethalin, Propyzamide, Spirodiclofen,Tebuconazole, Tepraloxydim, Tetraconazole, Thiophanate-methyl, Thiram, Tralkoxydim, Triflusulfuron, Ziram.

  7. Glyphosate (1) • At the end of June 2016, the European Commission extended the approval of glyphosate until the end of 2017. This period will allow for the European Chemicals Agency (ECHA) to complete its opinion on the properties of the active substance. • EU Member States were also allowed to introduce some restrictions on the conditions of use of glyphosate in the EU. These conditions include a ban of a co-formulant (POE-tallowamine) from glyphosate-based products, obligations to reinforce scrutiny of pre-harvest uses of glyphosate as well as to minimise the use in specific areas (public parks and playgrounds).

  8. Glyphosate (2) • The EU’s Chemicals Agency (ECHA) aims to table its scientific assessment of glyphosate by summer 2017. It is believed that it will give sufficient time to complete the re-approval process before the extension of glyphosate expires.

  9. Glyphosate (3) Commission registers 'Ban Glyphosate' European Citizens' Initiative • On 25 January, the Commission registered a European Citizens Initiative inviting the Commission "to propose to Member States a ban on glyphosate, to reform the pesticide approval procedure, and to set EU-wide mandatory reduction targets for pesticide use“. • The next step for the citizens initiative is to manage to gather 1 million signatures from 7 MS. After this, the Commission will decide either to follow the request or not follow the request and in both instances would be required to explain its reasoning. • For information: No citizens initiative (there have been 3) on any issue has so far resulted in a change in legislation. Source: http://ec.europa.eu/citizens-initiative/public/initiatives/open/details/2017/000002

  10. Review of Regulations 1107/2009 and 396/2005 • The European Commission has launched an evaluation of two main pesticide Regulations: Regulation 1107/2009 (on approval of active substances and authorisation of products) and Regulation 396/2005 (on EU maximum residue levels (MRLs)). • The main objective of this evaluation is to perform an assessment of the implementation of both Regulations (not yet legal proposal). • Evaluation of Regulation 396/2006 will look at the scope of the legislation, procedures for setting, modifying, deleting and reviewing MRLs, provisions on compliance with MRLs, consistency with other relevant food laws, etc. As part of the evaluation, there will be a number of consultations with stakeholders, Member States, third countries and general public.

  11. PESTICIDES – Fosetyl-Al (1) Update prepared by the Almond Board of California on the latest developments concerning the preparation of the dossier requesting for an import tolerance: The full dossier was submitted to France (the country that will review the submission) on September 7, 2016.  The European Commission was also advised that the submission had been made. Following are key points: • In line with the EU’s criteria, the dossier was submitted for a tree nut grouping; this means the MRL will apply to almonds, cashews, hazelnuts, macadamias, pecans, pistachios, walnuts, and other nuts, except for coconut. • Based on the variability of the residue results within the field trials and the EU methodology for deriving MRLs, the dossier includes a recommendation for a permanent MRL which is significantly higher than the current temporary MRL.

  12. PESTICIDES – Fosetyl-Al (2) • After France completes their review, the dossier is submitted to the European Food Safety Authority (EFSA) for a review of the drafted risk assessment. • EFSA will provide their opinion (including the recommended MRL) to the European Commission for inter-agency consultation and review. • All timelines agreed with the European Commission have been met.  A new permanent Fosetyl-Al MRL for the tree nut grouping believed will be in place in or before March 2019, which is when the current temporary MRL expires.

  13. PART II

  14. FRUCOM work on pesticides (I) • Cases such as Fosetyl-Al and chlorpyrifos have demonstrated large impact of EU pesticides legislation on FRUCOM products. • The Secretariat’s aim is to continue to strengthen FRUCOM work to avoid the repetition of last minute surprises, if possible. • FRUCOM actions: • FRUCOM call for pesticide residue data; • FRUCOM monitoring of EU/WTO publications concerning review of MRLs; • FRUCOM monitoring activates of discussions at the Standing Committee and publications in the Official Journal.

  15. FRUCOM work on pesticides (II) FRUCOM Call for data: • 6 FRUCOM members responded • Overview of 22000 tests was submitted • Products covered: • Tree nuts: Less then 1500 samples (almonds, pistachios, peanuts, walnuts, cashew nuts and hazelnuts) • Seeds: 2 samples (pumpkin seeds) • Dried fruit: About 20000 samples (all major dried fruit are included)

  16. FRUCOM work on pesticides (III) FRUCOM Activities: • FRUCOM is actively involved in the work of Agri-Food Chain Roundtable • Position paper asking for transparency from the Commission • WG on monitoring of MRL revision • FRUCOM meeting with DG SANTE Decisions: • Issues of the meeting on 8 March • Database • Communication on pesticides

  17. Free Trade Agreements in force Ecuador • EU and Ecuador signed the Agreement on 11 November 2016. • Consent from EP on 13 December 2016. • The Agreement applies on a provisional basis since 1st January 2017. Ghana and Ivory Coast • Negotiations for a EPA with ECOWAS concluded in July 2014. • IEPA with Ghana entered into provisional application on 15 Dec. 2016 • Peanuts and cashews from Ghana enjoy duty free access • Peanuts from Ivory Coast are imported with reduced tariff of 7.7% under GSP scheme. Cashews have duty free access.

  18. Free Trade Agreements pending ratification procedures • CETA was signed on 30 October 2016 in Brussels • Provisional application expected short after EP’s consent • INTA committee approved the Agreement on 24 Jan. 2016. EP to vote on 15 Feb. 2016 • CETA foresees duty free access for dried cranberry • Vietnam • Negotiations were launched in June 2012 and concluded in November 2015 • The text is going through legal review and translations. Not applied yet. • Cashews already enjoy duty free access.

  19. Free Trade Agreements in negotiation • Australia : negotiations for a FTA to start mid-2017 • Almonds* and pecans have duty free access • Almonds other than bitter : TRQ 2% (90 000 tonnes) / 5.60% tariff • Macadamia : 2% • Pistachios : 1.60% • Prunes : 9.60% • Raisins : 2% • Walnuts : 4% (in shell) or 5.60% (shelled) • Indonesia • Negotiations were launched on 18 July 2016. • First round of negotiations took place in Brussels in September 2016. • Peanuts are currently imported with a reduced 7.5% tariff under GSP scheme.

  20. Free Trade Agreements in negotiation • MERCOSUR (Argentina, Brazil, Paraguay, Uruguay, excl. Venezuela) • New Momentum: exchange of market access offers in May 2016 and round of negotiations in Brussels in October 2016 • Argentina • Prunes (9.60%) and raisins (2.40%) • Peanuts : controls on imports (aflatoxine) • Brazil • Macadamias : 2.60% • Nuts : controls on imports (aflatoxine) • Chile • The EU and Chile concluded an Association Agreement in 2002, in force since 2003. Dried fruit and nuts have duty free access.

  21. Free Trade Agreements in limbo • Morocco • In December 2015, the General Court of the EU partially annulled the Agricultural Agreement. • In December 2016 the decision was confirmed in appeal by the ECJ. • Dates and almonds benefit from the trade preference.

  22. Duty suspension for dried cranberry and concentrate cranberry Why a duty suspension? • Production is inadequate or non-existent in the EU • Duties are suspended for these products regardless of the origin • The European Commission can at any time close these duty suspensions Why the European Commission would close this duty suspension? • 2 out of the 3 main origins of these products benefit or will benefit from a FTA granting duty free access to the EU market Should the European Commission close the duty suspension for cranberry products? • Main supplier of cranberry products (USA) won’t have a FTA with the EU anytime soon. • 72% of dried cranberries and 59% of cranberry concentrate shall be still imported to the EU under the duty suspension regime. If closed duties would increase from 0% to 16-18%

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