HL Deb 14 March 2002 vol 632 cc944-6

3.23 p.m.

Lord Rotherwick

asked Her Majesty's Government:

Whether they support the decision of the European Union Farming Commissioner to permit an increase in imports of Argentinean beef to the European Union.

The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Whitty)

My Lords, the European Commission is expected to make proposals shortly to increase Argentina's entitlement to export high-quality beef to the EU at a reduced tariff. This would apply for one year only. The Government will examine the details of the proposal when it emerges.

Lord Rotherwick

My Lords, I thank the Minister for that Answer. I should also like to declare that, although I am a farmer, I am not a beef producer. Is the Minister aware that the Office International des Epizooties does not classify Argentina as a foot and mouth-free country? Can he say whether all meat imported from Argentina comes from vaccinated cows? Furthermore, can he say whether these extra imports will increase the underlying decline in British beef production? Last year, for example, total beef imports to the United Kingdom represented 22 per cent of the total beef consumed in this country, whereas it is estimated that, this year, that figure will increase to 37 per cent.

Lord Whitty

My Lords, on the quantity side, the total amount which the Commission is likely to propose is 10,000 additional tonnes of high-quality beef. As the EU consumes 8 million tonnes of beef annually, the increase is not likely significantly to distort the EU market or the UK market—which currently takes slightly less than one-third of Argentinean imports.

On the health side, the EU believes that all Argentina's provinces are about to be clear of foot and mouth; all but one province is clear. The north of Argentina is clear with vaccination, and the south is clear without vaccination. In practice, however, all exports from Argentina are governed by the rules applying to vaccinated meat; in other words, all beef has to he deboned and mature. Therefore, the judgment of the EU—and undoubtedly subsequently of the OIE—is that Argentina will soon be FMD free.

The Countess of Mar

My Lords, if the EU should agree to import Argentinean beef, will the British consumer be able to distinguish that beef from British beef? Will it be very clearly labelled? Will we have any choice as to whether we buy it or not?

Lord Whitty

My Lords, whether consumers buy it in the shops is a matter for them. If it is allowable in the EU, subject to all these rules, clearly it can be in the shops and the British consumer can buy it. Compared with the historical situation, British consumers are consuming a relatively small amount of Argentinean beef. As the noble Countess will know, most beef is labelled in the shops by country of origin, although that is not a mandatory requirement.

Lord Greaves

My Lords, is not the Argentine economy in a very serious—possibly disastrous—state, with unemployment at 18 per cent and increasing and the peso in freefall? The Argentine economy is forecast to contract by 8 per cent this year. In such circumstances, does not the EU—traditionally Argentina's largest overall trading partner—have some responsibility to help avoid a possible tragedy for the global economy and a certain catastrophe for the South American economy? Is it therefore not entirely reasonable to consider Mr. Fischler's proposal as a means of providing moderate but highly desirable assistance to the Argentine economy?

Lord Whitty

My Lords, yes. That is the precise reason why Commissioner Fischler has made the proposal, which is part of a much wider approach in the EU and the IMF and in the discussions in Latin America. My noble friend Lady Symons has been in discussions in Latin America on general help for Argentina on both the aid and the trade sides. The proposal is but one small part of that approach.

Lord Dubs

My Lords, is my noble friend able to say to what extent our beef exports to the EU have declined since the problems of BSE arose, and tell us which countries have provided beef to the European Union to fill that gap?

Lord Whitty

My Lords, beef exports are currently very low because of the BSE restrictions. As noble Lords know, the overall restrictions have been lifted—despite the fact that we have had some difficulty with our French friends in these matters. Nevertheless, exports are subject to very tight regulation. As only a small proportion of British beef can meet those regulations, exports to the EU are necessarily very low and there is a substantial gap. Beef to fill that gap has been found within the EU itself, but there have also been imports from third countries. There has not, however, been a significant increase in imports from Argentina. Indeed, in the past five years, overall imports from Argentina to the EU have decreased.

Earl Peel

My Lords, does the Minister agree that, despite his reply to the noble Lord, Lord Greaves, the Commissioner would be better placed dealing with the illegal position that the French are taking in the export of British beef to that country? Will he please tell us what the Government and the Commission will do to ensure that this illegality stops?

Lord Whitty

My Lords, as the House knows, the continued ban on British beef by the French was opposed by the European Court of Justice. The European Commission—not the British Government—took the case. As the noble Earl implies, the next move lies, therefore, with the European Commission. Commissioner Byrne will deal with it rather than Commissioner Fischler, who looks after the agriculture policy. Nevertheless, the ball is in the Commission's court and we shall press the Commission to take action now that it has given the French a few months to comply with the court's decision.

Lord Pearson of Rannoch

My Lords, can the Minister give the House the total tonnage of British meat that is now exported, the total tonnage of British meat that is now imported, and the percentage of the latter which depends on vaccination for its good health?

Lord Whitty

My Lords, I am not sure that I can. I have already indicated the situation with regard to British beef. In view of the FMD epidemic, it has not been possible to export British lamb and British pork during the past year. Therefore, we do not have up-to-date figures. I shall supply the noble Lord with the figures relating to imports that are subject to vaccination procedures.