§ Mr. DrewTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the announcement by the Rural Payments Agency that it is to end export refunds immediately to exporters of processed foods to the new EU entrant states. [147050]
§ Alun MichaelThe Rural Payments Agency recently issued advice to traders on the transitional arrangements for the payment of refunds on goods exported to the new European Union (EU) entrant states.
From I May 2004, when the ten acceding states become full members of the EU, refund payments will cease. Among the accessionary arrangements designed to minimise the impact of these changes, some entrant states and the EU entered into a number of 'double 1015W benefit' agreements. Under these arrangements, export refunds are not paid in return for a reciprocal waiving of import duty in the importing country for certain exports of agricultural products. A number of these arrangements affect processed foods exports. In addition the Commission has identified possible problems in relation to speculation in the sugar sector and potential stock piling of community exports in acceding member states. To counter this sugar export refunds have been withdrawn with effect from 28 November 2003.