Item Nos. 1.1 to 1.9 are proposals warranting further scrutiny. Item No. 1.1, COM (2005) 661, is a proposal for a regulation to make origin markings on certain products from third countries compulsory. While many trading partners already impose regulations in this regard, there is currently no European legislation on "made in" labels. The memorandum contends that this puts EU producers at a disadvantage and that the Community should not miss an opportunity to enhance consumer information.
The proposed legislation on origin is framed in broad terms and, if adopted, would leave considerable scope to the committee process to address such matters as the nature of the label and the range of products that would be subject to the requirements. Under the current draft the requirement to indicate origin would apply to textile and footwear. I understand that this is an area of trade regulation that is relatively untested in WTO terms and there is an understanding that markings would be permitted so long as the marking requirement does not seriously damage the imported products, materially reduce their value or unreasonably increase their cost.
The Department of Enterprise, Trade and Employment's note indicates that member states are divided on the merits of the proposal and that it remains to be convinced of the utility of the proposed measure. While the availability of additional information to consumers on, for example, employment issues and other social concerns can contribute to an informed decision on a purchase, this consideration needs to be weighed against the additional administrative burden and cost of the introduction of the proposed measure. Estimates of the cost of country of origin marking schemes range from 1% to 2% of ex-works prices, depending on the associated requirements.
Significant issues raised by this proposal would require additional scrutiny by the sectoral committee. It is proposed that the proposal be referred for further scrutiny by the Joint Committee on Enterprise and Small Business. Is that agreed? Agreed.
I propose to take items Nos. 1.2 and 1.3 together. Item No. 1.2 is COM (2006) 7, a proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No. 883/2004 on the co-ordination of social security systems, and determining the context of Annex XI. Item No. 1.3 is COM (2006) 16, a proposal for a regulation of the European Parliament and of the Council laying down the procedure for implementing Regulation (EC) No. 883/2004 on the co-ordination of social security systems.
These proposals concern procedures that should be followed in processing social security claims for persons moving across member states. The Department believes that the greater use of electronic exchange of data between administrations should facilitate the processing of entitlements. The Department states that Ireland does not anticipate any difficulties during the negotiations of this proposal and consequently the proposal is of low significance for Ireland.
Clarification has been sought from the Department on a number of aspects of the proposal, such as the implications of the inclusion of two entries regarding COM (2006) 7. Would the adoption of the proposal result in a change to current social welfare practices? If so, what would be the changes? Would the use of electronic data exchange result in administrative or direct benefits in processing migrants' claims? Would either proposal have any implications for migrants coming to Ireland?
The Department's highlighting of the potential benefits of the adoption of the proposal would merit further scrutiny to assist in determining the impact of the adoption of the measure for all people who move between member states and who interact with the social security systems. It is proposed that the proposed measures be referred for further scrutiny to the Joint Committee on Social and Family Affairs, with a view to the conclusions of that committee being brought to the attention of the Joint Committee on European Affairs in the context of its consideration of migration issues. Is that agreed? Agreed.
Item No. 1.4 is COM (2005) 671, a proposal concerning organic production and the labelling of organic products. In July 2005 the sub-committee considered COM (2005) 194, which sought to extend the period of operation of Regulation No. 2092/91. This regulation sets conditions on the importation and labelling of organic products from third countries into the member states. The underlying principle of that regulation is the equivalency of the method of agricultural production. The proposal sought approval for the extension of a derogation, Article 11.6, until December 2006 that permits the relevant authorities in the member states to grant the authorisation for the importation of products, where there is not yet agreement on the required equivalent procedures.
Under the derogation the national authorities may grant the authorisation for the importation of organic products where the importer provides sufficient evidence that the imported products meet the requirements to be designated organic. At the time of the July meeting the Department had also confirmed that products imported under the derogation may be labelled as organic in the usual manner. The European Commission had argued that the extension was required to allow additional time for it to advance a proposal to replace the current derogation with a system of evaluations by bodies assigned by the Commission.
The current proposal aims to provide a framework for rules on organic production and labelling of organic products for all unprocessed and processed agricultural products intended for human consumption. The Department is of the view that the proposed measure would be simpler and more transparent than the current regime. The proposed measure would become operational in 2009 and the Commission therefore also proposes the extension of the current regime until that date. Under the proposed measure the derogation facility would be removed and replaced by what the Commission contends would be more uniformly flexible rules.
The flexibility under the proposed regulation arises from taking into account local factors such as climate and specific production conditions. Detailed rules would be established under the committee system. The EU logo would continue to be available for all products that comply with the regulation, including all imported products. It would be for member states to establish national control bodies. The proposal is of significance to the organic producing sector and how the proposed measure may operate in practice merits further exploration by the sectoral committee.
It is proposed that the proposal be referred for further scrutiny by the Joint Committee on Agriculture and Food. It is also proposed that the proposed measure is forwarded for information to the Joint Committee on Communications, Marine and Natural Resources regarding the proposal to include aquaculture in the scope of the organic regulation for the first time. Is that agreed? Agreed.