THE EEC - POLICY REGARDING TRADE IN HORTICULTURAL PRODUCTS - PRINCIPLES AND CONSIDERATIONS.

1. The objective of the EEC Treaty, concluded in 1957 and in operation since 1958, is essentially the creation of a "common market" (article 2). To that effect, the Member States will progressively:
   • eliminate tariffs and quotas existing between them
   • establish a common customs tariff and a commercial policy
   • set up a common agricultural policy (c.a.p.) (article 3).

   Consequently, a common market is essentially a customs union.

2. The chapter Agriculture of the Treaty (articles 38–47) defines the objectives to be pursued by c.a.p.:
   • raise productivity in agriculture,
   • ensure adequate standard of living
   • stabilize markets
   • guarantee supplies
   • reasonable prices for consumers

   To these five objectives must be added those of articles 110 of the Treaty: suppression of quotas towards third countries, reduction of tariffs, development of international trade.

3. The c.a.p. for horticultural produce was inspired by this set of principle and objectives.

   The first basic regulation (nr, 23/62) proposed by the Commission in 1960 was approved by the Council of Ministers in January 1962 and came in operation 1 January 1962. These first rules were drasticly completed in 1966 after two years discussion of complementary proposals from the Commission (nr. 159/66).

4. Since 1966 the rules have basically emained unchanged:
   1. International trade:
      • progressive removal of internal custom tariffs
      • quality standards for the main items (about 25)
      • quotas abandoned progressively (1962 class Extra, 1964 class I, 1966 class II)
      • starting aids for producer groups
      • withdrawal from markets of excess daily supply (7 products)
   2. External trade:
      • quality standards for im- and export
      • establishment of Common customs tariff
      • reference prices for imported produce

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