Summary of the EU cut-flower regime

The June 2003 Horticulture Fact Sheet contained a summary of the EU regime for cut flowers. Production of cut flowers and plants in the EU involves about 160,00 hectares of land, some under glass and protective coverings. The sector is worth around € 16 billion per annum and is growing. Holland accounts for around 30% of EU production and is a major trader. Germany accounts for 16%, Italy 15%, France 14% and the UK 7%. The EU regime for cut flowers and plants was established in 1968. It sets quality standards, minimum physical characteristics and marketing standards. There is no EU financial assistance to the sector, no aid to producers, no intervention buying, no price support and no export subsidies. The principal form of regulation is the tariff regime applied and the special safeguard measures allowed. Special arrangements are then negotiated within this framework. The EU is the major market for cut flowers and about 80% of imports enter the market on preferential terms. Kenya is the main third-country supplier. Comment: The cut-flower sector is a major sector into which ACP countries have diversified. It remains to be seen whether the sector will fit into the EU's emerging single farm payment system and the impact that these developments will have on the market prices received by ACP exporters. Currently the major issues faced in the cut-flower sector relate to SPS issues. Establishing effective mechanisms for addressing the multiple dimensions of the SPS challenges facing ACP suppliers should be an important priority for ACP countries in current trade negotiations with the EU.The June 2003 Horticulture Fact Sheet contained a summary of the EU..