Dear X,
On 10 June and 30 July 1998, you made a complaint on behalf of your clients, Y, to the European Ombudsman against the European Commission. You alleged that the Commission failed to examine properly the effects of the constant decrease of the German quota for the import of canned Asian fruit and vegetables to the European market.
On 28 September 1998, I forwarded the complaint to the President of the European Commission. The Commission sent its opinion on 23 December 1998 and I forwarded it to you with an invitation to make observations which I received on 25 February 1999.
I am writing now to let you know the results of the inquiries that have been made.

THE COMPLAINT

The complainant stated in his complaint that the quota for German importers of Asian canned fruit and vegetables into the Common Market, in particular of Chinese mushrooms, have drastically decreased over the past two decades which led to a difficult financial situation for the entire industry.
The complainant put forward that due to the German reunification, and due to the accession of three new Member States, the Common Market balance had changed and that therefore, measures should have been taken by the Commission to adjust the import quota.
The complainant claimed that it had informed the Commission about these negative effects and that it had asked to increase the permitted quota. According to the complainant, its pledge did not lead to any changes of the current situation. The complainant stated that the Commission failed to examine the matter properly.

THE INQUIRY

The Commission's opinion
In summary, the Commission made the following points:
It noted that essentially the same text of the complaint was included in a letter sent by the complainant to Commissioner Fischler, dated 10 June 1998. The Commission referred to the answer by the Commissioner of 9 September 1998.
In his letter to the complainant, Commissioner Fischler confirmed that for the import of canned Chinese mushrooms no further tariff concessions have been made. He pointed out that, on the other hand, higher tariff concessions have been made for the import from Middle and Eastern European countries within the framework of the ACP-agreement and the General Preference system as these states have privileged relationships with the EU, whereas China is not a member of the WTO.
In his letter, Commissioner Fischler also stated that after a careful examination of the Common Market it appeared that the production of mushrooms has become stabilised in recent years and has even declined a little, as well as the consumption. In view of the extremely low prices at which China sells its mushrooms, a rise of the Chinese contingent could lead to a further distortion of the Common Market for mushrooms. Commissioner Fischler declared that his services would nevertheless examine again whether the customs contingent for the import of mushrooms from China can be raised.
The Commission stated that further to the answer of Commissioner Fischler, the services of the Commission met the complainant on 28 September 1998 in Brussels, in order to explore possible modifications to the existing regulations, which would help alleviate the importers' problems.
The Commission also declared that some modifications have been introduced. To the benefit of "traditional importers" import quotas have been increased and those pertaining to the "newcomers" have been reduced. The Commission pointed out, that no change of the quota for Chinese mushrooms has though been introduced. The Commission referred to the newly approved Regulation no. 2493/98 of 18 November 1998 portant ouverture et mode de gestion de contingents tarifaires de conserves de champignons, which modified Regulation 2125/95 EC and which would meet a certain number of the complainant's grievances.
The complainant's observations
In observations, the complainant maintained the complaint. The complainant stated that the amendment to Regulation 2125 did indeed change some points. The complainant pointed out that it was nevertheless crucial to increase the contingent for Chinese mushrooms as a whole. The complainant stated that there were compelling economic reasons to raise the amount of import licences and that the Commission failed to examine the matter properly.

THE DECISION

1 Failure of the Commission to examine the matter properly and to take into account the complainant's points when deciding not to increase the import quota for mushrooms from China

1.1 The complainant stated in the complaint that the import quota for canned Chinese mushrooms has steadily decreased over the past years. The complainant declared that due to changes in the political situation of Germany and due to the access of three new Member States, the Commission should have adjusted the import quota to the recent developments. The complainant stated that, by not increasing the import quota, the economical situation for German importers was severely damaged. The complainant alleged in particular that the Commission did not examine the matter properly and that it did not take advice given into account.
1.2 In its opinion, the Commission stated that it had been addressed by the complainant already directly on the same subject. By letter of 9 September 1998, Commissioner Fischler replied that after careful examination of the Common Market for mushrooms it appeared that the amount of the production has become stabilised in recent years and that the consumption decreased. In view of the extremely low prices of Chinese mushrooms, a rise of the Chinese contingent could lead to a further distortion of the Common market for mushrooms. Commissioner Fischler declared that his services would nevertheless examine again whether the customs contingent for the import of mushrooms from China can be raised.
1.3 The Commission also stated that its services met the complainant on 28 September 1998 in Brussels, in order to explore possible modifications to the existing regulations, which would help alleviate the problems of the importers.
1.4 As concerns the above mentioned allegations, it appears that the Commission examined and continues to examine the points raised by the importers of mushrooms. Furthermore, the complainant had the opportunity to meet with the services of the Commission in order to discuss the matter. It appears therefore that the Commission has taken steps to ensure that the complainant's arguments were heard.
1.5 From the information given to the Ombudsman, it appears that the Commission has dealt with the matter properly by giving the complainant the possibility to forward its views on the matter, and on the basis of the information presented in this case it can be concluded that the Commission's positions on the matter have been taken within its legal authority.
2 Conclusion
On the basis of the European Ombudsman's inquiries into this complaint, there appears to have been no maladministration by the European Commission. The Ombudsman has therefore decided to close the case.
The President of the European Commission will also be informed of this decision.
Yours sincerely
Jacob SÖDERMAN