Processed agricultural products
The term "Annex I" refers to the Annex I of the Treaty on the functioning of the EU. This Annex lists all agricultural products which could be subject to a Common Market Organization in the framework of the Common Agricultural Policy. Article 38 of the Treaty serves as legal basis for the Common Agricultural Policy.
Processed agricultural products (also abbreviated "PAPs") on the other hand are made out of agricultural products and are not listed in Annex I to the Treaty. Technically they are therefore called Non-Annex - products (NA I).
Non Annex I goods are listed in five CMO basic regulations (sugar, milk, eggs, cereals and rice). They encompass such products as chocolates and confectionaries, sweet drinks, biscuits and bakeries products, and other preparations.
Main product-groups of the NA I sector*
- processed dairy products (CN-Codes 0403)
- frozen fruit and vegetables (CN-Codes 0710)
- confectionery industry products (CN-Codes 1704, 1806, 1905)
- various prepared foods and sauces (CN-Codes 1901, 1902, 1904, 2103) including pasta, ice-creams, soups…
- non- alcoholic beverages, alcoholic beverages and spirit drinks (CN-chapter 22)
- tobacco -products (CN-Codes 2402, 2403),
- processed starch products (CN-Codes 2905, 3501, 3809).
*CN-Codes = Combined Nomenclature codes which classify goods
Origin of used basic products
More than 70 % of the agricultural goods produced in the EU are used to be transformed into food industry products, many of them Non - Annex I-goods.
NA I products in the EU
In 2007, the EU exported NA I products to the rest of the world with a value of about €19bn. By 2009, this figure had risen to €21bn. Imports into EU on the other hand, stood at €7.7m in 2007 and rose to €8m in 2009. Therefore, an increasingly positive trade balance has been achieved in the trade of NA I products between the EU and the rest of the world.
The four largest EU27 exporters of PAPs in 2009 were France, the Netherlands, United Kingdom and Germany. The sum of their exports was more than 60% of the total EU27 exports.
As far as imports are concerned, the same countries (Germany, the Netherlands, United Kingdom and France) were the largest importers of PAPs in 2009.