WORLD TRADE
ORGANIZATIONWT/DS27/51/Add.25
21 January 2002
(02-0338)
Original:  English
EUROPEAN COMMUNITIES – REGIME FOR THE IMPORTATION,
SALE AND DISTRIBUTION OF BANANAS
Status Report by the European Communities
Addendum
The following communication, dated 21 January 2002, from the Permanent Delegation of the
European Commission to the Chairman of the Disp ute Settlement Body, is circulated pursuant to
Article 21.6 of the DSU.
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Status Report on the Implementation of the Recommendations and Rulings in the
Dispute regarding European Communities – Regime for the Importation,
Sale and Distribution of Bananas
Regulation (EC) No. 2587/2001 has been adopted by the Council on 19 December 2001 and
published in the Official Journal of the European Co mmunities L 345 of 29 December 2001.  The text
of the Regulation is enclosed.
By this Regulation, the EC has implemented Phase 2 of the Understandings with the
United States and Ecuador (circulated as document WT/DS27/58 of 2 July 2001).WT/DS27/51/Add.25
Page 2
COUNCIL REGULATION (EC) NO 2587/2001
OF 19 DECEMBER 2001
AMENDING REGULATION (EEC)NO 404/93 ON THE COMMON ORGANIZATION
OF THE MARKET IN BANANAS
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 37 thereof,
Having regard to the proposal from the Commission1,
Having regard to the opinion of the European Parliament2,
Having regard to the opinion of the Economic and Social Committee3,
Whereas:
1. Following amendments to the tariff and statistical nomenclature and the common
customs tariff, the CN codes for products covered by the common organisation of the
market in bananas should be updated and the CN codes for products to whichArticles 17 to 20 of Regulation (EEC) No 404/93
4 apply should be corrected.
2. Provision should be made for the possibility for Member States not to grant, during a
limited period, compensatory aid for produce obtained from new banana plantations
in order to continue the sustainable development of the production areas;  this
possibility must also be subject to authorisation by the Commission.
3. There have been numerous close contacts with supplier countries and other interested
parties to settle the disputes arising from the import regime established by
Regulation (EEC) No 404/93 and to take account of the conclusions of the panel set
up under the dispute settlement system of the World Trade Organization (WTO).
4. Article 18 of Regulation (EEC) No 404/93 opened an autonomous tariff quota C of
850,000 tonnes for all origins, subject to a customs duty of EUR 300 per tonne with a
tariff preference of EUR 300 per tonne for imports originating in ACP countries, in
addition to the 2,200,000 tonnes bound under the World Trade Organisation and the
additional B quota of 353,000 tonnes.  The quantities relating to the different quotasshould be amended to widen access for bananas originating in third countries and at
the same time to ensure access for a specific quantity of bananas originating in ACP
countries.
5. In view of amendments made to agricultural legislation and in line with the part-
financing of aid to producer organisations provided for in Article 14(2) of Council
Regulation (EC) No 2200/96 of 28 October 1996 on the common organization of the
                                                     
1 OJ C 304 E, 30.10.2001, p.331.
2 Opinion delivered on 12 December 2001 (not yet published in the Official Journal).
3 Opinion delivered on 28 November 2001 (not yet published in the Official Journal).
4 OJ L 47, 25.2.1993, p.1. Regulation as last amended by Regulation (EC) No 216/2001 (OJ L 31,
2.2.2001, p.2).WT/DS27/51/Add.25
Page 3
market in fruit and vegetables5, it should be laid down that the Community aid to
producer organisations provided for in Ar ticle 6 of Regulation (EEC) No 404/93 will
be financed from the EAGGF Guarantee Se ction, for all producer organisations that
are to be established until 31 December 2006.  Since the regions concerned are
covered by Objective 1, the same rate of Community contribution should be fixed forthis aid as for the aid provided for in Article 14(2) of Regulation (EC) No 2200/96 for
Objective 1 regions.
6. The provisions of Regulation (EEC) No 404/93 relating to the committee procedure
should be amended.  The measures necessary for the implementation of
Regulation (EEC) No 404/93 should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exerciseof implementing powers conferred on the Commission
6,
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EEC) No 404/93 is hereby amended as follows:1. Article 1 shall be replaced by the following:
'Article 1
1. A common organization of the market in bananas is hereby established.2. The organization shall cover the following products:
CN codes Description
0803 00 19 Fresh bananas, excluding plantains
ex 0803 00 90 Dried bananas, excluding plantains
ex 0812 95 90 Bananas provisionally preserved
ex 0813 50 99 Mixtures containing dried bananas
     1106 30 10 Flour, meal and powder of bananas
ex 2006 00 99 Bananas preserved in sugar
ex 2007 10 99 Homogenized preparations of bananas
ex 2007 99 39 Jams, jellies, marmalades, purées and pastes of bananas
ex 2007 99 58
ex 2007 99 98
ex 2008 92 59 Mixtures containing bananas otherwise prepared or preserved
ex 2008 92 78
ex 2008 92 93
ex 2008 92 98
ex 2008 99 49 Bananas otherwise prepared or preserved
ex 2008 99 68
ex 2008 99 99
ex 2009 80 35 Banana juice
ex 2009 80 38
ex 2009 80 79
ex 2009 80 86
ex 2009 80 89
ex 2009 80 99
                                                     
5 OJ L 297,21.11.1996, p.1. Regulation as last amended by Regulation (EC) No 911/2001 (OJ
L 129,11.5.2001, p.3).
6 OJ L 184, 17.7.1999, p.23.WT/DS27/51/Add.25
Page 4
3. The marketing year shall run from 1 January to 31 December.'
2. In Article 12, the following paragraph shall be added:
'9. A Member State may be authorized to introduce a temporary measure
whereby no compensatory aid is paid for marketed produce of new banana
plantations planted on or after 1 June 2002, when, in the Member State's view, there
is a risk to the sustainable development of the production areas, with particular
reference to conservation of the environment, and protection of the soil and the
characteristic features of the countryside.
At the request of the Member State concerned, the Commission shall grant the
authorisation provided for in the preceding paragraph in accordance with the
procedure laid down in Article 27.'
3. In Article 16, paragraph 1 shall be replaced by the following:
'1. This Article and Articles 17 to 20 shall apply to imports of fresh products
falling within CN code 0803 00 19 unti l the entry into force, no later than
1 January 2006, of the rate of the common customs tariff for those productsestablished under the procedure provided for in Article XXVIII of the General
Agreement on Tariffs and Trade (GATT).'
4. Article 18 shall be replaced by the following:
'Article 18
1. Each year from 1 January the following tariff quotas shall be opened:
(a) a tariff quota of 2 200 000 tonnes net weight, called "quota A";(b) an additional tariff quota of 453 000 tonnes net weight, called
"quota B";
(c) an autonomous tariff quota of 750 000 tonnes net weight, called
"quota C".
Quotas A and B shall be open for imports of products originating in all third
countries.
Quota C shall be open for imports of products originating in ACP countries.
The Commission may, on the basis of an agreement with World Trade Organization
members with a substantial interest in the supply of bananas, allocate quotas A and B
among supplier countries.
2. Imports under quotas A and B and imports of bananas from third countries
other than the ACP countries shall be subject to customs duty of EUR 75 per
tonne.  Imports of products originating in the ACP countries shall be subject
to a zero duty.
3. Imports under the C quota shall be subject to a zero duty.WT/DS27/51/Add.25
Page 5
4. A tariff preference of EUR 300 per tonne shall apply to imports originating in ACP
countries.
5. The customs duty rates set in this Article shall be converted into national currency at
the rates applicable for the products in question for the purposes of the commoncustoms tariff.
6. Quota B may be increased if demand in the Community increases as indicated by a
balance sheet of production, consumption, imports and exports.
The balance sheet shall be adopted and the tariff quota increased under the procedure
set out in Article 27.
7. Where supply of the Community market is subject to exceptional circumstances
affecting production or importation, the Commission shall adopt the specific
measures necessary under the procedure set out in Article 27.
In such cases quota B may be adjusted on the basis of the balance sheet referred to in
paragraph 6.  The specific measures may derogate from the rules adopted under
Article 19(1).  They must not discriminate between third countries.
8. Bananas re-exported from the Community shall not be counted against the
corresponding tariff quotas.'
5. Article 25 shall be replaced by the following:
'Article 251. The measures laid down in Articles 12 and 13 shall constitute intervention intended to
stabilise the agricultural markets within the meaning of Article 1(2)(b)of Council
Regulation (EC)No 1258/1999 of 17 May 1999 on the financing of the common
agricultural policy.
*
2. Expenditure relating to the aid granted by the Member States in accordance with
Article 6 shall be deemed to be intervention to stabilise agricultural markets within
the meaning of Article 1(2)(b)of Regulation (EC) No 1258/1999.
This expenditure shall be eligible in the case of all producer organisations established
until 31 December 2006.
It shall be the subject of a Community contribution of 75% of eligible public
expenditure.
3. The measures provided for in Article 10 shall be part-financed by the Guidance
Section of the EAGGF.
4. Detailed rules for the application of this Article, and in particular a definition of the
conditions to be met before the Community financial contribution can be paid, shall
be adopted in accordance with the procedure laid down in Article 27.
6. Article 26 shall be deleted.
                                                     
* OJ L 160,26.6.1999, p.103.'WT/DS27/51/Add.25
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7. Article 27 shall be replaced by the following:
'Article 271. The Commission shall be assisted by a Management Committee for Bananas
(hereinafter referred to as "the Committee").
2. Where reference is made to this Article, Articles 4 and 7 of
Decision 1999/468/EC shall apply.
The period laid down in Article 4(3)of Decision 1999/468/EC shall be set at
one month.
3. The Committee shall adopt its rules of procedure.'
Article 2
This Regulation shall enter into force on the third day following that of its publication in the
Official Journal of the European Communities.
Point 4 of Article 1 shall apply from 1 January 2002.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.
Done at Brussels, 19 December 2001.
For the Council
The President
A. NEYTS-UYTTEBROECK
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