# EUR-Lex - 51998AP0237(01) - EN

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# 51998AP0237(01)

**Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation establishing a special framework of assistance for traditional ACP suppliers of bananas (COM(98)0005 C4-0263/98 98/0014(SYN)) (Cooperation procedure: first reading) **

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Official Journal C 210 , 06/07/1998 P. 0320 *

A4-0237/98

Proposal for a Council Regulation establishing a special framework of assistance for traditional ACP suppliers of bananas (COM(98)0005 - C4-0263/98 - 98/0014(SYN))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 1a (new)

>Original text>

>Text following EP vote>

Whereas the European Union is bound by the undertakings it made to the ACP countries under the Lomé Convention, and more particularly its Protocol No 5, which seeks to guarantee maintenance for the ACP States of their advantages on the European market, access to that market in conditions that may not be less favourable than those that they previously enjoyed, and improvement of production and marketing conditions for ACP bananas;

(Amendment 2)

Recital 1b (new)

>Original text>

>Text following EP vote>

Whereas the Community banana regime and the trade preferences it involves are real instruments of development for a good many ACP countries;

(Amendment 3)

Recital 5

>Original text>

Whereas these modifications have substantially altered the market conditions for traditional ACP suppliers;

>Text following EP vote>

Whereas these modifications have substantially altered the market conditions for traditional ACP suppliers

and might, in particular, harm the most disadvantaged suppliers;

(Amendment 4)

Recital 7

>Original text>

Whereas technical and financial assistance, additional to that provided for in the fourth ACP-EC Convention, should therefore be granted to traditional ACP suppliers to enable them to adapt to new market conditions and in particular to improve competitiveness; whereas at the same time environment-friendly production and marketing methods should be encouraged;

>Text following EP vote>

Whereas technical and financial assistance, additional to that provided for in the fourth ACP-EC Convention, should therefore be granted to traditional ACP suppliers to enable them to adapt to new market conditions and in particular to improve competitiveness; whereas at the same time environment-friendly production and marketing methods

which also respect social standards should be encouraged;

(Amendment 5)

Recital 7a (new)

>Original text>

>Text following EP vote>

Whereas the purpose of fair trade is to contribute to the fight against poverty and to the promotion of acceptable social and environmental conditions; whereas such initiatives should be encouraged;

(Amendment 6)

Recital 7b (new)

>Original text>

>Text following EP vote>

Whereas European consumers are increasingly prepared to buy 'fair trade' products and to pay slightly higher prices for them; whereas the European Union supports the goal of increasing the supply of bananas on the European market from producers that adhere to particularly high environmental and social standards; whereas, consequently, ACP banana producers should be granted support for converting their plantations to comply with such criteria and in obtaining certification;

(Amendment 7)

Recital 7c (new)

>Original text>

>Text following EP vote>

Whereas it is necessary to foster alternative economic activities for those growers least able to adapt to new market conditions; whereas the programme of technical and financial assistance should therefore be extended to include aid for diversification; whereas this will only be possible if the sum allocated for this programme is sufficient to meet the real needs of ACP suppliers and is provided for a long enough period to cover the period of crisis;

(Amendment 8)

Recital 7d (new)

>Original text>

>Text following EP vote>

Whereas special measures will be necessary to enable growers to maintain quality and productivity in the period immediately following introduction of the amended regime, before the programmes of assistance have been implemented;

(Amendment 9)

Recital 10a (new)

>Original text>

>Text following EP vote>

Whereas a specific situation, comprising a lack of government and of a recognized legitimate authority, has prevailed in Somalia for many years; whereas, until such an authority is reconstituted and recognized, in order to enable Somali banana producers, under the supervision of a body or organization designated by the EC, to benefit immediately from all the provisions of this Regulation, the Commission and the representatives of the Member States should take account of the situation regarding the organization of public authority in Somalia and do whatever is possible to facilitate forthwith the resumption and improvement of banana marketing;

(Amendment 10)

Recital 10b (new)

>Original text>

>Text following EP vote>

Whereas it is essential to establish special rules to deal, with immediate and practical effect, with the special characteristics and difficulties of the present situation of the banana sector in Somalia, so as to ensure its swift recovery; whereas these are also necessary to deal with the consequences of the serious floods which devastated Somalia at the end of 1997 and the beginning of 1998;

(Amendment 11)

Article 1(1)

>Original text>

1. A special framework for technical and financial assistance is hereby established to assist traditional ACP suppliers of bananas to adapt to the new market conditions following the amendments introduced to the common organization of the market in bananas by Regulation (EC) No /98.

>Text following EP vote>

1.

A special system for technical and financial assistance is hereby established to assist traditional ACP suppliers of bananas to adapt to the new market conditions following the amendments introduced to the common organization of the market in bananas by Regulation (EC) No /98.

(Amendment 12)

Article 1(2)

>Original text>

2. This special framework shall be implemented for a period not exceeding ten years starting on 1 January 1999.

>Text following EP vote>

2.

This special system shall be implemented for a period of ten years starting from its date of implementation, at the end of which it may, in the light of adjustments achieved and changes on the market, be renewed as it stands or revised. It shall take the form of technical and financial assistance including an income system based on criteria which take particular account of the interests of the most disadvantaged suppliers, and shall exclude any diversification programmes.

(Amendment 13)

Article 1(2a) (new)

>Original text>

>Text following EP vote>

2a. The Commission shall undertake to encourage diversification in the ACP countries through the creation of a special fund.

(Amendment 14)

Article 2, 2nd indent

>Original text>

- "bananas ̈ means fresh or dried bananas covered by CN code 0803 00 19.

>Text following EP vote>

-

"bananas ̈ means fresh or dried bananas covered by CN code 0803 00 19, excluding plantains.

(Amendment 15)

Article 2a (new)

>Original text>

>Text following EP vote>

Article 2a

In view of the specific situation in Somalia, until a government has been legitimately recognized traditional ACP suppliers shall, in the case of Somalia, be understood to mean the producers themselves and their representative organizations.

(Amendment 16)

Article 3(1)

>Original text>

1. Traditional ACP suppliers shall be eligible for technical and financial assistance.

>Text following EP vote>

1. All traditional ACP suppliers, together with those in the Dominican Republic and Ghana, shall be eligible for technical and financial assistance, which must, to the fullest possible extent, directly benefit producers through the expeditious provision of support.

(Amendment 17 )

Article 3(1a) (new)

>Original text>

>Text following EP vote>

1a. Income support shall be paid solely to the most disadvantaged traditional ACP suppliers.

(Amendment 18)

Article 3(2), 1st indent

>Original text>

- increasing productivity, without causing damage to the environment,

>Text following EP vote>

-

increasing productivity, without causing damage to the environment and while complying with minimum social standards relating to working conditions,

(Amendment 19)

Article 3(2), 4th indent

>Original text>

- establishing producers ̈ organizations which have as their objective the improvement of the marketing and competitiveness of their products and the development of systems for certifying environment-friendly production methods,

>Text following EP vote>

- assisting producer and farmers' organizations to improve competitiveness and increase market opportunities by supporting initiatives to enable producers to fulfil the social and environment-friendly criteria established by European and internationally recognized fair trade and organic produce importers and marketing organizations,

(Amendment 20)

Article 3(2), 5th indent

>Original text>

- developing a production and/or marketing strategy to meet the requirements of the market in the Community in the light of the common organization of the market in bananas,

>Text following EP vote>

-

developing and operating a production and/or marketing strategy, in consultation with producer and farmers ̈ organizations, to meet the requirements of the market in the Community in the light of the common organization of the market in bananas,

(Amendment 21)

Article 3(2), 6th indent

>Original text>

- assisting with training, market intelligence, the development of environment-friendly production methods, improving the distribution infrastructure and improving commercial and financial services to banana producers.

>Text following EP vote>

-

assisting with training, market intelligence, the development of environment-friendly production methods, implementing social projects relating to improvements in the working conditions and lives of workers, improving the distribution infrastructure and improving commercial and financial services to banana producers, in consultation with producer and farmers' organizations.

(Amendment 22)

Article 3(2a) (new)

>Original text>

>Text following EP vote>

2a. Producers of fair trade bananas, together with the agencies which provide 'fair trade' certification, shall be eligible for special support measures associated with technical and financial assistance.

(Amendment 35)

Article 3(2b) (new)

>Original text>

>Text following EP vote>

2b. In countries where, after consultations with banana producers, the Commission establishes that competitiveness on the world market will not be possible even after a 5 to 10 year transitional period and assistance, the funds under this Regulation may also be made available for diversification, i.e. to promote other sectors such as crafts or tourism or to promote other agricultural products.

(Amendment 23)

Article 3(2c) (new)

>Original text>

>Text following EP vote>

2c. Technical and financial assistance shall also be granted to contribute to programmes to assist diversification into other economic sectors and shall include the provision of investment and support for human resource development.

(Amendment 24)

Article 4, 2nd paragraph (new)

>Original text>

>Text following EP vote>

The Commission shall, however, make funds available outside these programmes in the first years of the amended regime for urgent measures necessary to enable growers to improve and maintain quality and productivity.

(Amendment 25)

Article 4, 3rd paragraph (new)

>Original text>

>Text following EP vote>

The Commission and Member States, in partnership with traditional ACP suppliers and in coordination with the private sector, civil society and international bodies, shall support and develop a strategy to diversify traditional ACP States with a heavy dependence on banana exports.

(Amendment 26)

Article 4a (new)

>Original text>

>Text following EP vote>

Article 4a

Where Somalia is concerned, the Commission shall determine, after consulting the committee referred to in Article 7, the organization representing Somali producers which is deemed an appropriate body for holding discussions and negotiations with the Commission.

(Amendment 27)

Article 5(1)

>Original text>

1. Within the global amount available for a given year, the Commission shall fix the maximum amount available to each traditional ACP supplier for the financing of the programmes referred to in Article 3(2), taking into account the level of competitiveness and the importance of banana production for the economy of the country concerned.

>Text following EP vote>

1.

Within the global amount available for a given year, the Commission shall fix the maximum amount available to each traditional ACP supplier for the financing of the programmes referred to in Article 3(2), taking into account the competitiveness gap vis-à-vis bananas from competing third countries and the socio-economic impact of banana production on the country concerned, as well as the conditions relating to the policy of regional integration and diversification of agricultural exports.

(Amendment 28)

Article 5(1a) (new)

>Original text>

>Text following EP vote>

1a. The funds available should primarily benefit small independent producers. Multinational firms, i.e. firms that operate banana plantations in more than one State, shall not be eligible for assistance under this Regulation.

(Amendment 29)

Article 6, 2nd paragraph (new)

>Original text>

>Text following EP vote>

In view of the specific situation in Somalia, the volume of exports to be used to calculate the reference price shall correspond to the best export result achieved by Somalia prior to 1991.

(Amendment 30)

Article 6a (new)

>Original text>

>Text following EP vote>

Article 6a

The Commission shall undertake to implement a transparent technical and financial assistance mechanism enabling producers or producer organizations either to pass aid on or to benefit from it as directly as possible.

(Amendment 31)

Article 6b (new)

>Original text>

>Text following EP vote>

Article 6b

The total financial framework is estimated at ECU 500 million(1).

___________

(1) Declaration by the European Parliament, the Council and the Commission of 6 March 1995 on the incorporation of financial provisions into legislative acts (OJ C 102, 4.4.1996, p. 4)

(Amendment 32)

Article 6c (new)

>Original text>

>Text following EP vote>

Article 6c

The reduction coefficient shall be applied from the year 2004 to suppliers who have not made sufficient effort to increase their competitiveness.

(Amendment 33)

Article 7a (new)

>Original text>

>Text following EP vote>

Article 7a

By 31 December 2000, and every two years thereafter, the Commission shall present a report on the operation of this Regulation to the European Parliament and the Council. The report shall focus especially on the improvement of the competitiveness of the banana sector in the traditional ACP banana- supplying countries and on trends in incomes of banana producers.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation establishing a special framework of assistance for traditional ACP suppliers of bananas (COM(98)0005 - C4-0263/98 - 98/0014(SYN))(Cooperation procedure: first reading)

The European Parliament,

- having regard to the Commission proposal to the Council, (COM(98)0005 - 98/0014(SYN)) ((OJ C 108, 7.4.1998, p. 91.))

- having been consulted by the Council pursuant to Articles 189c and 130w of the EC Treaty (C4-0263/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Development and Cooperation and the opinions of the Committee on Budgets and the Committee on Agriculture and Rural Development (A4-0237/98),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to incorporate Parliament's amendments in the common position that it adopts in accordance with Article 189c(a) of the EC Treaty;

4. Calls for the conciliation procedure to be opened should the Council intend to depart from the text approved by Parliament;

5. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

6. Instructs its President to forward this opinion to the Council and Commission.