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Article 118

For the products benefiting from the aid arrangements provided for in Article 3 of Regulation ( EEC ) No 516/77 on the common organization of the market in fruit and vegetable processed products , the following provisions shall apply in Spain :

1 . Until the first move towards alignment of the prices referred to in Article 70 , the minimum price referred to in Article 3b of Regulation ( EEC ) No 516/77 shall be established on the basis :

- of the price fixed in Spain under the previous national arrangements for the product intended for processing , or

- in the absence of such a price , of the prices paid in Spain to producers for the product intended for processing , as recorded during a representative period to be determined .

2 . Where the minimum price referred to in paragraph 1 is :

- lower than the common price , the price in Spain shall be modified at the beginning of each marketing year following accession , according to the procedures provided for in Article 70 ,

- higher than the common price , the common price shall be adopted on accession for Spain .

3 . ( a ) For processed tomato products for the first four marketing years following accession , the amount of Community aid granted in Spain shall be derived from the aid calculated for the Community as at present constituted , bearing in mind the difference of the minimum producer prices resulting from the application of paragraph 2 , before this last mentioned aid is reduced possibly as a result of the guarantee threshold fixed for these products in the Community as at present constituted being exceeded .

Where the threshold in the Community as at present constituted is exceeded , if this proves necessary to ensure normal conditions for competition between Spanish industries and those of the Community , it shall be decided , in accordance with the procedure provided for in Article 20 of Regulation ( EEC ) No 516/77 , that a compensatory amount , at the most equal to the difference between the aid fixed for Spain and that which would have been derived from the fixed Community aid , will be applied in accordance with Article 72 ( 3 ) ( a ) and levied by the Kingdom of Spain on exports to third countries . However , on the expiry of the arrangements referred to in Regulation ( EEC ) No 1320/85 , no compensatory amount shall be levied where it is proved that the Spanish product did not benefit from Community aid granted in Spain .

In no case may the aid applicable in Spain exceed the amount of aid granted in the Community as at present constituted .

( b ) During the first four marketing years following accession , the grant of Community aid in Spain shall be limited , for each marketing year , to a quantity of processed products corresponding to a quantity of fresh tomatoes of :

- 370 000 tonnes for the manufacture of tomato concentrate ,

- 209 000 tonnes for the manufacture of whole peeled tomatoes ,

- 88 000 tonnes for the manufacture of other tomato products .

At the end of this period , the quantities fixed above , adjusted on the basis of any alteration to Community thresholds made during that period , shall be taken into consideration for fixing Community thresholds .

4 . During the fifth and sixth marketing years following accession , for tomato based products , and for the other products during the six marketing years following accession , the amount of the Community aid granted in Spain shall be derived from the aid fixed for the Community as at present constituted , bearing in mind the difference of the minimum prices resulting from the application of paragraph 2 .

However , for products other than tomato products , in cases where the processing costs recorded in Spain for a product during a representative period to be determined , under the previous national arrangements , are lower by at least 10 % than the processing costs obtaining in the Community as at present constituted , the aid granted in Spain for this product shall be derived bearing in mind also the difference in the processing costs recorded . The processing costs recorded in Spain shall be progressively aligned on the costs recorded in the Community as at present constituted , in accordance with the same rules as those referred to in Article 70 for the move towards alignment of prices .

5 . Community aid shall be applied in full in Spain as from the beginning of the seventh marketing year following accession .

6 . For peaches in syrup , for the first four marketing years following accession , the grant of Community aid in Spain shall be limited to a quantity of 80 000 tonnes of the finished product expressed in net weight .

7 . For the purposes of applying Article 1 , the minimum price , the processing costs and the aid obtaining in the Community as at present constituted shall refer to the amounts obtaining in the Community as at present constituted , excluding Greece .