COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 03.07.1995 
COM(95) 307iinal 
95/0172 (ACC) 
Proposal for a 
COUNCIL DECISION 
On the conclusion of the Agreements in the form of an exchange 
of letters between the European Community and, 
on the one hand, Barbados, Belize, 
the Republic of the Congo, Fiji, the Cooperative Republic of 
Guyana, the Republic of the Ivory Coast, Jamaica, the Republic 
of Kenya, the Republic of Madagascar, the Republic of Malawi, 
Mauritius, the Republic of Surinam, St. Christopher and Nevis, 
the Kingdom of Swaziland, the United Republic of Tanzania, 
Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia 
the Republic of Zimbabwe, and on the other hand, the Republic of India 
on the supply of raw cane sugar to be refined. 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
1. Article 37 together with Article 16 of Council Regulation No 1785/81, 
as last amended by Council Regulation (EEC) No 1101/95, provide for 
agreements with the ACP states referred to in Protocol No 8 annexed to 
the fourth ACP-EEC Convention and India and other states on the opening 
of a tariff quota at a reduced rate of duty for raw cane sugar to be 
refined. 
By this agreement it is aimed at ensuring adequate supplies to the 
Community refineries in conformity with the presumed maximum needs 
fixed by the said Article 37. 
2. In conducting the negotiations on access to this tariff quota, it was 
considered appropriate to try to reach an agreement first with the ACP 
countries and India which have supplied the EC market on a regular 
basis. As a result, the Commission has, in conformity with the 
Negotiating Directives adopted by the Council on 10 May 1995, concluded 
negotiations with the ACP states referred to and India. 
3. It is agreed by the negotiating parties to approve the results of the 
negotiations in the form of an exchange of letters. 
The Commission therefore proposes that the Council adopt the proposal 
for a decision on the conclusion of the agreements in the form of an 
exchange of letters as set out in Annex 1 and 2. 
4. However, negotiations on other agreements shall be conducted with other 
exporting countries to the EC for access to the tariff quota. 
5. At the end of these negotiations, the preference, if any, granted to 
the ACP countries compared with the other exporting countries will 
have to be notified to the WTO, in conformity with the provisions of 
the waiver granted for the Lomé IV Convention. 
6. Financial impact 
The financial consequences are set out in Annex 3 
s4 
PROPOSAL FOR A 
COUNCIL DECISION 
On the conclusion of the Agreements in the form of an exchange 
of letters between the European Community and, 
on the one hand, Barbados, Belize, 
the Republic of the Congo, Fiji, the Cooperative Republic of 
Guyana, the Republic of the ivory Coast, Jamaica, the Republic 
of Kenya, the Republic of Madagascar, the Republic of Malawi, 
Mauritius, the Republic of Surinam, St. Christopher and Nevis, 
the Kingdom of Swaziland, the United Republic of Tanzania, 
Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia 
the Republic of Zimbabwe, and on the other hand, the Republic of India 
on the supply of raw cane sugar to be refined. 
(presented by the Commission) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in 
particular Article 113 and Article 228 paragraph 2 thereof, 
Having regard to the proposal from the Commission, 
whereas negotiations with the ACP States Party to Protocol n° 8 on ACP 
sugar annexed to the fourth Lomé Convention and India have taken place in 
order to define the conditions under which imports of raw cane sugar from 
those countries under the additional quota will take place; 
Whereas Article 16 of Council Regulation (EEC) Nol785/81 as last amended by 
Council Regulation (EEC) No 1101/95 provides that tariff quotas resulting 
from agreements concluded in the framework of the Uruguay Round of 
multinational trade negotiation shall be opened and administered in 
accordance with detailed rules adopted under the procedure laid down in 
Article 41; 
whereas Article 37(3) states that a shortfall to fill the maximum needs of 
the community refineries shall be covered by importing special preferential 
sugar at a special rate of duty under agreements with states referred to in 
Article 33 and other States; 
whereas the said negotiations have resulted in agreements which are subject 
to confirmation by the Governments of the ACP States concerned, on the one 
hand, and India, on the other hand, and by the Community; 
Whereas it is appropriate to open such a tariff quota for raw cane sugar to 
be refined for maintaining the current access for ACP States parties to 
Protocol N° 8 to the Fourth Lomé convention, India and other third 
countries. 
Whereas it is appropriate to approve the Agreements in the form of exchange 
of letters between the European Community and, on the one hand, the states 
referred to in the Protocol and, on the other hand, the Republic of India 
on the supply of raw cane sugar to be refined; 
HAS DECIDED AS FOLLOWS: 
Article 1 
The Agreements in the form of exchange of letters between the European 
Community and, on the one hand, Barbados, Belize, the Republic of the 
Congo, Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory 
Coast, Jamaica, the Republic of Kenya, the Republic of Madagascar, the 
Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and 
Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad 
and Tobago, the Republic, of Uganda, the Republic of Zambia, the Republic of 
Zimbabwe and, on the other hand, the Republic of India on the supply of raw 
cane sugar to be refined are hereby approved on behalf of the Community. 
The text of the Agreements is attached to this Decision. 
Article 2 
The President of the Council is hereby authorized to designate the person 
empowered to sign the Agreements referred to in Article 1 in order to bind 
the Community. 
Article 3 
This Decision will be published in the Official Journal of the European 
Communities. 
Done at Brussels For the council 
ANNEX 
AGREEMENT 
IN THE FORM OF EXCHANGE OF LETTERS BETWEEN THE EUROPEAN COMMUNITY AND, 
BARBADOS, BELIZE, THE REPUBLIC OF THE CONGO, FIJI, THE COOPERATIVE REPUBLIC 
OF GUYANA, THE REPUBLIC OF THE IVORY COAST, JAMAICA, THE REPUBLIC OF KENYA, 
THE REPUBLIC OF MADAGASCAR, THE REPUBLIC OF MALAWI, MAURITIUS, THE REPUBLIC 
OF SURINAM, ST. CHRISTOPHER AND NEVIS, THE KINGDOM OF SWAZILAND, THE UNITED 
REPUBLIC OF TANZANIA, TRINIDAD AND TOBAGO, THE REPUBLIC OF UGANDA, THE 
REPUBLIC OF ZAMBIA AND THE REPUBLIC OF ZIMBABWE ON THE SUPPLY OF RAW SUGAR 
TO BE REFINED. 
Letter No 1 
"The representatives of the ACP States and the European Community have 
agreed as follows: 
1. For the period 1 July 1995 to 30 June 2001 
The European Community undertakes to open annually a special tariff 
quota for the import of raw cane sugar for refining which originate 
in the ACP States, on the basis of the needs determined by the 
Commission in accordance with paragraph 3, 
The ACP states undertake to supply the said quantities under the 
conditions fixed by this agreement and by the measures taken by the 
Commission for the application of this agreement within the 
framework of the management of the common organization of the 
markets in the sugar sector. 
2. The European Commission and the ACP states shall establish the 
cooperation procedures necessary to enable the two parties to this 
agreement to meet the commitments entered into. 
3. The import needs of raw sugar for refining under this agreement shall 
be established by marketing year on the basis of a Community forward 
estimate taking account of: 
the provisions of Council Regulation (EC) No 1101/95, amending 
. Regulation (EEC) No 1785/81, concerning the system of preferential 
imports, and in particular Article 37 thereof, 
the quantities which will be offered within the framework of other 
agreements with other third countries and which will actually be 
imported. 
4. The Commission shall establish a first estimate of the total needs for 
imports of raw sugar for refining at the latest on 30 May preceding the 
marketing year concerned. 
The Commission shall fix at the same time the quantities to cover, as a 
first instalment, the import needs of the Community's refineries for 
the longest practical period and at least 8 months, broken down between 
the tariff quotas opened within the framework of other agreements with 
other third countries and the ACP special quota. 
The ACP States shall notify their final export potential to the 
Commission at the latest on 1 February, before a second regular fixing 
shall be make for the further instalment to be covered by imports under 
the special ACP quota. 
/ 
5. The special reduced rate of duty shall be fixed for the 1995/96 -
2000/2001 marketing years at 6,9 Ecu per 100 kgs raw sugar of the 
standard quality. 
The importers and refiners which want to participate in this special 
reduced duty system must pay a minimum purchase price which is equal to 
the guaranteed price for raw sugar reduced by the adjustment aid fixed 
for the marketing year concerned in accordance with the provisions of 
Article 36 of Regulation (EEC) No 1785/81 mentioned under 3. 
It is agreed that if the adjustment aid is increased or reduced by 
comparison with its existing level of 1.20 Ecu per 100 kgs raw sugar a 
converse adjustment will be made in the reduced levy, so that the 
change in the adjustment aid does not affect the net receipts of the 
ACP suppliers. 
It is further agreed that the level of the reduced levy will be 
reconsidered if 
a. the level of the guaranteed price established in accordance with 
the provision of Protocol No 8 annexed to the 4th Lomé convention 
is reduced by comparison with the price applicable in the 1994/95 
delivery period or 
b. the level of the world market price increases to the point where 
the objective of providing an incentive to supply the Community 
would be put at risk. 
6. The ACP States shall undertake collectively to implement between 
themselves procedures for the allocation of the quantities under this 
special ACP quota in order to ensure the appropriate supplying of the 
refineries. 
7. Before 1 January 2001, the two parties to this agreement shall open 
discussions on its possible continuation»"* 
I should be obliged if you would acknowledge receipt of this letter and 
confirm that this letter and your reply constitute an Agreement between the 
Governments of the above mentioned ACP States and the Community. 
Please accept, sir,, the assurance of ray highest consideration. 
For the council of the European union 
S 
Letter No 2 
Sir, * 
I have the honour to acknowledge receipt of your letter of today which 
reads as follows: 
I have the honour to confirm the agreement of the Governments of the ACP 
States referred to in this letter with the foregoing. 
Please accept, sir, the assurance of my highest consideration. 
For the Governments 
ANNEX 2 
in the form of an exchange of letters between the European Community and 
the Republic of India on the supply of raw sugar to be refined 
Letter N" 1 
INDIA SPECIAL PREFERENTIAL 
"The representatives of India and the European Community have agreed as 
follows : 
1. For the period 1 July 1995 to 30 June 2001 
- The European Community undertakes to open annually a special tariff 
quota for the import of raw cane sugar for refining which originate 
in India, on the basis of the needs determined by the Commission in 
accordance with paragraph 3, 
^io 
In the event of an import need being established, India undertakes 
to supply 10,000 tonnes (WSE) under this special tariff quota and 
under the conditions fixed by this agreement and by the measures 
taken by the Commission for the application of this agreement 
within the framework of the management of the common organization 
of the markets in the sugar sector. Nothing in this indent should 
prevent the community offering to India the possiblility to supply 
more than 10,000 tonnes in the event of a shortfall in the total 
supplies obtained under other agreements. 
2. The European Commission and India shall establish the cooperation 
procedures necessary to enable the two parties to this agreement to 
meet the comitments entered into. 
3. The import needs of raw sugar for refining under this agreement shall 
be established by marketing year on the basis of a Community forward 
estimate taking account of : 
the provisions of Council Regulation (EC) N° 1101/95, amending 
Regulation (EEC) N° 1785/81, concerning the system of preferential 
imports, and in particular Article 37 thereof, 
the quantities which will be offered within the framework of other 
agreements with other third countries and which will actually be 
imported. 
4. The special reduced rate of duty shall be fixed for the 1995/96 -
2000/2001 marketing years at 6,9 Ecu per 100 kgs raw sugar of the 
standard quality. 
-/« 
The importers and refiners which want to participate in this special 
reduced duty system must pay a minimum purchase price which is equal to 
the guaranteed price for raw sugar reduced by the adjustment aid fixed 
for the marketing year concerned in accordance with the provisions of 
Article 36 of Regulation (EEC) N* 1785/81 mentioned under 3. 
It is agreed that if the adjustment aid is increased or reduced by 
comparison with its existing level of 1.20 Ecu per 100 kgs raw sugar a 
converse adjustment will be made in the reduced levy, GO that the 
change in the adjustment aid does not affect the net receipts of the 
India suppliers. 
It is further agreed that the level of the reduced levy will be 
reconsidered if 
(a) the level of the guaranteed price established in accordance with 
the agreement between the Community and India on raw sugar i3 
reduced by comparison with the price applicable in the 1994/95 
delivery period or 
(b) the level of the world market price increases to the point where 
the objective of providing an incentive to supply the community 
would be put at risk. 
5. Before 1 January 2001, the two parties to this agreement shall open 
discussions on its possible continuation." 
I should be obliged if you would acknowledge receipt of this letter and 
confirm that this letter and your reply constitute an Agreement between the 
Government of India and the community. 
Please accept, sir, the assurance of my highest consideration. 
For the Council of the 
European Union 
/v 
Letter N° 2 
Sir, 
I have the honour to acknowledge receipt of your letter of today which 
reads as follows : 
I have the honour to confirm the agreement of my Government with the 
foregoing. 
Please accept, sir, the assurance of my highest consideration. 
For the Government of 
the Republic of India. 
\i 
FINANCIAL STATEMENT I Date 
1. BUDGET HEADING : Receipts : 1000 
Expenditure : Bl-110(PDB 95) APPROBIATIONS Ecu 946,5 Million 
Ecu 1 235,0 Million 
2. TITLE Council Decision on the conclusion of an Agreement in the form of an 
exchange of letters between the European Economic Community and, on the one 
hand, Barbados, Belize, the People's Republic of the Congo, Fiji, the 
Cooperative Republic of Guyana, the Republic of Côte d'Ivoire, Jamaica, the 
Republic of Kenya, the Democratic Republic of Madagascar, the Republic of 
Malawi, Mauritius, Saint Christopher and Nevis, the Republic of Suriname, 
the Kingdom of Swaziland, the United Republic of Tanzania, the Republic of 
Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia and the 
Republic of Zimbabwe and, on the other hand, India on the supply of raw cane 
sugar for refining. 
3. LEGAL BASIS Article 113 of Treaty. 
4. AIMS OF PROJECT : Granting of a reduced rate of customs duty to the ACP states and 
India for an import quota opened for the period 1.7.1995 to 
30.6.2001. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- Charged to the EC budget 
(Refund) 
5.1 RECEIPTS 
- onw resources or the EC 
(levies/customs duties) 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS PERIOD OF 
12 MONTHS CURRENT FINANCIAL 
YEAR (1995) 
—. 
1997 
152,0 
21,6 1998 
152,0 
21,6 FOLLOWING FINANCIAL 
YEAR (199 5) 
148,8 
21,1 
1999 
152,0 
21,6 2000 
152,0 
21,6 
5.2. METHOD OF CALCULATION 
See attached Annex 
6.0 CAN THE PROJECT BE FINANCED FROM APPROBIATIONS ENTERED IN THE RELEVANT CHAPTER OF 
THE CURRENT BUDGET ? 
YES/Sûr 
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?__. 
YES/*t£ 
6.2. IS A SUPPLEMENTARY BUDGET BE NECESSARY ? 
*S5/NO 
YES/HB: 6.3. WILL FUTURE BUDGET APPROBAIATIONS BE NECESSARY ? 
OBSERVATIONS 
yM 
ANNEX TO THE FINANCIAL STATEMENT 
RECEIPTS 
The quantities concerned by the agreement are : 320.000 tonnes of white sugar, equal to 
348.000 tonnes of raw sugar (coefficient 0,92). 
aiie normal rates of customs duties are those foreseen in the URUGUAY ROUND agreement. The 
reduced duty rate is 69 Ecu/t. Own resources of the Community correspond to 90 % of the 
aseduced receipts. 
BUDGETARY YEAR 
Quantity (1000 t) 
Full rate (ECU/t) 
Reduced rate (ECU/t) 
Normal receipts(ECU million) 
Reduced receipts *' 
Reduced own resources " 
Receipts forgone " 1996 
348,0 
409,8 
69,0 
142,6 
24,0 
21,6 
106,7 1997 
348,0 
395,7 
69,0 
137,7 
24,0 
21,6 
102,3 1998 
348,0 
381,5 
69,0 
132,8 
24,0 
21,6 
97,9 1999 
348,0 
367,3 
69,0 
127,8 
24,0 
21,6 
93,4 2000 
348,0 
353,2 
69,0 
122,9 
24,0 
21,6 
89,0 2001 
348,0 
339,0 
69,0 
118,0 
24,0 
21,6 
84,6 
The assumption has been made that the receipts will occur after a delay of 6 months from 
the date of the agreement. 
EXPENDITURE 
The imports lead to the re-exportation of an equivalent quantity of sugar (from 1996/97 
the refund rate apparing in the financial appreciation of the sugar market reform has 
been used). 
BUDGETARY YEAR 
Quantity (1000 t) 
Refund (ECU/t) 
Cost (ECU million) 1996 
320,0 
465,0 
148,8 1997 
320,0 
475,0 
152,0 1998 
320,0 
475,0 
152,0 1999 
320,0 
475,0 
152,0 2000 
320,0 
475,0 
152,0 2001 
320,0 
475,0 
152,0 
IC 
BSN0234-I47S 
COM(95) 307 final 
DOCUMENTS 
EN 11 03 02 
Catalogue number : CB-CO-95-338-EN-C 
TSBN 92-77-91107-7 
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