Proposal for a Council regulation on the conclusion of two agreements in the form of exchanges of letters concerning the extension of the protocol establishing the fishing opportunities and financial compensation provided for in the agreement between the European Economic Community and the government of the Republic of Senegal on fishing off the coast of Senegal for the periods 1 May 2001 to 31 July 2001 and 1 August 2001 to 31 December 2001

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Protocol to the Fisheries Agreement between the Community and the Republic of Senegal expired on 30 April 2001. Pending the conclusion of the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement, the two parties have decided to extend the expired Protocol for two consecutive periods of three and five months. These two extensions of the Protocol, setting out the technical and financial conditions governing the fishing activities of Community vessels off the coast of Senegal during the periods 1 May to 31 July 2001 and 1 August to 31 December 2001, were initialled by both parties on 23 April and 1 June 2001.

The Commission proposes, on this basis, that the Council adopt the two extensions.

A proposal for a Council Decision on the provisional application of the two extensions pending their definitive entry into force is the subject of a separate procedure.

2001/0168 (CNS)

Proposal for a Council regulation on the conclusion of two agreements in the form of exchanges of letters concerning the extension of the Protocol establishing the fishing opportunities and financial compensation provided for in the agreement between the European Economic Community and the government of the Republic of Senegal on fishing off the coast of Senegal for the periods 1 May 2001 to 31 July 2001 and 1 August 2001 to 31 December 2001

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37, in conjunction with Article 300(2) and the first subparagraph of Article 300(3) thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C

Having regard to the opinion of the European Parliament [2],

[2] Opinion delivered on ..... (not yet published in the Official Journal).

Whereas:

(1) The European Community and the Republic of Senegal have entered into negotiations to determine the amendments or additions to be made to the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal [3] at the end of the period of application of the Protocol thereto.

[3] OJ L 226, 29.8.1980, p. 17.

(2) During the negotiations, the two Parties decided to extend the current Protocol for two consecutive periods of three months and five months, from 1 May 2001 to 31 July 2001 and from 1 August 2001 to 31 December 2001, by means of exchanges of letters initialled on 23 April 2001 and 1 June 2001, pending the conclusion of the negotiations on the amendments to be made to the Protocol.

(3) It is in the Community's interest to approve the two extensions.

(4) The method of allocating the fishing opportunities for trawlers and tuna vessels among the Member States under the expired Protocol and the method of allocating the obligation on Community shipowners to land tuna directly in Senegal, provided for in point C of Annex I to the Protocol, should be confirmed,

HAS ADOPTED THIS REGULATION:

Article 1

The two Agreements in the form of exchanges of letters concerning the extension of the Protocol establishing the fishing opportunities and financial compensation provided for in the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal for the periods 1 May 2001 to 31 July 2001 and 1 August 2001 to 31 December 2001 are hereby approved on behalf of the European Community.

The texts of the two Agreement are attached to this Regulation.

Article 2

The fishing opportunities for trawlers and tuna vessels established pro rata temporis by Article 1 shall be allocated among the Member States as follows:

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If licence applications from these Member States do not cover all the fishing opportunities fixed by the Protocol, the Commission may take into consideration licence applications from any other Member State.

Article 3

The percentage of the catch that owners of Community freezer tuna seiners are obliged to land directly in accordance with point C of the Annex to the Protocol establishing the fishing opportunities and financial compensation provided for in the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal for the periods 1 May 2001 to 31 July 2001 and 1 August 2001 to 31 December 2001 shall be pro rata temporis as follows:

- vessels flying the French flag 44%

- vessels flying the Spanish flag 56%

Article 4

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

Done at

For the Council

The President

First Agreement

in the form of an exchange of letters on the extension of the Protocol establishing the fishing opportunities and financial compensation provided for in the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal for the period from 1 May 2001 to 31 July 2001

A. Letter from the Community

Sirs,

I have the honour to confirm that we agree to the following interim arrangements for the extension of the Fisheries Agreement between the Government of the Republic of Senegal and the European Economic Community, pending the conclusion of the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement

1. The arrangements applicable over the last four years shall be extended for a period from 1 May 2001 to 31 July 2001. The Community's financial contribution under the interim arrangements shall correspond pro rata temporis to that provided for in Article 3 of the Protocol currently in force. The first payment shall be made no later than 31 October 2001.

2. During the interim period, licences shall be issued within the limits laid down in Articles 1 and 2 of the current Protocol on payment of fees or advances corresponding pro rata temporis to those laid down in point A of Annex I and point A of Annex II to the Protocol.

I should be obliged if you would acknowledge receipt of this letter and confirm that you are in agreement with its contents.

Please accept, Sirs, the assurance of my highest consideration.

On behalf of the Council of the European Union

B. Letter from the Government of the Republic of Senegal

Sirs,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"I have the honour to confirm that we agree to the following interim arrangements for the extension of the Fisheries Agreement between the Government of the Republic of Senegal and the European Economic Community, pending the conclusion of the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement:

1. The arrangements applicable over the last four years shall be extended for a period from 1 May 2001 to 31 July 2001. The Community's financial contribution under the interim arrangements shall correspond pro rata temporis to that provided for in Article 3 of the Protocol currently in force. The first payment shall be made no later than 31 October 2001.

2. During the interim period, licences shall be issued within the limits laid down in Articles 1 and 2 of the current Protocol on payment of fees or advances corresponding pro rata temporis to those laid down in point A of Annex I and point A of Annex II to the Protocol

I should be obliged if you would acknowledge receipt of this letter and confirm that you are in agreement with its contents."

I have the honour to confirm that the above is acceptable to the Government of the Republic of Senegal and that your letter and this letter constitute an agreement in accordance with your proposal.

Please accept, Sirs, the assurance of my highest consideration.

For the Government of the Republic of Senegal

Second Agreement

in the form of an exchange of letters on the extension of the Protocol establishing the fishing opportunities and financial compensation provided for in the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal for the period from 1 August 2001 to 31 December 2001

A. Letter from the Community

Sirs,

I have the honour to confirm that we agree to the following interim arrangements for the extension of the Fisheries Agreement between the Government of the Republic of Senegal and the European Economic Community, pending the conclusion of the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement:

1) The arrangements applicable over the last four years shall be extended for a period from 1 August 2001 to 31 December 2001. The Community's financial contribution under the interim arrangements shall correspond pro rata temporis to that provided for in Article 3 of the Protocol currently in force. The first payment shall be made no later than 31 December 2001.

2) During the interim period, licences shall be issued within the limits laid down in Articles 1 and 2 of the current Protocol on payment of fees or advances corresponding pro rata temporis to those laid down in point A of Annex I and point A of Annex II to the Protocol.

I should be obliged if you would acknowledge receipt of this letter and confirm that you are in agreement with its contents.

Please accept, Sirs, the assurance of my highest consideration.

On behalf of the Council of the European Union

B. Letter from the Government of the Republic of Senegal

Sirs,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"I have the honour to confirm that we agree to the following interim arrangements for the extension of the Fisheries Agreement between the Government of the Republic of Senegal and the European Economic Community, pending the conclusion of the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement

1) The arrangements applicable over the last four years shall be extended for a period from 1 August 2001 to 31 December 2001. The Community's financial contribution under the interim arrangements shall correspond pro rata temporis to that provided for in Article 3 of the Protocol currently in force. The first payment shall be made no later than 31 December 2001.

2) During the interim period, licences shall be issued within the limits laid down in Articles 1 and 2 of the current Protocol on payment of fees or advances corresponding pro rata temporis to those laid down in point A of Annex I and point A of Annex II to the Protocol.

I should be obliged if you would acknowledge receipt of this letter and confirm that you are in agreement with its contents."

I have the honour to confirm that the above is acceptable to the Government of the Republic of Senegal and that your letter and this letter constitute an agreement in accordance with your proposal.

Please accept, Sirs, the assurance of my highest consideration.

For the Government of the Republic of Senegal

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): External aspects of certain Community policies

Activity(ies): International Fisheries Agreements

TITLE OF OPERATION: Extension of Protocol establishing the fishing opportunities and financial compensation under the EC/Senegal Fisheries Agreement

1. BUDGET LINE(S) + HEADING(S)

B78000: International Fisheries Agreements

2. OVERALL FIGURES

2.1 Total allocation for action (Part B): EUR 8 million for commitment/payment

2.2 Period of application: 1.5.2001 to 31.7.2001 and 1.8.2001 to 31.12.2001

2.3 Overall multiannual estimate on expenditure: EUR 8 million

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to three decimal places)

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(b) Technical and administrative assistance and support expenditure (see point 6.1.2)

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(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4 Compatibility with financial programming and the financial perspective

X Proposal compatible with existing financial programming.

( This proposal will entail reprogramming of the relevant heading in the financial perspective.

( This may entail application of the provisions of the Interinstitutional Agreement.

2.5 Financial impact on revenue:

X No financial implications (involves technical aspects regarding implementation of a measure)

OR

( Financial impact - the effect on revenue is as follows:

Note: All details and observations pertaining to the method of calculating the effect on revenue should be included in a separate annex.

EUR million (to one decimal place)

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(Please state each budget line involved, adding the appropriate number of rows to the table if there is an effect on more than one budget line)

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 37 of the Treaty, in conjunction with Article 300(2) and the first subparagraph of Article 300(3) thereof.

5. DESCRIPTION AND GROUNDS

5.1 Need for Community intervention

5.1.1 Objectives pursued

The Protocol to the Fisheries Agreement between the European Community and the Republic of Senegal expired on 30 April 2001. Under the Agreement between the European Economic Community and the Government of the Republic of Senegal on fishing off the coast of Senegal, the Community and the Republic of Senegal entered into negotiations to determine the amendments or additions to be made to the Agreement at the end of the period of application of the Protocol. Since it was not possible to conclude the negotiations before the previous Protocol expired, the two parties decided to extend the current Protocol for two consecutive periods of three months and five months by means of exchanges of letters which were initialled on 23 April 2001 and 1 June 2001. The purpose of these two extensions is to allow Community shipowners to continue fishing in Senegal's exclusive economic zone (EEZ) pending the conclusion of the negotiations on the amendments to be made to the Protocol.

5.1.2 Measures taken in connection with ex ante evaluation

The 1997-2001 Protocol has been evaluated by the relevant departments of the Commission's Fisheries DG. This evaluation shows a clear improvement in average utilisation in terms of issue of licences during the last two years of the Protocol (resulting from the situations as regards Guinea-Bissau and Morocco), leading to percentages considerably higher than they were at the beginning of the Protocol period. Utilisation has been highly satisfactory for demersal inshore fisheries (82%-100%), pole-and-line tuna vessels (100%) and tuna seiners (85%). Utilisation was modest for surface longliners (51%), satisfactory for deepwater demersal fishing (59%-88%) and very poor for pelagic fishing (0%). (Total fishing opportunities under the 1997-2001 Protocol amounted to 10 000 GRT to cover trawlers, 41 tuna seiners, 12 pole-and-line tuna vessels, 23 surface longliners and 25 000 tonnes to cover pelagic species).

5.2 Actions envisaged and arrangements for budget intervention

The two extensions of the current Protocol enable Community fishermen to continue to fish in waters over which the Republic of Senegal has sovereignty or jurisdiction from 1 May 2001 to 31 December 2001.

The Community will thus pay a total financial contribution of EUR 8 million (as compared with EUR 12 million/year under the 1997-2001 Protocol). Senegal will have discretion regarding the use to which the financial compensation is put.

It should be remembered that the guidelines laid down by the Council for negotiating fisheries agreements with ACP States specify that account must be taken of the Community's interest in maintaining or establishing fisheries relations with the countries concerned.

5.3 Methods of implementation

The Commission is solely responsible for implementing the Protocol and will do so through its officials posted in both Brussels and its Delegation in Senegal

6. FINANCIAL IMPACT

6.1 Total financial impact on Part B (over the entire programming period)

6.1.1 Financial intervention

Commitments in EUR million (to the 3rd decimal place)

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6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

Commitments in EUR million (to the 3rd decimal place)

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7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

The requirements for human and administrative resources must be covered from the administering DG's allocation.

7.1. Impact on human resources

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7.2 Overall financial impact of human resources

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The amounts are total expenditure for twelve months.

7.3 Other administrative expenditure deriving from the action

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The amounts are total expenditure for twelve months.

(1) Specify the type of committee and the group to which it belongs.

I. Annual total (7.2 + 7.3)

II. Duration of action

III. Total cost of action (I : 12 x 8) // EUR 1 151 986

8 months

EUR 767 991

8. FOLLOW-UP AND EVALUATION

8.1 Monitoring

The Senegalese State is solely responsible for the use to which the financial contribution under this extension is put (EUR 8 million for eight months).

8.2 Details and frequency of planned evaluations

Utilisation of the fishing opportunities is under permanent assessment in terms of both licences issued and catches.

9. ANTI-FRAUD MEASURES

Since the financial contributions are made by the Community in direct exchange for the fishing opportunities offered, the non-member country uses them for whatever end it chooses.

In addition, the Member States whose vessels operate under this Agreement must certify to the Commission the exactness of the data indicated in the tonnage certificates of the vessels so that the licence fees may be calculated on a guaranteed basis.

The extended Protocol also requires Community shipowners to fill out catch statements (which must be transmitted to the Commission and the Senegalese authorities) which then serve as the basis for drawing up the final statement of catches under the Protocol and the corresponding fees.