Proposal for a COUNCIL REGULATION on the conclusion of the Agreement in the form of an Exchange of Letters concerning the extension of the 2000-2001 Protocol setting out the fishing opportunities and financial contribution provided for in the Agreement between the European Economic Community and the Government of the Revolutionary People's Republic of Guinea on fishing off the Guinean coast for the period 1 January 2003 to 31 December 2003

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Protocol to the Fisheries Agreement between the European Community and the Revolutionary People's Republic of Guinea expired on 31 December 2001. Pending the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement, the two parties had decided to extend the expired Protocol for a period of one year, from 1 January 2002 to 31 December 2002.

During this period, a scientific trawl survey aimed at evaluating the state of resources direct should have been conducted in Guinean waters. As a result of technical problems affecting the research ship which was to carry out the survey in June 2002, the operation was postponed until October 2002, and the two parties came to realise that the technical and scientific data which they were awaiting would not now be available until the beginning of 2003. Since this data is highly relevant from the point of view of renegotiating a new longer-term Protocol, the two parties have agreed on a second one-year extension. This extension, in the form of an Exchange of Letters, was initialled by both parties and sets out the technical and financial conditions governing the fishing activities of Community vessels off the Guinean coast during the period 1 January 2003 to 31 December 2003.

During 2003, scientific data will be gathered and/or analysed in order to ensure that any proposal for a new Protocol or an extension of the existing Protocol can guarantee the sustainable exploitation of the fisheries resources which are the subject of the Agreement.

The Commission proposes, on this basis, that the Council adopt the Agreement in the form of an Exchange of Letters on the extension of the Protocol.

A proposal for a Council Decision on the provisional application of the Agreement in the form of an Exchange of letters concerning the extension pending its definitive entry into force is the subject of a separate procedure.

2003/0049 (CNS)

Proposal for a COUNCIL REGULATION on the conclusion of the Agreement in the form of an Exchange of Letters concerning the extension of the 2000-2001 Protocol setting out the fishing opportunities and financial contribution provided for in the Agreement between the European Economic Community and the Government of the Revolutionary People's Republic of Guinea on fishing off the Guinean coast for the period 1 January 2003 to 31 December 2003

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 ..., ..., p. ...

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 Guinea have held negotiations to determine the amendments or additions to be made to the Agreement between the European Economic Community and the Government of the Revolutionary People's Republic of Guinea on fishing off the Guinean coast [3] at the end of the period of application of the Protocol thereto.

[3] OJ L 111, 27.4.1983, p. 1.

(2) During the negotiations, the two parties decided to extend the current Protocol [4] for a second one-year period, from 1 January 2003 to 31 December 2003, by means of an Agreement in the form of an Exchange of Letters, pending the conclusion of the negotiations on the amendments to be made to the Protocol.

[4] The current Protocol was approved by Council Regulation (EC) No 445/2001 of 26 February 2001 (OJ L 64, 6.3.2001). For the text of the Protocol, see OJ L 250, 5.10.2000. The Protocol was extended for one year by Council Regulation (EC) No 924/2002 of 30 May 2002 (OJ L 144, 1.6.2002).

(3) It is in the Community's interest to approve that extension.

(4) The allocation of the fishing opportunities for trawlers and tuna boats among the Member States should be confirmed,

HAS ADOPTED THIS REGULATION :

Article 1

The Agreement in the form of an Exchange of Letters concerning the extension of the Protocol setting out the fishing opportunities and financial contribution provided for in the Agreement between the European Economic Community and the Government of the Revolutionary People's Republic of Guinea on fishing off the Guinean coast for the period 1 January 2003 to 31 December 2003 is hereby approved on behalf of the European Community.

The text of the Agreement is attached to this Regulation.

Article 2

The fishing opportunities for trawlers and tuna boats fixed in Article 1 of the Protocol shall be allocated pro rata temporis 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 Member States whose vessels fish under this Agreement shall notify the Commission of the quantities of each stock caught within the fishing zone of the Republic of Guinea in accordance with Commission Regulation (EC) No 500/2001 [5].

[5] OJ L 73, 15.3.2001, p. 8.

Article 4

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

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the Council

The President

AGREEMENT

in the form of an Exchange of Letters concerning the extension of the Protocol setting out the fishing opportunities and financial contribution provided for in the Agreement between the European Economic Community and the Government of the Revolutionary People's Republic of Guinea on fishing off the Guinean coast for the period 1 January 2003 to 31 December 2003

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 Protocol currently in force (1 January 2000 to 31 December 2001, extended from 1 January 2002 to 31 December 2002) setting out the fishing opportunities and financial contribution provided for in the Fisheries Agreement between the Government of the Revolutionary People's Republic of Guinea and the European Economic Community on fishing off the Guinean coast, pending the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement:

1. The arrangements applicable over the last three years will be extended for the period from 1 January 2003 to 31 December 2003. The Community's financial contribution under the interim arrangements will correspond to the yearly amount provided for in Article 2 of the Protocol currently in force. Payment will be made no later than 30 June 2003. Payment of the financial contribution provided for in Article 6 and the terms relating thereto will also apply.

2. During the interim period, fishing licences will be granted within the limits set in Article 1 of the Protocol currently in force, by means of fees or advances corresponding to those set in point 1 of the Annex to the Protocol. The fees applicable to trawlers will be those for the second year.

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 Guinea

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 Protocol currently in force (1 January 2000 to 31 December 2001, extended from 1 January 2002 to 31 December 2002) setting out the fishing opportunities and financial contribution provided for in the Fisheries Agreement between the Government of the Revolutionary People's Republic of Guinea and the European Economic Community on fishing off the Guinean coast, pending the negotiations on the amendments to be made to the Protocol to the Fisheries Agreement:

1. The arrangements applicable over the last three years will be extended for the period from 1 January 2003 to 31 December 2003. The Community's financial contribution under the interim arrangements will correspond to the yearly amount provided for in Article 2 of the Protocol currently in force. Payment will be made no later than 30 June 2003. Payment of the financial contribution provided for in Article 6 and the terms relating thereto will also apply.

2. During the interim period, fishing licences will be granted within the limits set in Article 1 of the Protocol currently in force, by means of fees or advances corresponding to those set in point 1 of the Annex to the Protocol. The fees applicable to trawlers will be those for the second year.

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 Guinea 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 Guinea

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): External aspects of fisheries policy

Activity(ies): International Fisheries Agreements

Title of action

Second Extension of the 2000-01 Protocol setting out the fishing opportunities and financial compensation under the EC/Republic of Guinea Fisheries Agreement for 1 January to 31 December 2003.

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

B78000: International Fisheries Agreements

2. OVERALL FIGURES

2.1 Total allocation for action (Part B):

minimum EUR2.96 million in payment appropriations

maximum EUR3.33 million in payment appropriations

2.2 Period of application: 1.1.2003 to 31.12.2003

2.3 Overall multiannual estimate of expenditure:

minimum EUR2.96 million in payment appropriations

maximum EUR3.33 million in payment appropriations

(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 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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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).

EC/Republic of Guinea Fisheries Agreement (OJ L 111, 27.4.1983).

5. DESCRIPTION AND GROUNDS

5.1 Need for Community intervention

5.1.1 Objectives pursued

The current Protocol to the Fisheries Agreement between the European Community and the Republic of Guinea expired on 31 December 2001.

The two parties had decided to extend the current Protocol for a first period of one year, from 1 January 2002 to 31 December 2002.

The results of a study to evaluate stocks direct were expected in 2002, following a scientific trawl survey which was scheduled to be carried out in June. As a result of technical problems with the research ship which was to conduct the operation, the survey could not in the end be carried out until mid-October. Noting that the results of this survey would not be available until the beginning of 2003, and that they would be highly relevant to the future negotiations, the two parties have decided to extend the Protocol for a second time, from 1 January 2003 to 31 December 2003, so that they may enter into negotiations on a longer-term Protocol during this period with the most recent data at their disposal.

The purpose of this second extension is to allow Community shipowners to continue fishing (in particular for shrimp, demersal fish species, cephalopods and tuna) in Guinea's exclusive economic zone (EEZ) pending the negotiations on the amendments to be made to the Protocol.

A specific ex ante evaluation of the proposal to extend the current protocol provisionally has not been carried out in view of its temporarily limited character, i.e. extension for one year only, on unaltered conditions, but the Agreement is clearly profitable in that the value of the cephalopods, shrimp and demersal species that can be caught in the Republic of Guinea under the Agreement far exceeds its cost. In addition to the direct sale value of catches, the Agreement also offers the following advantages:

- guaranteed employment on board fishing vessels,

- the multiplier effect on jobs for the ports, auctions, processing factories, shipyards and service industries in the regions concerned,

- these jobs are created in regions where there are no alternatives to fishing,

- guaranteeing the supply of fishery products to the Community market.

Clearly, the list of advantages must include the importance of relations with the Republic of Guinea, both in the fisheries sector and in the political sphere.

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.

5.1.2 Measures taken in connection with ex ante evaluation

The 2000-2001 Protocol and the first extension (from 1 January 2000 to 31 December 2002) have been evaluated by the relevant departments of the Commission's DG Fisheries.

A thorough ex ante evaluation as required by the Financial Regulation will be carried out before the negotiation and conclusion of a new protocol, when the availability of key statistical information (see point 5.1.1 above) so allows. In any case, the period during which a provisional extension applies will be covered by an intermediate/ex post evaluation (see point 8.2 below). DG Fisheries plans to have an external expert evaluation carried out to assist it in performing these tasks.

On the expiry of the 2000-2001 Protocol, the Commission did not have all the evaluation data required to prepare a sound negotiating strategy. In particular, the Commission did not have any information on compliance in 2001 with the conditions for payment of the financial contribution (Article 6 of the Protocol), the purpose of which is to implement a plan to reduce the overall fishing effort with a view to allowing the recovery of certain demersal stocks. This verification, carried out in March 2002, was positive (so that a substantial portion of the additional financial contribution was paid), but it was thought inappropriate to embark on negotiations for a new Protocol before knowing whether the plan to reduce the overall fishing effort had produced the desired effects; the outcome of the studies to evaluate stocks direct, expected at the beginning of 2003, will therefore be highly relevant.

Since it was not possible to acquire such information in time, both the Community and the Government of the Republic of Guinea have agreed to extend the current Protocol for one year. This solution will make it possible to assess the impact of the conservation measures implemented under the current Protocol over a longer period and on the basis of the research results, which are now expected to be available at the beginning of 2003.

As regards the extension of the Protocol for the year 2002, no major difficulties arose in its implementation and the utilisation rates for the various categories were on the whole satisfactory. As indicated above, the conditions for payment of the financial contribution towards the costs generated by the implementation of the plan to reduce the overall fishing effort in accordance with Article 6 of the Protocol for the year 2001, of a maximum of EUR370 000 a year, were broadly fulfilled (except as regards the minimum number of inspection days on the high seas agreed between the parties), and an amount of EUR317 460 was therefore paid in this connection in 2002.

5.1.3 Measures taken following ex post evaluation

A full ex post evaluation was not possible in the absence of the results of the stock evaluation, which were expected in mid-2002. The 2000-2001 Protocol is therefore being extended for a second time and negotiations on a new Protocol have been put off for one year. A detailed ex post evaluation for the validity period of the present Protocol, including these extensions, will be carried out before a proposal on the conclusion of a new Protocol is presented (see Section 8(2) below). DG Fisheries plans to have an external expert evaluation carried out to assist it in performing these tasks.

5.2 Actions envisaged and arrangements for budget intervention

Extending the current Protocol enables Community fishermen to continue to fish in waters over which the Republic of Guinea has sovereignty or jurisdiction from 1 January 2003 to 31 December 2003.

For the extension period, the Community will thus pay a total financial contribution of EUR2 960 000 (of which EUR1 600 000 will be paid by way of financial compensation to the Public Treasury and the rest - EUR1 360 000 - will be used to finance targeted measures). The financial compensation must be paid to the Guinean authorities before 30 June 2003, and will be used as the Republic of Guinea sees fit.

The overall financial contribution can be increased by the contribution provided for in Article 6 which concerns the implementation of a reduction in the overall fishing effort in the Republic of Guinea. The amount of that contribution may not exceed EUR370 000 a year, which brings the maximum total financial contribution to EUR3 300 000.

Of the total financial contribution, EUR1 360 000 is explicitly earmarked for specific measures to develop fisheries (scientific research, surveillance at sea, training, aid for non-industrial fisheries, etc). These measures account for 46% of the total cost of the Agreement. This shows the Commission's concern to ensure not only the development of fisheries activities for Community vessels but also sustainable development of fisheries in the Republic of Guinea and closer monitoring of the implementation of measures (see Article 4 of the Protocol).

The shipowners' fees are confirmed at the same level as for the second year of application of the 2000-2001 Protocol.

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 the Republic of Guinea.

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 three decimal places)

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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 three decimal places)

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7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

The requirements for human and administrative resources must be covered from the managing 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 12 months.

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

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It is impossible to quantify the impact of an individual protocol on the work load of the unit in DG Fisheries responsible for this dossier.

Renewing protocols under existing fisheries agreements is one of the unit's activities but does not in itself have a specific impact on administrative expenditure.

If the protocol had not been extended (initialled), this would equally have resulted in a significant workload and substantial expenditure on visits and meetings.

8. FOLLOW-UP AND EVALUATION

8.1 Follow-up arrangements

The financial compensation (EUR1 600 000) is paid into an account indicated by the Guinean authorities, opened with the Public Treasury. The Republic of Guinea is solely responsible for the use to which this compensation is put.

The amounts allocated to financing the targeted measures EUR1 360 000) are made available to the Ministry responsible for fisheries on the basis of the programming in Article 4 of the Protocol.

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

A report on the utilisation of the funds earmarked for the targeted measures must be submitted to the Commission not later than three months after the anniversary date of the Protocol. The Commission is entitled to request additional information and to review the payments concerned in the light of the actual implementation of the measures.

The Commission will conduct an ad hoc verification visit in the early months of 2003 to verify compliance with the conditions for payment of the contribution (EUR370 000) for reduction of the overall fishing effort provided for in Article 6 of the Protocol.

To ensure that the Protocol is applied properly, the Community and the Republic of Guinea can meet whenever necessary to discuss any matter concerning implementation of the Protocol in a Joint Committee.

8.2 Arrangements and schedule for the planned evaluation

Before the Protocol can be renewed in 2003, the entire period (2000-03) of the 2000-2001 Protocol together with the extensions will be evaluated, measuring the results (catches, value of catches) and impact (number of jobs created and safeguarded, ratio of cost of the Protocol to value of the catches).

The Commission will undertake, on the basis of the best data available, an assessment of the impact of the new Protocol on sustainability. To this end, during 2003, scientific data will be gathered and/or analysed in order to ensure that any proposal for a new Protocol or an extension of the existing Protocol can guarantee the sustainable exploitation of the fisheries resources which are the subject of the Agreement. DG Fisheries plans to have an external expert evaluation carried out to assist it in performing these tasks.

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. However, it is required to report to the Commission, as provided for in the Protocol, on the use of certain funds. All the measures provided for in Article 4 of the Protocol are subject to an annual report on their implementation and on the results achieved. The Commission reserves the right to request additional information on the results achieved and to review payments in the light of actual implementation of the measures.

In addition, the Member States whose vessels operate under this Agreement must certify to the Commission the accuracy 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 Guinean authorities) which then serve as the basis for drawing up the final statement of catches under the Protocol and the corresponding fees.