COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 200 final 
Brussels, 30.05.1994 
REPORT FOR 1992-93 ON PROGRESS MADE 
IN IMPLEMENTING POSE I DOM 
Report by the Commission to the Council and the European Parliament 
pursuant to Title V of Decision 89/687/EEC and Article 23 of Régulât 
(EEC) No 3763/91 on 
CONTENTS 
INTRODUCTION 
THE SOCIO-ECONOMIC SITUATION OF THE 
OVERSEAS DEPARTMENTS 
MEASURES TAKEN UNDER POSEIDOM 
A Agriculture 
1 Implementation of the Poseidom 
framework Regulation for agriculture 
(a) Specific supply arrangements 
(b) Aid to agricultural production 
in the French overseas departments 
(c) Veterinary and plant health measures 
(d) Derogations from structural measures 
2 Measures to promote traditional 
agricultural production 
(a) bananas 
(b) sugar cane — sugar — rum 
B Fisheries 
1 Producer organizations 
2 Fisheries in French Guiana 
3 Fisheries agreements 
4 Introduction of a fisheries aspect for Poseidom 
C Taxation 
1 VAT and excise duties 
2 Dock dues 
D Free zones and warehouses 
E List of national measures 
F Air and sea transport 
G Environment 
H Regional cooperation 
I Structural Funds p. 6 
p. 8 
p. 8 
p. 11 
p. 12 
p. 12 
13 
14 
17 
17 
18 
19 
19 
p. 19 
p. 19 
p. 20 
p. 21 
p. 22 
p. 23 
p. 24 
p. 24 
p. 26 
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I I I THE FUTURE FOR POSEIDOM p. 28 
A Adjustments to the agricultural aspect of Poseidom p. 29 
B Consolidation of the fisheries aspect of Poseidom p. 30 
C Contribution to the development of job-creating 
craft industries and services p. 31 
1 Small firms and craft industries p. 31 
2 Mobilization of Community policies and instruments p. 32 
3 Priorities p. 34 
(a) Greater productivity and competitiveness p. 34 
(b) Access to markets p. 36 
GENERAL CONCLUSION p. 38 
Annex I 
Annex I I 
Annex I I Basic socio-economic indicators 
Regulations adopted at 31 December 1993 
Balance of structural assistance 1989-93 
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INTRODUCTION 
1. Council Decision 89/687/EEC of 22 December 19891 established a 
programme of options specific to the remote and insular nature of the 
French overseas departments (Poseidom). Pursuant to Article 227(2) of 
the Treaty of Rome as interpreted by the Court of Justice (Hansen 
case), Poseidom seeks to take into account in the application of 
Community policies the special features and handicaps of the French 
overseas departments arising from their remoteness, island nature, 
small size and difficult terrain and climate. Hence, their economic 
dependence on a small number of products, the small size of their 
local markets and their dual nature both as Community regions and 
territories located amidst developing countries affect t-heir economic 
and social Iife. 
2. Poseidom epitomizes the Community's solidarity with its remotest 
regions, something which is essential if the French overseas 
departments are to be better integrated into the internal market, and 
was intended to provide a frame of reference for the application of 
Community policies in these regions. 
3. Accordingly, Poseidom is a framework programme which, because of the 
permanent nature of the constraints under which the French overseas 
departments suffer, extends beyond 31 December 1992. The Declaration 
on the outermost regions of the Community annexed to the Treaty of 
Maastricht confirms the Poseidom approach and extends it for as long 
as necessary. 
4. On the general principle that it is to take into account the special 
features of the French overseas departments in the application of 
Community policies, Poseidom includes measures of four types: special 
provisions for agriculture chiefly concerned with supply and support 
for local production, regional cooperation between these overseas 
departments, the overseas countries and territories and the ACP 
States, the continuation or improvement of existing measures (dock 
dues, State aids, taxation) and assistance from the Structural Funds 
in accordance with the principles underlying the 1988 reform, while 
stating that such assistance must take account of the extra handicaps 
imposed by isolation and their island nature. 
5. The "framework^ nature of Poseidom means that measures can be taken 
under it which were not identified in advance. In order to ensure 
equal treatment with the other most remote regions, measures clearly 
of benefit to the French overseas departments but not provided for in 
Poseidom have been taken. Examples of these include certain measures 
concerned with customs matters and fisheries. 
1 OJ No L 399, 30.12.1989. 
- 4 -
6. Title V of the Poseidom Decision and Article 23 of the framework 
Regulation on agricultural matters1 require the Commission to submit 
an annual progress report on the implementation of both the Poseidom 
programme and the measures provided for in that Regulation accompanied 
where appropriate by proposals concerning any adjustment measures 
which may prove necessary to achieve the objectives of the Poseidom 
programme. 
7. This report is intended to comply with those requirements and covers 
the year 1992, during which most of the specific measures implemented 
under Poseidom became operational, and 1993, the first complete year 
during which they were applied. 
8. In the light of this initial period of application, the report reviews 
the economic and social situation of the French overseas departments 
and how it has changed since 1989, makes an initial appraisal of the 
measures designed and implemented under the partnership between the 
national government, the French overseas departments and the 
Commission and outlines adjustments and extensions which appear 
necessary to achieve the Poseidom objectives. 
Council Regulation (EEC) No 3763/91 of 16 December 1991 introducing 
specific measures in respect of certain agricultural products for the 
benefit of the French overseas departments - OJ No L 356, 24.12.1991, 
p.1. 
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I. THE SOCIO-ECONOMIC SITUATION OF THE OVERSEAS DEPARTMENTS 
9. In addition to the handicaps listed and recognized by Poseidom (island 
situation, small markets, remoteness, etc.), which still apply, the 
socio-economic situation of the French overseas departments has 
changed since 1989. That change, which occurred during a time of 
economic difficulty, demonstrates the need to continue and step up the 
measures taken under Poseidom in order to achieve the goal of enabling 
these regions to catch up and develop and integrate further into the 
large internal market and the region in which they are situated. A 
table of basic socio-economic indicators may be found in Annex I. 
10. The constant features which have long typified the French overseas 
departments include: 
- per capita GDP less than half the Community average which means 
that they are among the poorest regions in the Community; 
- one of the highest unemployment rates in the Community, approaching 
25% in Martinique and Guadeloupe, 40% in Réunion and 16% in French 
Guiana. This is made all the more serious by the recent reversal of 
traditional patterns of migration and a birth-rate higher than 
elsewhere in the Community; 
- a primary sector still largely dependent on traditional agriculture 
whose outlets are being threatened by the greater competition which 
its products have to face in France, their main outlet and one 
which was previously their sole preserve. This problem is 
accentuated by the fact that they are virtually unrepresented on 
the rest of the Community market and the difficulties they are 
experiencing in integrating themselves into regional trade in the 
Caribbean and the Indian Ocean; 
- a secondary sector which is comparatively weak and consists mainly 
of small firms (90% have fewer than 20 employees) in the 
construction and civil engineering sector dealing primarily with 
the local market and struggling under the following widely 
recognized handicaps: 
* problems of securing raw materials for processing on the spot; 
* inadequate access to technological investment; 
* vocational training Iimited by the size of the firms and the 
possibilities offered by each region; 
* excessive transport costs which inflate the price of inputs and 
make it difficult to sell their products on other markets. 
In addition, they have to face competition from the outside world; 
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- a highly developed tertiary sector, largely thanks to the size of 
the public administration. Tourism has excellent prospects but is 
still excessively dependent on visitors from France and finds it 
difficult to find a niche among its Caribbean neighbours. 
11. In addition, the socio-economic context of the French overseas 
departments has changed, mainly as a result of: 
- growth in regional economies above the Community average whose 
impact on employment has not, however, been sufficient to absorb 
the increase in the labour force; 
- strong population growth comprising a high birth rate and a 
reversal of migratory flows over a number of years. This exerts 
considerable pressure on the labour market; 
- a degree of diversification which is still precarious, but is 
encouraged by the Regis Community Initiative among others; 
- high labour costs, which undermine the competitiveness of firms and 
add to the additional costs stemming from their location in these 
remote regions where they face competition from low-wage 
neighbours. The policy of aligning the SMIC (salaire minimum de 
croissance - minimum growth wage) in the French overseas 
departments with that in France and the introduction of the RMI 
(revenu minimum d'insertion - minimum work programme income) into 
these regions (which accounted for 20% of applications filed in 
France although containing only 2.5% of the population) advance the 
desirable cause of raising living standards but may also have a 
deleterious impact on employment. For example, they somewhat reduce 
the prospects for employment, particularly among young people and 
those with the lowest qualifications (over 60% of the unemployed 
are unqualified), and may contribute to the growth of undeclared 
work; 
- the budgetary problems of the regions which, together with the 
general economic slow-down and the spiralling cost of credit, have 
depressed the local economic situation. The chief results of this 
are a fall in public investment and the activity rate of local 
small firms and industries and delays in payments which cause 
severe cashflow problems for many firms; 
- an improvement in infrastructure quality between 1989 and 1993, 
although there is stijl much to be done in some areas such as low-
cost housing; 
- greater urgency as regards the environment, particularly the cost 
of treating waste and problems in applying Community standards. 
Here too the French overseas departments require a special approach 
- for example, French Guiana has the only tropical forest in the 
Community. 
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II. MEASURES TAKEN UNDER POSEIDOM 
12. The various measures adopted under Poseidom since 1989, which are 
listed in Annex II, demonstrate the stress laid on agriculture along 
with the gradual adoption of measures in other sectors of economic 
activity such as fisheries or through instruments relating to 
taxation, customs matters and commercial policy. The Community has 
expressed substantial financial solidarity with these Objective 1 
regions through assistance from the reformed Structural Funds 
channelled through a Community support framework for each of the four 
French overseas departments and Community Initiatives, such as Regis, 
which deal specifically with the most remote regions. 
A. AGRICULTURE 
13. In order to offset the impact of the territories' location, Poseidom 
has identified a series of measures principally designed to improve 
supply to these regions and develop or maintain certain forms of 
agricultural production while adapting assistance from the common 
agricultural policy to the special features of agriculture there. To 
implement and extend the initial guidelines contained in Poseidom, on 
16 December 1991 the Council adopted a framework Regulation1 
introducing specific measures which were in turn implemented through a 
number of Commission Regulations. The Community has also paid 
particularly attention to the traditional production of bananas and 
sugar cane, sugar and rum, mainly through specific structural 
measures. 
14. These measures to assist agriculture in the French overseas 
departments are all designed to encourage production in that sector, 
which is regarded as a priority for the economic and social 
development of the regions. 
1• Implementation of the Poseidom framework Regulation for agriculture 
15. Regulation (EEC) No 3763/91 established: 
- a series of specific market measures to be financed from the 
Guarantee Section of the EAGGF (mainly specific supply arrangements 
and aid for local production), using specific lines in the 
Community budget and costing ECU 45 mi I I ion in 1992 and ECU 49 
mi I I ion in 1993; 
- a series of veterinary and plant health measures; 
1 Council Regulation (EEC) No 3763/91 - OJ No L 356, 24.12.1991 
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(2) 
- a series of derogations from structural measures to facilitate 
assistance from the Guidance Section of the EAGGF in the French 
overseas departments. 
16. The time required to prepare and adopt the regulations to implement 
the framework Regulation (EEC) No 3763/91, the administrative 
procedures at national and regional level actually to put them into 
effect and the time required for those engaged in economic activity to 
adapt to the new mechanisms means that, in most cases, this assessment 
relates to a period of effective application of 12 to 18 months. At 
this stage, it would be fruitless to draw final conclusions as to the 
impact of these measures on the economic and social development of the 
regions. A further obstacle is the different levels of achievement in 
the various territories which, in any case, are not affected to the 
same extent by the measures adopted. 
(a) Specific supply arrangements 
17. The aim of the supply arrangements is to offset the additional costs 
which their geographical location imposes on supplies to these regions 
of certain products required for everyday consumption and/or 
processing from non-member countries or elsewhere in the Community. 
Supply from non-member countries is assisted through exemption from 
levies and customs duties on direct imports. Aid is given to supplies 
from elsewhere in the Community so that such products may be available 
in those regions on equal terms. 
18. The quantities of products which may benefit from the supply 
arrangements are determined on the basis of forecast supply balances 
which are periodically revised in order to take account of the needs 
of the regional markets. Particular attention is paid to the economic 
repercussions of these arrangements in order to ensure that the 
benefits granted are enjoyed by all concerned down to the final 
consumer. 
19. The supply arrangements were originally devised as a means of 
developing agricultural production and processing activities and then 
as a means of meeting local consumer needs. Two sectors benefit from 
them: cereal products and animals for breeding and fattening. 
Cereal products 
20. The supply of cereal products is intended to meet needs in the French 
overseas departments more fully by encouraging the expansion of local 
production, particularly stockraising, and providing supplies at lower 
costs. The arrangements exempt products from the ACP States from 
levies and customs duties and may be extended to other non-member 
countries if there are supply problems; they also provide for 
Community cereals to be supplied on equivalent terms. This measure was 
required by the lack of cereal production in these regions and the 
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pressing requirements of animal and human consumption. 
21. This measure is subject to the condition that the advantages granted 
are enjoyed by all concerned down to the final consumer. However, it 
is difficult to measure this impact because of the number of stages of 
processing and the fact that raw materials constitute only part of the 
costs of production. The French authorities have set up a Monitoring 
Committee in each territory to assess the impact of Community aid and 
exemptions from levy on final prices. 
22. The quantities determined by the supply balances show increased 
requirements for wheat, barley and maize but to a degree which varies 
from one region to another. 
23. An initial assessment shows that introduction of these supply 
arrangements has led to a reorganization of the stockrarsing sector 
and an increase in the self-supply rate in meat, which still remains 
very far short of 100%, and the development of new units to 
manufacture animal feed. This consolidation and revita Iization of an 
underdeveloped sector have introduced fresh competition which can only 
benefit the final consumer. 
24. Supplies of cereal products for human consumption are smaller in 
volume but nevertheless essential to offset the additional costs 
arising from distance and to enable local processing firms to survive 
in the face of competition from those located elsewhere in the 
Community. 
Animals and meat 
25. The supply arrangements concern aid for the supply of breeding animals 
of Community origin and of bovine animals for fattening. These 
provisions are complementary because they are designed to support 
local breeding and permit the consolidation or establishment of meat 
and animal production in these regions by offering them volumes large 
enough to guarantee economic operation. 
26. The arrangements for the supply of pure-bred breeding animals of 
Community origin apply to bovine animals, horses, rabbits, pigs, 
sheep, goats, chickens and eggs for hatching. The delay in introducing 
these arrangements means that they are not yet operating at a 
significant level. The main obstacle to increasing these supplies is 
that European breeds of cattle and goats are not well adapted to the 
climatic and health conditions in these regions. The authorities have 
reported that most breeds of cattle face considerable problems 
(transport, acclimatization, health) so that the aid granted has not 
resulted in the considerable reduction in production costs which was 
expected. However, deliveries of such animals are essential to improve 
herds through crossing with local breeds. The situation could be 
improved by acquiring animals from non-member countries which are 
better adapted to local climatic conditions. 
- 10 -
27. The supply of bovine animals for fattening and local consumption is 
designed to increase the low level of self-supply from local animals. 
Imports from non-member countries, exempt from customs duties and 
levies, met obstacles because of the veterinary problems confronting 
the main supplier countries. Despite Community aid, supplies of 
animals of Community origin remained limited by the high transport 
costs and the weight lost by the animals. 
(b) Aid to agricultural production in the French overseas departments 
28. Aid under Poseidom may be granted for the production, processing and 
marketing of agricultural products. This aid covers either the 
maintenance and consolidation of the traditional activities of the 
regions or the development of diversified production. 
29. Two specific aid measures for the sugar cane - sugar - rum sector have 
been implemented (see para. 46 below): 
- flat-rate aid for cane cultivation as part of a restructuring plan 
includes replanting and land reparcelling measures. The impact of 
the aid over one year is still insufficient for any useful 
assessment to be made; 
- aid granted for the processing of cane into agricultural rum has 
rapidly proved its value and constitutes an excellent response to 
the general objective of maintaining traditional agricultural 
activity in the region. 
30. Aid for the production of rice in French Guiana was introduced for a 
limited period (1992-96) as part of the development of the Savane 
Sarcelles polder. Disposal of the rice is also assisted by aid for 
marketing in Guadeloupe and Martinique. However, this is insufficient 
to dispose of all the rice produced in French Guiana in view of 
traditional trade flows between certain ACP countries and the French 
overseas departments. 
31. Specific measures have been adopted to develop the production and 
improve the quality and marketing of fruit, vegetables, plants and 
flowers: t 
- the first programmes of initiatives to develop production and 
improve the quality of products were not submitted until 1993. The 
application procedures appeared cumbersome to small holdings and 
the aid granted did not have the stimulating effect which had been 
hoped for ; 
- aid for the marketing of local products was well regarded by 
producers who wished to meet the quality requirements of the 
Community market. This approach should be continued and intensified 
while improving quality and raising awareness of products from the 
French overseas departments; 
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- the study financed by the Commission on the balance and prospects 
for processing fruit and vegetables in the French overseas 
departments was delivered at the end of 1993. Under Article 14 of 
the framework Regulation (EEC) No 3763/91, the Commission will make 
appropriate proposals on the basis of this study. 
32. Aid for the human consumption of fresh dairy products obtained locally 
is designed to support local production. This measure has proved 
difficult to apply for a number of reasons. The small amount of aid 
and the method of production, which entails manufacturing products 
from locally purchased fresh milk mixed with imported milk powder, 
made it useless. The provisions governing this aid should therefore be 
reviewed. 
33. As regards animal husbandry, supplements to the premium for the 
fattening of male bovine animals and a premium for suckl-er cows were 
introduced to extend the arrangements for developing breeding and 
improving meat production. 
34. Poseidom include a provision for the production of a special graphic 
symbol to ensure greater awareness and consumption of quality 
agricultural products specific to the French overseas departments as 
remote regions. In December 1993 the Commission organized a 
competition for the production of this symbol for joint use. 
(c) Veterinary and plant health measures 
35. Poseidom provides for the Community to provide financial assistance to 
veterinary and plant health measures as part of programmes submitted 
by the French authorities. In the veterinary field, measures 'should 
concentrate on the eradication of diseases affecting cattle and 
undermining efforts to improve the quality and productivity of herds. 
In December 1993 the Standing Veterinary Committee gave its favourable 
opinion on the inclusion of diseases specific to the French overseas 
departments on the list of diseases in respect of which eradication 
programmes may adopted. The decision will be adopted by the Commission 
shortly. The veterinary programme for the eradication of these 
diseases should be approved by the Standing Veterinary Committee 
during February 1994. With regard to plant health, measures to prevent 
and combat harmful organisms are required for the development and 
improvement of crops. The plant health programme has been adopted and 
will apply from 1993. 
(d) Derogations from structural measures 
36. The changes made to the implementation of Council Regulation (EEC) No 
2328/91 on improving the efficiency of agricultural structures1 
should be mentioned. Subsequent to the opinion of the Star Committee 
and the favourable Commission Decision of 29 July 1993, the following 
1 OJ No L 218, 6.8.1991, p.1. 
- 12 -
measures, compatible with animal welfare requirements and the 
protection of the environment were adopted: 
- conditions for the grant of aid were made flexible to encourage 
investment in buildings on the holding and foster the development 
of pig and poultry raising; 
- the compensatory allowance was extended to all crop production in 
the French overseas departments. 
2. Measures to promote traditional agricultural production (bananas and 
sugar cane - sugar - rum) 
37. Through Poseidom, the Community has acknowledged the importance of 
bananas and sugar cane - sugar - rum for the economic health of these 
regions and the maintenance of employment there. Bananas, sugar and 
rum are products of vital economic and social importance in the French 
overseas departments. Together they account for almost 70% of exports 
by value and one third of employment in all the departments apart from 
French Guiana. 
38. Pursuant to paragraphs 8.2 and 8.3 of the Poseidom programme, the 
Commission has implemented structural measures to assist bananas and 
sugar cane - sugar - rum, principally to improve their competitiveness 
and assist their marketing, without waiting for the adoption of the 
market organization for bananas and completion of the single market on 
31 December 1992. The Community assistance granted (ECU 14 million in 
1992 and ECU 17.5 million in 1993) is over and above assistance from 
the Structural Funds for 1989-93 and complementary to Community and 
national market measures. 
39. The doubling of the Structural Funds for the French overseas 
departments over the period 1992-99 should enable measures to 
restructure and modernize these products to be stepped up and 
intensified over the new programming period for the Funds (1994-99). 
(a) Bananas 
40. The additional structural measures for bananas adopted by the 
Commission in 19921 and 19932 concerned implementation of the 
following measures: 
land reparcelling and irrigation 
conversion to new varieties 
farm transport 
farm equipment 
measures to promote and control quality 
promotion measures. 
1 Commission Decision C(92) 2116 of 10 September 1992 
2 Commission Decision C(93) 2796 of 5 October 1993. 
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Community assistance for the two overseas departments producing 
bananas, Martinique and Guadeloupe, amounted to almost ECU 13 million 
and ECU 6.3 million respectively. 
41. When it prepared its proposal on a market organization for bananas, 
the Commission took account of the special circumstances in which 
Community bananas, which come chiefly from the most remote regions 
and, as far as the French overseas departments are concerned, 
Guadeloupe and Martinique, are produced and marketed. Council 
Regulation (EEC) No 404/93,1 which set up the market organization for 
bananas, introduced import arrangements, arrangements for compensatory 
aid to offset loss of marketing revenue suffered by Community 
producers, aid for the establishment of producer organizations and 
structural measures to be integrated into the future Community support 
frameworks for 1994-99. This means that the new market organization 
offers those involved in banana production and trade in "the French 
overseas departments prospects for disposing of and marketing their 
products on the Community market. 
(b) Sugar cane — sugar — rum 
42. Paragraph 8.3 of the Poseidom programme provides for specific measures 
to protect the vital interests of rum producers in the run-up to the 
single market with the aim of improving their competitiveness, 
restructuring the sector and promoting the marketing of their 
products. 
43. Some of the measures adopted by the Community directly concern rum, 
others sugar and sugar cane and some the whole group. The importance 
of each element should be borne in mind, since they are difficult to 
dissociate, with each ensuring the continued existence of the next. 
Structural measures 
44. In 1989-93 Community structural assistance to these products was 
granted principally through: 
- the EAGGF Guidance Section via: 
* the Community support frameworks for each of the regions; 
* the Community Regis initiative for the most remote regions; 
- the structural measures financed by additional appropriations in 
1992 and 1993, under Poseidom. 
45. The following table shows, for guidance, the Community funds allocated 
to the sugar cane - sugar - rum sector over the period 1989-93. The 
Community contributions cover about 50% of eligible expenditure and 
Council Regulation (EEC) No 404/93 of 13 February 1993 on the common 
organization of the market in bananas - OJ No L 47, 25.2.1993. 
- 14 -
are supplemented by national aid, regional aid and in some cases by 
private funds. 
(ECU mi I I ion) 
Réunion 
Guadeloupe 
Mart inique CSF 
1989/93 
(1) 
27 
5.8 
0.8 REGIS POSEIDOM Total 
1991-93 1992 and 93 
(2) (3) 
30% 1.6 7% 8.5 37.1 
25% 1.7 18% 2.8 10.3 
4% 2.9 25% 0.9 " 4.6 
(1) Indicative share of the measures for the sector in the total EAGGF 
Guidance Section appropriations in the Community support frameworks. 
(2) Indicative share of the measures for the sector in the total EAGGF 
Guidance Section appropriations under Regis. 
(3) Additional structural measures financed under budget heading B2-24 
"programmes for the most remote regions" 
In Reunion, the measures are directed primarily at land 
improvements (stone removing and mechanization), the restructuring 
of a sugar unit and the development of reception and research 
stations. The size of the funds allocated to this sector shows the 
economic significance of sugar production in Reunion. 
In Martinique and Guadeloupe, the assistance is mainly for the 
restructuring of sugar factories but also covers research and 
technical support. 
EAGGF Guarantee Section measures under Poseidom 
46. The agricultural framework Regulation for Poseidom contains two 
measures to promote sugar cane - sugar - rum production in the French 
overseas departments (see para. 29): 
- the first provides Community support for drawing up a restructuring 
plan for sugar cane cultivation. Aid is granted at a flat rate per 
hectare and takes two forms for the same parcels: 
* firstly, a maximum amount of ECU 750/ha, for plantation work, 
applies to an area of 27 400 hectares; 
* secondly, a maximum amount of ECU 1 747/ha, for land 
improvement work, applies to an area of 9 850 hectares; 
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- the second consists of aid for the processing of sugar cane into 
agricultural rum. The aid is paid to the distiller on condition 
that he has paid a minimum price to the sugar cane producer. The 
amount of aid is set at ECU 53.18/HPA for an overall quantity of 75 
600 HPA. 
EAGGF Guarantee Section measures under the organization of the sugar market 
47. The production of sugar cane and its processing into sugar are 
integrated into the common organization of the market in sugar. The 
specific nature of the sugar cane sector has been taken into account 
in two ways in this market organization: 
- by not setting a basic price, or a minimum price for the sugar 
cane, as is done for beet; 
- by introducing measures to facilitate the sale of sugar from the 
French overseas departments in the Community.1 
48. The first measure provides that the prices of sugar cane are 
established by inter-trade agreements between the sugar cane producers 
and the sugar manufacturers. The second provides for aid for transport 
and aid for refining applied to the sugars processed in a European 
refinery. These two forms of aid bring the price of sugar from the 
French overseas departments to the same level as that of sugar from 
the ACP States. The overall cost of this aid to the Community budget 
over the period 1986-92 averaged ECU 16.6 million per year. 
National measures authorized by the Council 
49. Regulation (EEC) No 1785/812 authorized a national scheme for the 
sugar sector in the French overseas departments. Subsequently, 
Regulation (EEC) No 1254/893 authorized a new scheme of national aid 
by providing for its re-examination under the Poseidom programme 
rather than in the context of the Regulations fixing the price of 
sugar for the year. 
The taxation of rum 
50. By adopting the new excise duty arrangements applicable since 1 
January 1993, the Community took account of the sensitivity of certain 
rums by allowing the preservation of a tax concession in their favour 
on the French market, both in the overseas departments and in mainland 
France (see para. 69). 
1 Regulation (EEC) No 2225/86, OJ No L 194, 17.7.1986 
2 OJ No L 177, 1.7.1981. 
3 OJ No L 126, 9.5.1989. 
16 -
(3) 
51. Hence Council Directive 92/12/EEC of 25 February 19921 provides for 
the general excise duty arrangements not to apply to the overseas 
departments. This measure therefore allows France, if it so wishes, to 
keep the various reduced rates of excise duty for all locally produced 
rums as they are. 
52. As far as mainland France is concerned, Council Directive 92/83/EEC of 
19 October 1992 allows France to apply the normal national rate of 
excise duty reduced by up to 50% to certain types of rums 
(agricultural and other traditional types). 
Position of the producers 
53. While it is still too early to assess the precise impact of these 
measures, particularly those concerned with structures, it may already 
be said that they have helped preserve this sector, which *rs of vital 
importance for the French overseas departments in the context of the 
completion of the internal market and the adaptations which this 
requires of producers. The Commission is currently considering the 
position of Community rum producers in the new situation created by 
the growth of imports from non-member countries, and, in particular, 
in the light of the removal of the tariff quota for the ACP States 
provided for in Protocol 6 to the Lomé Convention, for which provision 
is already being made. The Commission will report on this matter and 
take all appropriate steps during 1994. 
B. FISHERIES 
54. Following the lines set out in Poseidom, in 1992 the Community adopted 
a number of measures to improve the integration of the French overseas 
departments into the common fisheries policy. Because of the potential 
of the fisheries sector in those regions, which themselves consume 
large quantities of fish, and the constraints imposed by their remote 
location (additional costs of inputs, disposal of products and access 
to research and technological development), in 1993 the Commission, in 
partnership with the French authorities concerned, began considering 
how a fisheries aspect of Poseidom could be developed and took steps 
in that direction. 
1. Producer organ i zat ions 
55. On 15 June 1992 the Council adopted Regulation (EEC) No 1603/92 
authorizing an enhanced aid system for the formation of producers' 
organizations.2 That measure, which originally formed part of the 
Poseima and Poseican programmes, was extended to the French overseas 
departments to ensure equal treatment of all the most remote regions 
1 Council Directive 92/12/EEC of 25 February 1992 on the general 
arrangements for products subject to excise duty and on the holding and 
movement of such products, OJ No L 76, 26.2.1992. 
2 Council Regulation (EEC) No 1603/92, OJ No L 173, 27.6.1992. 
- 17 -
56. That Regulation authorized France to provide increased financial aid 
for a period of five years for the establishment of producer 
organizations in the French overseas departments over the five years 
following adoption of the Regulation. Half the aid would be reimbursed 
by the Community. Similarly, the Community will encourage application 
in the French overseas departments of the fisheries market 
organization of which producers' organizations are a compulsory part. 
57. To become fully operational, this measure will require an adjustment 
to the specific features of the fisheries sector in the French 
overseas departments of the general rules governing the recognition of 
producers' organizations, and in particular the minimum production 
threshold required. 
2. Fisheries in French Guiana 
58. Tropical shrimps of the "PenaeidaeJl family account for 80% by value of 
French Guiana's exports and are currently encountering difficulties, 
mainly because of competition from shrimps produced by non-member 
countries and the restructuring which the sector requires. 
59. The reform of the market organization for fisheries1 meant that this 
product could enjoy the guide price guarantee and aid for private 
storage when its average selling price fell below 85% of the guide 
price. That measure is a complement to the one encouraging the 
establishment of producer organizations, which are an essential means 
of transmitting the instruments and aids provided for by the market 
organization. 
60. Measures were also taken under Regulation (EEC) No 4028/86 on 
Community measures to improve and adapt structures in the fisheries 
and aquaculture sector2 and Regulation (EEC) No 4042/89 on the 
improvement of the conditions under which fishery and aquaculture 
products are processed and marketed.3 
61. The Community is continuing to monitor the situation as regards 
conservation and management of stocks in the waters off French Guiana. 
Each year appropriate measures are taken with regard to vessels from 
non-member countries within that region's 200-mile zone.4 They are 
designed to enable local fishing activity to continue and ensure 
conservation without harming the processing industry in French Guiana 
which is supplied by vessels from non-member countries fishing within 
the 200-mile zone. 
1 Council Regulation (EEC) No 3759/92 of 17 December 1992 on the common 
organization of the market in fishery and aquaculture products - OJ No L 
388, 31.12.1992. 
2 OJ No L 376, 31.12.1986. 
3 OJ No L 388, 31.12.1989. 
4 See, for 1993, Council Regulation (EEC) No 3929/92 - OJ No L 397, 
31.12.1992. In December 1993 the Commission proposed that these measures 
should be continued in 1994. 
- 18 -
62. The quality of this production and its importance for the economy of 
the region make it a priority for Community assistance to French 
Guiana. 
3. Fisheries agreements 
63. The Community has negotiated a fisheries agreement with Dominica. That 
agreement, reached in a spirit of regional cooperation, takes account 
of the fact that both parties are signatories to the United Nations 
Convention on the Law of the Sea. It provides for mutual access to 
fishing zones for vessels registered on the one hand in Martinique and 
Guadeloupe and on the other in Dominica and for cooperation on the 
conservation and rational management of fisheries resources. The 
agreement also makes provision for periodic consultations on the 
number and size of vessels authorized to fish in the other party's 
waters and sets up a Joint Committee to ensure its smooth 
implementation. However, in March 1994 the Government of the 
Commonwealth of Dominica was unable to sign the Agreement and made 
fresh requests concerning the limitation of access by Community 
vessels to opportunities for deep-sea fishing within its territorial 
waters. 
4. Introduction of a fisheries aspect for Poseidom 
64. On 3 December 1993 the Commission sent the Council a proposal for a 
Regulation also applying to the Canaries, the Azores and Madeira 
intended to compensate these regions for the additional costs incurred 
in the marketing of certain fishery products, including shrimps from 
French Guiana, as a result of their remote location.1 On 15 November 
1993 the Commission also decided to grant special Community aid worth 
ECU 3.3 million for various analytical and forecasting studies and 
measures for certification, promotion and research and the development 
of aquaculture in the French overseas departments. 
C. TAXATION 
1. VAT and excise duties 
65. Traditionally, the overseas departments have enjoyed different 
arrangements for indirect taxation (VAT and excise duties) from those 
applying elsewhere in the Community. As part of its work on abolishing 
tax frontiers, the Community has extended and amended the common 
system of VAT and adopted a series of directives on the harmonization 
and approximation of excise duties. In line with the Poseidom 
guidelines, appropriate adjustments had to be made to the general 
arrangements to take account of the specific needs of the French 
overseas departments. 
66. A lighter burden of VAT and excise duties for the French overseas 
departments is Justified by the need to limit the tax burden added to 
1 C0M(93) 630 final of 3 December 1993 - OJ No C 4, 6.1.1994 
- 19 -
the high additional costs arising from their remoteness and island 
nature. A global approach to indirect taxation was also required to 
encompass dock dues, the revenue from which supports local budgets and 
regional funds for development and employment, in addition to VAT and 
excise dut ies. 
67. Accordingly, CounciI Directive 91/680/EEC of 16 December 19911 
excludes the French overseas departments from the new Community VAT 
scheme. France may therefore keep special arrangements for these 
terrI tor ies: 
- reduced rates in Guadeloupe, Martinique and Réunion; 
- no VAT in French Guiana, St Barthélémy and St Martin. 
68. Similarly, France was authorized not to apply in the French overseas 
departments the general arrangements for the holding, movement and 
monitoring of products subject to excise duty.2 
69. In the case of rum produced from sugar cane harvested in the place of 
manufacture and having a content of volatile substances of 225 grams 
per hectolitre of pure alcohol and a minimum alcoholic strength by 
volume of 40% vol., the Community authorized France3 to apply on its 
metropolitan territory rates of duty of not less than 50% of the 
standard national rate of duty. That measure applies to all rums which 
meet these criteria and in particular, but not exclusively, 
agricultural or other traditional rums from the French overseas 
departments. The aim of this measure is to preserve outlets for 
traditional rums from the French overseas departments on the French 
market. 
2. Dock dues 
70. By decision 89/688/EEC4 the Community recognized the role of dock 
dues as a substantial resource for local budgets and an instrument of 
economic development while providing for its adjustment to make it 
compatible with the Treaty. 
71. The Court's Judgment of 16 July 1992 (Case C-163/90 Legros) in which 
it declared the old-style dock dues collected until 1992 incompatible 
with Articles 9 er se<7. of the Treaty demonstrated that the Community 
had been right to anticipate problems with this tax and to reform it 
from 1 January 1993. 
72. Hence, pursuant to Council Decision 89/688/EEC, the dock dues 
arrangements were amended by the French law of 17 July 1992. The new 
1 Council Directive 91/68/EEC - OJ No L 376, 31.12.1991. 
2 Council Directive 92/12/EEC of 25 February 1992 - OJ No L 76, 23.3.1992. 
3 Council Directive 92/83/EEC of 19 October 1992 on the harmonization of 
the structures of excise duties on alcohol and alcoholic beverages. 
4 Council Directive 89/688/EEC of 22 December 1989 concerning the dock dues 
in the French overseas departments - OJ No L 399, 30.12.1989. 
- 20 
arrangements came into force on 1 January 1993 and extend the scope of 
this tax, traditionally applied to products imported into the French 
overseas departments, to products manufactured in those regions. 
Partial or total exemptions depending on economic needs may, however, 
be authorized for a period of ten years to help promote and maintain 
local economic activities in the light of the strategy for the 
economic and social development of each region and subject to 
notification to the Commission, which informs the other Member States 
and adopts a position within two months. 
73. As part of this reform, on 22 December 1992 the Commission decided to 
raise no objections to the scheme of exemptions notified in October 
1992 while asking the French author ities to keep it informed of any 
changes in the basic rates or exemption schemes which could increase 
the taxation differential between imported products and local 
production which the regional Councils wished to support". In line with 
this attitude, on 20 December 1993 the Commission decided, in the 
light of the further information which it had received in November 
1993 and provided that the exemptions did not prove such as to alter 
the conditions of trade in a manner contrary to the common interest, 
to raise no objections to the fresh deliberations of the Martinique 
and Guadeloupe regional councils notified to it in July and August 
1993.respectively. 
D. FREE ZONES AND WAREHOUSES 
74. On 15 June 1992 the Council adopted Regulation (EEC) No 1604/92,1 
under which the free zones and warehouses of the French overseas 
departments, the Canary Islands, the Azores and Madeira were exempted 
from the economic arrangements laid down in the inward processing 
arrangements. It should be remembered that in the general conditions 
for inward processing products from non-member countries may be 
incorporated into the processing chain without being subject to CCT 
duties provided that this does not affect the essential interests of 
Community producers. 
75. The Regulation (EEC) No 1604/92 means that all processing operations 
intended for export may be carried out in these free zones and 
warehouses, irrespective of whether the above condition has been 
complied with. 
76. Because of their exceptional geographical location, this measure 
applies to all the most remote regions. Although Poseidom makes no 
explicit reference to it, Poseican and Poseima do. To ensure equal 
treatment and because there is a free warehouse in Guadeloupe and a 
free zone is being created in Réunion, the French overseas departments 
benefit from the inward processing arrangements laid down by that 
régulât ion. 
1 Council Regulation (EEC) No 1604/92 of 15 June 1992 - OJ No L 173, 
27.6.1992. 
- 21 -
77. This derogation from the general inward processing arrangements 
encourages the development of small firms and the productive sector as 
a whole, which is important for the socio-economic progress of these 
regions. It may also encourage: 
- either the direct establishment of firms from other Community 
regions, the ACP States or non-preferential non-member countries, 
or 
- the setting up of Joint ventures for more sustained economic 
activity in regional markets (Caribbean and Indian Ocean). 
E. LIST OF NATIONAL MEASURES 
78. Paragraph 10.1 of Poseidom provides for a systematic list of national 
measures which have specific effects favouring the French overseas 
departments so that a decision may be taken on whether to maintain, 
modify or abolish them in line with the general principles of the 
Treaty, while taking into account the special constraints on those 
areas. 
79. The Commission drew up an initial list, which it sent to the French 
authorities on 22 December 1992. This was completed and returned to 
the Commission on 21 September 1993. France was asked for further 
information in November and December 1993. 
80. The measures on that list included six taxation aid schemes which were 
considered by the Commission in 1992 in the light of Community rules 
on State aids (Article 92 of the EEC Treaty) and pursuant to paragraph 
10.2 of Poseidom. The measures related to: 
- Article 208C-I of the general taxation code concerning the 
temporary exemption from taxation of firms establishing a new 
activity in the French overseas departments; 
- the reduction in the tax base for profits made overseas referred to 
in Article 217a of the general taxation code; 
- the long-term tax arrangements for the overseas departments 
contained in Article 1655a of the general taxation code; 
- the reduced rate of income tax provided for in Article 231(5) of 
the general taxation code; 
- the possibility of deducting VAT on certain exempt products 
pursuant to Articles 295(1)(5) and 50-Annex IV to the general 
taxât ion code; 
- the scheme of financial incentives for overseas investment. 
- 22 -
81. The Commission took a favourable decision on a further State aid 
concerning the credit policy of the IEDOM (Institut d'Emission des 
Départements d'Outre-Mer) towards firms. 
82. Despite the size of the aids in question and their generally high 
level of intensity, the Commission decided to raise no objections to 
these measures. In its appraisal, the Commission noted that: 
- the aids were intended to foster the economic development of the 
French overseas departments, in line with Poseidom and with the 
derogation applicable to these regions in Article 92(3)(a) of the 
Treaty; 
- because of their island nature and remoteness, the French overseas 
departments suffer from permanent handicaps which reduce the 
competitiveness of firms; 
- the main beneficiaries of these measures are the small firms and 
industries whose retention and development are essential if these 
regions are to catch up in social and economic terms. 
83. Acceptance of these seven aids by the Commission does not prejudice 
the view which might be taken of aids to sectors subject to Community 
rules. In any case, these aids will be included in calculating the 
ceiling on regional aids applicable to the French overseas 
departments. The Commission has asked for an annual report on the 
implementation of these aids. 
84. The other national measures on this list are currently being 
considered by the Commission in consultation with the French 
authorities. 
F. AIR AND SEA TRANSPORT 
85. Because of the island and very remote nature of the French overseas 
departments, their economies are highly dependent on air and sea links 
with the rest of the Community. Supplies to these regions and their 
deliveries of tropical products (bananas, sugar, pineapples, etc.) to 
the rest of the Community depend on sea transport. Air links are the 
only way of ensuring the free movement of their residents and are 
essential to the tourist economy. 
86. The Community intends to ensure that a selection of companies 
continues to serve the French overseas departments in order to ensure 
competition in supplies and the export of local products. However, 
these regions also require a regular year-round service. 
87. Poseidom therefore provides for the Commission and France to introduce 
measures to ensure that a number of airlines serve the French overseas 
departments. Accordingly, they benefit already from the third air 
- 23 -
transport liberalization package which permits France to continue to 
impose public service obligations on the airlines which serve them.1 
88. As regards maritime cabotage, the French overseas departments are 
temporarily exempt from the principle of the freedom to provide 
services in the field of maritime transport within the Member 
States.2 That derogation until 1 January 1999 should permit those 
regions to adapt to the liberalized arrangements. In the case of 
maritime cabotage, existing public service contracts may remain in 
force until they expire. 
G. ENVIRONMENT 
89. Paragraph 6 of Poseidom states that Community policies, including 
those concerned with the environment, will have to take into account 
the special character of the French overseas departments because of 
the particular problems posed by their isolation in areas with 
fragile ecosystems and by their adjustments to meet Community 
environmental standards with all the extra costs which that implies. 
90. In order to study and list the special characteristics and needs of 
the French overseas departments in this respect, on 21 December 1993 
the Commission decided to grant ECU 1 million for studies. 
91. These will cover: 
- a list and preparation of the investments required for assistance 
from the Structural Funds to begin during the period 1994-99; 
- consideration of matters relating to the application of Community 
legislation on the environment and any related problems. 
H. REGIONAL COOPERATION 
92. Title IV of Poseidom deals with the need for better regional 
cooperation between the French overseas departments and the different 
States, countries and territories nearby. That regional cooperation 
should permit better integration of the French overseas departments 
into their geographical situation which replaces traditional 
divisions (competing economies, lack of trade and so on) by dialogue 
and the implementation of common projects which take account of 
complementary features and the development needs of the various 
partners irrespective of their status. 
Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for 
Community carriers to intra-Community air routes - OJ No L 240, 24.8.1992 
- and in particular Article 4 thereof. 
Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the 
principle of freedom to provide services to maritime transport within 
Member States (maritime cabotage) - OJ No L 364, 12.12.1992. 
- 24 -
X) 
93. Since 1989 this cooperation has concentrated on relations between the 
French overseas departments, the overseas territories and the ACP 
States. Here Title IV of Poseidom extends and confirms Title XII of 
the Lomé IV Convention (regional cooperation) as regards the ACP 
States and Title XII of the association decision on the overseas 
terr itories. 
94. The Community has made available to each of the partners appropriate 
resources, from either the ERDF or the ESF, to foster the emergence of 
common projects: 
- from the ERDF the following indicative amounts have been allocated 
under the Community support frameworks for each region for 1989-93: 
Guadeloupe ECU 800 000 
French Guiana ECU 500 000 
Martinique ECU 800 000 
Réunion ECU 1 500 000; 
- the regional programmes under the Vllth EDF provide: 
for the ACP States in the Caribbean: ECU 90 million; 
- for the ACP States in the Indian Ocean: ECU 30 million 
(ECU 25.5 million outside the overseas territories); 
for the overseas territories: ECU 11.5 million (including 
ECU 6.5 million for the Caribbean). 
These amounts apply to common projects and programmes between the 
ACP States and between ACP States and the French overseas 
departments and territories. 
95. These resources are used to finance regional-scale projects involving 
the two parties in accordance with the procedures of the various 
funds, that is, at the initiative of the responsible regional 
authorities or organizations. While the Commission does not replace 
the representatives of the beneficiary inhabitants, it facilitates and 
encourages consultations between the various parties involved. 
96. In terms of the finance made available to the partners, achievements 
are still modest, although there seemed to be an upturn in 1992. 
97. Réunion is the region which is most involved in common projects with 
its neighbours, Madagascar, Mauritius, the Seychelles and the Comoro 
Islands. Its membership of the Indian Ocean Commission (IOC) has 
greatly facilitated the emergence of these common projects. For 
example, a catalogue of the main products traded between Réunion and 
the ACP States which are members of the IOC was prepared and 
published. These common projects should stimulate trade within the 
IOC, which has hitherto accounted for only 2% of total trade in that 
region. 
- 25 
98. The French departments in the Americas do not have the same tradition 
as Réunion. The fact that France does not belong to the regional 
organizations (CCBI, Caricom, OECS, etc.) has not encouraged the 
development of common projects with the neighbouring ACP States and 
the overseas territories. Some cooperation on trade between the French 
overseas departments and the OECS (Organization of Eastern Caribbean 
States) began in 1992 with a meeting at Castries (St Lucia) on 23 and 
24 September to which there have been regular follow-ups. These 
meetings identified new lines for practical long-term cooperation and 
demonstrated that: 
- as far as trade is concerned, obstacles between the French 
departments in the Americas and the ACP States are much less 
substantial than is normally supposed and exchanges of information 
have permitted clarification of a number of points which have 
hitherto given rise to disputes; 
- there is agreement on promoting investment and joint ventures 
between the French overseas departments and the ACP States. This 
will require the establishment of conventions on taxation and the 
protection of investment. It would also be desirable to establish a 
regional Europartenariat; 
- a start has been made on training and education measures, mainly 
with the OECS countries; 
- regional needs in the fields of transport and communications should 
take greater account of the complementary features of the ACP 
States and the French overseas departments and make better use of 
the capacity which the French regions have. 
99. These meetings appear to have given a fresh boost to those most 
involved in regional cooperation. A study financed by the Community is 
being carried out to select the main sectors for regional common 
projects. This is the first time since Lomé I was adopted in 1975 that 
there has been an in-depth common analysis embracing the French 
overseas departments, the French overseas territories and the ACP 
States in the Caribbean. 
«• STRUCTURAL FUNDS 
100. Title I I I of Poseidom states that structural aid in the French 
overseas departments will take account of the additional handicaps of 
remoteness and insularity. 
101. Financial assistance from the Structural Funds has been prepared: 
- under the 1988 reform of the Structural Funds based on the 
definition of a development strategy, the implementation over a 
five-year period of development priorities part-financed by the 
Community and national and local authorities and the establishment 
of a partnership in the preparation and monitoring of measures; 
- 26 -
- within the guidelines set out by Poseidom the text of which was 
being adopted at the beginning of 1989 and in particular the need 
to take account of the special handicaps of the French overseas 
departments such as their remoteness and help to integrate them 
into their regional context. 
102. On the basis of the regional development plans for each of the French 
overseas departments submitted in spring 1989, Community support 
frameworks were drawn up in partnership with the national and local 
authorities and adopted by the Commission in October 1989.1 The total 
of ECU 795 million (at 1993 prices) available in assistance from the 
Structural Funds was utilized through a number of projects adopted 
during 1990 and a major airport project adopted in 1991.2 
103. Mainly in 1991 but also in 1992 each region received further 
assistance from the Structural Funds under the Community initiatives 
totalling ECU 125 million (at 1993 prices).3 Three quarters of this 
assistance was allocated under the Regis Initiative, the rest through 
Envireg, Stride, Prisma, Télématique, Leader and Now. Apart from 
Regis, which is concerned exclusively with reducing the handicaps of 
the most remote regions of the Community, these initiatives 
contributed to the establishment of Community policies in the specific 
fields of the environment, applied research, the preparation of firms 
for the single market, advanced information technologies and rural 
development. 
104. The table in Annex III shows the breakdown of Community assistance 
between the Structural Funds and among the various measures. It shows 
that the vast bulk of Community aid was dedicated to basic 
infrastructure, particularly that facilitating access from the outside 
(airports and ports) intended to reduce the handicap imposed by great 
remoteness. Considerable assistance was also provided for vocational 
training and support for the productive sectors. In general, finance 
was intended both to consolidate traditional activities and develop 
d ivers i f icat ion. 
105. Between 1992 and 1993 financial assistance from the Structural Funds 
was implemented still more rapidly so that all the assistance 
allocated for 1989-93 could be committed at Community level and 
virtually all at regional level.4 This means that the operations 
should be completed and payments for them made by the deadline set of 
31 December 1995. 
Commission Decision C(89) 1669 final of 31 October 1989 - OJ No L 370, 
19.12.1989. 
Commission Decisions C(90) 2591/2, C(90) 2596/1, C(90) 2596/2 and C(90) 
2596/3 of 5 December 1990 and C(91) 1993 of 25 September 1991. 
Commission Decisions C(91) 2665/1, C(91) 2665/2, C(91) 2665/3 and C(91) 
2665/4 of 5 December 1991 and C(92) 1012 of 25 May 1992, C(92) 2125 of 24 
September 1992, C(92) 2836 of 25 November 1992 and C(93) 296 of 
16 February 1993. 
Some further commitments primarily for operations now under way will be 
made during the first half of 1994. 
- 27 -
106. While it is still to early to assess the final impact of the measures 
undertaken using Community financial assistance, since many of them 
are still in progress, a number of qualitative findings may be made 
already: 
- the allocation of substantial financial aid (15% to 30% of 
investment in development) is the tangible indication of Community 
solidarity with the French overseas departments whose living 
standards are still well below the Community average. Per capita 
Community aid has been higher than in most of the regions of the 
other Member States; 
- the application of the principles of the reform of the Structural 
Funds in these regions has meant that greater thought has been 
given to preparing the development strategy and monitoring its 
implementation on the spot. The annual progress reports, the half-
year I y meet ings of the Monitoring Committee with on-site visits and 
technical assistance for the establishment of local units for the 
management of Community funds have contributed to the utilization 
of appropriations and facilitated adjustment of programme content 
to meet the changing local situation; 
- the implementation of Community assistance has encouraged greater 
dynamism amongst all those involved, whether public or private, and 
a partnership has been established between central and regional 
authorities, local authorities and the Commission. 
III. THE FUTURE FOR POSEIDOM 
107. Under Poseidom, since 1989 the French overseas departments have 
enjoyed a specific Community approach to help them catch up in 
economic and social terms which combines the adjustments required in 
the application of Community policies with assistance from the 
Structural Funds as part of the priority granted to these Objective 1 
regions. 
108. The social and economic situation of the French overseas departments 
and the progress made in implementing this approach mean that some 
measures in progress must be adjusted and extended by new forms of 
assistance. Following consideration within the partnership with the 
national and regional authorities concerned, including the chambers of 
commerce, industry, agriculture and trade, and in the light of the 
resolution on the development of the French overseas departments in 
the context of the Single Market adopted by Parliament on 25 June 
1993,1 there appear to be three areas where assistance should be 
developed in the hear future. 
1 EP 173.752; Min 19 I I of 25 June 1993, p.6 
- 28 -
A. ADJUSTMENTS TO THE AGRICULTURAL ASPECT OF POSEIDOM 
109. The difficulties encountered in implementing the agricultural measures 
and the new requests made to the Commission by the French authorities 
mean that some adjustments should be made to the Poseidom framework 
regulation for agriculture. With this report, the Commission is 
sending the Council a proposal for a regulation which includes the 
fol lowing points: 
in order to improve development of stockraising in the French 
overseas departments, some derogations from the market 
organizations are required to take account of the specific 
production conditions in those regions; other temporary measures 
already in place should be continued; 
- assistance for the consumption of locally obtained dairy products 
has proved inappropriate to the position in the French overseas 
i departments and should be replaced by production aid; 
- appropriate measures should also be taken to take account of the 
vital economic role of certain interprofessional groups in the 
French overseas departments; 
- to meet the needs of production and the processing industry, the 
specific supply arrangements should be extended to certain other 
products; 
- the conditions for applying aid for the disposal and marketing of 
rice from French Guiana should be adjusted to take account of the 
volume of production; 
- aid for the completion of programmes of initiatives in the fruit, 
vegetables, plants and flowers sector has not produced the results 
expected. The scheme should be adjusted so that it provides greater 
incentives and to improve supply to the market of the French 
overseas departments in local products. The very special conditions 
applying to certain products (vanilla, geraniums and vétiver) 
require specific aids; 
- following the study financed by the Community on the fruit and 
vegetables sector, [the system of processing aid for pineapples 
should be adjusted]. Support should also be provided for the 
processing and marketing of other tropical fruit and vegetables 
harvested and processed in the French overseas departments; 
- aid should be provided to the sugar cane - sugar - rum sector for 
the processing of sugar cane into sugar syrup, a traditional 
product of the French overseas departments. 
- 29 -
B. CONSOLIDATION OF THE FISHERIES ASPECT OF POSEIDOM 
110. The fisheries sector is of the utmost importance for the social and 
economic development of the French overseas departments. A number of 
factors, including the extent of exclusive economic zones and the 
employment created by activities related to fisheries Justify an 
approach at Community level which takes account of this importance and 
at the same time of the constraints imposed by the remoteness and 
dependence of these regions which stems from their island nature. 
111. In this context Poseidom is the appropriate framework for the 
implementation of a series of measures to enable these regions to 
further their integration into the dynamic of the internal market with 
the advantages which stem from a closer alignment of their economies 
with development levels elsewhere in the Community. 
112. Measures taken at Community level in this field of activity are 
intended to adapt the rules of the common fisheries policy (CFP) as 
regards production, conservation of resources and disposal of 
products. In November 1993 the Commission provided for this purpose 
specific financial support amounting to ECU 3.3 million for economic 
studies and forecasts in the French overseas departments on catch 
methods, conditions for transporting products and markets. The 
Commission will apply the lessons of these studies, whether in the 
area of resources, markets or structures, to the CFP. 
113. The Commission has made a proposal to the Council and Parliament for 
the implementation from 1994 of a scheme to compensate for the 
additional costs which remoteness imposes on the disposal of shrimps 
from French Guiana. This is intended to compensate for differences in 
price at the level of production as compared with those in trading 
centres elsewhere in the Community. 
114. In addition to the greater aid already provided for the establishment 
of producer groups, the Commission intends to adjust the conditions 
under which such organizations can be recognized to meet the specific 
needs of the fisheries sector in the French overseas departments. 
115. The production of species using aquaculture infrastructure requires 
Community support for installation and appropriate transfers of 
technology. 
116. In the case of structures, the sector's development prospects have to 
be considered from January 1994 in the context of the reform of the 
Structural Funds. The recent adoption of Council Regulation (EEC) 
No 2080/93 defining the financial instrument for fisheries guidance 
(FIFG) will enable the structural aspect of fisheries policy to be 
made more effective and more flexible. The integration of structural 
measures in the fisheries and aquaculture sector will improve synergy 
between Community measures and make a more coherent contribution to 
greater economic and social cohesion in the Community. 
- 30 -
117. This being so, the guidelines hitherto defined by the Commission in 
partnership with the French authorities will enable the difficulties 
faced by these regions to be coped with through the harmonious 
adjustment of the common policy to the needs of the local fisheries 
sector. 
C CONTRIBUTION TO THE DEVELOPMENT OF JOB-CREATING CRAFT INDUSTRIES AND 
SERVICES 
118. The economy of the French overseas departments is largely dependent on 
its strategic sectors and the dynamism of its small businesses. Higher 
living standards in these regions and a firmer anchorage within their 
regional economies require an effort to recapitalize and open up the 
share of the local productive sector (craft industries and industrial 
and service activities). The special conditions of these regions, 
especially their alarmingly high levels of unemployment and rapid 
population growth, make it still more imperative to develop local 
processing activities which are compatible with local needs and 
economically viable. The Commission considers that this requires an 
innovative and multisectoral approach to which the Community can 
contribute by greater mobilization and concentration of its 
instruments along the lines of Poseidom in a desire to facilitate the 
adaptation of the local economy to the rules of the internal market. 
1. Small firms and craft industries 
119. Firms in the French overseas departments suffer from a number of 
specific handicaps as a result of their size which are exacerbated by 
their location in the most distant parts of the Community: 
- the high costs of transport, communications and energy constitute < 
triple burden for local firms because they raise the costs of 
supplies to processing industries and the price of products for 
outside markets, because the price structure of freight creates 
competitive conditions which penalize local products as compared 
with imported finished goods and those intended for processing by 
local firms and because the labour force has only limited 
possibilities of movement; 
- high labour costs compared with those in neighbouring countries, 
particularly in the case of certain processing operations which 
provide only low added value; 
- the need for training to provide managers with qualifications and 
for technical and vocational training for staff, who secure only 
partial benefits; 
- 31 -
- technological equipment which is not suited to the absorption 
capacities of local markets and very weak resources for developing 
suitable technology; 
less favourable access to finance for local firms than that enjoyed 
by their counterparts in Europe. 
120. The results are: 
- the main difficulty in securing access to capital is at the stage 
of turning a credit into competitive productive capacity which can 
repay the debt incurred; 
- access to the capital market is further complicated by the limited 
volume of the physical guarantees which can be offered when what is 
involved is not a major continuing bank debt which requires 
clearance measures prior to any further investment; 
- the narrow financial base makes firms introverted and not open to 
change; 
- the small local markets limit the possibilities of growth for local 
firms and this is aggravated by competition from products from 
elsewhere in the Community or from non-member countries; 
- restricted prospects on outside markets because of the substantial 
investments required in promotion and marketing. 
2. Mobilization of Community policies and Instruments 
121. The Community has hitherto supported efforts to develop the productive 
sectors of the French overseas departments mainly through assistance 
from the Structural Funds. Almost a quarter of Community assistance to 
these four regions has contributed directly to the development of the 
productive sectors. The gravity and specific nature of the handicaps 
listed and the priority which has to be given to job creation mean 
that the Community has to continue and increase its efforts to help 
establish an environment which is propitious to the development of 
local firms. This entails making greater use of the possibilities 
offered by Community policies and instruments while ensuring that this 
assistance is directed to meeting the specific needs of the local 
economy, in line with the general approach of Poseidom: 
in the future Community support frameworks for each French overseas 
department for 1994-99, particular attention will have to be paid 
through the partnership to infrastructure measures which will lower 
production costs and to measures to assist small firms and craft 
industries: 
- 32 -
* here it should be noted that productive investments, finance 
for the transfer of technology and innovation, some forms of 
financial engineering to improve access to the capital market 
and the development of outside services to firms are eligible 
under the ERDF; 
* all the fields eligible under the ESF, and particularly those 
intended to strengthen and improve the systems of education, 
training and development of human resources, are relevant to 
the needs of the French overseas departments; 
under the Regis II Community initiative, which is specifically 
concerned with the most remote regions, priority is given to the 
diversification of economic activity, with special emphasis on the 
creation of new activities. Here Regis could prove to be the most 
appropriate instrument for taking account of the speciaï features 
of these regions and should remain as flexible as possible in order 
to complement measures under the Community support frameworks; 
the other Community financial instruments, some of which are not 
well known in the French overseas departments, could also be used 
to facilitate access by firms located there to the capital market. 
Greater efforts should be made to provide information on these 
Community financial instruments (loans, risk capital or 
guarantees). The EIB should assist investment projects in liaison 
with measures taken under the Structural Funds as it has already 
done in the past to finance infrastructure. The EIB could, by 
granting loans at rates and for periods more favourable than those 
available on the local capital market, encourage individual 
initiatives and investment by firms in these regions. EIB 
assistance would entail active participation by the instruments at 
national or local level (IEDOM/FIDOM). Its proven experience of 
major infrastructure projects would enable it to play an effective 
role in linking projects bringing together the various regions. 
Other instruments such as guarantee systems or the use of risk 
capital could also be supported in this way; 
the specific features of firms in the French overseas departments 
must also be taken into account in terms of the existing guidelines 
and instruments for small firms and craft firms. Particular 
attention should be paid to the nine priority objectives adopted in 
1991 following the first European conference on craft industries 
and the development of these priorities through the multiannual 
programme adopted by the Council on 14 June 19931 and reaffirmed 
in the Council Resolution of 11 November 1993.2 The Commission 
1 Council Decision 93/379/EEC of 14 June 1993 - OJ No L 161, 2.7.1993. 
2 Council Resolution of 11 November 1993 on strengthening the 
competitiveness of enterprises, in particular of small and medium-sized 
enterprises and craft enterprises, and developing employment in the 
Community. 
- 33 
will also seek to facilitate access by firms in the French overseas 
departments to the various Community instruments for firms 
(Interprise, Europartenariat, BC-Net, etc.) and those which are 
more sector oriented (Value, Sprint, ESCF, Venture Consort, Force, 
Petra, etc.); 
- other Community policies can also be used to bolster Community 
measures to help firms. These include general customs instruments 
(economic customs arrangements) and those specific to the most 
remote regions (modulation of the arrangements for free zones and 
warehouses, tariff suspensions for supplies of raw materials to 
firms). 
122. In view of the large number of forms of assistance, care should be 
taken to coordinate the various instruments used and to concentrate 
the resources committed on firms and the productive sector of these 
regions. These strategies should be designed and implemented through 
the partnership between the national and regional authorities and the 
Commission and the representative social and professional 
organizations. 
123. In view of the environment of the French overseas departments and 
their specific features, the best possible use should be made of the 
various forms of assistance available under the Structural Funds. The 
appropriate use of technical assistance, pilot and demonstration 
projects and global grants could be adequate responses to the needs of 
firms. 
3. Priorities 
124. The mobilization of Community policies and instruments could in 
particular seek to achieve two related objectives: 
- greater competitiveness and productivity among local firms; 
- the search for outlets both on local markets and elsewhere. 
(a) Greater productivity and competitiveness 
125. The first aim of encouraging the development and strengthening of 
small firms in the French overseas departments (small firms and 
industries and craft firms) involves enhancing their productivity and 
hence their competitiveness both on local markets and elsewhere. That 
requires both a recapitalization of firms and training and information 
for those involved. The following measures could be supported to that 
end: 
- 34 -
- training: 
* improving existing vocational training capacity by making 
available to approved centres the most recent skills and 
teaching resources and, where necessary, reception facilities; 
* making vocational training more attractive to young people and 
helping managers who which to accept sandwich trainees-, 
* improving qualifications for managers and those establishing 
firms and for spouses working in the same firm, principally 
through periods of training by approved bodies; 
* promoting the training of instructors in vocational skills and 
advisers providing firms with economic and legal assistance; 
* improving the mobility of students, teachers, apprentices, 
workers, managers and founders of firms and assist them in 
securing high-level qualifications elsewhere in the Community 
* promoting utilization in the firm of computerized management 
techniques, mainly through the establishment of centres 
providing training on micro-computers. 
- access to capital : 
* greater flexibility and adjustment of existing procedures and 
conditions for access to the various credit instruments while 
taking account of the specific needs of firms in the French 
overseas departments; 
* making use of the loans subsidized by the EIB decided on at the 
Edinburgh European Council in addition to those available at 
local level both for the modernization of the productive 
apparatus and for those establishing or taking over firms, 
particularly in under-developed sectors of the economy-, 
* assisting in the establishment of a system of guarantees and 
mutual guarantees at local level backed by the local 
authorities and the firms themselves; 
* encouraging use of risk capital, principally to launch 
businesses, or other systems for gathering local investments to 
encourage the taking of holdings in firms with development 
potent ial; 
* promoting the establishment of European economic interest 
groupings to disseminate productive or financial innovation. 
- 35 -
access to new and adapted technologies: This involves principally 
assisting firms to develop the use of existing local technologies 
and acquire the technological potential required including: 
* financial assistance to help firms secure new technologies and 
make use of counsellors, particularly with reference to 
complying with European and international standards and the 
introduction of an approach to quality adapted to firms; 
* aid for research and the application of appropriate 
technologies to firms in the French overseas departments which 
take account of the absorption capacities of local markets; 
* facilitating trade and cooperation with Community firms, 
particularly those in other remote regions which have developed 
technologies appropriate to their markets; 
* helping firms make use of Community R&D programmes. 
reducing the cost of supplying inputs. This entails studying ways 
in which firms in the French overseas departments could reduce the 
costs of supplying consumer goods and goods for processing to 
ensure that they have the extra competitiveness they require for 
their survival or development. The points to which further 
consideration could be given include: 
* encouragement for the establishment of activities in free zones 
and warehouses by providing for the temporary suspension of 
customs duties on capital goods for firms in such areas; 
* encouraging local firms to secure supplies of raw materials and 
inputs on the markets of non-member countries at world prices 
by temporarily suspending certain CCT duties. 
(b) Access to markets 
126. The essential effort to improve the competitiveness of firms in the 
French overseas departments will be still more effective ifmeasures 
are also taken to find new outlets. Three strategies could be pursued 
at the same time: 
- securing a better position for local products on the markets of the 
French overseas departments; 
- deriving greater benefit from the internal market, principally by 
assisting the promotion and marketing of products from the French 
overseas departments in the various Member States through the 
establishment of quality standards; 
36 -
- better integration into the regional environment by developing 
trade flows with neighbouring ACP States and overseas territories. 
127. The following approaches could be adopted to this end: 
- improving the tools for securing knowledge and information in the 
form of: 
* support for the establishment of observatories on the economy 
and human resources responsible for analysing trends and 
enabling managers to control their adjustment in terms of 
technical and economic changes. To be fully effective, these 
observations should include a regional dimension (Caribbean or 
Indian ocean); 
* analyses of the states and needs of the professional sectors, 
and in particular the updating of work already carried out; 
* support for greater cooperation between local chambers of 
commerce and industry, agriculture and trade and with 
representative socio-professional bodies in those regions at 
Community level (Eurodom, UPEC, etc.); 
- extending the measure for a specific graphic symbol to improve 
knowledge and increase consumption of quality agricultural products 
and promote them on the Community markets to other products made by 
small firms and industries and craft firms in the French overseas 
departments; 
- facilitating commercial and technological cooperation and exchanges 
of experience with firms in the Member States and between firms in 
the French overseas departments, mainly through the existing 
instruments for cooperation such as Europartenariat, Interprise, 
etc.; 
- facilitating the establishment of approved management centres for 
f i rms -, 
- undertaking an audit operation to identify firms capable of 
exporting and to prepare with them plans for adapting production 
and skills to the opportunities and requirements of external 
markets 
- exploring whether the Community policy on food aid could help the 
French overseas departments to integrate better into the regions 
where they are situated by using them for intermediate storage. 
- 37 -
GENERAL CONCLUSION 
128. This report has noted the significant advances achieved in terms of 
the Community contribution to the economic and social development of 
the French overseas departments from the points of view of their 
integration into the dynamic of the internal market and recognition of 
their special regional features, which form the basis of Poseidom. 
129. The first period of application of Poseidom has shown that this 
approach is appropriate to the specific needs of the French overseas 
departments. 
130. In line with the declaration on the outermost regions annexed to the 
Treaty on European Union, the Commission believes that this approach 
should be continued and stepped up in order to achieve the ultimate 
objective of bringing these regions up to the Community average in 
social and economic terms. 
131. Accordingly, the Commission is sending the Council with this report 
proposals for appropriate adjustments to the agricultural aspect of 
Poseidom and has taken the first steps, particularly as regards the 
Council, to consolidate the fisheries aspect of Poseidom. 
132. More generally, the Commission, acting in the spirit of the White 
Paper on growth, competitiveness and employment, intends to 
concentrate its thoughts and actions on developing Job-creating 
productive activities in the French overseas departments suited to 
their particular situation. Accordingly, it has sought in this report 
to stress the extent to which Community policies and instruments, 
acting alongside national and regional measures, are likely to help 
meet the challenges facing businesses in the overseas departments. The 
Commission now intends to gather through the partnership the reactions 
of the French authorities to these guidelines so that appropriate 
steps may be taken under and in accordance with the procedures set out 
in the relevant Community instruments and policies. 
- 38 -
ANNEX I 
BASIC SOCIO-ECONOMIC INDICATORS 
population (1992) 
area 
distance from 
metropolitan France 
population density 
population growth 
1980-90 
unemployment 
1993 
recipients of the 
RMI3 
per capita GDP as 
% of Community 
average4 
% of employment 
- primary 
- secondary 
of which public 
works 
- tertiary 
of which non-
1 merchant services 
I rate of cover5 EUR 12 
345383400 
2363100 km2 
146 h/km2 
9,5%2 Guadeloupe 
387000 
1700 km2 
7000 km 
227h/km2 
17,7% 
24% 
8% 
38% Martinique 
359000 
1100 km2 
7000km 
319h/km2 
10% 
24% 
15% 
50% Guyane 
136000 
91000km2 
7500 km 
1,5h/km2 
57%1 
16% 
11% 
43% Réunion 
642000 
2500 km2 
10000km 
257h/km2 
" 17,9% 
37% 
19% 
39% 
6,2% 
31,8% 
7,2% 
62% 
9,2% 10% 
18% 
11% 
72% 
29% 
9% 8% 
17% 
75% 
27% 
14% 6% 
19% 
75% 
14% 8% 
19% 
12% 
73% 
37% 
9% 
1. Population growth since 1990 as been 19%.. 
2. 1992 figures (Eurostat). 
3. Revenu Minimum d'Insertion (Minimum work programme income). 
4. 1986 figures in PPP. 
5. 1992 figures. 
3? 
ANNEX I 
REGULATIONS ADOPTED AT 31 DECEMBER 1993 
I. BASIC TEXTS 
A. Council Decision 89/687/EEC of 22 December 1989 establishing a programme 
of options specific to the remote and insular nature of the French 
overseas departments (Poseidom) 
OJ No L 399, 30 December 1989. 
B. Council Decision 89/688/EEC of 22 December 1989 concerning the dock dues 
in the French overseas departments 
OJ No L 399, 30 December 1989. 
II. AGRICULTURE 
A. Framework Regulation: 
Council Regulation (EEC) No 3763/91 of 16 December 1991 introducing 
specific measures in respect of certain agricultural products for the 
benefit of the French overseas departments 
OJ No L 356, 24 December 1991. 
B. Common detailed rules: 
Commission Regulation (EEC) No 2596/93 of 22 September 1993 amending 
Regulations (EEC) No 131/92, (EEC) No 1695/92 and (EEC) No 1696/92 
concerning common detailed rules for implementation of the specific 
arrangements for the supply of certain agricultural products to the 
French overseas departments, the Canary Islands, the Azores and Madeira 
OJ No L 238, 23 September 1993. 
Commission Regulation (EEC) No 1707/93 of 30 June 1993 amending 
Regulations (EEC) No 131/92, (EEC) No 16ë5/92 and (EEC) No 1696/92 as 
regards the operative event for the agricultural conversion rate 
applicable to the specific measures for the supply of products to the 
French overseas departments, the Canary Islands and the Azores and 
Madeira 
OJ No L 159, 1 July 1993. 
Commission Regulation (EEC) No 2132/92 of 28 July 1992 amending 
Commission Regulations (EEC) No 131/92, (EEC) No 1695/92 and (EEC) No 
1696/92 laying down common detailed rules for implementation of the 
specific measures for the supply of certain agricultural products to the 
French overseas departments, the Canary Islands, the Azores and Madeira 
OJ No L 213, 29 July 1992. 
Vo 
Commission Regulation (EEC) No 131/92 of 21 January 1992 laying down 
common detailed rules for implementation of the specific measures for 
the supply of certain agricultural products to the French overseas 
departments 
OJ No L 15, 22 January 1992. 
C. Regulations by product: 
1. Cereal products: 
Commission Regulation (EC) No 3473/93 of 17 December 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 317, 18 December 1993. 
Commission Regulation (EC) No 3243/93 of 26 November 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 293, 27 November 1993. 
Commission Regulation (EEC) No 3005/93 of 29 October 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 270, 30 October 1993. 
Commission Regulation (EEC) No 2300/93 of 18 August 1993 amending 
Regulations (EEC) No 388/92, (EEC) No 1727/92 and (EEC) No 1728/92 
laying down detailed implementing rules for the specific measures for 
supplying the French overseas departments, the Azores, Madeira and the 
Canary Islands with cereal products 
0J No L 208, 19 August 1993. 
Commission Regulation (EEC) No 1727/93 of 30 June 1993 amending 
Regulations (EEC) No 388/92, (EEC) No 1727/92 and (EEC) No 1728/92 of 30 
June 1993 laying down detailed rules for implementation of the specific 
arrangements for the supply of cereal products to the French overseas 
departments, the Azores and Madeira and the Canary Islands respectively 
and establishing the respective forecast supply balances 
0J No L 160, 01 July 1993. 
Commission Regulation (EEC) No 1670/93 of 29 June 1993 amending 
Regulation (EEC) No 646/92 establishing the forecast supply balance and 
Community aid for the supply to French Guiana of products falling within 
CN codes 2309 90 31, 2309 90 33, 2309 90 41, 2309 90 43, 2309 90 51 and 
2309 90 53 used in feedingstuffs 
0J No L 158, 30 June 1993. 
Commission Regulation (EEC) No 1625/93 of 25 June 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
0J No L 155, 26 June 1993. 
41 
Commission Regulation (EEC) No 1497/93 of 18 June 1993 amending 
Regulations (EEC) No 388/92, (EEC) No 1727/92 and (EEC) No 1728/92 
laying down detailed implementing rules for the specific measures for 
supplying the French overseas departments, the Azores, Madeira and the 
Canary Islands with cereal products 
OJ No L 148, 19 June 1993. 
Commission Regulation (EEC) No 1299/93 of 28 May 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 132, 29 May 1993. 
Commission Regulation (EEC) No 1042/93 of 30 ApriI 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 108, 1 May 1993. * 
Commission Regulation (EEC) No 786/93 of 31 March 1993 amending 
Regulations (EEC) No 2027/92, (EEC) No 1961/92 and (EEC) No 1962/92 
concerning aid for the supply of certain cereal products of Community 
origin respectively to the French overseas departments, the Azores and 
Madeira, and the Canary Islands 
OJ No L 79, 1 ApriI 1993. 
Commission Regulation (EEC) No 710/93 of 26 March 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 74, 27 March 1993. 
Commission Regulation (EEC) No 688/93 of 25 March 1993 amending 
Regulation (EEC) No 388/92 laying down detailed rules for implementation 
of the specific arrangements for the supply of cereal products to the 
French overseas departments (FOD) and establishing the forecast supply 
balance 
OJ No L 73, 26 March 1993. 
Commission Decision C(92)638 of 22 March 1993 introducing special 
measures concerning the payment of the amounts of aid for the supply of 
cereal products from the Community to the FOD for April, May, July and 
August 1993. 
(Not pub Iished). 
Commission Regulation (EEC) No 445/93 of 16 February 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
0J No L 49, 27 February 1993. 
Commission Regulation (EEC) No 191/93 of 29 January 1993 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 22, 30 January 1993. 
fz. 
Commission Regulation (EEC) No 3804/92 of 23 December 1992 amending 
Regulation (EEC) No 388/92 of 23 December 1992 laying down detailed 
rules for implementation of the specific arrangements for the supply of 
cereal products to the French overseas departments (FOD) and 
establishing a forecast supply balance 
OJ No L 384, 30 December 1993. 
Commission Regulation (EEC) No 3672/92 of 18 December 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 370, 19 December 1992. 
Commission Regulation (EEC) No 3447/92 of 30 November 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 350, 1 December 1992. 
Commission Regulation (EEC) No^ 3162/92 of 30 October 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 317, 31 October 1992. 
Commission Regulation (EEC) No 2551/92 of 31 August 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 254, 1 September 1992. 
Commission Regulation (EEC) No 2107/92 of 24 July 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
0J No L 210, 25 July 1992. 
Commission Regulation (EEC) No 2027/92 of 22 July 1992 amending 
Regulation (EEC) No 388/92 laying down detailed rules for implementation 
of the specific arrangements for the supply of cereal products to the 
French overseas departments (FOD) and establishing the forecast supply 
balance, and fixing the level of aid for the supply of groats and meal 
of durum wheat 
OJ No L 207, 23 July 1992. 
Commission Regulation (EEC) No 1402/92 of 27 May 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 146, 28 May 1992. 
Commission Regulation (EEC) No 1135/92 of 4 May 1992 amending Regulation 
(EEC) No 391/92 setting the amounts of aid for the supply of cereals 
products from the Community to the FOD 
0J No L 120, 5 may 1992. 
#i 
Commission Regulation (EEC) No 867/92 of 6 ApriI 1992 amending 
Regulation (EEC) No 391/92 setting the amounts of aid for the supply of 
cereals products from the Community to the FOD 
OJ No L 91, 7 ApriI 1991. 
Commission Regulation (EEC) No 646/92 of 13 March 1992 establishing the 
forecast supply balance and Community aid for the supply to French 
Guiana of products falling within CN codes 2309 90 31, 2309 90 33, 2309 
90 41, 2309 90 43, 2309 90 51 and 2309 90 53 used in feedingstuffs 
0J No L 069, 14 March 1993. 
Commission Regulation (EEC) No 467/92 of 27 February 1992 amending 
Regulation (EEC) No 388/92 laying down detailed rules for implementation 
of the specific arrangements for the supply of cereal products to the 
French overseas departments (FOD) and establishing the forecast supply 
balance 
0J No L 53, 28 February 1992. 
Commission Regulation (EEC) No 391/92 of 18 February 1992 setting the 
amounts of aid for the supply of cereals products from the Community to 
the FOD 
0J No L 43, 19 February 1992. 
Commission Regulation (EEC) No 388/92 of 18 February 1992 laying down 
detailed rules for implementation of the specific arrangements for the 
supply of cereal products to the French overseas departments (FOD) and 
establishing the forecast supply balance 
0J No L 43, 19 February 1992. 
Commission Regulation (EEC) No 338/92 of 12 February 1992 laying down 
detailed rules for the application of Council Regulation (EEC) No 
3763/91 with regard to the Community quota for the import of 8 000 
tonnes of wheat bran falling within CN code 2302 30 originating in the 
ACP States into the French department of Réunion 
OJ No L 36, 13 February 1992. 
Commission Regulation (EEC) No 249/92 of 31 January 1992 on the direct 
import of maize for animal feed into Réunion during January and February 
1992 
0J No L 24, 1 January 1992. 
2- Rice in French Guiana 
Commission Regulation (EEC) No 1920/92 of 10 July 1992 laying down 
detailed rules for the application of Council Regulation (EEC) No 
3763/91 with regard to granting aid for rice production in French Guiana 
0J No L 195, 14 July 1992. 
Commission Regulation (EEC) No 980/92 of 21 April 1992 laying down 
detailed rules for applying the aid scheme for the marketing in 
Martinique and Guadeloupe of rice produced in French Guiana 
0J No L 104, 22 ApriI 1992. 
W 
3. Sugar cane, sugar, rum: 
Commission Regulation (EEC) No 1488/92 of 9 June 1992 concerning aid for 
the processing of sugar cane into agricultural rum in the French 
overseas departments 
OJ No L 156, 10 June 1992. 
Commission Regulation (EEC) No 1487/92 of 9 June 1992 concerning flat-
rate aid for sugar cane cultivation in the French overseas departments 
OJ No L 156, 10 June 1992. 
4. Fruit and vegetables, plants and flowers: 
Commission Regulation (EEC) No 1445/93 of 11 June 1993 
operative events applicable to products in the fruit 
sector, to processed fruit and vegetable products and 
plants and floricultural products 
OJ No L 142, 12 June 1992. determining the 
and vegetables 
partly to Iive 
Commission Regulation (EEC) No 1831/92 of 3 July 1992 amending 
Regulation (EEC) No 667/92 laying down detailed rules for the 
application of specific measures adopted in respect of fruit, 
vegetables, plants and flowers for the benefit of the French overseas 
departments 
OJ No L 185, 4 July 1992. 
Commission Regulation (EEC) No 667/92 of 16 March 1992 laying down 
detailed rules for the application of specific measures adopted in 
respect of fruit, vegetables, plants and flowers for the benefit of the 
French overseas departments 
OJ No L 71, 18 March 1992. 
5. Anima Is and meat 
Commission Regulation (EEC) No 1734/93 of 30 June 1993 amending 
Regulation (EEC) No 2312/92 and (EEC) No 1148/93 laying down detailed 
rules for implementing the specific measures for supplying the French 
overseas departments with live bovine animals and breeding horses 
OJ No L 160, 1 July 1993. 
Commission Regulation (EEC) No 1148/93 of 11 May 
detailed rules to implement the specific measures 
French overseas departments with breeding horses 
OJ No L 116, 12 May 1993. 1993 laying down 
for supplying the 
Commission Regulation (EEC) No 1123/93 of 7 May 1993 laying down 
detailed rules to implement the specific measures for supplying the 
French overseas departments with products from the sheepmeat and 
goatmeat sector 
OJ No L 114, 8 May 1993. 
U\' 
Commission Regulation (EEC) No 231/93 of 3 February 1993 laying down 
certain detailed rules for the application of the supplements to the 
special premium for producers of beef and veal and to the premium for 
maintaining suck 1er cows in the French overseas departments and the 
Azores and Madeira 
OJ No L 27, 4 February 1993. 
Commission Regulation (EEC) No 2989/92 of 15 October 1992 laying down 
detailed implementing rules for the specific measures for supplying the 
French overseas departments with products from the pigmeat sector 
OJ No L 300, 16 October 1992. 
Commission Regulation (EEC) No 2826/92 of 29 September 1992 laying down 
detailed implementing rules for the specific measures for supplying the 
French overseas departments with products from the egg, poultrymeat and 
rabbit sectors 
OJ No L 285, 30 September 1992. 
Commission Regulation (EEC) No 2312/92 of 31 July 1992 laying down 
detailed rules for implementing the specific measures for supplying the 
French overseas departments with live bovine animals 
OJ No L 222, 7 August 1992. 
D. Plant-health and veterinary measures 
Commission Decision 93/542/EEC of 11 October 1993 on the Community's 
financial contribution to programmes for the control of organisms 
harmful to plants and plant products in the French overseas departments 
for 1993 
OJ No L 264, 23 October 1993. 
Commission Decision 93/522/EEC of 30 September 1993 on the definition of 
the measures eligible for Community financing in the programmes for the 
control of organisms harmful to plants or plant products in the French 
overseas departments, in the Azores and in Madeira 
OJ No L 251, 8 October 1993. 
III. TAXATION 
A. Dock dues 
Commission Decision C(93)3868 of 20 December 1993 raising no objections 
to the total or partial exemptions from tax decided by the competent 
authorities of the department of Martinique in ruling 93-64 of the 
Regional Council and the competent authorities of the department of 
Guadeloupe in rulings 93-078, 93-079, 93-0980 and 93-172 of the Regional 
Counc il. 
(Not pub Iished). 
Ht 
Commission Decision C(93)2112 of 28 July 1993 raising no objections to 
the total or partial exemptions from tax decided by the competent 
authorities of the department of Martinique in ruling 93-02 of the 
Regional Council; such exemptions are deemed to supplement ruling 92-
313. 
(Not pub Iished). 
Commission Decision C(92)3314 of 18 December 1992 raising no objections 
to the exemption arrangements for local produce notified by France. 
(Not pub Iished). 
Commission Decision C(92)393 of 2 March 1992 raising no objections to 
the double amendment of the dock-due rates applicable to certain 
preparations of canned meat. 
(Not pub Iished). 
Commission Decision C(92)1565 of 20 July 1990 raising no objections to 
the increase of the dock-due rates applicable to margarine from 15% to 
20% for two years (Martinique). 
(Not pub Iished). 
B. Other provisions 
Council Directive 92/83/EEC of 19 October 1992 on' the harmonization of 
the structures of excise duties on alcohol and alcoholic beverages 
OJ No L 316, 31 October 1992 
Council Directive 92/12/EEC of 25 February 1992 on the general 
arrangements for products subject to excise duty and on the holding, 
movement and monitoring of such products 
OJ No L 76, 23 March 1992. 
Council Directive 91/680/EEC of 16 December 1991 supplementing the 
common system of value added tax and amending Directive 77/388/EEC with 
a view to the abolition of fiscal frontiers 
OJ No L 376, 31 December 1991. 
IV CUSTOMS MEASURES 
Free zones and free warehouses 
Council Regulation (EEC) No 1604/92 of 15 June 1992 amending Regulation 
(EEC) No 2504/88 on free zones and free warehouses 
0J No L 173, 27 June 1992. 
n 
V FISHERIES 
[Proposal for a Council Regulation (EC) establishing a system of 
compensation for the additional costs incurred in the marketing of 
certain fishery products from the Azores, Madeira,- the Canary Islands 
and the Freeh department of Guiana as a result of their very remote 
location. 
C0M(93) 630 final. OJ C 4, 6 January 1994] 
Commission Decision C(93)3157 of 15 November 1993 fixing the Community's 
financial contribution to certain development measures in the fisheries 
and aquaculture sector in the French overseas departments. 
(Not pub Iished). 
Council Regulation (EEC) No 1603/92 of 15 June 1992 .authorizing an 
enhanced aid system for the formation of producers' organizations in the 
French overseas departments, in the Canary Islands, in Madeira and in 
the Azores 
OJ No L 173, 27 June 1992. 
VI STATE AIDS 
Commission Decision of 18 May raising no objections to the credit policy 
of the IED0M. 
Commission Decision of 21 December 1992 raising no objections to six 
taxation aid schemes for local businesses notified by France 
OJ No C 71, 13 March 1993. 
VII STRUCTURES (Addendum to the Community support frameworks and the Regis 
programme) 
Commission Decision C(93)2796 of 5 October 1993 on the grant of 
assistance from the European Agricultural Guidance and Guarantee Fund, 
Guidance Section, for a specific operational programme for bananas and 
sugar-cane rum in the French overseas departments within the framework 
of Poseidom. 
(Not published). 
Commission Decision C(92)2116 of 10 September 1992 on the grant of 
assistance from the European Agricultural Guidance and Guarantee Fund, 
Guidance Section, for a specific operational programme for bananas and 
sugar-cane rum in the French overseas departments within the framework 
of Poseidom. 
(Not pub Iished). 
VIM ENVIRONMENT 
Commission Decision C(93)3847 of 21 December 1993 on the grant of 
Community financial assistance for measures in the form of environmental 
protection programmes in the French overseas departments. 
(Not publ ished). 
i/t 
OTHER MEASURES 
Agriculture; 
Sugar: 
Commission Regulation (EEC) No 2930/93 of 25 October 1993 amending 
Regulation (EEC) No 1786/93 determining, for the period 1 July 1993 to 
28 February 1994, the quantities of raw sugar produced ih the French 
Overseas Departments for which the refining aid specified in Council 
Regulation (EEC) No 2225/86 may be granted 
OJ No L 265, 26 October 1993. 
Commission Regulation (EEC) No 1786/93 of 30 June 1993 determining for 
the period 1 July 1993 to 28 February 1994 the quantities of raw sugar 
produced in the French overseas departments for which the refining aid 
specified in Council Regulation (EEC) No 2225/86 may be granted and 
amending Regulation (EEC) No 388/93 
OJ No L 163, 6 July 1993. 
Commission Regulation (EEC) No 388/93 of 22 February 1993 determining 
for the period 1 March 1993 to 30 June 1993 the quantities of raw sugar 
produced in the French overseas departments benefiting from the refining 
aid referred to in Council Regulation (EEC) No 2225/86 and amending 
Regulation (EEC) No 476/92 
OJ No L 45, 23 February 1993. 
Commission Regulation (EEC) No 1730/92 of 30 June 1992 determining for 
the period 1 July 1992 to 28 February 1993 the quantities of raw sugar 
produced in the French overseas departments on which the refining aid 
specified in Council Regulation (EEC) No 225/86 may be granted, and 
amending Regulation (EEC) No 2750/86 
0J No L 179, 1 July 1993. 
Commission Regulation (EEC) No 476/92 of 27 February 1992 determining 
for the period 1 March 1992 to 30 June 1992 the quantities of raw sugar 
produced in the French overseas departments benefiting from the refining 
aid referred to in Council Regulation (EEC) No 2225/86 and amending 
Regulation (EEC) No 1806/91 
0J No L 53, 28 February 1993. 
Fruit and vegetables: 
Council Regulation (EEC) No 638/93 of 17 March 1993 amending Regulation 
(EEC) No 1035/72 on the common organization of the market in fruit and 
vegetables and Regulation (EEC) No 827/68 on the common organization of 
the market in certain products listed in Annex II to the Treaty 
OJ No L 69, 20 March 1993. 
Council Regulation (EEC) No 404/93 of 13 February 1993 on the common 
organization of the market in bananas 
0J No L 47, 25 February 1993. 
C/f 
Commission Regulation (EEC) No 1927/92 of 13 July 1992 fixing for the 
1992/93 marketing year the production aid for tinned pineapple and the 
minimum price to be paid to pineapple producers 
OJ No L 195, 14 July 1993. 
Fisher ies: 
Council Regulation (EC) No 3329/93 of 29 November 1993 concerning the 
conclusion of an Agreement on fisheries between the European Economic 
Community and the Government of the Commonwealth of Dominica 
OJ No L 299, 4 December 1993. 
Council Regulation (EEC) No 3929/92 of 19 December 1992 laying down for 
1993 certain measures for the conservation and management of fishery 
resources applicable to vessels flying the flag of certain non-member 
countries in the 200-naut ical-mi le zone off the coast "of the French 
department of Guiana 
OJ No L 397, 31 December 1993. 
Council Regulation (EEC) No 3759/92 of 17 December 1992 on the common 
organization of the market in fishery and aquaculture products 
OJ No L 388, 31 December 1993. 
5o 
ANNEX 
BALANCE OF STRUCTURAL FUNDS 1989-931 
Total intervention based on objective n°1: 795 MioEcus 
Total intervention based on community initiatives: 125 MioEcus 
ERDF 
access 
industry, craft industries 
and services 
tourism 
support infrastructure 
technical assistance 
EAGGF 
Objective 5a 
other agricultural 
development measures 
and rural development 
ESF 
development of human 
resources 
objectives 3 et 4 
regional total Guadeloupe 
110,8 
53,0 
10,7 
15,0 
30,1 
2,0 
26,2 
6,7 
19,5 
63,4 
21,2 
42,2 
200,4 Martinique 
102,8 
53,1 
14,5 
7,0 
* 
26,8 
1,4 
23,7 
5,2 
18,5 
66,1 
43,3 
22,8 
192,4 Guyane 
52,6 
20,8 
5,8 
2,6 
22,5 
0,9 
13,2 
5,0 
8,2 
25,9 
17,0 
8,9 
91,7 Réunion 
181,8 
66,4 
29,0 
9,5 
73,5 
3,4 
96,4 
13,8 
82,6 
156,7 
109,5 
47,2 
431,9 
1. The amounts indicated for EAGGF and ERDF are in millions of ECU at 1993 prices. The estimate for 
ESF is at 1989 prices. 
*-/ 
ISSN 0254-1475 
COM (94) 200final 
DOCUMENTS 
EN 10 13 
Catalogue number : CB-CO-94-215-EN-C 
ISBN 92-77-68980-3 
Office for Official Publications of the European Communities 
1^2985 Luxembourg