ARCHIVESHISTORIQUES
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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)254
Vol.1976/0082

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COMMISSION OFTHEEUROPEAN COMMUNITIES
i
COM(76)254 final .
Brussels ,26th Kay1976 .
\
)
1
.;
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
ontheCommunity position inrespect oftheimprovement ofadminis­
trative cooperation between theCommunity andGreece inthefruit and
vegetable sector .
/
Ly
\
COM(76 )254final

COMMISSION
COMMUNICATIONTOTHECOUNCIL
on"theCommunitypositioninrespectoftheimprovementofadministra­
tivecooperation betweentheCommunityand.Greeceinthefruitandve­
getablesector
I,1-TheEEC-GreeceAssociation Councilatitsmeetingon24March1976
agreedtorequesttheWorkingGroup,composedofGreekexpertsand
expertsfromtheCommission,responsibleforexaminingtheout­
standingproblemstobesolvedintheframeworkoftheharmonization
ofagricultural policiestodrawupareportcontainingSpecific
suggestionsforimprovingadministrative cooperationbetweenthe
CommunityandGreeceinthepeachsectorassoonaspossible.
TheGroupinquestionmeton11May1976Jitbecameobvious,however,
thatthedifferencesofopinionwhichexistedbetweentheGreekand
Commissionexpertsmadeitimpossible,inspiteoftheeffortsmade,
toarriveatacommonposition.
ThustheGroupwasobligedtostatethatitwasunabletoformulate
specificjointsuggestionsfortheAssociationCommitteewithaview
toimprovingadministrative -cooperationinthepeachsectorin1976.
TheCommunitywillthereforeberequired,atthenextmeetingofthe
AssociationCommitteeandatthatoftheAssociationCouncilscheduled
fortheendofMayorbeginningofJune,toadoptapositiononthis
matterandexpressanopiniononwhatseemsatpresenttobetheGreek
position.
ToenabletheCommunitytoascertainthelatter,theCommission
considersitnecessarytoanalysetheinformationavailableandto
formulateproposals.
•I.
••

-2-
2-AccordingtostatementsmadeatthemeetingoftheAssociation Council
on24Marchandinformationgivenduringdiscussionswithinthe"adhoc"
Group,Greecewouldbeready,forthe1976marketingyear,toadoptthe
Communityrulesinforceforpeachesinrespectbothofmarketmechanisms
andpricelevels.Inreturn,however,itexpectsthatintheframework
ofwhatitconsiders"advanceharmonization ",theCommunitywillcease
applyingtheimportmechanismsprovidedforbythecommonorganization
ofthemarket.Itwouldalsobepreparedtoinstitutionalize andto
strengthenexchangesofinformation onthesituationonthemarketin
theproductinquestion.Itconsiders,however,thatthisinstitutionali­
zationwouldhaveonlyasubsidiaryrole,servinginteraliamoreto
superviseexistingmechanismsthantolaydownguidelinesagtothe
measureswhichmayneedtobetakentoensuremarketstabilityandto
avoiddisturbances .'
Thispositionappears,&tleastinpart,tobeduetothefactthat
althoughinprincipleGreeceappearstoadmitthedistinction between
"harmonization ofagricultural policies"and"administrative cooperation",
infactitfearsthatthesolutionsdecidedonintheframeworkofthis
"cooperation "mightlaterprejudicethosewhichwillbeadoptedinthe
frameworkofharmonization decisionsifCommunityrulesareacceptedas
ofthisyear.
**
3-TheCommissionforitspartrecallsthatonehastodistinguishvery
clearlybetween"administrative cooperation"and"harmonization ",since
thelattercannotbeconceivedofforasingleproductbutmustextend
atleasttothewholeofagivenmarketorganization .
TheCommissionalsoconsidersthatinthecontextof"improvementof
administrative cooperation "andparticularly inthisspecificcase
sinceitconcernsjustasingleproduct,peaches,andasinglemarketing "
year,1976,economicconsiderations areatleastasimportantaslegal
andinstitutional considerations ,theobject6ftheoperationbeingto
avoidmarketdisturbances andtheconsequences perhapsofapolitical
nature,whichsuchdisturbances couldentail.
*
ι
.i;
* ••/••

Inthis perspective ,"theimprovement ofadministrative cooperation "should
intheCommission 'sopinion consist principally intheinstitutionalization
ofabetter ,more complete andmore prompt exchange ofinformation "between
theCommission departments responsible formanaging themarket inthe
product inquestion andthecorresponding Greek agencies ,bearing onall
thefactors likely topermit aproper appraisal ofthemarket situation
with aview tothemeasures tobetaken byboth sides toavoid disturbances
onthemarket which would notbeprofitable toeither party .
"Theimprovement ofadministrative cooperation "inrespect ofpeaches
would therefore consist principally inareciprocal effort whereby :
»
-Greece would take allmeasures necessary toapply theCommunity grading
and intervent ionsystem forpeaches ,
-theCommunity' would -take allmeasures necessary intheframework of
existing Community provisions toavoid asfaraspossible theapplication
ofcountervailing charges ; i
-both parties would remain inpermanent contact during themarketing year
with aview togiving each other themaximum ofinformation topermit
anassessment ofhowtheyear waBprogressing .
Tothis endtheCommunity should ,atthenext meeting oftheAssociation
Council ,propose that .theCouncil agree "toinstitutionalize thefollowing :
a)Exchange sofinformation before thebeginning ofthemarketing year
between theCommission departments responsible formanaging themarket
inthis product andthecorresponding Greek agencies ,bearing on
production andmarketing estimates intheCommunity andinGreece (two
meetings ,oneduring thefirst andthesecond during thelast week of
June );
b)Regular exchanges ofinformation bytelex ,during themarketing year ,
wherever considered useful ,onthemarket situation anditsforeseeable
trend ,with particular reference to :
-short term supplies ,

-4-
-withdrawals effected ,andforeseeable .-
-themeasuresadoptedintheframeworkofmarketmanagement,suchas
aidforexportstonon-membercountries,marketingrestrictions etc.
Inthecontextofthisinformation theGreekauthorities wouldalso
keeptheCommissioninformedofexportstotheCommunity,pastand
foreseeable ;
Dailytransmission (telex):
-bytheCommission,ofthepricesrecordedforCommunity -products
ontherepresentative producermarketsaswellasthepricesre­
cordedforGreekproductsontherepresentative importmarkets;
-byGreece,ofthepricesrecordedforGreekproductson'therepresen­
tativeproducermarkets.
ι1:
' Λ
III.1-ItistheCommission'sviewthattheproposalinII.2.representsthe
truemeaningof"improvementofadministrative cooperation".
However,onemustalsobepreparedfortheeventualitythattheGreek
Delegation,aswasthecasewithinthe"adhoc"ExpertsGroupresponsible
forfindingjointsolutions,mightfindthisinsufficient andwanttogive
"administrative cooperation "awiderscope,implyingspecificcommitments
onbothsidesgoingbeyondwhat-isproposedinII.
IthasbecomeevidentthatinreturnfortheapplicationinGreece
oftheCommunitysystem,theGreekauthoritiesconsiderthatthe
CommunityshouldreservethesametreatmentforGreekpeachesas
thataccordedtoCommunitypeaches.
Thiswouldimplyinparticularthesuppression ofallcountervailing
charges,whateverthepricesrecordedontheimportmarketsofthe
Community.c)
••/•■

IngeneraltheCommissionconsidersthatsuchcommitments exceedthe
frameworkof"administrative cooperation".
ItalsocallstheattentionoftheCounciltothefactthatthenext
marketingyearforpeachespromisestoheparticularlydifficult
becauseinadditiontotheparticularly sensitivenatureofthis
productthe1976harvestshould,accordingtoestimates,beofthe
sameorderasthatof1974duringwhich80000metrictonso,fpeaches
werewithdrawnfromthemarket.
Furthermore ,pastexperienceshowsthatpricesfortheCommunityproduct
ontherepresentative importmarketsduringtheimportantmarketing
periodsweregenerallyatalevelveryclosetothereferenceprice
plusthecustomsduty(between10%and20$abovethereferenceprice).
WheretheGreekproductisconcerned,theapplicationoftheCommunity
systemwouldenableittoentertheCommunityimportmarketsat,on
average,10$abovethereferenceprice.
Greekpricesbelowthislevelwouldimplythattheapplicationofthe
CommunitysysteminGreecewasnothavingthesameeffectonpricesas
intheCommunity. '
••$
Furthermore ,experienceacquiredbytheCommunityshowsthattheapplication
ofamarketorganization requiring ,inparticulartheinstitutionofthe
meansnecessaryfortheproperoperationofitsmachinerymay,particularly
attheoutset,comeupagainstunforeseendifficulties .Suchdifficulties ,
inthedelicatemarketsituationwhichisexpectedforthepeachsector,
wouldleadtoveryseriousdisturbances intheCommunity.Therefore,
forthe1976marketingyearitisnecessarytointroduceimport
arrangements forGreekpeacheswhich,withouthinderingexportscarried
outunderthenormalconditionsofapplicationoftheCommunitysystem
byGreeoe,wouldprotecttheCommunitymarketfromdisturbances dueto
difficulties intheoperationofthesaidmechanisms.

LookingatitfromthisangletheCommissionconsidersthattheCommunity
mightceaseapplyingcountervailing chargeswhenthepricesforGreek
peacheswereatalevelwhichwasatleastequaltothereferenceprice
plus50ofthecustomsduty.
Iftheinvestigations normallycarriedoutintheframeworkofthe
Communitysystemweretoshowthatthepricesforthisproductwere
"belowthatlevel,thenthecountervailing chargewouldbeapplied.
i;
Toconclude,theCommissionproposesthatiftheCommunityconsiders
thattheimprovementof"administrative cooperation "shouldalso
involvespecialarrangements ,suchasthoseindicatedinIII.2,itis
necessarythattheCommunityproposesthattheAssociation Council:
A)Agreestoinstitutionalize theproceduresmentionedinII.2
B)Inaddition,thatitshouldtakenote:
a)ofastatementbytheCommunitywherebyforpeachesoriginating
inGreecethedeductionmadeinrespeotofcustomsdutybythe
Commissionincalculatingtheentrypriceinaccordancewith
Article24ofRegulation(EEC)No1035/72wouldbelimitedto
50$ofthedutiesrecordedintheCommonCustomsTariff.
Intheevent,however,oftheentrypriceforGreekproductscal­
culatedasoutlinedintheaboveparagrpahbeingat>alevel
1I
lowerthanthereferencepricefortheperiodlaiddownin
Artiole25of25aofRegulation(EEC)No1035/72,the
provisionsinrespectofcountervailing charges,assetout
inRegulation(EEC)No1035/72,wouldbeappliedintheir
entirety.
b)ofastatementbyGreecewherebyitwouldapply:
-thecommonqualitystandardsactuallyappliedinrespectofthis
productintheCommunity,undertheconditionslaiddownin
TitleIofRegulation(EEC)NO1035/72;
-theCommunityintervention systemunderthefollowingconditions :

-7-
1)theGreekproducerassociations wouldwithdrawpeachesfromthe
marketinaccordancewiththeprovisionsofArticle18ofRegulation
(EEC)No1035/72,
2)intheeventoftheGreekmarketbeinginaseriouscrisissituation
withinthemeaningofArticle19(l)ofRegulation(EEC)No1035/72,the
agencydesignatedbytheGreekStatewouldbuyinthepeachesoffered
toitundertheconditionslaiddowninthatArticle,However,the
productswouldbeboughtinatthepricereferredtoinArticle18,
3)theproductswithdrawnfromthemarketorboughtinwouldbedisposed
.ofinoneofthewaysprovidedforinArticle21ofRegulation(EEC)
NoIO35/72andactuallyadoptedintheCommunityfortheproductin
question.
*
Itwouldalsoundertakenottograntdirectorindirectaidtothemarketing
oftheproductinquestionotherthanaidintendedtopromoteexportto
thirdcountriesotherthantheEEC.