5B?F COflOSSION OF THE ECBOPBAN CCWflDNITIES 
C0MC90) 97 final 
Brussels, 13 August 1990 
Proposal for a 
rmiNCIL REGULATION (EEC) 
laying down genera, rules on the marketing of preferential 
sugar In the Community for the 1989/1990, 1990/91 
and 1991/92 marketing years 
jjj^MWJÏH'Jgl'gi'gH'' (presented by the Cohesion) 
Bl^aMR;-; 
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EXPLANATORY MEMORANDUM 
Article 1 of the Protocol on ACP sugarC) provides that: 
a) the Community will commit itself to purchasing and Importing, at 
guaranteed prices, specified quantities of sugar originating in the 
ACP States which those States undertake to supply to It; 
b) the Protocol will be Implemented within the framework of the common 
organization of the markets in sugar. 
The guaranteed prices are therefore an essential factor in this reciprocal 
obligation to deliver and Import. In the past they were normally 
negotiated and fixed so as not to exceed the corresponding intervention 
price in the Community. 
In its proposal to the Council on the agricultural prices for the 1989/90 
marketing year, the Commission recognized that the contemplated 5% 
reduction for sugar will raise problems for the States supplying the 
preferential sugar. In the meantime the Council has finally decided on a 
2% reduction and has given the Commission responsibility for negotiating 
guaranteed prices for sugar for that marketing year at the same reduced 
level. The reduction In the guaranteed prices, which follows a period of 
four marketing years when prices were frozen, is likely to be a heavy 
burden on the sugar Industry In the countries concerned, which is less 
competitive than the Community Industry. This could Jeopardize the 
undertakings entered into and accordingly the sound operation of the common 
organization of the markets In sugar. 
A major portion of the Community sugar market comprises Imports of raw 
preferential sugar intended for the Community refining Industry. However, 
the Community still has an overall shortfall In such raw sugar intended for 
refining. Deliveries of preferential sugar mainly involve such raw sugar 
but also to a lesser extent white sugar and other sugars directly Intended 
for consumption. The latter portion of deliveries, which is more 
remunerative, will no doubt increase further (with some impact on the 
budget) following the restrictive prices policy In the sugar sector If 
accompanying measures do not stabilize at the same time the trading 
relations between the Community refiners and the suppliers of raw sugar. 
The proposal to Introduce a marketing premium (reassigned by the Importer 
to the supplier of the preferential sugar), which will be limited to an 
overall appropriation of ECU 30 million for a period of three years, 
therefore alms to ensure the supply of raw sugar to Community refiners and 
to enable the supplying States to adapt their industries to this new 
situation through preferential trade relations. 
(1) The «âme provisions «ppaar In the agreement «in csn* sugar coRCluded 
with todla. 
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Proposal for a 
COUNCIL REGULATION (EEC) 
laying down general rules on the marketing of preferential 
sugar In the Community for the 1989/1990, 1990/91 
and 1991/92 marketing years 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the 
common organization of the markets In the sugar sectorC), as last amended 
by Regulation (EEC) No 1069/89<2>, and In particular Article 37(1)(a) 
thereof, 
Whereas, pursuant to Article 1(1) of Protocol 7 on ACP/EEC sugar annexed to 
the Lomé Convention, hereinafter referred to as "the Protocol", the 
Community has undertaken to purchase and import at guaranteed prices 
quantities of cane sugar originating In the ACP States which those States 
undertake to supply; whereas, pursuant to Article 1(1) of the Agreement 
between the European Economic Community and the Republic of India on cane 
sugar, hereinafter referred to as "the Agreement", the same reciprocal 
commitments were entered Into as regards sugar originating In India; 
whereas, pursuant to Article 1(2) of the Protocol and Article 1(2) of the 
Agreement, those texts are to be Implemented for the sugar in question, 
hereinafter referred to as "preferential sugar", within the framework of 
the common organization of the markets in sugar-, 
(1) OJ No L 177, 1.7.1981, p. 4. 
(2) OJ No L 114, 27.4.1989, p. 1. 
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Whereas the measures to be adopted by the Community to ensure this 
implementation of the Protocol and the Agreement must be such as to permit 
the observance of the relevant commitments entered Into under those 
instruments, namely the supply of preferential sugar and the purchase of 
that sugar and therefore the supply of the Community market and more 
particularly that of port refineries In the Community; 
Whereas, owing to the freeze on guaranteed prices for sugar during several 
delivery periods, the fall In such prices for the 1989/90 delivery period 
and the prejudicial effects which those measures will have on the sugar 
industry of the countries concerned unless accompanying measures are taken, 
there appears to be a short-term risk that the reciprocal commitments to 
deliver and import sugar provided for in the Protocol and the Agreement may 
no longer be fully observed under these circumstances; whereas almost all 
those deliveries comprise raw sugar Intended for refining-, whereas supplies 
to Community refineries are therefore seriously threatened; 
Whereas to that end a special accompanying measure for a limited period 
involving the granting of a marketing premium for raw preferential sugar 
intended for refining In the Community would enable the sugar industry in 
the producing countries to adjust to this new situation during that period, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. During the 1989/90, 1990/91 and 1991/92 marketing years, a marketing 
premium for the import of raw preferential cane sugar refined into white 
sugar during that period In the refineries referred to in the third 
subparagraph of Article 9(4) of Regulation (EEC) No 1785/81 shall be 
granted as an Intervention measure. 
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2. The premium referred to in paragraph 1 may be granted only In respect of 
the quantities laid down In the Protocol and the Agreement that have 
been imported and only If the premium is reassigned by the importer to 
the producer of the preferential sugar In question. 
3. The marketing premium provided for in paragraph 1 shall be determined 
per 100 kilograms of white sugar for each marketing year taking account 
of a total appropriation of ECU 30 million for the three marketing years 
referred to In paragraph 1. 
Article 2 
This Regulation shall enter Into force on the third day following that of 
Its publication in the Official Journal of the European Communities. 
It shall apply from 1 July 1989. 
This Regulation shall be binding in its entirety and directly applicable in 
a 11 Member States. 
Done at Brussels, For the Council 
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FINANCIAL STATEMENT 
DATE: 
1. BUDGET HEADING: 
Chapter 11 APPROPRIATIONS: ECU 2.125 ml 11 Ion 
2. TITLE: General rules in respect of the marketing of preferential sugar In the Comunity durlnb the 
1989/90 to 1991/92 market Irg years 
3. LEGAL BASIS: EEC Treaty 
4. AIMS OF PROJECT: 
Adoption of a marketing premium for a perlod of 3 years In order to enable the ACP states to adapt 
their industries to the lowering of the guaranteed prices by the EEC 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENT ION) 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
-NATIONAL Period of 12 months 
19 
ECU 10 ml 11 Ion Current Financial Year 
1990 
ECU 11 million Following Financial Year 
1991 
ECU 10 ml 11 Ion 
1992 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE ECU 9 ml 11 Ion 1993 1994 1995 
I 
5.2 METHOD OF CALCULATION: 
Marketing premium restricted to an amount of ECU 30 ml 11 Ion to be divided between the three marketing 
years conrmenclng on 1 July 1989 (1989/90 marketing year). Amount for each year: ECU 10 nrilllon 
1990 marketing year: period concerned: 1 July 1969-15 August 1990, namely ECU 11.25 million, rounded 
to ECU 11 ml 11 ion 
1991 marketing year: period concerned 16 August 1990-15 August 1991, namely ECU 10 million 
1992 market Irg year: period concerned 16 August 1991-30 June 1992, nan» I y ECU 8.75 million, rounded 
to ECU 9 ml 11 ion 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?" 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
xxxxxx 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES 
OBSERVÂT ICCS: 
Th-a mc^aire wi I i be appl Icable untl I the 1991/92 marketing year inclusive. 
I 
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FICHE D'IMPACT SUR LA COMPETITIVITE ET L'EMPLOI 
Quelle est la Justification principale de la mesure ? 
Mesure d'accompagnement destinée à compenser la diminution 
des prix garantis aux pays ACP et à i'inde pour le sucre et à 
permettre aux Industries des pays ACP de supporter cette 
diminution de recettes. Cette mesure concerne indirectement 
les raffineurs communautaires qui ne sont pas des PME. 
II. Caractéristiques des entreprises concernées. En particulier 
(a) Y a-t-ll un grand nombre de PME ? 
/ 
(b) Note-t-on des concentrations dans des réglons 
I. éllgibles aux aides régionales des Etats membres ? 
/ 
II. éllgibles au Feder ? 
/ 
III. Quelles sont les obiIgatIons imposées directement aux 
entreprises ? 
/ 
IV. Quelles sont les obligations susceptibles d'être Imposées 
Indirectement aux entreprises via les autorités locales ? 
/ 
V. Y a-t-ll des mesures spéciales pour les MPE ? Lesquelles ? 
/ / 
VI. Quel est l'effet prévisible 
a) sur la compétitivité des entreprises? 
/ 
b) sur l'emploi ? 
/ 
VII. Les partenaires sociaux ont-Ils été consultés ? 
Quels sont leurs avis ? 
/ 

-S-
Ï35N 0254-1475 
?>. COM(90) 97 final 
DOCUMENTS 
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Catalogue number : CB-CO-90-399-EN-C 
ISBN 92-77-63247-X 
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