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
Date: 1990-08-13
Institutions: European Commission
Subjects: cane sugar, import, marketing, sugar refining, white sugar

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 

(presented by the C o h e s i o n) 

5B?F 

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Bl^aMR;-; 

- 2 -

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. 

-  3 -

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. 

-  4 -

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. 

-  5  -

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 

-  6 

-

F I N A N C I AL 

S T A T E M E NT 

1.  BUDGET HEADING: 

Chapter  11 

DATE: 

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 

19 

Period  of  12 months 

Current Financial Year 
1990 

Following Financial Year 

1991 

ECU 10 ml 11 Ion 

ECU 11 million 

ECU 10 ml 11 Ion 

5.0  EXPENDITURE 

-  CHARGED TO THE  EC  BUDGET 
-  (REFUNDS/INTERVENT  ION) 

5.1  REVENUE 

-  OWN  RESOURCES OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

-NATIONAL 

1992 

1993 

1994 

1995 

5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 

ECU 9 ml 11 Ion 

5.2 METHOD OF CALCULATION: 

I 

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  m i l l i o n,  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?" 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVÂT ICCS: 
Th-a mc^aire wi I i be appl Icable untl I the 1991/92 marketing year  inclusive. 

I 

YES 

xxxxxx 

NO 

YES 

-  7 - 

eN 

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 

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ISBN 92-77-63247-X 

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