Proposal for a Council Regulation (EEC) introducing specific measures for the Canary Islands concerning certain agricultural products
Date: 1992-04-13
Institutions: European Commission
Subjects: Canary Islands, agricultural product, aid system, customs duties, supply

COMMISSION  OF  THE EUROPEAN  COMMUNITIES 

COM(92)  144 

final 

Brussels, 9 April 1992 

Proposal  for a 

COUNCIL REGULATION (EEC) 

introducing spsclfIc Measures for the Canary  Islands 

concerning certain agricultural  products 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

On  26 June  1991  the Council  adopted  Regulation  (EEC) No  1911/91  concerning 

the  integration of  the Canary  Islands  Into the customs  territory  of  the 

Community  and  all  the common  policies.  On  the same  day,  the  Council 

adopted  a programme  of options specific  to the  remote  and  insular  nature of 

the Canary  Islands  (Decision 91/314/EEC, Poseican) to accompany  this 

integration. 

This proposal  constitutes the  initial  implementation of  Poeeican  and 

establishes a framework  regulation  for  agricultural  measures  financed  by 

the EAGGF  Guarantee  Section. 

The purpose of  Poseican  is to reduce  the cost  of  supplies  and  encourage  the 

economic  and  social  development  of  the  Islands, which  have  an exceptional 

geographic  situation  and are structurally  very  backward  in relation  to 

other  regions  in the  Community. 

In view of  the specific problems of  the Canary  Islands, which  are  an 

integral  part  of  the Community,  and  the  imminent  completion  of  the  internal 

market,  the proposal  provides  for a eeries of mult(annua I, multisectors I 

measures  to facilitate supply  and  help  to  improve  the production  and 

marketing of  the agricultural  produce of  the  region. 

At. 

-  1 -

DRAFT 

COUNCIL  REGULATION 

ntroducing  specific  measures  for  the Canary  Islands 

concerning  certain  agricultural  products 

THE COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty  establishing  the European  Economic  Community, 

and  in particular  Articles 43 and  28  thereof, 

Having  regard  to the proposal  from  the  Commission, 

Having  regard  to  the opinion  of  the European  Parliament, 

Having  regard  to the opinion  of  the Economic  and  Social  Committee, 

Whereas  Council  Regulation  (EEC) No  1911/91  of  26  June  1991  on  the 

application of  the provisions of  Community  law to  the Canary  Islands1, as 

amended  by Regulation  (EEC) No  284/922,  integrates  the Canary  Islands  into 

the Community's  customs  territory  and  into the  common  policies; whereas, 

under  Articles  2 and  10 of  the above-mentioned  Regulation,  application of 

the common  agricultural  policy  is subject  to the entry  into  force of 

specific  supply  arrangements; whereas  such  application must  also  be 

accompanied  by specific measures  concerning  agricultural  production; 

Whereas  Council  Decision  91/314/EEC of  26 June  1991  setting  up  a  programme 

of options specific  to the  remote  and  insular  nature of  the Canary  Islands 

(Poseican) outlines  the options  to be  implemented  to  take  account  of  the 

specific  problems  and  constraints  faced  by  the  Islands; 

1  0J  No L  171, 29.6.1991. 

2 0J  No L 

A* 

-  2 -

Whereas  the exceptional  geographical  situation of  the Canary  Islands  in 

relation  to the sources of  supply  of  products used  as  inputs  for  the 

everyday  consumption  or manufacture of  certain  essential  foodstuffs  in the 

islands  imposes costs which  constitute  a severe  handicap  to the  sectors 

concerned; whereas  this natural  handicap  can be  remedied  by exemption  from 

levies and/or  customs  duties on  the products  in question  imported  directly 

from  third  countries; 

Whereas,  to maintain  the competitiveness of  the above products of  Community 

origin  in the  Islands, both  in order  to achieve  the Poselcan objective  of 

reducing  prices by promoting  competition  between  sources of  supply  and  to 

prevent  disruption of  traditional  trade  flows, provision  should  be made  for 

the supply  to this region of  products originating  in the  rest  of  the 

Community,  on  terms equivalent  for  the end  user  to exemption  from  the  levy 

and/or  customs  duties on products originating  in third  countries, based  on 

the prices applied  to exports  to third  countries; 

Whereas  the quantities of  products benefiting  from  the specific  supply 

arrangements must  be determined  within  the  framework  of  periodic  forecast 

supply  balances, which  may  be adjusted  during  the year  on  the basis of  the 

essential  requirements of  the  local  market  and  taking  account  of  local 

production  and  traditional  trade  flows; 

Whereas  the arrangements  in question  are  intended  to reduce  production 

costs and  consumer  prices; whereas  their  actual  impact  should  therefore  be 

monitored; 

-  3 -

Whereas,  to avoid  any  deflection of  trade, products  covered  by  the  specific 

supply  arrangements  may  not  be  redispatched  to other  parts of  the  Community 

or  re-exported  to  third  countries; whereas,  however,  an exception  to  this 

principle  should  be made  for  products  traditionally  processed  in the  Canary 

Islands  and  redispatched  or  re-exported,  within  the  limits of  usual  trade 

fIows; 

Whereas  the  specific  conditions of  agriculture  in the Canary  Islands 

require  special  attention  and  whereas measures  to accompany  the  entry  into 

force of  the  common  agricultural  policy  are  necessary  in this  regard,  both 

for  stockfarming  and  animal  products  and  for  crop  products; 

Whereas,  to promote  the development  of  traditional  stockfarming  in the 

Canaries,  assistance  should  be given  for  genetic  improvement  through  the 

purchase  of  pure-bred  breeding  animals  and  supplementary  premiums  should  be 

granted  for  the  fattening  of  adult  male  bovine  animals,  for  the  maintenance 

of  suckler  herds  and  for  sheepmeat  and  goatmeat  production,  and  the 

consumption  of  locally  produced  fresh  milk  products  should  be  promoted; 

whereas, pending  the development  of  local  stockfarming,  provision  should  be 

made, on  a  temporary  and  degressive  basis  so as not  to compromise  the 

above-mentioned  objective,  for  the  supply  of  male  animals  for  fattening, 

within  the  limits of  local  consumption  requirements,  as  periodically 

assessed; 

Whereas,  in the  fruit,  vegetables,  plants  and  flor(cultural  sector, 

measures  should  be  taken  to  increase  production  and  to  improve  farm 

productivity  and  product  quality; whereas measures  should  also  be  taken  to 

improve  the marketing  of  the  Islands'  tropical  products; 

-  4 -

Whereas  the creation  and promotion of  a graphic  symbol  can  also  facilitate 

the marketing of  specific  quality products; 

Whereas,  in order  to help support  local  production  with  a view  to 

satisfying  consumer  habits  in the  Islands, provision  should  be made  for 

specific  aid  for  potato-growing, within  the  limits of  the areas under 

cultivation on entry  into force of  this Regulation  and, during a 

transitional  period,  for  degressive  restrictions on  imports of  this  product 

during  the sensitive period when  local  production  is placed  on  the market; 

Whereas, with  the same objectives  in mind,  intervention  measures under  the 

market  organization  for wine  and grubbing  premiums  should  not  be  applied 

and aid  should  be granted  for  vines producing  quality  wines psr  which  meet 

the requirements  laid down  in the Community  rules; 

Whereas,  to contribute  to maintaining  IScai  cereal  production,  the co-

responsibility  levy payable  by cereal  producers  should  not  be  applied  in 

the Canary  Islands; 

Whereas,  in view of  the animal  health  status of  the  region,  it must  be 

possible  to grant  a temporary  derogation  to the  requirements  of  Council 

Directive 72/462/EEC of  12 December  1972 on  health  and  veterinary 

inspection  problems upon  importation  of  animals  from  third  countries; 

Whereas  farms  in the Canary  Islands present  major  structural  weaknesses 

from which  specific  difficulties  derive; whereas  a derogation  is  therefore 

necessary  from  the  rules which  restrict  or  prohibit  the grant  of  certain 

forms of  structural  aid; 

-  5 -

Whereas  certain  structural  measures essential  for  the development  of 

agriculture  in the  Islands are  financed  under  Community  support  frameworks 

to promote  the development  and structural  adjustment  of  regions  whose 

development  is  lagging behind  (Objective  1) pursuant  to Articles  130a and 

130c of  the Treaty; whereas  the Commission  has approved  an  initiative 

(Regis) to encourage  the economic  development  of  the remotest  regions, 

providing  for  the diversification of  agricultural  production,  the  upgrading 

of  traditional  products and measures  to reduce  the  risks associated  with 

natural  disasters; 

Whereas banana  cultivation  is of  fundamental  importance  to the economy  of 

the Canary  Islands; whereas  all  the problems  relating  to banana  production 

are  the subject  of  a Community  study  under  way  and  appropriate  measures 

will  be  taken on conclusion of  the  study, 

HAS ADOPTED THIS  REGULATION: 

Article 1 

This Regulation  lays down specific measures  to remedy,  in respect  of 

certain  agricultural  products, the difficulties  caused  by  the  remote  and 

insular  nature of  the Canary  Islands. 

TITLE I 

SPECIFIC  SUPPLY  MEASURES 

Article  2 

For  each marketing  year, a forecast  supply  balance  for  the Canary  Islands 

shall  be established  for  the agricultural  products  necessary  for 

-  6 -

«uman consumption  and processing  in the  Islands  listed  in the Annex.  This 

balance may  be  revised  during  the year on  the basis of  trends  in the 

Islands' requirements.  A separate  forecast  may  be made  to assess  the 

requirements of  the processing  and packaging  industries regarding  products 

for  the  local  market  or  traditionally  dispatched  to the rest  of  the 

Community. 

Article 3 

1. Levies and/or  customs duties shall  not  apply  to direct  imports  into  the 

Canary  Islands  from  third  countries of  products  covered  by  the  specific 

supply  arrangements, within  the  limit of  the quantities  determined  in 

t he suppIy  baIance. 

2. To ensure  coverage of  the requirements  referred  to  in Article  2  in terms 

of  quantity,  price  and quality, with  a view  to ensure  that  the 

proportion of  products  supplied  by  the Community  is preserved,  supplies 

to the Canary  Islands shall  also be effected  through  the mobilization of 

Community  products  held  in  intervention storage or  available on  the 

Community  market, on  terms equivalent,  for  the end user,  to  the 

advantage  resulting  from exemption  from  import  duties on  imports  of 

products  from  third countries. 

The  terms of  supply  shall  be fixed with  reference  to the costs of 

various sources of  supply  and  the prices applied  to exports  to  third 

countr ies. 

3. The arrangements  provided  for  in this Article  shall  be  implemented  in 

such a way  as  to take account,  in particular, of: 

the specific  requirements of  the Canary  Islands and,  in the  case of 

products  intended  for  processing,  the specific  quality 

requirements; 

traditional  trade  flows with  the  rest  of  the  Community; 

-  7  -

possibilities  for  supply  by neighbouring  developing  countries. 

4. Detailed  rules  for  the application  of  this Article  shall  be  adopted  in 

accordance  with  the procedure  laid down  in Article  26 of  Regulation 

(EEC) No  2727/75 on  the common  organization  of  the market  in cereals1 

or  the corresponding Articles of  the Regulations on  the  common 

organization  of  the markets  in the sectors  concerned.  They  shall  cover 

in particular  the determination of  the quantities  of  products  covered  by 

the specific  supply  arrangements  and  the provisions  to ensure  that  the 

advantages  are  actually  passed  on  to  the end  user  pursuant  to Article  6. 

Article  4 

1. Aid  shall  be granted  for  the supply  to  the Canary  Islands of  the 

following  products of  Community  origin: 

(a)  pure-bred  breeding  animals of  the bovine  species  falling  within  CN 

code  0102  10 00, 

(b)  pure-bred  breeding  swine  falling  within  CN  code  0103  10 00, 

(c)  pure-bred  breeding  rabbits  falling within  CN  code  ex  0106  00 10, 

(d)  multiplier  or  breeding  chicks  falling within  CN  code  ex  0105  11 00, 

(e)  hatching  eggs, other,  for  the production  of multiplier  or  breeding 

chicks  falling within  CN  code  ex  0407 00  19. 

2. The  aid  terms  shall  take account  of  the  requirements  of  the  Canary 

Islands with  regard  to the start-up  of  production,  in particular  for 

those  breeds most  suited  to conditions  in the  Islands.  The  aid  shall  be 

paid  for  the delivery of  animals which  fulfil  the  requirements  specified 

under  Community  rules. 

3. The  aid  shall  be determined  having  regard  to  the  following  factors: 

1  0J  No L  281, 1.11.1975,  p. 1 

- 8 -

(a)  the conditions of  supply  to the Canary  Islands  resulting  from  their 

geographical  situation; 

(b)  the price of  animals or  products on  the Community  market  and  on  the 

worId market; 

(c)  whether  or  not  customs  duties  and/or  levies are  charged  on  imports 

from  third  countries; 

(d)  the economic  aspect  of  the aid  envisaged. 

4. The  amounts of  aid,  the quantity of  products  receiving  aid  each  year  and 

the detailed  rules  for  the application of  this Article  shall  be  adopted 

in accordance  with  the procedure  laid  down  in Article  27 of  Council 

Regulation  (EEC) No 805/68 on  the common  organization of  the market  in 

beef  and  veal1  or  the corresponding  articles  in the  Regulations  on  the 

common  organization of  the markets  concerned. 

In the case of  products  covered  by  Regulation  (EEC) No 827/68 on  the 

common  organization  of  the market  in certain  products  listed  in Annex  II 

to  the Treaty2,  these measures  shall  be adopted  in accordance  with  the 

procedure  referred  to  in the previous  subparagraph. 

Article  5 

1. During  the marketing  years  for  beef  and  veal  1992/93  to  1995/96: 

(a)  the customs  duties  and/or  levies  referred  to  in Article  9 of 

Council  Regulation  (EEC) No 805/68 shall  not  be  applied  to  direct 

imports,  for  fattening  purposes, of  bovine  animals  from  third 

countries  for  consumption  in the  Islands; 

(b)  aid  shall  be granted  for  the supply, on  equivalent  terms, of 

1  0J  No L  148, 28.6.1968,  p.24. 

2  0J  No L  151, 30.6.1968, p.16. 

-  9 -

animals  as  referred  to at  (a) originating  in the  rest  of  the 

Community. 

2. The number  of  animals  concerned  by  the measures  referred  to  in the  first 

paragraph  shall  be based on  a periodic  supply  balance  and  determined 

degressive Iy to  take account  of  the development  of  local  production. 

The number  of  animals  and  the amount  of  the aid  referred  to  in paragraph 

K b ),  as well  as  the detailed  rules  for  the application  of  this Article, 

shall  be determined  in accordance  with  the procedure  laid  down  in 

Article  27 of  Regulation  (EEC) No 805/68. 

3. Not  later  than 6 months  before  the end of  the  1995/96 marketing  year, 

the Commission  shall  submit  to the Council  an assessment  of  the  measures 

provided  for  in this Article,  together  with  any  appropriate  proposals. 

Article  6 

1. Customs  duties shall  not  be applied  to direct  imports  into the  Canary 

Islands of  raw and  semi-manufactured  tobacco  falling  respectively  within 

- CN code  2401, 

-  and  subheadings 

. ex  2403  10 00 unfinished  cigars without  envelope, 

. ex  2403  10 00 cut  tobacco  (final  blends  for  the manufacture  of 

cigarettes), 

. ex  2403 91  00  "homogenized" or  "reconstituted"  tobacco, whether  or 

not  in  leaf or  strip  form, 

. ex  2403 99 90 expanded  tobacco  for  the manufacture  of  tobacco. 

The exemption  referred  to  in the previous  subparagraph  shall  apply  to 

products  intended  for  the  local  manufacture  of  tobacco products, within 

the  limits of  an annual  imported  quantity  of  20 000  tonnes of  stripped 

raw  tobacco equivalent. 

2. Detailed  rules  for  the application of  this Article  shall  be  adopted  in 

accordance with  the procedure  laid down  in Article  17 of  Council 

-  10 -

Regulation  (EEC) No 727/70 of  21 April  1970 on  the common  organization 

of  the market  in raw  tobacco1. 

Article  7 

1. Application of  the supply  arrangements  provided  for  in Articles  2 and  3 

shall  be subject  to the advantage  derived  from  exemption  from  the  levy 

and/or  customs  duty or,  in the case of  supply  from  the  rest  of  the 

Community,  from  the Community  aid being  actually  passed  on  to  the  end 

user. 

2. Detailed  rules  for  the application of  this Article  shall  be  adopted,  if 

necessary,  in accordance with  the procedure  referred  to  in Article 3(4). 

Article  8 

The products  covered  by  the specific  supply  arrangements  provided  for  in 

this Title may  not  be  re-exported  to third  countries or  redispatched  to  the 

rest  of  the  Community. 

Where  the products  in question  are processed  in the  Islands,  the  aforesaid 

prohibition  shall  not  apply  to  traditional  exports or  shipments  to  the  rest 

of  the  Community. 

Detailed  rules  for  the application  of  this Article  shall  be  adopted,  if 

necessary,  in accordance  with  the procedure  referred  to  in Article 4(4). 

Article  9 

Products  covered  by  the specific  supply  arrangements  provided  for  in  this 

Title  and  products  processed  therefrom  shall  not  be eligible  for  refunds  on 

exportation  from  the Canary  Islands. 

1 0J  No L 94, 28.4.1970, p. 1 

-  11  -

TITLE  II 

Measures  to assist  livestock  products 

Article  10 

Aid  shall  be granted  In support  of  traditional  activities  connected  with 

beef  and  veal  production  and measures  to  improve  product  quality,  within 

the  limits of  the consumption  needs of  the  Islands  as assessed  in the 

context  of  a periodic  supply  balance.  This  balance  shall  also  take  account 

of  breeding  animals  supplied  pursuant  to Article  4 and  animals  covered  by 

the supply  arrangements  referred  to  in Article  5. 

1. Fattening  aid  for male  bovine  animals  shall  represent  a supplement  of 

ECU  40 per  head  to the special  premium  provided  for  in Article  4a of 

Regulation  (EEC) No 805/68.  The  supplement  may  be granted  in respect  of 

an animal  of  a minimum  weight  to be determined  in accordance  with  the 

procedure  laid down  in Article 12. 

2. A supplement  to  the premium  for maintaining  suckler  cows  provided  for  in 

Council  Regulation  (EEC) No  1357/801  shall  be paid  to beef  and  veal 

producers.  The  amount  of  this supplement  shall  be  ECU  40 per  suckler 

cow  held  by  the producer  on  the day on which  the application  is 

submitted. 

Article  11 

Aid  shall  be granted  for  the human  consumption  of  locally  produced  fresh 

cows' milk  products, within  the  limits of  the consumption  needs of  the 

Islands as assessed  periodically.  The  aid  shall  amount  to ECU  5 per  100 kg 

of whole milk.  The  amount  of  the aid  shall  be  adjusted  in accordance  with 

the procedure  laid down  in Article  12  in order  to ensure  the  regular 

disposal  of  the aforementioned  products on  the  local  market.  The  aid  shall 

be paid  to the dairies.  Payment  shall  be subject  to  the  benefit  therefrom 

being  actually  passed  on  to  the  consumer. 

1  0J  No L  140, 5.6.1980, p. 1. 

-  12 -

Article  12 

The Commission  shall  determine  the detailed  rules  for  the application of 

Articles  10 and  11  in accordance  with  the procedure  laid  down  in Article  30 

of  Council  Regulation  (EEC) No 804/681  or  in Article  27 of  Regulation 

(EEC) No 805/681,  as applicable. 

Article  13 

1. A supplement  to the ewe  premium  payable  pursuant  to Article  5(3) of 

Council  Regulation  (EEC) No  3013/89 of  25 September  1989 on  the  common 

organization  of  the market  in sheepmeat  and  goatmeat2  shall  be  paid  to 

the  producers of  light  lambs  referred  to  in Article  4(3) of  that 

Regulat ion. 

The  amount  of  the supplement  shall  be equal  to  the difference  between 

the amounts of  the premiums  determined  pursuant  to Article  5(2) and  (3) 

payable  to producers of  heavy  lambs and  light  lambs  respectively,  plus 

the difference  between  the amounts of  the specific  aid  provided  for 

under  the  "rural  society" measures  in the  first  and  second  indents of 

Article  1(1) of  Council  Regulation  (EEC) No  1323/90 of  14 May  1990 

instituting  specific  aid  for  sheep  and  goat  farming  in certain  less-

favoured  areas of  the  Community3. 

2. The  supplement  determined  in accordance  with  paragraph  1 shall  also  be 

paid  to producers of  goatmeat, without  prejudice  to payment  of  the 

premium  provided  for  in Article  5(5) of  Regulation  (EEC) No  3013/89. 

3. Grant  of  the supplements  referred  to  in Articles  1 and  2 shall  be 

subject  to  the same  conditions  as  those  laid  down  for  the grant  of  the 

1  0J  No L  148, 28.6.1968, p. 13. 

2  0J  No L 289, 7.10.1989,  p. 1. 

3  OJ  No L  132, 23.5.1990, p. 17. 

-  13 -

premium to producers of sheepmeat and goatmeat pursuant  to Article 5 of 

the above-mentioned Regulation. 

4. Additional  implementing rules shall, where necessary, be adopted  in 

accordance with the procedure  laid down  in Article 30 of Regulation 

(EEC) No 3013/89. 

Article 14 

The words "the autonomous region of the Canary  Islands" shall be added for 

Spain to Annex  I to Regulation (EEC) No 3013/89. 

TITLE III 

Measures to assist fruit and vegetable production 

Article 15 

1. Aid per hectare shall be granted to producers and producer groups and 

organizations which undertake a programme of  initiatives, approved by 

the competent authorities, with a view to the development and 

diversification of production and/or the  improvement of the quality of 

the fruit, vegetables, flowers and  live plants  listed  in Chapters 6, 7 

and 8 of the combined nomenclature and of plants falling within CN code 

1211. 

The eligible  initiatives shall seek  in particular  to develop production 

and product quality, particularly  through varietal  conversion and 

cultural  improvements.  These  initiatives shall  form an  integral part of 

programmes conducted over at  least three years. 

The aid shall be granted for programmes covering a minimum area of 

0.3 ha. 

- 14 -

2. The amount  of Community  aid  shall  be at most  ECU  500/ha.  This  amount 

shall  be paid  where  the Member  State provides official  financing  of  at 

least  ECU  300/ha  and  the contribution of  the  individual  producer  or 

group  amounts  to at  least  ECU  200/ha.  If the contributions of  the 

Member  State  and  the producers  are  less than  the amounts  specified,  the 

Community  aid  shall  be  reduced  proportionately. 

The  aid  shall  be paid  each  year  of  execution of  the programme,  for a 

period  not  exceeding  three  years. 

3. The  aid  shall  be  increased  by  Ecu  100/ha where  the programme  of 

initiatives  is submitted  and  carried  out  by  a producer  group or 

organization  and where,  for  its  implementation,  recourse  to  technical 

assistance  is envisaged.  The  additional  aid  shall  be granted  in  respect 

of  programmes  involving  a minimum  area of  2 ha. 

4. This measure  shall  not  apply  to banana  production  pending  the 

conclusions  relating  to the  treatment  of  all  the problems  connected  with 

such  production,  in accordance with  point  9 of  the Council's  Decision  on 

Poseican. This measure  shall  not  apply  to the production  of  tomatoes  nor 

of  potatoes  for  human  consumption  falling  within  CN  codes  0701  90 51, 

0701  90 59 and  0701  90 90. 

5. Detailed  rules  for  the application of  this Article  shall  be  adopted  in 

accordance with  the procedure  laid down  in Article  33 of  Council 

Regulation  (EEC) No  1035/72(1>. 

Article  16 

1. Community  aid  shall  be granted  for  the conclusion  of  annual  contracts 

concerning  the marketing of  tropical  products  included  in the  products 

referred  to  in Article  15 and  harvested  in the Canary  Islands.  This  aid 

shall  be paid  up  to a  limit  of  a volume of  trade of  10 000  tonnes  per 

year. 

(1) 

OJ  No L  118 of  20.5.1972, p. 1. 

-  15 -

The  contracts  shall  be concluded  between  individual  producers  or 

producer  groups or  associations  and  natural  or  legal  persons  established 

in the  rest  of  the  Community. 

2. The  amount  of  the aid  shall  be  10% of  the value of  the  production 

marketed,  free at  destination. 

3. The  aid  shall  be granted  to purchasers who undertake  to market  the 

Canaries  products under  the contracts  referred  to  in paragraph  1. 

4. Where  the measures  provided  for  in paragraph  1 are undertaken  by  Joint 

ventures  constituted,  with  the  aim of marketing  products  harvested  in 

the Canaries, by  producers or  producer  groups or  associations  in  the 

Islands  and  natural  or  legal  persons established  in the  rest  of  the 

Community,  and where  the partners undertake  to pool  the knowledge  and 

know-how  required  to achieve  the objective of  the  Joint  venture  over  a 

minimum  period  of  three  years, the amount  of  the aid  specified  in 

paragraph  2 shall  be  increased  to 13% of  the value of  the  annual 

production  marketed  Jointly. 

5. Detailed  rules  for  the application of  this Article  shall  be  adopted  in 

accordance  with  the procedure  laid  down  in Article  33 of  Council 

Regulation  (EEC) No 1035/72. 

Article  17 

1. The Community  shall  contribute  up  to a maximum  of  ECU  100 000  towards 

the  financing of  an economic  analysis  and  forward  study  of  the  fruit  and 

vegetable  processing  industry  in the Canary  Islands, with  particular 

reference  to  tropical  products. 

- 16 -

The study shall produce an economic and technical  assessment of the 

sector.  It shall pay particular attention to supply data and processing 

costs and examine the conditions and scope for development  and sales at 

regional and  international  level, having regard to competition on the 

worId market. 

2. Detailed rules for the application of this Article shall be adopted  in 

accordance with the procedure  laid  Idown In Article 22 of Council 
Regulation (EEc) No 426/86<1>. 

Article 18 

1. A graphic symbol shall be  introduced with a view to ensuring greater 

awareness and consumption of quality processed agricultural  products 

specific to the Canary  Islands as remote regions. 

2. The graphic symbol shall be chosen on the basis of an  invitation to 

tender published by the Commission  in the Official  Journal of the 

European Communities. 

3. The conditions of utilization of the symbol shall be proposed by the 

trade organizations.  The competent authorities shall  forward such 

proposals, with their opinion, to the Commission for approval. 

The utilization of the symbol shall be monitored by an official 

authority or a body approved by the competent authorities. 

4. The Community shall finance the production of the graphic symbol  and its 

promotion. 

5. Detailed rules for the application of this Article shall be adopted, as 

necessary, in accordance with the procedure  laid down  in Article 33 of 

Regulation  (EEC) No 1035/72 or the corresponding Articles of other 

Regulations on the common organization of the markets. 

(1) 

OJ No L 49 of 27.2.1986, p. 1. 

-  17 -

Article  19 

Title  III of  Council  Regulation  (EEC) No 822/87 of  16 March  1987 on  the 

common  organization  of  the market  in wine1  and  Council  Regulation  (EEC) No 

1442/88 of  24 May  1988 on  the granting,  for  the  1988/89  to  1995/96  wine 

years, of  permanent  abandonment  premiums  in respect  of  winegrowing  areas2 

shall  not  apply  to  the Canary  Islands. 

Article  20 

1. A  flat-rate  aid  per  hectare  shall  be granted  for  the  continued 

cultivation of  vines  for  the production  of  quality  wines  psr  in the 

traditional  production  zones. 

Aid  shall  be paid  in respect  of  areas: 

(a)  planted  to varieties  included  in the  list of  vine  varieties 

suitable  for  the production of  each  of  the quality  wines  psr 

produced  and  belonging  to  the  recommended  or  authorized  categories 

referred  to  in Article  13 of  Regulation  (EEC) No  822/87; 

(b)  and on which  the yield  per  hectare  is below  a maximum  limit  fixed 

by  the Member  State, expressed  in quantities  of  grapes, grape  must 

or wine, subject  to the conditions of  Article  11 of  Council 

Regulation  (EEC) No 823/87 of  16 March  1987  laying  down  special 

provisions  relating  to quality wines  produced  In specified 

regions1. 

2. The aid  shall  amount  to ECU  400 per  hectare.  From  the beginning  of  the 

1997/98 marketing  year,  the aid  shall  be  paid  exclusively  to  producer 

groups or  organizations. 

1  0J  No L 84, 27.3.1987, p. 1. 

2  0J  No L  132, 28.5.1988, p. 3. 

1  0J  No L 84, 27.3.1987, p. 59. 

-  18 -

3. Detailed  rules  for  the application of  this Article  shall  be  adopted,  as 

necessary,  in accordance  with  the procedure  laid  down  in Article  83 of 

Regulation  (EEC) No 822/87. 

Article  21 

1. Aid  per  hectare  shall  be granted  annually  for  the  cultivation  of 

potatoes  for  human  consumption  falling  within  codes  0701  90 51, 

0701  90 59 and  0701  90 90 of  the combined  nomenclature (CN). 

The  aid  shall  be ">aid  in respect  of  areas cultivated  and  harvested  to  to 

a maximum  of  12 000 hectares  per  year. 

2. The  amount  of  the annual  aid  shall  be  ECU  500/ha. 

3. Detailed  rules  for  the application  of  this Article  shall  be  adopted  in 

accordance  with  the procedure  laid  down  in Article  11 of  Council 

Regulation  (EEC) No  2358/71  of  26 October  1971  on  the  common 

organization  of  the market  in seeds1. 

Article  22 

Deliveries  to  the Canary  Islands of  potatoes  for  human  consumption  falling 

within  codes  0701  90 51, 0701  90 59 and  0701  90 90 of  the  combined 

nomenclature  (CN) shall  be  restricted  during  sensitive periods  for  the 

marketing  of  Canaries  production.  This  restriction  shall  be  implemented  on 

a degressive  basis  for  L  period of  ten marketing  years. 

The  Commission  shall  determine  the period of  application of  the 

quantitative  restrictions  and  the volume of  deliveries pursuant  to  this 

Article  in accordance  with  the procedure  laid  down  in Article  21(3). 

1  OJ  No L 246, 5.11.1971,  p. 1. 

-  19 -

Article  23 

From  the beginning  of  the  1992/93 marketing  year,  the aid  to olive oil 

consumption  provided  for  in Article  11 of  Council  Regulation  No  136/66/EEC 

of  22 September  1966 on  the establishment  of  a common  organization  of  the 

market  in oils and  fats2 applicable  in the Community  as constituted  at  31 

December  1985 shall  be paid  to undertakings  in the Canary  Islands  packaging 

olive oil  produced  in the  rest  of  the  Community. 

Detailed  rules  for  the application of  this Article  shall  be  adopted,  as 

necessary,  in accordance  with  the procedure  laid  down  in Article  38 of 

Regulation  (EEC) No  136/66/EEC. 

Article  24 

Spain  is hereby  authorized  to grant  a regional  aid  for  the production  of 

tobacco  as a supplement  to the aid  introduced  by Regulation  (EEC) No 

727/70, on  condition  that  the supplement  cannot  give  rise  to discrimination 

between  producers. 

The maximum  amount  of  the  regional  aid  shall  be equal  to  ti.o difference 

between  the aid  paid  to  the Canaries  prior  to the application of  the  above-

mentioned  Regulation  and  the Community  premium.  The  regional  aid  shall  be 

granted  within  the  limit  of  the quantity  traditionally  produced  in the 

Islands. 

Article  25 

1. Aid  shall  be granted  for  the production  of  quality  honey  specific  to the 

Canary  Islands, produced  by  the  indigenous breed  of  "black  bees". 

The  aid  shall  be paid  to associations of  beekeepers  recognized  by  the 

competent  authorities on  the basis of  the number  of  hives of  black  bees 

in production, up  to a maximum of  5 000 hives. 

2  OJ  No L  172, 30.9.1966, p. 3025. 

-  20 -

The amount  of  the aid  is hereby  fixed  at  ECU  20 per  hive  in production 

and  per marketing  year.  For  the purposes  of  this Regulation,  the 

marketing  year  shall  commence  on  1 July  and  end  on  30 June. 

2. Detailed  rules  for  the application of  this Article  shall  be  drawn  up,  as 

necessary,  in accordance with  the procedure  laid  down  in Article  17 of 

Council  Regulation  (EEC) No 2771/75 of  29 October  1975 on  the  common 

organization of  the market  in eggs1. 

Art icle 26 

The  co-responsibility  levy payable  by  cereal  producers  pursuant  to 

Article  4 of Council  Regulation  (EEC) No 2727/75 of  29 October  1975 on  the 

common  organization  of  the market  in cereals shall  not  apply  to  the  Canary 

Islands. 

TITLE  IV 

SPECIFIC  PROVISIONS 

Si  t'tie  1: Derogations  applicable  to structural  aasures 

Article  27 

1. Notwithstanding  Articles  5, 6,  7 and  12 of  Council  Regulation  (EEC) No 

2328/91  of  15 July  1991  on  improving  the efficiency  of  agricultural 

structures1,  investment  aid  for  agricultural  holdings  in the  Canary 

Islands shall  be gra. ced on  the  following  conditions: 

1  0J  No L 282, 1.11.1975,  p. 49. 

1  0J  L 218, 6.8.1991,  p.1. 

-  21  -

(a)  notwithstanding Article  5(1)(a),  the  investment  aid  scheme  provided 

for  in Articles 5 to 9 of  the above-mentioned  Regulation may  be 

applied  in the Canary  Islands  to  farmers who, while  they  do not 

practise  farming  as  their  main occupation, derive at  least  25% of 

their  total  income  from  farming  carried out  on  the  holding  and 

whose  holding  does not  require more  than  the equivalent  of  one  MWU, 

provided  that  the envisaged  investments  do not  exceed  ECU  25 000; 

(b)  the authorization concerning  the keeping  of  simplified  accounts 

provided  for  in Article  5(1)(d) shall  apply  beyond  31  December 

1991; 

(c)  pig  production  shall  not  be subject  to  the conditions  laid  down  in 

Article 6(4); 

(d)  notwithstanding Article  6(5), the beef  and  veal  sector  shall  not  be 

subject  to the conditions  laid  down; 

(e)  with  regard  to eggs  and  poultry  production,  the  prohibition 

referred  to  in Article  6(6) shall  not  apply  to  family  farms  in so 

far  as  their  size  is  in proportion  to  the need  to  ensure  balanced 

development  in the  region  and  does not  lead  to  increased  production 

in the sector  in question; 

(f)  notwithstanding Article  7(1), expenditure  relating  to  initial 

purchases of  pigs may  be eligible under  the system  of  investment 

aid  referred  to  in Article 6(1) of  the above-mentioned  Regulation; 

(g)  notwithstanding  the  fifth  subparagraph  of  Article  7(2),  the  maximum 

value of  the  investment  aid  shall  continue  to be  increased  by  10% 

after  31  December  1991; 

-  22 -

The measures mentioned  in the  first  subparagraph  under  (c), (d), (e) and 

(f) shall  apply  only  in so  far  as  livestock  production  is undertaken  in 

a manner  compatible  with  animal  welfare  and  environmental  protection 

requirements  and  provided  that  production  is for  the domestic market  of 

the  region. 

2. Notwithstanding  Article  17 of  Regulation  (EEC) No  2328/91,  the 

compensatory  allowance  referred  to  in Article  19 of  that  Regulation  may 

be granted  in the Canary  Islands  for  all  crops, provided  they  are 

cultivated  in a manner  compatible with  environmental  protection 

requirements  and  vibject  to a maximum  income  per  holding  to be 

determined. 

In addition, cows whose milk  is  intended  for  the domestic  market  of  the 

region may  be  taken  into consideration  for  the calculation  of  the 

compensatory  allowance  in ail  areas of  the  region  specified  in Article 

3(4) and  (5) of Council  Directive  75/268/EEC of  28 April  1975 on 

mountain  and  hill  farming  and  farming  in certain  less-favoured  areas1, 

up  to a maximum  of  20  livestock units. 

3. Notwit* landing  the second  subparagraph  of  Article  18(1) of  Regulation 

(EEC) No 2328/91, the compensatory  allowance may  be granted  to  farmers 

in the  region with  less  than one  hectare of  utilizable  agricultural 

area. 

4. Notwithstanding  Article  24 of  (EEC) Regulation  No 2328/91  the  maximal 

eligible  amount  of  th ; premium  per  hectare  referred  to  in Article  22 of 

that  Regulation  s^  M  be  fixed  at  Ecu 600/ha. 

5. Notwithstanding  Article  37(1) of  Regulation  (EEC) No  2328/91, Spain  is 

hereby  authorized  not  to apply  the schemes  provided  for  in Titles  I and 

II of  that  Regulation  in the Canary  Islands. 

1  0J  No L  128, 19.5.1975, p. 1. 

-  23 -

6. The Commission,  in accordance with  the procedure  laid  down  in Article  29 

of  Regulation  (EEC) No 4253/88, 

(a)  shall  adopt  the conditions  for  applying  this Article; 

(c)  may  decide, on  a reasoned  request  by  the competent  authorities, 

-  to modify  the  investment  ceiling  referred  to  in Article  8(1) of 

Regulation  (EEC) No 2328/91, 

-  notwithstanding Article  12(1) and  the second  indent  of  Article  13 

of  Regulation  (EEC) No 866/90 and  from  the  corresponding 

provisions of  Council  Regulation  (EEC) No 867/90 on  improving  the 

processing  and marketing  conditions  for  forestry  products1  to 

extend  the coverage of  these measures  to essential  imports  from 

third  countries, provided  that  the products  processed  and/or 

marketed  are  intended  exclusively  for  the domestic  market  in the 

Canary  Islands. 

Subtitle  2: Veterinary  measures 

Article  28 

1. The  following  Article  is hereby  inserted  in Directive  72/462/EEC: 

"Article  31b 

Without  prejudice  to Article  17 of  Directive  90/675/EEC2,  the 

Commission  may,  in accordance  with  the procedure  laid  down  in Article 

29, derogate  until  31  December  1994  from  certain  provisions  of  Articles 

4  and  17 with  regard  to  imports of meat  into  the Canary  Islands. 

1  0J  No L 91,  6.4.1990,  p.7. 

2 0J  No L 373, 31.12.1990, p. 1. 

-  24 -

When  the decisions  provided  for  in the preceding  paragraph  are  taken, 

the  rules applicable  after  importation  shall  be  laid down  in  accordance 

with  the same  procedure." 

2.  In Annex  I of  Council  Directive  90/675/EEC, of  10.12.1990,  laying  down 

the principles  governing  the organization  of  veterinary  checks  on 

products entering  the Community  from  third  countries,  the  point  4  is 

replaced  by  the  following  text: 

"4.  The  territory  of  Spain  except  Ceuta  and Mel ilia." 

TITLE V 

GENERAL  PROVISIONS 

Art icle 29 

The measures  provided  for  in this Regulation,  excluding  Articles  24, 27 and 

28,  shall  constitute  intervention  designed  to stabilize  the  agricultural 

markets with  n *he meaning  of  Article  3(1) of  Regulation  (E.") No 729/70. 

Article  30 

1. The  Commission  shall  submit  to  the Council  and  to Parliament  an  annual 

report  on  the  implementation  of  the measures  provided  for  in  this 

Regulation, accompanied  where  appropriate by  proposals  concerning  any 

adjustment  measures wi ich may  prove  necessary  in order  to achieve  the 

objectives of  the ; ©gramme. 

2. At  the end  of  the  third  year  of  application of  the  scheme  the  Commission 

shall  submit  to  the Council  and  to Parliament  a general  report  on  the 

economic  situation  of  the Canary  Islands  showing  the  impact  of  the 

measures  taken  pursuant  to  this Regulation. 

In the  light of  the  report's  conclusions,  the Commission  shall  submit, 

where  sr  this proves  necessary,  appropriate  adjustments. 

-  25  -

Article  31 

This Regulation shall  enter  into force on  1 July  1992. 

This Regulation  shall  be binding  in  its entirety  and  directly  applicable  in 

all Member  States. 

For  the CounciI 

CANARIES 

ANNEX 

LIST OF  PRODUCTS  COVERED  BY THE SPECIFIC  SUPPLY  ARRANGEMENTS  PROVIDED  FOR 
IN ARTICLE  3 

DESCRIPTION  OF THE  PRODUCTS 

CN  CODE 

-  CEREALS 

.  wheat 
.  barley 
.  oats 
.  maize 
. meal  and  pellets 
. malt 

-  HOPS 

-  RICE 

- VEGETABLE OILS 

-  SUGAR 

-  CONCENTRATED  FRUIT JUICE 

(raw mat. -i-*ls) 

-  B E E F / V E ^^ 

.  fresh or  chilled 
.  frozen 

-  PIGMEAT 

.  frozen 

-  POULTRYMEAT 

.  frozen 

-  DRIED  EGGS 

(for the  food  industries) 

- TABLE  WINES 

- SEED  POTATOES 

1001 
1003 
1004 
1005 
1103 
1107 

1210 

1006 

ex  (1507  to  1516) 

1701 
1702 

2007  99 
2008 

0201 
0202 

0203  21, 22, 29 

0207  21,  22, 41, 43,  50 

0408 

ex 2204 

0704  A0  00 

DESCRIPTION  OF THE  PRODUCTS 

CN  CODE 

-  2 -

- MILK  PRODUCTS 

.  liquid milk 
.  concentrated  milk or  powder 
.  butter 
.  cheese 

0401 
0402 
0405 
0406  30 
0406  90 23, 25, 27, 77, 79, 
81,  89 

. milk-based  preparations 

-  for  children 
- without  animal  fats 

2106 90  91 
1901 90  90 

FOR THE  1992/93 to  1995/96 MARKETING  YEARS 

-  FRESH OR CHILLED  PIGMKAT 

0203  11, 12, 19 

-  PROCESSED MEAT  PRODUCTS 

1601 
1602 

27 

Financial  S tatement 

Date :  0^.0^.1992 

1. BUDGET  HEADING  :  183, 251, 381 

APPROPRIATIONS : 

ECU 45,  21,  20 million 

2. TITLE : 

Council  Regulation  introducing  specific  measures in respect of certain  agricultural  products 
for the benefit of the Canary  Islands 

3. LEGAL  BASIS :  Article  43 of the  Treaty 

4. AIMS 

Implementation in the agricultural  sector of the Council  Decision  setting up Poseican 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

5.0  EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(INTERVENTIONS) 

CURRENT  FINANCIAL  YEAR 

(  1992  ) 

FOLLOWING  FINANCIAL  YEAR 

(  1993  } 

p.m. 

ECU  49,6  m i l l i on 

• NATIONAL  AUTHORITIES 

- OTHER 

5.1  REVENUE 

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

- NATIONAL 

5.0.1  ESTIMATED  EXPENDITUPC 
5.1.1  ESTIMATED  REVENUE 

5.2 METHOD OF CALCULATi 

p.m. 

p.m. 

1994. 

1995. 

1996. 

1997. 

ECU 48,8 m 

p.m. 

ECU 47,3 m 

p.m. 

ECU  Zf,1  m 
p.m. 

ECU  25,£j  m 

p.m. 

For detailed  calculation  for Canaries,  see Annex. 
The double  rate used is 1.145 

6.0  CAN  THE  PROJECT BE FINANCED  FROM  At . ROPRIATIONS  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 WILL A SUPPLEMENTARY  BUDGET BE NECESSARY ? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS BE NECESSARY ? 

YESXN* 

YES/46 

¥€«/NO 

YES/4W. 

COMMENTS : 
In addition, a ve/y  large part of expenditure on supplies, estimated at ECU  16*,4 
million  is substituted by expenditure  on  refunds in favour of  Community  products 
intended  for the  Canary  Islands, currently  borne by the EAGGF  Guarantee  Section. 

Similarly, budget  revenue  lost, estimated at ECU  108 million,  corresponds  to a large 
to the amount of levies  not  collected  when  the CAP did  not  apply in the 
part 

| 
•Regulation  I  „  . 
P r o A Kt 
!  Article 

„. *  . tJ  I B u d a et  ~" 

1993 

I  1994  I  1995  I  1996  I  1997  I  1998  I  1999  I 

|Typeofa,d  , 

.^ 

„ 

, 

, 

, 

, 

, 

, 

I 

(ECU million (A)) 
TOTAL 

I 
I 

CANARIES - AGRICULTURAL  SECTION:  COST OF THE PROPOSAL 

2 *3 

I 
> 

1  3 *5 
I 

4 

I 
i 
}
'
1  10 

I  Permanent 
I  Supply 

i per  tonne 
I 

1  Temporary 
I  Supply 

1  per  tonne 
I 

I 
I 

1 
1 

183 
251 

183 
251 

n 
II 

n 
II 

54.0 
88.6 

0.0 
14.5 

1  54.0 
88.6 
I 

I 
I 

0.0 
12.8 

1  Pure-bred 
1  animals 
•

•

1  Cattle 

1  per  head 
' 
i 
•• 
1 per head 

1  '  251 

11 

3.3 

1 

3.3 

I 

11 

1  251  11  1.3 

1 

1 

1  54.0 
88.6 
I 

1  54,© 
88.6 
I 

1  54. c 
88.6 
I 

1  54.0 
88.6 
I 

1  54.o 
88.6 
I 

1  &2.0 
620.5 
I 

1 
I 

O.o 
11.2 

1 

3.3 

1 
I 

1 

I 
I 

1 

0.0 
9.5 

1 

3.3 

0.0 
0.0 

1 

3.3 

1 
I 

1 

O.o  •' 
0.0 

1 

3.3 

1 
I 

1 

1 
I 

1 

0.0 
0.0 

1 
I 

0.0 
47.9 

1 
I 

1 

p.m. 

1  20.0 

I 

1 

l 

I 

1.3 «-•  1 -  1.3 

1  1.3 

1  1.3 

1  1.3 

1  1.3 

1  9.2  I 

•  11 

I  M ^k 

| per  tonne 

I  251  II  2.2 

I  2.2 

I  2.2 

I  2.2 

I  2.2 

I  2.2 

I  2.2 

I  15.4  I 

1 

13 

1  15 
1 
1* 
1  17 

1  Sheep 

1 per head 

' 

251 

11  1.0 

1  1.5 

1  1.5 

1  1.3 

I  1.5 

1  1.5 

I  1.5 

1  9.8  I 

1 . Fruit and 
1  vegetables 
1 

• per ha 
183 
' by value 
' fixed  rate  '  183 

I  183  11  7.5 
11  5.4 
n  °-1 

I 

1  8.1 
5.5 
1 
0 ,° 
! 

I  8.6 

1  1.6 

1  1.0 

1  0.5  t  0.0 

1  27.3  I 

I  5.6 

I  5.7 

'  °*° 

'  °-° 

1  5.8 
'  °-° 

1  5.9 
'  °-° 

I  6.0 
'  °-° 

1  39.9  1 
°'1  ' 
' 

1  18 

1 logo 

> fixed rate  '  381  11  0.3 

1  0.5 

1  0.5 

1  0.3 

1  p.m.  1 

1 

1  1.6  I 

1  20 

1 wine 

1 per ho 

I  183  11  1.0 

I  1.0 

1  1.0 

I  1.0 

1  1.0 

I  1.0  i  1.0 

1  6.7  I 

1  21 

(Potatoes 

I per ha 

1  183  11  6.0 

1  6.0 

1  6.0 

1  6.0 

1  6.0 

1  6.0 

1  6.0 

1  42.0 1 

I  23 

I Olive Oil 

I per tonne 

I  187  II  0.6 

I  0.3 

I  0.0 

I  0.0 

I  0.0 

I  0.0 

I  0.0 

I  0.9  I 

I 

25 

1  Honey 

1  per  hive 

1 

251 

11 

0.1 

1 

0.1 

1 

0.1 

1 

0.1 

1 

0.1 

1 

0.1 

1 

o.i 

1 

0.8 

I 

26 

1  Cereals 
1 
ITOTAL 
I 
1.  Plant  prods. 
I 
I  Animals 
I 
I  Other 

jtojrespcrsibi l i ty 
I 
, 
I 
I 

I 
t 
I 
I 

i83 

183 
251 
381 

ITOTAL EXCLUDING Supply 
« 
1 
• 

1 
plant  products! 
I 
animals 
I 
Otter 

| 
1 
• 
I 

183 
251 
381 

11 
II 
11 
II 
II 

M 
II 
II 
II 

0.0 
186.0 

1 
I 
7?.9  1 
I 
I 

107.8 
0.3 

0.0 
1o5-3 
n.t 
106.6 
0.5 

1 
' 
I 
I 
I 

0.0 
,83-9 

7#.$ 
104.9 
0.5 

1 
I 
I 
I 
I 

74.<5  1 
I 
103.3 
I 
0.3 

1 
I 
\ 
ijA 
93.8 
I 
p.m.  I 

0.0 
17$. 1 

0.0 
1 
I  M^.% 

0.0 
16<U 

1 
' 

0.0 
16^.^- 

1 
0.0 
I  1220.3 

10.-f  1 
I 
93.8 
-  I 

670  1 
I 
93.8 
-  I 

4$;$ 

$$.4 
4.6 
0.3 

1 
I 
I 
I 

(,1.6 

3?.0 
5.1 
0.5 

I 
I 
I 
I 

41.3 

%$.l 
5.1 
0.5 

l  3?.5 
I 
I 
I 

27/\ 
5.1 
0.3 

I 
1 
I 
I 

22.2 

I 
17.1  1 
5.1 
I 
p.m.  I 

21.8 

I 
16.7  1 
I 
5.1 
-  I 

13.0  1 
I 
5.1 

-I 

18.1 

I  t*\ .1 

1 
I 
I 
5\t,H 
703.7  I 
1.6  I 

I 
12<U«  1 
35.3  I 
1.8  I 

C A N A R I ES 

0 ^ - 0 ^ - 1 9 92 

I.  LOSS OF LEVIES 

The  figures  are  indicative  and  based  on the  quantities  currently 

*"  imported  from third  countries.  They will  have  to  be  reviewed  annually 
in accordance with Articles  2 and  3.  The  loss, of  levies  is  calculated 
on the basis  of  the  levy or  customs  duty  currently  charged. 

In the case of  permanent  supply,  the  loss of  levies will  amount  to 
ECU 83 million  (A)  (see Annex),  plus  about  ECU  40 million  (A) in  lost 
customs duties  on  20 000 tonnes  of tobacco.  In the  case of  temporary 
supply  (bovine  animals  for  fattening),  the  loss will  amount  to 
ECU  1.9 million  (A) in the  first  year,  and will  cease  to  apply  ia  five 
years, as shown  below. 

II.  SUPPLY AID 

The  figures  are  indicative  and  based  on the quantities  currently 
imported  from  the Community.  They will  have to  be  reviewed  annually 
in accordance with Articles  2 and  3.  The  amount  of  the  aid  is 
calculated on the basis of the refund  currently  in  force. 

PERMANENT  SUPPLY 

The  figures  in Annex  I show that  supply  aid  amounts  to ECU  14i  million 
(A). 

TEMPORARY  SUPPLY 

!• Bovine animals  for fattening  (Article  5) 

From the EEC 

From third countries 

1993 

1994 

1995 

1996 

150 kg 

Ouont i ty 
Aid 
Cost 

(Tonnes) 

(ECU/t) 

3.700 
144 
0.53 

2.800 
144 
0.40 

1.900 
144 
0.27 

1.000 
144 
0.14 

250 kg 

OuontIty 
Aid 
Cost 

(Tonnes) 
(ECU/t) 

3.700 
240 
0.89 

2.800 
240 
0.87 

1.900 
240 
0.46 

1.000 
240 
0.24 

T O T AL  COST 
in ECU million (A) 

1.4 

1.1 

0.7 

0.4 

150 kg 

Ouont i ty 
Levy 
Lost  levies 

(Tonnes) 
(ECU/t) 

2.500 
200 
0.50 

1.900 
200 
0.38 

1.300 
200 
0.26 

700 
200 
0.14 

250 kg 

OuontIty 
Levy 
Lost  levies 

(Tonnes) 
(ECU/t) 

T O T AL  LOST LEVIES 
In ECU million (A) 

4.300 
330 
1.42 
1.9 

3.200 
330 
1.08 

2. 100 
330 
0.69 

1.000 
330 
0.33 

1.4 

1.0 

0.5 

1* 

- 2 -

2.  Chllled  Dlomeat 

(From the EEC) 

10% réduction  in initial  quantIty  each  year 

• 

1993 

1994 

1995 

1996 

Quantity (T) 
Aid 

(ECU/T) 

3.000 
300 

2.700 
300 

2.400 
300 

Coat  (ECU m (A)) 

0,9 

0,8 

0,7 

2.100 
300 

0,6 

3.  Procetaed,  roejt  protfUCtB 

(frcai  the  EEC) 

10%  réduction  in  i n i t i al  quantity  each  year 

Product 

CCT code 

Quantity 
(T) 

Aid 
(ECU/T) 

Coat 
(ECU m (A)) 

Prep meat* proda. 

Liver 
Poultry ; 
H\m 
Pork shoulder 
Other: Pork 

Beef/veal 

16.01.00 
16.02.20 
16.02.31 
16.02.41 
16.02.42 
16.02.49 
16.02.50 

T O T AL 

14.500 
1.900 
600 
3.000 
1.800 
1.700 
2.500 

26.000 

350 
300 
0 
570 
510 
670 
1.160 

5,08 
0,57 

-
1.71 
0,92 
0,97 
2,90 

12.2 

4.  ffUMUrY  9f  gott  Pf  tfBPOriTV  8UBBIV  l i ti 

(frem  EEC) 

1993 

1994 

1995 

itee 

1997 

1998 

Bovine animals for fattening  1,42 

1,07 

0,73 

0,38 

Chi 1 led plgmeat 

0,90 

0,81 

0,72 

0,63 

Processed meat products 

12,15 

10,93 

9,71 

8,49 

0 

0 

0 

T O T AL  (ECU m (A)) 

14,5 

12,8 

11.2 

9,6 

-

0 

0 

0 

-

y 

- 3 -

Supply of breeding animals 
(from the EEC) 

(Article 4) 

Type 

Number/year 

Amount 
(ECU/head) 

coat 
(ECU  (A)) 

Bovine animals 
Male swine 
Female swine 
Male rabbits 
Female rabbits 
Chicks 
Eggs for hatching 

T O T AL 

4.300 
160 
2.200 
1.600 
10.000 
525.000 
525.000 

1.300 
410 
380 

0,50 
0,35 
0,05 

5.590.000 
65.600 
836.000 
800 
3.500 
131.250 
26.250 

6.653.400 

The EEC wiI I bear 50% of the cost,  i.e. ECU 3.3 mi I I ion (A). 

Tobacco  (Article 6) 

Exemption  from customs duties on 20,000 tonnes 
20.000 t x ECU 5l6/t - ECU 10.3 million (A) 

Abolitlor  requires a token entry under revenue and expei 'iture 

III. PRODUCT AID 

Bovine animals 

(Article 10) 

Fattening aid 
25.000 head  x  ECU 40/head  -  ECU 1.0 mi II ion (A) 

Suckler cow aid 

8.000 head  x  EC  40/head  -  ECU 0.3 million (A) 

Milk products  (Article 11) 

Consumption aid for milk 
44.000 tonnes x  ECU 50/t 

ECU 2.2 mi I I ion (A) 

Sheep and goats  (Article 13) 

Supplement  to ewe premium 

CoIculot Ion of supplement 

Supplenient  •» 
heavy  ewe  premium - 
-  21.974  -  15.382  +  ( 5 .5  x  30  X)  -  ECU 8  242/hood 

light  ewe  premium  +  supplement  "rural  society"  premium 

-  4 -

AnnuoI cost 

- 178.000 heod x ECU 8.242/hood  - ECU 1.5 million (A) 

Only  the second  half of  the  1992 marketing year  is concerned 
Therefore, expenditure  for  the  1993 budget  year  will  be: 
1,5  x  50 %  -  ECU 0.7 million (A). 

Fruit  and  vegetables 

1.  Programme of  Initiatives  (Article  15) 

(see Annex) 

ECU mill ion  (A) 

Expenditure 

1993 

1994 

1995 

1996 

1997 

1998 

1st  instalment 
2nd  instalment 
3rd  instalment 
4th  instalment 

7,5 

7,5 
0,6 

7.5 
0.6 
0.5 

0.6 
0.5 
0,5 

0,5 
0,5 

0,5 

T O T AL 

7,5 

8,1 

8.6 

1,6 

1,0 

0,5 

2.  Marketing - annual  contract  (Article  16) 

(see Annex) 

:CU mil I 
E 

on  (A) 

Expenditure 

1993 

1994 

1995 

1996 

1997 

1998 

1999 

5.4 

5.5 

5.6 

5.7 

5,8 

5,9 

6,0 

3.  Processed  fruit  and vegetables  (Article  17) 

Study: ECU  100.000 (A)  in 1993 

Graphic  symbol 

(Article  18) 

Expenditure 

1993 

1994 

1995 

1996 

1997 

0,3 

0,5 

0.5 

0.3 

p.m. 

Ecu mi 11 Ion  'A) 

(Article  20) 

Aid par  hectare 

2.400 ha  x  ECU  400/ha 

ECU  1.0 mil I Ion  (A) 

?5 

Potatoes  (Article 21) 

Aid per hectare 

- 5 -

12 000 ha x ECU 500/ha  = ECU 6.0 million (A) 

Olive oil  (Article 23) 

Compensation  for consumption aid 
1993: 10 000 t x ECU  (539-477)/t = ECU 0.6 million  (A) 
1994: 10 000 t x ECU  (539-508)/t - ECU 0.3 million  (A) 

Honey  (Article 25) 

Aid per hive 
5 000 hives x ECU 20/hive - ECU 0.1 million (A) 

Cereals  (Article 26) 

Exemption  from co-responsibility  levy. 
For the 1992/93 marketing year, the co-responsibility  levy  (basic and 
additional) amounts to ECU 4.9/t. 
4 500 t x ECU 4.9/t  x 2 » ECU 44 100 (A). 

3-

S U P P LY 

TO 

T HE 

C A N A RY 

I S L A N OS 

A  N  N  E  X 

F 

ram the EEC 

Orig 

ine  PAYS TIERS 

P R O D U CT 

Quant Ity 

(tonnes) 

Aid 

(- refunds) 
(ECU(A)/t) 

Cost 

Quantity 

Levy 

(ECU « (A)) 

(tonnes) 

(ECU(A)/t) 

Lost 
levies 
(ECU m (A)) 

Cereals  . /. 

Wheat 
Barley 
Oats 
Moize 
Durum wheat meal 
Common wheat meal 
Meal of other 
cereals 
Pellets 
Malt 

Rice 

Suaar 

105.000 
9.000 
1.000 
35.000 
4.300 
30.000 

1.200 
1.500 
12.500 

105 
105 
105 
105 
167 x 1.5 
105 x 1.5 

105 x 1.5 
105 x 1.02 
104 x 1.33 

11.03 
0.94 
0.11 
3.68 
1.08 
4.73 

0.19 
0.16 
1.73 

17.000 

145.000 

4.000 

145 
135 
135 
130 
195 x 1.5 
130 x 1.5 

135 x 1.5 
133 x 1.02 
135 x 1.33 

12.000 

275 

3.30 

2.000 

370 

59.000 

425 

25.08 

1.000 

425 

Hops (cones) 

ci; 

400 

(t) 

100 

(D 

2.47 

18.85 

0.72 

0.74 

0.43 

— 

6.41 
2.53 

Milk products 

Liquid milk 
Powdered mi Ik 
Butter 
Cheese 
Mi ik preparations 
without animal fat 
Milk preparations 
for chiIdren 

Beef/veal 

65.000 
16.000 
3.500 
12.000 
12.000 

154 
1.120 
1.760 
1.108 
700 

700 

700 

10.01 
17.92 
6.16 
13.30 
8.40 

0.49 

3.000 
1.000 

2.135 
2.530 
1.880 
1.760 

100 

1.760 

0.18 

Fresh or chi1 led 
Frozen 

7.000 
13.000 

1.800 
1.100 

12.60 
14.30 

2.000 
14.000 

2.500 
1.800 

5.00 
25.20 

Piameat 

Frozen 

Poultrymeot 

Frozen 

Eaas 

4.000 

300 

1.20 

15.000 

650 

9,75 

12.000 

325 

3.90 

18.000 

600 

10.80 

Drisd eggs 

400 

900 

0.36 

Vsastabls oil 

23.000 

33.5 

0.77 

10.000 

33.5 

0.34 

Fruit iuics 

Puree CN 20-07-99 
Other CN 20-08 

1.200 
10.000 

So.oooM 

Table wine 

T O T AL 

(1)  Data  not  available 

18 

20 

12 
142.6 

100 
4.000 

-

^8 

-

_ 

83.4 

l< 

CANARY  ISLANDS:  PLANT  PRODUCT  SECTION  (FRUIT  &  VEGETABLE,  FLORICULTURE) 

1)  PROGRAM*  OF  INITIATIVES 

Product 

| 
CURRENT 
AREA 
| 
(1991) (ha) 1 

ESTIMATED 
AREA-

(ho) 

1  MAXIMUM 
1 
1 

AID 
(ECU/ha) 

, INITIAL 
I  COST 
I (ECU m) 

ESTIMATED 
1 COST  -  | 
'(ECUm) 

(D  l 

(2) 

1 

(3) 

1 

(4)-(3) 

1 

(5)-(3)l 

i 
| 
i 

AVOCADO 
MANGO 
PAPAYA 
OTHER TROPICAL 
CITRUS FRUIT 
i 
OTHER FRUIT 
| 
1 
VEGETABLES 
ORNAMENTAL PLANTS' 1 
1 
EXOTIC FLOWERS 

901 
105 
81 
75 
2015 
5659 
5470 
176 
462 

1 
1 
1 
1 
! 
I 
I 
1 
1 

1100 
500 
300 
600 
2889 
6597 
5470 
200 
500 

500 
1 
500 
1 
500 
1 
500 
1 
1 
-500 
1  '  500 
500 
1 
500 
1 
500 
1 

1  0.451 
0.053 
! 
1  0.041 
1  0.038 
1 
1.008 
1  2.830 
1  2.735 
1  0.088 
1  0.231 

I  0.550  1 
1  0.250  1 
1  0.150  1 
I  0.300  1 
I  1.445  1 
1  3.299  ! 
1  2.735  1 
1  0.100  I 
!  0.250  1 

TOTAL 

1 

14944 

I 

18156 

1 

1 

7.47 

1 

9.08  1 

a)  ANNUAL  CONTRACTS 

| 
1 
1 
1 
I 
, 

AVOCADO 
MANGO 
PAPAYA 
OTHER TROPICAL 
SEEDED FRUITS 
CITRUS FRUIT 
VEGETABLES. 
ORNAMENTAL PLANTS 1) 
I) 
EXOTIC FLOWERS 

CURRENT 
QUANTITY 
(1990) (T) 

ESTIMATED 
QUANTITY 
(T) 

l SELLING PRICE 
(ECU/T) 
1 

, INITIAL 
1  COST 
! (ECU/t) 

ESTIMATED  , 
COST 
, 
(ECU m) 

(0 

(2) 

2950 
20 
100 
100 

I 

3000 
100 
1000 
125 

1 

1 
! 
1 
1 

700 
1710 
890 
1570 

4100 

4500 

1 

9500 

(3) 

1 

(4)-(3) 

(5)-(3)1 

2.065 
! 
! 
0.034 
1  0.089 
1  0.157 
! 
0.000 
1  0.000 
1  0.000 
1  38.950 
I  0.000 

2.100  ! 
0.171  1 
0.890  ! 
0.196  1 
0.000  1 
0.000  1 
0.000  1 
42.750  1 
0.000  1 

TOTAL 

1 

7270 

8725 

1 

1  41.30 

46.11  ! 

The  EAGGF  contribution  is  13X  of  the  commercial  value. 
Community  assistance  amounts  to  ECU  5.4  m i l l i on  in  the  f i r st  year  and  w i ll  reach 
ECU  6.0  m i l l i on  in  the  f i n al  year. 

ISSN 0254-1475 

COM (92)  144 final 

DOCUMENTS 

EN 

03  02 

Catalogue number: CB-CO-92-158-EN-C 

ISBN 92-77-43011-7 

Office for Official  Publications of the European Communities 
Lr2985 Luxembourg