Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of an exchange of letters between the European Economic Community and, on the one hand, Barbados, Belize, the People' s Republic of the Congo, Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices for cane sugar for the 1992/93 delivery period
Date: 1993-01-20
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price, protocol on sugar

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93) 9 final 

Brussels, 20 January  1993 

Commission Communication to the Council on the guaranteed  prices 

applicable in the 1992/93 delivery period to cane sugar 

originating  in the ACP states referred to in Protocol 8 

annexed to the Fourth ACP-EEC convention and in India 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreements  in the form of an exchange of letters 

between the European Economic community and, on the one hand, Barbados, 

Belize, the People's Republic of the Congo, Fiji, the Cooperative Republic 

of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, 

the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius, 

the Republic of Surinam, St. Christopher and Nevis, the Kingdom of 

Swaziland, the United Republic of Tanzania, Trinidad  and Tobago, the 

Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the 

Republic of India on the guaranteed prices for cane sugar for the  1992/93 

delivery period 

(presented  by  the  Commission) 

- 2 -

Commission communication to the Council on the guaranteed  prices 

applicable  in the 1992/93 delivery period to cane sugar 

originating  in the ACP states referred to in Protocol 8 

annexed to the Fourth ACP-EEC Convention and in India 

1.  Protocol No 8 on ACP sugar annexed to the Fourth ACP-EEC Convention and the 

agreement on sugar between the European Economic Community  and the Republic 

of India provide for a Community undertaking to purchase and import at 

guaranteed prices cane sugar which the exporting countries concerned cannot 

market in the Community  at prices equivalent to or higher than the guaranteed 

prices. 

2.  For the  1992/93 delivery period, the Commission has negotiated  guaranteed 

prices with the ACP States and the Republic of India pursuant to Articles 

5(4) of Protocol No 8 on ACP sugar and the agreement with India on cane sugar 

as well as in conformity with the guidelines  for negotiations  given by the 

Council on 23.7.1992. 

3.  The Commission therefore proposes that the Council adopt the proposal for a 

decision on the conclusion of the agreements in the form of an exchange of 

letters as set out in Annex 1. 

4.  Financial impact: These proposals have no financial impact other than that 

taken into account within the framework of the  1992 budget and the 1993 

preliminary draft budget  (see financial statement accompanying  the 

recommendation  for a Council decision authorizing the Commission to negotiate 

the guaranteed prices for  1992/93). 

-  3 -

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreements in the form of an exchange d$ letters between 

the European Economic Community and, on the one hand, Barbados, Belize, the 

People's Republic of the Congo, Fiji, the Cooperative Republic of Guyana, the 

Republic of the Ivory Coast, Jamaica, the Republic of Kenya, the ©eroocratic 

Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of 

Surinam, St. Christopher and Nevis, the Kingdom of Swaziland., the United Republic 

of Tanzania, Trinidad and Tobago, tne Republic of Uganda, the Republic of 

Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices 

for cane sugar for the 1992/93 delivery period 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty^establishing the European Economic Community, and in 

particular Article 113 thereof, 

Having regard to the proposal from the Commission, 

Whereas implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-EEC 

Convention(*} and of the Agreement betweea the European Economic Community  and 

the Republic of India on cane sugar*2) is carried out, in accordance with 

Article  1(2) of each, within the framework of the management of the common 

organization of the atigar market, 

whereas it is appropriate to approve the Agreement» in the form of exchange of 

letters between the European Economic Community and, on the one hand, the States 

referred to in the Protocol and, on the other hand, the Republic  of India on the 

guaranteed prices  for cane sugar for the  1992/93 delivery  period, 

HAS DECIDED AS FOLLOWS: 

(1) OJ No L 299, 17.8.1991, p. 1. 
(2) OJ No L  190, 22.7.1975, p. 35. 

4 -

Article 1 

The Agreements  in the form of exchange of letters between the European  Economic 

community and, on the one hand, Barbados, Belize, the People's Republic of the 

Congo, Fiji, the Cooperative Républic of Guyana, the Republic of the ivory Coast, 

Jamaica, the Republic of Kenya, the Democratic Republic of Madagascar, the 

Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and 

Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and 

Tobago, the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, 

the Republic of India on the guaranteed prices for cane sugar for the  1992/93 

delivery period are hereby approved on behalf of the Community. 

The text of the Agreement  is attached to this Decision. 

Article 2 

The President of the Council is hereby authorized to designate the person 

empowered to sign the Agreements referred to in Article  1 in order to bind the 

Community. 

Article 3 

This Decision will be published in the Official Journal of the European 

Communities. 

Done at Brussels, 

For the Council 

-  5 -

Text No I 

AGREEMENT 

in the form of exchange of letters between the European Economic Community and, 

Barbados, Belize, the People's Republic of the Congo, Fiji, the cooperative 

Republic of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of 

Kenya, the Democratic Republic of Madagascar, the Republic of  Malawi, Mauritius, 

the Republic of Surinam, St. Christopher and Nevis, the Kingdom of Swaziland, thé 

United Republic of Tanzania, Trinidad and Tobago, the Republic of. Uganda, and the 

Republic of of Zimbabwe on the guaranteed prices for cane sugar for the 1992/93 

delivery period. 

, 

Letter No 1 

The representatives of the AGP States referred to in Protocol  8 on ACP sugar 

annexed to the Fourth ACP-EEC Convention of Lomé and of the commission on 

behalf of  the European Economic Community, have agreed, pursuant to the 

provisions of the said Protocol, on the following: 

For the delivery period  1 July  1992 to 30 June  1993, the guaranteed  prices 

referred to in Article 5(4) of the Protocol shall, for the purpose of 

intervention within the terms of Article 6 of the Protocol, be: 

(a) for raw sugar, 

43,94 ECU per  100 kilograms; 

(b) for white sugar, 

54,22 ECU per  100 kilograms. 

These prices shall refer to sugar of standard quality  as defined  in Community 

legislation, unpacked, cif, free out of European ports of the community.  The 

introduction of these prices in no way prejudices the respective positions of 

the Contracting Parties in respect of the principles appertaining  to the 

determination  of the guaranteed  prices. 

-  6 -

I should be obliged  if you would acknowledge receipt of this letter and confirm 

that this letter and your reply constitute an Agreement between teh Governments 

of the abovementioned ACP States and the Community. 

Please accept, sir, the assurance of my highest consideration. 

For the Council 

of the European  Communities 

Letter No 2 

Sir, 

I have the honour to acknowledge receipt of your letter of today which reads as 

follows : 

I have the honour to confirm the agreement of the Governments of the ACP States 

referred to in this letter with the foregoing. 

Please accept, sir, the assurance of my highest consideration. 

For the Governments 

-  7 -

Text No II 

AGREEMENT 

in the form of an exchange of letters between the European Economic  Community and 

the Republic of India on the guaranteed prices for cane sugar  for  1992/93 

Letter No 1 

Brussels. 

Sir, 

The Representatives  of India and of the Commission, on behalf of the European 

Economic community, have agreed within the framework of the negotiations 

provided for in Article  5(4) of the Agreement between the European  Economic 

Community  and the Republic of India on cane sugar, on the following: 

-  for the period  1 July  1992 to 30 June  1993 the guaranteed  prices referred 

to in Article  5(4) of the Agreement shall, for the purpose of  intervention 

within the terms of Article  6 of the Agreement, be: 

(a) for  raw sugar, 

43,94 ECU per  100 kilograms; 

(b) for white sugar, 

54,22 ECU per  100 kilograms. 

These prices shall refer to sugar of standard quality as defined in Community 

legislation, unpacked, cif, free out of European ports of the Community.  The 

introduction of these prices in no way prejudices the respective  positions of 

the Contracting  Parties  in respect of the principles  appertaining  to the 

determination  of the guaranteed prices. 

I  should be obliged  if you would acknowledge receipt of this letter and confirm 

that this letter and your reply constitute an Agreement between your Government 

and the Community. 

Please accept, Sir, the assurance of my highest  consideration. 

For the Council of the 

European CoiTimuniti.es 

-8  -  ;:;'  ; 

Letter No 2 

Sir, 

I have the honour to acknowledge receipt of your letter of today which reads as 

follows : 

I have the honour to confirm the agreement of my Government with the foregoing 

Please accept, Sir, the assurance of my highest consideration. 

For the Government of 

the Republic of  India 

FINANCIAL  STATEMENT 

1. BUDGET HEADING: 11 

2. TITLE: 

DATE: 

APPROPRIATIONS: ECU 2 110 mi II ion 

Recaimendation for a Decision of the Council to authorize the Conmission to negotiate the guaranteed 
prices applicable in the 1992/93 delivery period to cane sugar originating in the ACP States referred to 
in Article 8 annexed to the Fourth EEC-ACP Convention and in India. 

3. LEGAL BASIS:  Article 113 of the Treaty 

4. AIMS OF PROJECT: 

To guarantee cif prices for the ACP States and the Republic of India for their deliveries of white sugar 
and raw cane sugar to the Comrunity which are comparable with the prices guaranteed to sugar 
producers in the Ccrmunity for the 1992/93 delivery period. 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

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

5.0.1  ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

Period of 12 months 

Current Financial Year 
1992 

Following Financial  Year 
1993 

ECU million 

ECU mi 11 ion 

ECU mi I lion 

638 

1994 

49 

1995 

589 

1,3 mil I ion t x ECU  415/t  (refunds) 
1,1 million t x ECU 15,8/t (refining aid) 
1,1 million t x ECU 1,125/t (aid to UK) 

x  1,114 (DR) - ECU 617 million (B) 
x 1,145 (DR) - ECU  20 mi 11 ion (B) 
x 1,116  (DR) = ECU  1 million (B) 

In 1993: ECU 617 mi 11 ion x 0,92  (export coefficient) + ECU 21 mi 11 ion = ECU 589 mi 11 ion 
In 1994: ECU 617 mi I Mon x 0,03 (export coefficient) 

- E CU 49 mi 11 ion 

ECU 638 million (B) 

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 (1994) ? 

YES 

ND 

YES 

OBSERVATIONS: 
This  is an implementing regulation under Protocol 8 annexed to the Fourth Lone Convention. 
Accordingly, it has no new financial  impact compared with the previous situation. 
The cost of re-exporting equivalent quantities of Comunity sugar and of aid for the refining of raw sugar 
estimated at ECU 638 mi 11 ion, wi11 be taken  into account  in the 1993 preliminary draft budget. 

ISSN 0254-1475 

COM (93) 9 final 

DOCUMENTS 

EN 

02  il 

Catalogue number : CB-CO-93-012-EN-C 

ISBN 92-77-51921-5 

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