Amended proposal for a COUNCIL REGULATION (EC) establishing a special system of assistance to traditional ACP suppliers of bananas
Date: 1994-06-20
Institutions: European Commission
Subjects: ACP countries, financial aid, production aid, supplier, technical cooperation, tropical fruit

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(94)  249  final 
B r u s s e l s,  20.06.1994 

94/0147  (SYN) 

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Amended  proposal 

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COUNCIL  REGULATION 

(EC) 

e s t a b l i s h i ng  a  s p e c i al  system  of  a s s i s t a n ce 
to  t r a d i t i o n al  ACP  s u p p l i e rs  of  bananas. 

(presented  by  the Commission  pursuant  to Article  189 A (2) 
of  the  EC-Treaty) 

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EXPLANATORY MEMORANDUM 

On  11 November  1992 the Commission transmitted to the Council  a proposal aimed at 
helping the ACP States adjust to the change in circumstances brought about by the entry 
into force  of the common organization of the banana market and enabling them to cope 
with any temporary  disturbances that might ensue on that market. 

This proposal was based on Article  113 of the EEC Treaty.  Since the entry into force of 
the Treaty  on European Union, Article  130w of the EC Treaty provides a more appropriate 
legal basis and should be adopted accordingly. 

In the light of discussions in the Council, the Commission believes that the technical 
arrangements for granting income support should be defined  more clearly (Article 7). 

1 

Amended proposal  for  a  Council Regulation (EC) 
establishing  a special  system  of  assistance 
to  traditional  ACP  suppliers  of  bananas. 

THE  COUNCIL  OF  THE  EUROPEAN UNION 

Having  regard  to  the  Treaty  establishing  the  European 
Community,  and  in  particular  Article  130w  thereof. 

Having  regard  to  the proposal  from  the  Commission. 

In cooperation with the European Parliament, 

Whereas  Protocol  5  on  bananas  of  the  fourth  ACP/EEC  Convention  provides 
that,  in  respect  of  its  banana  exports  to  the  Community  markets,  no ACP 
State  shall  be placed,  as regards  access  to its traditional  markets  and its 
advantages  on  those  markets,  in a  less  favourable  situation  than  in the 
past  or at  present; 

Whereas  national  market  organisations  have  hitherto  granted  traditional  ACP 
suppliers  of  bananas  an  outlet  for  their  production  on  their  traditional 
markets  and enabled  them  to obtain  from  these  markets  an adequate  income; 

Whereas  the  common  oraanisation  of  the  market  established  by  (EEC) 
Regulation  n<> 404/93  sets the  framework  for continuing  on the Community  market 
the  advantages  enjoyed  by  traditional  ACP suppliers,  in accordance  with the 
Community's  committment  set out above; 

Whereas  risks  exist  nevertheless  that  the  introduction  of  a  new  market 
organisation  and  the  need  to  adapt  to  it  could  jeopardise  the  continuing 
viability  of ACP supplies; 

Whereas  particular  efforts  will  be  needed  to  adapt  to  the  new  market 
conditions  in order  to take  advantage  of  the opportunities  offered; 

Whereas  the  structure  and  the nature  of  the  new market  and  the market m-j 
efforts  necessary  to  maintain  a  presence  on  this  market  represent  new 
elements  some  of  which  neither  the  traditional  ACP  suppliers  nor  the 
operators  handling  this  produce  could  reasonably  foresee; 

Whereas  technical  and  financial  assistance,  additional  to  that  providun for 
m  the  fourth  ACP/EEC  Convention  should -therefore  be  provided  to carry  out 
programmes  designed  to assist  producers  to adapt  to new  market  conditions 
and  in  particular  to  improve  quality,  to  improve  marketing  and  to  improve 
compet i t i veness; 

Whereas  the new conditions  prevailing  on the market  may  result  m  temporary 
market  disturbances,  particularly  in  the  sectors  of  the  Community  market 
traditionally  supplied  by the ACP States; 

3L 

Whereas  such  disturbances  could  seriously  affect  the  returns  to  the ACP 
from  the market  and therefore  the continued  viability  of  this  production; 

Whereas  financial  assistance  should  therefore  be provided  to permit  the ACP 
to  remain  on  the market,  until  such  time  as  the market  stabilises  and an 
economic  return  from  the market  can be  received, 

Whereas 
triggered  by the same  set of  circumstances. 

Income  support  should  be  complementary  to  STABEX 

transfers 

Whereas  It  is  therefore  appropriate  to align  calculation  of  income  support 
with  the calculation  of  STABEX  transfers. 

HAS  ADOPTED  THIS  REGULATION. 

A  s p e c i al  system  of  a s s i s t a n ce 
h e r e by  e s t a b l i s h e d. 
a s s i s t a n ce  or  of 

income  s u p p o r t. 

Ar ticle L 

to 

t r a d i t i o n al  ACP  s u p p l i e rs  of 

T h is  a s s i s t a n ce  may  c o n s i st  of 

t e c h n i c al  and 

b a n a n as 

is 
f i n a n c i al 

A rt  i c le  2 

For  the purposes of  this  Regulation  the following  meanings  are adopted 

"traditional  ACP  suppliers"  means  the ACP  States  listed  in  Annex  I of 
the  present  Regulation. 

"bananas"  means  fresh  or  dried  bananas  covered  by  the  code  CN  08.03. 
excepting  plaintains 

TITLE  I - TECHNICAL  AND FINANCIAL  ASSISTANCE 

Article 3 

Technical  and financial  assistance  shall  be provided  to  traditional  A',T 
suppliers  with  a  view  to  helping  these  supplie» s  adapt  to  th.-  ;v-.v 
market  conditions  following  the establishment  of  a  common  organ < -,a t •> ••-••. 
of  the market  in bananas. 

2.  Technical  and  financial  assistance  will  be  provided  to  contribute  tc 
the  carrying  out of  programmes  m  the banana  sector  to  achieve  one or 
more  of  the following  objectives: 

-  to  improve  quality; 

-  to adapt  production,  distribution  or marketing  requirements  to meet 
the  quality  standards  provided  for  in  Article  2  of  Regulation  no 
.404/93; 

-  to establish  producers  organizations  which  have  as an objective  the 
improvement  of  the marketing  and competitiveness  of  their  products, 

-  to  develop  a  production  or  marketing  strategy 

the 
requirements  of  the  market  in  the  Community  in  the  light  of  the 
common  organisation  of  the  market  in  bananas; 

to  meet 

-  to  assist  with  training,  market  intelligence,  the  development  of 
the 
environmentally 
distribution  infrastructure,  improving  trade  and  financial  services 
to  banana  producers,  improving  competitivity. 

production 

improving 

m e t h o d s. 

sound 

3.  Assistance  may  be  given  to  programmes  having  similar  objectives  which 
are  currently  financed  under  the  Lomé  Convention  or  by  the  public 
ACP/EEC 
authorities  of 
Convention  where  such  assistance  would  result 
rapid 
completion  of  the  programme. 

the  Member  States  parties  to  the  fourth 

in  a  more 

Ar t icic  4 

The  Commission  will  decide  on  the  eligibility  of  the  programme  and  the 
level  of  assistance  after  consultation  with  the  traditional  ACP  supplier 
It  will  also  take  into  account  the  coherence  of  the  envisaged 
concerned. 
State 
programme  with  the  general  development  objectives  of 
concerned  and 
banana 
p r o d u c e r s,  in  particular  the  Community  producers. 

its  impact  on  regional  cooperation  with  other 

the  ACP 

Title  II  -  INCOME  SUPPORT 

Art icle  5 

1.  within 

the 

limits 

indicated 

in  article 

15  of  Regulation  N-  40A/93 

traditional  ACP  suppliers  will  be  eligible  for  income  support. 

2. 

Income  support  will  be  paid  where  the  reduction  in  income  drawn  from 
the  export  to  the  Community  of  bananas  complying  with  the  common 
standards  laid  down  is  directly  related  to  conditions  prevailing  on  the 
market  subsequent  to  the  establishment  of  the  common  organisation  of 
the  market  in  bananas. 

Art icle  6 

1.  Income  support  shall  be  individually  calculated  for  each  traditional 
ACP  supplier  on  the  basis  of  the  quantities  exported  to  the  Community 
during  the  year  of  application  and  the  difference  between  the  reference 
price  and  the  actual  price. 

2.  The  reference  price  shall  be  the  average  price  per  tonne  of  bananas 
produced  in  the  ACP  State  concerned  and  exported  to  the  Community 
during  the  six  calendar  years  proceeding  the  entry  into  force  of  this 
regulation,  less  the  two  years  with  the  highest  and  the  lowest  figures. 

The  actual  price  shall  be  the  average  price  per  tonne  of  bananas 
produced  in  the  ACP  State  concerned  and  exported  to  the  Community 
during  the  year  of  application. 

3.  The  statistics  needed  for  the  calculation  of  income  support  ate 

those 
calculated  and  published  on  Community  imports  by  the  Statistical  Office 
of  the  European  Communities. 

4-

4.  Before  1st July of each year, the Commission  shall determine 
the  income  support  for the previous year after  consultation 
with  the ACP State concerned. 

5.  Exceptionally,  and  in  particular  during  the  first  year  of 
application  of  this  regulation,  advances  may  be  paid  where 
there  is  a  signicifant  reduction  in  the  production  income 
compared  to  that  of  the  previous  year  or  within  any  given 
year. 

The  need  for  and  the  level  of  such  advances  will  be 
determined  by the Commission after consultation with  the ACP 
State concerned. 

Title  III - GENERAL  PROVISIONS 

Article 7 

1.  Financial commitments made under Title  1 will be in addition 
to any funds available for ACP States under the provisions of 
the  fourth ACP-EEC Convention. 

2.  Financial  commitments  made  under  Title  TI  will  be 
complementary 
the  system 
to  funds  available  undei 
guaranteeing  the  stabilisation  of  export  earnings  provided 
for  in  articles  186  and  following  of  the  fourth  ACP-EEC 
Convention.  Title II therefore only entities to payments of 
income  support  as  far  as  transfers  made  for  identical 
quantities  in accordance with articles  186 and  following  of 
the  fourth  ACP/EEC  Convention  do  not  entirely  offset  the 
effects of price decreases on the revenues of traditional ACP 
suppliers. 

3.  Payments of income support shall be used, in accordance with 
a  framework  of  mutual  obligations  to be  agreed  between  the 
traditional ACP supplier concerned and the Commission in each 
case, for the benefit of producers adversely affected by the 
loss of income and be used to enhance the economic  viability 
of production. 

4.  a.  Where  application  of  Title  II  gives  rise  to  a  transfer 
basis, the traiditional ACP supplier concerned  shall, in the 
month  following  receipt  of  the  notification  referred  to  in 
Article 6 (4), send the Commission a substantial  analysis of 
the  banana  sector,  the  causes  of  the  loss  of  earnings 
recorded,  the  policies  pursued  by  the  authorities  and  the 
projects,  programmes  or  operations  to  which  the  resources 
shall be allocated  in accordance with the objectives  set out 
in Article  7 (3) . 

b.  Projects, programmes or operations  to which  Liu; recipient; 
traditional  ACP  supplier  undertakes 
the 
transferred  resources  shall  be  examined  jointLy  by  the  Commission 
and  the  ACP  States  concerned. 

to  allocate 

c.  Resources  shall be used  to support  immediaLe operations  to 
sustain  production  or  adjustment  operations  designed  to 
restructure  production  and  export  activities  within  the 
framework  of  any  consistent  reform  policy  in  the  banana 
sector. 

Article  8 

1.  Granting  of  assistance  as  defined  in  article  1  shall  be 
subject  to  the  designation  by  the  ACP  State  concerned  of  e 
representative  organisation  entitled  to  act  and  to  receive 
payments  on  its  behalf  within  the  framework  of  this 
regulation. 

2.  Representative  organisations  referred  to above  shall  present 

the  following  characteristics  : 

be composed  entirely  or mainly  of producers  of bananas  in 
one  or  more  traditional  ACP  suppliers; 

pursue  at  least  two  of  the  following  objectives  : 

improvement  of  the quality  of  the  produce; 
improvement  of  the  quality  of  distribution  and 
marketing; 
improvement  of  the  returns  to  producers; 
improvement  of  the  role  of  producers  in  the 
organisation  of  the  banana  market. 

3.  The  representative  organisation  designed  in  accordance  with 

paragraph  2 must  be  notified  to  the  Commission. 

Article  9 

1.  As  far  as  necessary,  detailed  rules  for  the  application  of 

this  regulation  shall  be determined  by  the  Commission. 

2.  The  Commission  shall  be  assisted  by  a  committee  of  an 
advisory  nature composed  of the representatives of the Member 
States  and  chaired  by  the  representative  of  the  Commission. 

3.  The  representative  of  the  Commission  shall  submit  to  the 
committee  a  draft  of  the  measures  to  be  taken. 
The 
committee  shall  deliver  its  opinion  on  the  draft,  within  a 
time  limit  which  the  chairman  may  lay  down  according  to  the 
urgency  of  the  matter,  if  necessary  by  taking  a vote. 

4.  The  opinion  shall  be recorded  in the minutes;  in addition, 
each  Member  State  shall  have  the  right  to  ask  to  have  its 
position  recorded in the minutes. 

5.  The Commission  shall take the utmost account  of  the opinion 
delivered by the committee.  It shall inform the committee of 
the manner in which its opinion has been taken  info account. 

Article  10 

L; 

•I 

This Regulation shall enter into force the day al its publication 
in the Official Journal of the European Communities. 
It will  be  applicable  as  from  1st July  1993  until  28  February 
1996. 

It shall  be binding  in its entirety  and directly  applicable  in 
all Member States. 

Done in Brussels 

For the Council 

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ANNEX  I 

List  provided  for  in  article  2.  first  indent 

Traditional  ACP  suppliers  of  bananas 

Be I i ze 
Cameroon 
Cape  Verde 
Côte  d'Ivo i re 
Dominica 
Grenada 
Jamaica 
Saint  Lucia 
Saint  Vincent  and  the  Grenadines 
Soma lia 
Sur iname 

€-

ISSN 0254-1475 

COM(94) 249 final 

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