Proposal for a COUNCIL DECISION establishing rules for the recognition of third country health and veterinary inspection measures for fresh meat and meat products as equivalent to those applied to Community production, and for the conditions to be met for importation into the Community and amending Council Directive 72/462/EEC on health and veterinary inspection problems upon importation of bovine, ovine and caprine animals and swine, fresh meat and meat products from third countries
Date: 1994-09-20
Institutions: European Commission
Subjects: Denmark, Greenland, agreement (EU), fishing agreement, protocol to an agreement

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(94) 393 final 
Brussels, 26.09.1994 

94/0215  (CNS) 

Proposal  for a 

COUNCIL REGULATION  (EC) 

on the conclusion  of  the  Third  Protocol  laying  down  the conditions  related 
to fishing  provided  for  in the Agreement  on fisheries  between the 
European  Community  on the  one  hand,  and the  Government 
of  Denmark  and the  local  Government  of  Greenland  on the other hand 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

The  Second  Fisheries  Protocol,  in  the  framework  of  the  Fisheries  Agreement  between  the 
European  Community  and  Greenland,  is  due  to  expire  on  31  December  1994. 

The  implementation  of  the  Second  Protocol  has  not  been  fully  satisfactory  for  Community 
fishermen.  Only  a relatively  small  proportion  of  the  fishing  possibilities  available  under  this 
Protocol  have  been  utilized,  due  in some  cases  to  the  poor  state  of  the  stocks  and,  in  other 
cases,  to  the  lack  of  interest  shown  by  Community  fishermen  in  some  of  the  fishing 
possibilities  available  to  them. 

As  a  result,  the  Council  identified  the  need  to  improve  the  cost/benefit  ratio  of  this 
Agreement,  mainly  through  the revision  of  the  fishing  quotas  available,  bringing  them  more 
in line with the state of  resources  and the  interests  of Community  fishermen,  but also  through 
the  introduction  of joint  ventures  and  other  types  of  associations. 

The  Third  Protocol  improves  the  real  fishing  possibilities  in  terms  of  the  amount  of  quotas 
available  and,  through  the  introduction  of  some  mechanisms  to  flexibiiize  the  catch,  of  the 
most  important  species:  cod  and  shrimp. 

In  addition,  the  introduction  of joint  enterprises  and  temporary  joint  ventures  is  intended  to 
support  the  further  development  of  the  fisheries  sectors  in  both  parties. 

The  Council  is  therefore  requested  to  adopt  this  Regulation  and  the  attached  Protocol 

PROPOSAL FOR A 
COUNCIL REGULATION  (EC) No  ..../94 

on the conclusion  of the Third  Protocol  laying down the conditions  related 
to fishing  provided  for  in the Agreement  on fisheries  between the 
European  Community  on the one hand,  and the Government 
of Denmark  and the local Government  of Greenland  on the other hand 

THE  COUNCIL  OF THE  EUROPEAN  UNION, 

Having regard to the Treaty establishing the European Community,  and in particular Article 
43 thereof,  in connection with Article 228, paragraph  3, first  subparagraph. 

Having  regard  to the proposal  from  the Commission, 

Having regard  to the opinion of the European  Parliament, 

Whereas,  pursuant  to  Article  14  of  the  Agreement  on  fisheries  between  the  European 
Community  on the one hand,  and the Government of Denmark and the local Government of 
Greenland  on  the  other(1),  the  parties  have  negotiated  a  Third  Protocol  laying  down  the 
conditions relating to fishing provided for in the said Agreement,  intended to come into force 
at the end of the period  of application of the Second Protocol; 

Whereas,  with a view to  increasing  cooperation  and development  of  the fisheries  sector  in 
this  framework,  the  parties  have  agreed  to  include  joint  venmres  and  other  types  of 
associations  for  the development of new fisheries in Greenland waters; 

Whereas,  as a result  of the negotiations,  this new Protocol  was  initialled  on  1 July  1994, 

Whereas  it is in the Community's  interest  to approve  the  said protocol, 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

The  Third  Protocol,  laying  down  the  conditions  relating  to  fishing  provided  for  in  the 
Agreement  on  fisheries  between  the  European  Community  on  the  one  hand,  and  the 
Government  of  Denmark  and  the  local  Government  of  Greenland  on the  other,  is  hereby 
approved  on behalf  of the  Community. 

The text of the Protocol  is attached to this  Regulation. 

Article 2 

The President of the Council is hereby authorized to designate the persons empowered to sign 
the Protocol  in order  to bind the Community. 

(1)  O.  J.  L29,  1. 2.  1985, p.  8. 

1 

Article  3 

This  Regulation shall  enter  into force  on the next day  following  that of  its publication  in the 
Official  Journal  of  the  European  Communities; 

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

Done  at  Brussels, 

1994. 

For the Council 
The  President 

3> 

THIRD  PROTOCOL 

laying  down  the  conditions  relating  to  fishing  provided  tor  t: h< • 
Agreement  on  fisheries  between  the  European  Community,  on  the  one 
hand,  and  the Government  of  Denmark  and  the  Home  Rule  Government 
of  Greenland,  on  the  other 

The  European  Community,  on  the one  hand,  and  the Government  of 
Denmark  and  the  Home  Rule Government  of  Greenland,  on  the  other, 

Having  regard  to  the Agreement  on  fisheries  between  the  European 
Community,  on  the one  hand,  and  the Government  of  Denmark  and  the 
Home  Rule  Government  of Greenland,  on  the other, 

HAVE AGREED AS  FOLLOWS: 

Sr 

Article  1 

1. This  Protocol  shall  apply  to  fishing  activities  from  1 January 
1995  to  31  December  2000. 

2.  The  quotas  referred  to  in Article  2 of  the Agreement  shall  be 
fixed  at  the  following  quantities  for each  year: 

Species 

Cod 
Redfish 
Greenland  halibut 
Shrimp 
Halibut 
Catfish 
Blue  whiting 
Capelin 
Roundnose  grenadier 
Roundnose  grenadier 
Polar  cod 

Western  stock 
(NAFO  0/1) 

31,000(3) 

5,500 
1, 350 

200 (6) 

1,000 

1,350 
2,000 (3) (4) 
2,000(3)(5) 

(tonnes) 

Eastern  stock 
(ICES  XIV/V) 

46 
4 
4 

, 820(1) 
, 650 
, 525 

200 (6) 

1 
30 

, 000 
,000 
(2) 
. 650 

(1) Of  which  a maximum  of  20,000  tonnes may  be  fished  by  pelagic 
trawl.  Catches  from  the bottom  trawl  fishery  and  the  pelagic 
trawl  fishery  shall  be  reported  separately. 

(2) 70% of  the Greenland  share of  the capelin  TAC minus  10,000 
tonnes  to  the  Faroe  Islands. 

(3) May  be  fished  West  or East. 

(4) Experimental  fishery  in 1995  and  1996,  to be conducted  at 
depths  greater  than  1,500  metres. The maximum  bycatch  of  Greenland 
halibut  will  be  40% and will  be counted  against  this quota.  An 
evaluation  of  the  conduct  of  this  fishery  will  be made  after  two 
years  to determine  the extent  which  this can  be  conducted  as a 
clean  fishery. 

(5) To  be  fished  only  by pelagic  trawl  or  longline. A by-catch of 
up  to  10% excluding  shrimp  and Greenland  halibut  will  be  admitted 
in  this  fishery.  This  by-catch  will  be  counted  against  the  quota. 

(6)  If bycatches  by  Community  vessels of Atlantic  halibut  in  trawl 
cod  and  redfish  fisheries would  imply overruns  of  Community  quotas 
of  Atlantic  halibut,  the Greenland  authorities  will  provide  solu 
tions  to  the effect  that  Community  cod  and  redfish  fisheries  ne 
vertheless  can  continue  until  the cod  and  redfish  quotas  have  been 
exhausted. 

3. The  quota  for  shrimp  in East Greenland  may  be  fished  in  areas 
West  of  Greenland  provided  that  arrangements  for quota  transfers 
between  shipowners  from Greenland  and  the  Community  have  been (>st 
ablished  on  a company-to-company  basis. The Greenland  Home  Rule 

S 

Government  shall  undertake  to  facilitate  such  arrangements.  The 
transfers  of  quotas  can only  take place  within  a maximum  of  1,000 
tonnes  annually  in areas of West  Greenland.  The  fishery  carried 
out  by  the  Community  vessels  shall  take  place  on  the  same  condi 
tions  as  laid  down  in the  licence  issued  to  the Greenlandic  shi -
powner. 

4.  During  the period  covering  the present  Protocol  the  Greenland 
Home  Rule  Government  agrees  to offer  to the  European  Community,  in 
addition  to  the quotas  specified  in Article  1.2,  additional  catch 
possibilities  for cod, without  additional  financial  compensation, 
amounting  to  20% of  the unused  Community  quotas  in  the  previous 
period  covered  by  this  Protocol  on  the  following  terms  and  condi 
tions : 

the  additional  catch  possibilities  for cod  are  calculated  on  the 
basis  of  the difference  between  the Community  quota  and  the ac 
tual  catch  for years where  the actual  catch  is  less  than  75% of 
the  yearly  quota  specified  in Article  1.2  of  this  Protocol; 

- the  additional  catch possibilities  shall  be,  for  each  year,  as a 
maximum  the  equivalent  to a  third  of  the difference  between  the 
Total  Allowable  Catch  in Greenland  waters  and  the  combined  quo 
tas  laid  down  in Article  1.2  and Article  2 of  this  Protocol,  the 
rest  being  available  for disposal  in accordance  with  the Agree 
ment ; 

- the  additional  catch possibilities  for cod,  as  calculated  above, 
will  correspondingly  reduce  the amount  of  cod  Greenland  is obli 
ged  to offer  to  the Community  in accordance  with  Article  8.2  of 
the  Agreement. 

5.  In addition  to  the quantities  fixed  in paragraph  2,  Greenland 
shall  each  year  contribute  the  following  quantities  of  the  follo 
wing  species  towards  establishing  the balance  of  the  reciprocal 
fishing  possibilities  laid down between  the  Community  and  the 
Faroe  Islands  in accordance  with  their  fisheries agreement : 

Species 

Western  stock 

(NAFO  0/1) 

Shrimp 
Greenland  halibut 
Redfish 
Capelin 

- 
150 
- 
- 

(tonnes) 

Eastern  stock 
(ICES XIV/V) 

1,150 
150 
500(1) 

10,000 

(1) catches  from  the bottom  trawl  fishery  and  the  pelagic  trawl 
fishery  shall  be  reported  separately. 

The  quantities  referred  to in the  first  paragraph  of  Article  7 of 
the  Agreement  are  hereby  set  at  the  following  levels  each  year: 

Article 2 

Species 

Cod 
Redfish 
Greenland  halibut 
Shrimp 
Catfish 

Western  stock 
(NAFO  0/1) 

52,250(1) 
2,500 
4,700 
25,000 
4,000 

(1) May  be  fished  West  or East. 

Article 3 

( tonnes) 

Eastern  stock 
(ICES  XIV/V) 

5,000 

1,500 

For  the  purpose  of  Article  . . . * of  the Agreement  the  following  de 
finition  shall  apply: 

Temporary  joint  venture  means any  association  based  on  a contrac 
tual  agreement  of  limited  duration  between  Community  shipowners 
and  physical  or  legal  persons  in Greenland,  with  the  aim  of  joint 
ly  fishing  for and  exploiting  Greenland  fishing  quotas  by  vessels 
flying  the  flag  of  a Member State  of  the  European  Community  and 
sharing  the  cost  profits or  losses of  the  economic  activity  joint 
ly undertaken,  with  a view  to the priority  supply  of  the  Community 
market. 
Joint  enterprises  means  any company  regulated  by Greenland  law 
comprising  one  or more  Community  shipowners  and one or more part 
ners  in Greenland,  with  the aim of  fishing  for and  possibly  exp 
loiting  Greenland  fishing  quotas  in the waters  under  the so 
vereignty  and/or  jurisdiction  of Greenland  by  vessels  flying  the 
flag  of- Greenland  with  a view  to the priority  supply  of  the  Commu 
nity  market. 

Article  4 

The  Parties  shall  select  the projects  for  the  temporary  joint  ven 
tures  and  joint  enterprises  provided  for  in Article  3. The  pro 
jects  shall  be  selected  in accordance  with  the methods  and  cri 
teria  set  out  in Annex  I. 

Article  5 

In order  to encourage  the establishment  of  temporary  joint  ven 
tures  referred  to  in Article  3, the projects  selected  by  the  Par 
ties  shall  be  eligible  for  financial  assistance  in accordance  with 
the  conditions  laid  down  in Annex  II. 

Article 6 

In order  to encourage  the establisment  of  joint  enterprises  refer 
red  to  in Article  3,  the projects  selected  by  the  Parties  sha11  be 

New Article  to be added  to  the  Agreement 

r 

eligible  for  financial  assistance  in accordance  with  conditions 
laid  down  in Annex  III. 

Article  7 

A Joint  Committee  shall  be  set  up to oversee  the  application  of 
Articles  4,  5 and  6 of  this  Protocol. The duty  of  this  Committee 
shall  be,  in particular,  to: 

- evaluate  the  projects  presented  by  the  Parties  for  the  estab 
lishment  of  temporary  joint  ventures  and  joint  enterprises  provi 
ded  for  in Article  3,  in accordance  with  the  criteria  set  out  in 
Annex  TV; 

check  that  the projects  are being  properly  administered  and 
oversee  the use  of  the  financial  support  given  to projects  in  ac 
cordance  with Articles  5 and  6; 
- review  the activities  of Community  vessels  belonging  to tern 
porary  joint  ventures  and  joint  enterprises  in Greenland  waters 

before  the  end of  their  contract. 

The  Joint  Committee  shall  meet  once  a year,  alternatively  in  Gre 
enland  and  Brussels, and  exceptionally  at  the  request  of  either 
Party. 

Article  8 

The  conditions  governing  the creation  and  access  to  resources  of 
temporary  joint  ventures  and  joint  enterprises  are  laid  down  in 
Annex  IV. 

Article 9 

1. The  financial  compensation  referred  to  in Article  6 of  the Ag 
reement  shall, during  the period  of validity  of  this  Protocol,  be 
fixed  at  37,700,000  ecus payable  annually  at  the beginning  of  each 
fishing  year. 

2.  The  compensation  shall  be adjusted  during  the  course  of  each 
fishing  year  in proportion,  calculated  on  the  basis of  cod  equiva 
lents,  to  the  supplementary  quota  allocated  to  the  Community  under 
Article  8 of  the Agreement. 

3. The  procedure  to be  followed  as  regards  the  allocation  of  supp 
lementary  catch  possibilities  under Article  8 of  the Agreement  is 
set  out  in Annex  V. 

Article  10 

For  the  purpose  of  financial  assisstance  to  the  establishment  of 
temporary  joint  ventures  and  joint  enterprises  referred  to  in Ar 
ticles  5 and  6,  the  European  Commission  shall  contribute  6,000,000 
ecus  for  the duration  of  the  Protocol. 

Article  11 

S 

Failure  to  implement  the  commitments  laid  down  in  this  Protocol 
may,  without  prejudice  to the provisions  of  Article  7 and  10^ of 
the Agreement,  entail  a corresponding  reduction  in  the  commitments 
referred  to  in Articles  1 and  9 of  this  Protocol. 

Article  12 

This  Protocol  shall  enter  into  force on  the date  of  its  signature. 
It shall  apply  from  1 January  1995. The  Parties  shall  notify  each 
other  on  the  completion  of  the procedures  necessary  for  this  pur 
pose . 

Article  13 

This  Protocol  shall  be drawn  up  in duplicate  in  the  Danish,  Dutch, 
English,  French, German, Greek,  Italian,  Portuguese  and  Spanish 
language,  each  text  being  equally  authentic. 

Article  numbers  refer  to  the Agreement  as presently  drafted 

Annex  I. Methods  and  criteria  for project  selection. 

1. The  Parties  shall  exchange  information  on  the  projects  presen 
ted  for  the  formation  of  temporary  joint  ventures  and  joint  enter 
p^rises according  to Article  4 of  this  Protocol  which  are  liable  to 
receive  financial  aid  from  the  Community. 

2.  The  projects  shall  be presented  to the  Community  via  the compe 
tent  authorities  of  the Member  State or Member  States  concerned. 

3. The  Community  shall  submit  to the Joint  Committee  the  list  of 
projects  eligible  for  financial  assistance  as provided  for  in Ar 
ticles  5 and  6 of  this  Protocol. The Joint  Committee  shall  évalua 
te  the  projects  in accordance  basically  with  the  following  crite 
r ia : 

(a)  technology  appropriate  to the proposed  fishing  operations; 
(b) target  species  and  fishing  zones ; 
(c) age  of  the vessel; 
(d)  in case  of  temporary  joint  ventures,  its  total  duration  and 

that  of  the  fishing  operations ; 

(e) previous  experience  of  the Community  shipowner  and  any  Green-

landic  partner  in  the  fisheries  sector. 

4. The  Joint  Committee  shall  recommend  to  the  Parties  the  projects 
selected  in accordance  with  the criteria  set  out  in point  3 . 

5. Once  the  projects  have been approved  by  the Greenland  Authority 
and  the  Community,  the  Community  shall  forward  to  the  Greenland 
Authority  the  list  of  selected  projects  for  the purpose  of  issuing 
the  necessary  authorizations  and  fishing  licences. 

\o 

Annex  I I.  Scales  of  assistance  to  temporary  joint  v e n t u r es 

Category  of  v e s s e l,  by 
Gross  Registered  Tonnage  (GRT)) 

Maximum  amount: 
(ecus/day) 

0  <  25 
25  <  50 
50  <  70 
70  <  100 
100  <  200 
200  <  300 
300  <  500 
500  <  1,000 
1,000  <  1,500 
1,500  <  2,000 
2,000  <  2,500 
2,500  or  more 

52/GRT 
3 0/GRT 
50/GRT 
12/GRT 
74/GRT 
2.36/GRT 
2.05/GRT 
1.76/GRT 
1.50/GRT 
1.34/GRT 
1.23/GRT 
1.15/GRT 

20 
25 
65 
88 
120 
177 
254 
372 
565 
764 
956 
137 

Member  States  of  the  European  Community  shall  contribute  2 5%  of 
the  above  mentioned  sums  to  projects  involving  vessels  flying  the 
flag  of  the  Member  State  concerned. 

U 

Annex  III. Scales  of  assistance  to joint  enterprises 

Class  of  vessel  by 
gross  registered  tonnage 

(GRT) 

Maximum  amount  of  premium 
for a  15-year-old  vessel 

(in  ecus) 

0  <  25 
25  <  50 
50  <  100 
100  <  400 
400  and  over 

6,215/GRT 
5,085/GRT  +  28,250 
4,520/GRT  4  56,500 
2,260/GRT  +  282,500 
1,130/BRT  +  734,500 

The  premiums  for  setting  up joint  enterprises  paid  to  beneficiari 
es may  not  exceed  the  following amounts: 

- 15 year-old  vessels: see  table above, 

vessels  less  than  15 years old: scale  from  table  increased  by 
1,5%  per year  less  than 15, 

- vessels  more  than  15 years old: scale  from  table  decreased  by 

1,5%  per  year  over  15. 

Member  States  of  the  European  Community  shall  contribute  25% of 
the  above  mentioned  sums  to projects  involving  vessels  reflagging 
from  the  Member  State  concerned  to Greenland. 

\L 

Annex  IV 

laying  down  the  conditions  governing  the  creation  and  access  to 
resources  of  temporary  joint  ventures  and  joint  enterprises  in 
Greenland. 

A.  S e l e c t ed 

p r o j e c t s. 

Once  the  project  selection  procedure  laid  down  in Annex  I to  this 
Protocol  has been  completed,  the Community  shall  provide  the  Gre 
enland  Authority  with  a  list of  Community  vessels  selected  for 
inclusion  in a  temporary  joint  venture  or  joint  enterprises  with a 
view  to  the exercise  of  fishing  activities. 

B.  Licences. 

The  Greenland  authority  shall promtly  issue  a  fishing  licence. 
The  fishing  licences  shall be  issued  for a period  of  validity  equ 
al  to  the  duration  of  the  temporary  joint  ventures.  Fishing  shall 
take  place  on  quotas  allocated  by  the Greenland  Authority. 

C.  Replacement  of vessels. 

A  Community  vessel  operating  under  a  temporary  joint  venture  may 
be  replaced  by  another  Community  vessel  with  equivalent  capacity 
and  tecnical  specifications only on duly  justified  grounds  and 
with  the  agreement  of  the parties. 

D.  Fitting-out. 

Vessels  operating  under  temporary  joint  ventures  shall  comply  with 
the  rules  and  regulations  applicable  in Greenland  regarding  fit 
ting-out,  which  regulation  shall  be applied  without  discrimination 
between  Greenland  and  Community vessels. 

E.  Catch  declaration. 

1. All  Community  vessels  shall  forward  to  the Greenland  Authority 
a  catch  declaration  in accordance  with Greenlandic  fishery  régula 
tions. 

2.  A  copy  of  the  catch declaration  shall  be  forwarded  to  the  Euro 
pean  Commission. 

3.  In  the event  of  these  provisions  not  being  complied  with,  the 
Greenland  Authority  may  suspend  the  fishing  licence  of  the  vessel 
involved  until  the  said  formalities  have  been  complied  with. 

F.  Duration  of  the  joint  ventures. 

Temporary  joint  ventures  shall  be  valid  for an  initial  period  of 
no more  than  3 years. Under  no circumstances  may  this  duration  be 
extended  beyond  the expiry date  of  this  Protocol. Six months be 
fore  the  end  of  the period  of  validity  of  the  joint  venture,  the 
Joint  Committee  shall  consider whether  to extend  its validity  for 
the  additional  period  requested. 

G 

G . .Sei ent. i f ic observers . 

At  the  request  of  the Greenland  authority,  Community  vessels  fish 
ing  pursuant  to this  Protocol  shall  permit  a scientific  observer 
designated  by  the  said  Authority  to come on  board  to perform  his 
tasks.  The  observer  shall  be  provided  with  all  the  facilities  ne 
cessary  for  the  exercise  of  his  functions. 

The  conditions of  his stay on board  shall  be  the same  as  those of 
the other  officers of  the vessel. Observers' rémunérât ions  and  so 
cial  security contributions shall  be paid by  the Greenland  author 
ities.  The  costs of  his stay on board  shall  be borne by  the  owner 
of  the vessel . 

Annex  V. 

1. The  authorities  responsible  for Greenland  undertake  to offer  to 
the  Community  by  15 November  each  year  such  supplementary  catch 
possibilities  referred  to  in Article  8 of  the Agreement,  which  at 
the  time  are  expected  to be  avaible  the  following  fishing  year. 

The  Community  shall  inform  the  authorities  responsible  for Green 
land  of  its  reaction  to  the offer  no  later  6 weeks  after  receipt 
of  the  offer.  If  the Community  either  declines  the offer  or  does 
not  react  within  6 weeks,  the autorities  responsible  for  Greenland 
will  be  free  to offer  the  supplementary  catch  possibilities  to 
other parties. 

2.  If  at  any  time  during  the  fishing  year  additional  supplementary 
catch  possibilities under Article  8 of  the Agreement  are  identifi 
ed,  which  exceed  the  catch  possibilities contained  in the  offer 
referred  to  in paragraph  1,  the authorities  responsible  for  Green 
land  shall  offer  the  Community  such additional  possibilities. 

The  Community  shall  inform  the  authorities  responsible  for  Green 
land  of  its  reaction  to  the offer  no  later  6 weeks  after  receipt 
of  the  offer.  If  the Community  either  declines  the offer  or  does 
not  react  within  6 weeks,  the  authorities  responsible  for  Green 
land  will  be  free  to offer  the  supplementary  catch  possibilities 
to other  parties. 

I** 

AGREEMENT 

in the  form  of  an  exchange  of  letters concerning  the  provisional 
application  of  the  Protocol  laying  down  the  conditions  relation  to 
fishing  provided  for  in the Agreement  on  fisheries  between  the 
European  Community,  on  the one  hand,  and  the Government  of  Denmark 
and  the  Home  Rule  Government  of Greenland,  on  the  other  hand,  for 
the period  from  1 January  1995  to 31 December  2000. 

A. 
Letter  from  the; Government  of  Denmark  and  the  Home 
of  Greenland. 

Rule  Government 

Sir, 
With  reference  to  the  Protocol  laying  down  the  conditions  relation 
to  fishing,  initialled  on  1 July  1994  for  the  period  from  1 Janu 
ary  1995  to  31 December  2000,  I have  the  honour  to  inform  you  that 
the Government  of  Denmark  and  the Home  Rule Government  of  Green 
land  are  prepared  to apply  that  Protocol  provisionally  from  1 Ja 
nuary  1995  until  its entry  into  force  in accordance  with  Article 
12 of  the  said  Protocol, provided  that  the  European  Community  is 
prepared  to do  the same. 

It  is understood  that,  in this case, the payment  of  the  financial 
compensation  stipulated  in Article  9 of  the  Protocol  is  effected 
by  the  beginning  of  the  fishing  year. 

I  should  be obliged  if you would  confirm  that  the  European  Commu 
nity  is  in agreement  with  such provisional  application. 

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

For  the Government  of  Denmark  and 
the Home  Rule Government  of  Greenland 

B 
Letter  from  the  European  Community 

Sir, 

I have  the  honour  to acknowledge  receipt  of  your  letter  of  today's 
date»  which  reads as follows: 

"With  reforonco  to  the  Protocol  laying down  the conditions icl.i 
tion  to  tishiny,  initialled  on  1 July  1994,  for  the period  h om  1 
January  1995  to  31 December  2000,  I have  the  honour  to  inform  you 
that  the Government  of  Denmark  and  the Home  Rule Government  of 
Greenland  are  prepared  to apply  that  Protocol  provisionally  from 1 
January  1995  until  its entry  into  force  in accordance  with  Article 
12 of  the  said  Protocol, provided  that  the  European  Community  is 
prepared  to do  the same. 

Wc? 

It  is understood  that,  in this case, the payment  of  the  financial 
compensation  si ipulaled  in Article  9 of  the  Protocol  is effected 
by  the  beginning  of  the  fishing year. 

I should  be obliged  if you would  confirm  that  the  European  Coumm 
nity  is  in agreement  with  such provisional  application." 

I  have  the  honour  to confirm  the agreement  of  the  European  Commu 
nity  to  this provisional  application. 

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

On  behalf  of  the  Council  of  the 
European  Union 

IT-

FINANCIAL STATEMENT 

1.  TITLE 

Proposal  for  a Council  Regulation on the conclusion  of the Third  Protocol  laying down the 
conditions ; tlated to fishing provided for in the Agreement on fisheries  between the European 
Community,  on the  one  hand,  and  the Government  of  Denmark  and  the  local  Government 
of  Greenland,  on the  other  hand. 

2.  BUDGETARY  LINE  CONCERNED 

Art.  B7-800 

3.  LEGAL BASIS 

Article 43 of  the Treaty 

4.  DESCRIPTION 

4.1.  General objective. 

- maintain and develop the traditional activity of Community fishermen  in Greenland  waters. 
- supply  the Community  market. 
- decrease  the  fishing  effort  in Community waters. 
- contribute  to reduce  the excess  fishing  capacity  of  the Community  fleet. 

4.2.  Period covered. 

From  1  January  1995 until  31 December  2000, corresponding  to the period  covered  by the 
extension  of  the framework  agreement  of  1985. 

5.  CLASSIFICATION  OF SPENDING 

5.1.  DO 
5.2.  CD 

6.  TYPE OF SPENDING 

The  contribution  is  a  flat  sum,  fixed  for  the  six-year  period,  to  be  paid  to  the  Greenland 
Home  Rule  Government,  entirely  from  the Commission's  budget. 

In addition,  the contribution  for joint  ventures  will  correspond  exactly  to the type of  grant 
aid  established  in the fisheries  structural  regulation  (Regulation  3699/93),  and  will  be paid 
75%  by the Commission  and 25% by the concerned  Member  States. 

\% 

7.  FINANCIAL  CONSEQUENCES 

7.1.  Calculation for1995. 

The  financial  contribution  is fixed  to a flat sum  of  37,700,000  ecus  per  year.  In  addition, 
6,000,000  ecus  are  allocated  for  the  financing  of  joint  enterprises  and  temporary  joint 
ventures,  over  the whole period  of  six  years.  Therefore,  the annual  contribution  from  the 
Commission  can  be estimated  in 38,700,000 ecus per  year  from  1995 to 2000. 

8.  ANTI-FRAUD  PROVISIONS 

The protocol sets up a Joint Committee with the aim of overseeing  the project selection and 
the development  of  the operations  by the joint enterprises  and  temporary joint ventures. 

9.  ELEMENTS  OF COST/BENEFIT  ANALYSIS 

9.0.  Introduction. 

With  respect  to the second  protocol  (1990-94)  the new protocol  introduces  a series  of very 
significant  improvements  in the cost/benefit  ratio: 

-Introduction  of  new species: 

*  Roundnose  grenadier,  which  in  previous  years  had  to  be  purchased  as  a 
supplementary  quota  (and  therefore  payed  for)  is  now  included  in  the  quota  table, 
with  two quotas,  one of 6,000  tonnes  to complement the Greenland  halibut  fishery, 
and  a second  one of 2,000  tonnes  to be caught as a  "clean"  fishery  in deep waters. 

*  Polar  cod,  of which  a quota of 2,000  tonnes  has been  obtained. 

*  Other  new  species.  The  establishment  of  joint  enterprises  and  temporary  joint 
ventures  is  primarily  intended  to  develop  new  fisheries,  for  species  known  to  be 
abundant  but still  not well  introduced  in the  market. 

-  Increase  in existing  quotas: 

* Capelin.  Instead  of the 30,000 tonnes of protocol 2, a 70%  of the Greenland  quota 
has  been  obtained.  This  will  provide,  for  1995, a  quota  of  around  110,000  tonnes 
(almost four  times as much). Due to stable high abundances of this species,  this high 
catch  possibilities  are  very  likely  to  be  maintained  over  the  six-year  period. 
Moreover,  the  possibility  for  Community  vessels  to  land  and  sell  their  catches  in 
Iceland,  after  the  Agreement  signed  with  this  country,  makes  this  quota  very 
atractive,  unlike  in  the  second  protocol,  where  the  absence  of  this  possibility 
prevented  the utilization  of the quota. 

*  Halibut.  The  quota  has  been  increased  with  200  tonnes  in West  Greenland,  to a 
total  of  400  tonnes  which  represents  two  thirds  of  the  Greenlandic  TAC  for  this 
species.  In addition, this species  is a bycatch of cod and redfish.  As its relatively  low 

\°l 

amount  would  be a serious  constraint  to fully  utilize  the quotas  for  cod  and  redfish, 
since  the  new  bycatch  rules  in  Greenland  make  it  mandatory  to  keep  bycatches  on 
board  and  count  them  against  their  quota,  a  new  footnote  to  this  quota  has  been 
introduced,  allowing  in practice all  the bycatches  necessary  to fully  exploit  the cod 
and redfish  quota without  interference  from  the bycatch  rules. This will  dramatically 
increase  the  fishability  of cod  and  redfish. 

* Greenland  halibut.  The  quota  is  increased  to a total  of  6 000 tonnes. 

* Cod. The quota remains unchanged,  but a flexibility  to fish  it either  in the West or 
in  the  East  has  been  introduced.  Furthermore,  a  roll-over  mechanism  has  been 
introduced.  This  roll-over  allows  the  accumulation  of  fishing  rights,  without 
additional payment,  those years in which the biological unavailability of the resource 
does  not allow a high utilization of the quota.  The accumulated  fishing  rights  can be 
used  when  the stock  recovers  and generates  a surplus.  In the previous  protocol,  this 
flexibility  did  not  exist,  and  all  access  to  surplus  cod  was  subject  to  additional 
payment. 

* Shrimp.  A clause allowing  the partial  transfer  (up to  1,000  tonnes)  of the quota of 
East  Greenland  to  West  Greenland  has  been  introduced.  This  clause  will  allow  an 
improvement  in the fishability  of the stock.  In previous years,  Community  fishermen 
could have fished  more of this stock had they had the opportunity to shift part of their 
activity  to West  Greenland. 

9.1.  Specific objectives. 

- Maintaining of fishing  possibilities withi the 200 miles of third parties and obtention of new 
fishing  possibilities. 

In this protocol,  the existing  fishing  possibilities  are  improved,  through  the  increase 
in  some  quotas,  the  consolidation  of  fishing  possibilities  which  so  far  had  to  be 
purchased  with extra cost, and the introduction of flexibility  clauses that will  improve 
the  fishability  of  the  quotas.  In addition,  two  new species  are  incorporated  into the 
quota  table. 

With a view  to avoid  any problems  posed  by the application  of  the new  Greenlandic 
rules on bycatches,  a series  of quotas and footnotes  have been  included,  to the  effect 
of  preventing  that  the  lack  of  quotqs  for  bycatches  could  jeopardise  the  directed 
fisheries. 

Finally, joint enterprises  and temporary joint ventures have been introduced  with the 
main goal  of  exploring  the feasibility  of  new  fisheries. 

- The  supply  of  the Community  market. 

The  catch  from  both  Community  vessels  and  Greenlandic  vessels  operating  under 
joint  enterprises  is directed  primarily  to the supply  of  the Community  market. 

Xo 

-  The  reduction  of  the  fishing  effort  in Community  waters. 

The  agreement  with  Greenland  provides  important  fishing  possibilities  that  keep an 
estimated  50  Community  vessels  away  from  Community  waters.  With  the 
improvement  in  fishing  possibilities  in  this  third  protocol,  the  number  of  vessels 
operating  in  Greenland  could  increase,  and  the  fishing  effort  in  Community  waters 
will consequently decrease further.  Temporary joint ventures will also allow a further 
reduction  of  fishing  effort  in the  Community's  EEZ. 

-  Contribution  to  the  reduction  of  excess  fishing  capacity  through  the  transfer  of  fishing 
vessels  to  third  countries. 

This protocol  introduces  also the possibility  of setting  up joint enterprises.  This  will 
allow  the  deregistration  of  Community  vessels,  thus  further  contributing  to  the 
reduction  of  fishing  effort. 

- As secondary  objectives,  this agreement will  contribute to increase the opportunities  for the 
Community  processing  industry,  and  it  will  also  have  consequences  on  the  Community 
shipbuilding  industry  and on employment.  The  increased  opportunities  obtained  in this third 
protocol  should  result  in an  improvement  in these  three  aspects. 

9.2.  Justification. 

-  Need  for  a  Community  financial  aid. 

The  agreement  has  the  aim  of  ensuring  the  access  to  Greenlandic  waters  of  the 
Community  fleets  that operated  in  the area  before  1985,  when  Greenland  withdrew 
from  the  Community.  These  fleets  exploit  resources  within  Greenland's  200-mile 
Exclusive  Economic  Zone.  Consequently,  these  fishing  rights  have to be purchased. 
In  addition,  Greenland  enjoys  tariff-free  access  to  all  its  fishery  products  to  the 
Community  market,  and  is  not  interested  in a  mutual-access  agreement.  Therefore, 
the  financial  contribution  is  the  only  way  to  have  access  to  Greenland's  fish 
resources. 

-  Main  factors  affecting  the  specific  results. 

The  main factor  is  the natural  variability  of  fish  resources,  that can make the rate  of 
utilization  of  the  quotas  rather  low when  the stock  abundances  are  low.  In any  case, 
the flexibility  introduced  in some  quotas  (the  flexibility  between  East  and West,  the 
quota  roll-over  for  cod)  will  minimise  the possible  negative  effects  of  this  factor. 

9.3.Follow-up  and  evaluation. 

DG  XIV  Services  will  monitor  the  rate  of  utilization  of  the  available  quotas  under  this 
protocol,  through  the  recolection  of  data on  landings. 

The  Agreement  also  foresees  consultations  between  the two parties  in order  to follow  up the 
development  of  the  protocol. 

it 

In addition,  a joint  committe  is set  up by the protocol  to specifically  control  the activity of 
joint  enterprises  and  temporary joint ventures. 

9.4.  Consistency with budgetary planning. 

The expenses  proposed  are  foreseen  in the budgetary  planning  for  the period  concerned. 

10. ADMINISTRATIVE  EXPENSES 

The  new protocol  does  not require  new Commission  staff. 

Only every second year a meeting of the joint committee will require travel expenses  for two 
officials,  with an approximate  cost of 7,000 ecus. 

IX 

ISSN 0254-1475 

COM (94) 393 final 

DOCUMENTS 

EN 

il  03 

Catalogue number : CB-CO-94-423-EN-C 

ISBN 92-77-80711-3 

Office  for Official  Publications of the European Communities 
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l)