Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of an exchange of letters between the European Community and, on the one hand, Barbados, Belize, the Republic of the Congo, Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, the 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 1993/94 delivery period
Date: 1994-10-18
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price, protocol on sugar

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 426 final 
Brussels,  18.10.1994 

94/0237  (ACC) 

Proposal  for a 

COUNCIL DECISION 

on the conclusion of the Agreements in the form of an exchange of letters 
between the European Community and, on the one hand, Barbados, Belize, 
the Republic of the Congo, Fiji, the Cooperative Republic of Guyana, 
the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, 
the 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 1993/94 delivery period 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

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

the  agreement  on  sugar  between  the  European  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  1993/94  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 19.7.1993. 

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  1993 budget and the 

1994 preliminary  draft budget  (see financial  statement  accompanying  the 

recommendation  for  a  Council  decision  authorizing  the  Commission  to 

negotiate the guaranteed prices for 1993/94). 

- 2 -

Proposal for a 

COUNCIL DECISION 

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

between  the  European  Community  and  Barbados,  Belize,  the  Republic  of  the 

Congo,  Fiji, the  Cooperative  Republic  of Guyana,  the  Republic  of the  Ivory 

coast,  Jamaica,  the  Republic  of  Kenya,  the  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  on  the 

guaranteed prices for cane sugar for the  1993/94 delivery period 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  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  between  the  European  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 sugar market, 

Whereas  it is appropriate to approve the Agreements  in the form of exchange 

of  letters  between  the European  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  1993/94 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. - 3 -

Article 1 

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

Community and, on the one hand, Barbados, Belize, the Republic of the Congo, 

Fiji,  the Cooperative  Republic of Guyana, the  Republic  of  the  Ivory  Coast, 

Jamaica, the Republic of Kenya, the 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  1993/94 

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 

- 4 -

Text No I 

AGREEMENT 

in  the  form  of  exchange  of  letters  between  the  European  community  and,  on 

the  one  hand,  Barbados,  Belize,  the  Republic  of  the  Congo,  Fiji,  the 

cooperative  Republic  of  Guyana,  the  Republic  of  the  Ivory  coast,  Jamaica, 

the  Republic  of  Kenya,  the  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  1993/94 

delivery  period. 

Letter No 1 

1.  The  representatives  of  the ACP states referred  to  in Protocol  & on ACP 

sugar  annexed  to  the  Fourth  ACP-EEC  Convention  of  Lomé  and  of  the 

commission on behalf of the European community,  have agreed, pursuant to 

the provisions of the said Protocol, on the following: 

For  the  delivery  period  1 July  1993  to  30 June 1994,  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 

ECU 43,37 per  100 kilograms; 

(b) for white sugar 

ECU 53,54 per 100 kilograms. 

2.  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. 

- 5 -

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 Union 

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 

- 6 -

Text No II 

AGREEMENT 

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

Republic of India on the guaranteed prices for cane sugar for.1993/94 

Letter No 1 

Brussels, 

Sir, 

1.  The  Representatives  of  India  and  of  the  Commission,  on  behalf  of  the 

European Community, have agreed within the framework of the negotiations 

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

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

for  the  period  1 July  1993  to  30  June  1994  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 

ECU 43,37 per 100 kilograms; 

(b) for white sugar  ECU 53,54 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. 

Yours faithfully, 

For the Council of the 

European Union 

-  7•••-

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 

- 8 -

F I N A N C I AL  STATEMENT 

DATE: 

1.  BUDGET  HEADING:  11 

APPROPRIATIONS:  ECU  2.088  million 

2.  TITLE: 

Recommendation  for  a Decision  of  the  Council  to  authorize  the  Commission  to  negotiate  the  guaranteed 

prices  applicable  in  the  1993/94  delivery  period  to  cane  sugar  originating  in  the  ACP  States  referred  to 

in  Protocol  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  Community  which  are  comparable  with  the  prices  guaranteed  to  sugar 

producers  in  the  Community  for  the  1993/94  delivery  period. 

FINANCIAL  IMPLICATIONS 

1993 

1994 

ECU  million 

ECU  mi 11 ion . 

ECU  mi 11 ion 

Period  of  12  months 

Current  Financial  Year 

Following  Financial  Year 

5.0  EXPENDITURE 

-  CHARGED  TO  THE  EC  BUDGET 

-  (REFUNDS/INTERVENTION) 

-  NATIONAL  ADMINISTRATION 

-  OTHER 

5.1  REVENUE 

5.0.1  ESTIMATED  EXPENDITURE 

5.1.1  ESTIMATED  REVENUE 

5.2  METHOD  OF  CALCULATION: 

670 

1995 

53 

617 

1996 

1997 

1998 

1,3  million  t  x ECU  420/t  <refunds) 

x  1,207  (DT)  =  ECU  659 

million  (B) 

1,3  million  t  x  ECU  5,8/t  (refining  aid) 

x  1,207  (DT)  = ECU 

9,1  million  (B) 

1,1  million  t  x ECU  4,5/t  (aid  to UK) 

x 25% x  1,207  (DT)  =  ECU 

1,5  million  (B) 

In  1994: ECU  659  million  x  0,92  (export  coefficient)  +  (9.1  +  1,5)  Mio  ECU  =  ECU  616,9  million  (B) 

In  1996:  ECU  659  million  x  0,08  (export  coefficient) 

=  ECU  52,7  million  (B) 

ECU  669,6  mi 11ion  (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  BETUEEN  CHAPTERS  OF  THE  CURRENT  BUDGET? 

6.2  IS A  SUPPLEMENTARY  BUDGET  NECESSARY? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

(1994) 

YES 

XXXXXX 

NO 

YES 

OBSERVATIONS: 

This  is  an  implementing  regulation  under  Protocol  8  annexed  to  the  Fourth  Lomé  Convention. 

Accordingly,  it  has  no  new  financial  impact  compared  with  the  previous  situation. 

The  cost  of  re-exporting  equivalent  quantities  of  Community  sugar  and  of  aid  for  the  refining  of  raw  sugar, 

estimated  at  ECU  670  million,  will  be  taken  into  account  in  the  1994  preliminary  draft  budget. 

Furthermore,  the  lowering  of  the  level  of  the  refining  aid  from  ECU  15.8/t  to  ECU  5.8/t  results  in  a  saving 

of  1.3  million  tonnes  x  (15.8  - 5.8)  ECU/t  x  1,207  (DR) = ECU  15,7 million  ( B ), the  cost  first  estimated 
in  the  1994  PDB. 

3 

ISSNQ254-1475 

COM(94) 426 final 

DOCUMENTS 

EN 

11 02 

Catalogue number : CB-CO-94-455-EN-C 

ISBN 92-77-81093-9 

Office for Officiai Pnblications of the European Communities 

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