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 Zambia, the Republic of Zimbabwe and, on the other hand, the Republic of India, on the guaranteed prices for cane sugar for the 1994/95 delivery period
Date: 1995-10-06
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price, protocol on sugar

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  06.10.1995 
COM(95)  464  final 

95/0242  ( A CQ 

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 Zambia, 
the  Republic  of Zimbabwe and, on the other  hand, the  Republic  of India, 
on the guaranteed  prices for  cane sugar for the  1994/95 delivery  period 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

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. 

For the  1994/95 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  14.11.1994. 

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. 

Financial impact: 

These proposals have no financial impact other than that taken into account within the 
framework of the  1994 budget and the  1995 preliminary  draft  budget (see financial 
statement accompanying the recommendation for a Council decision authorizing the 
Commission to negotiate the guaranteed  prices for  1994/95). 

Proposal for a 

COUNCILPECISION(EC) N. 

of 

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 Zambia, 
the  Republic  of Zimbabwe and, on the other  hand, the Republic  of India, 
on the guaranteed  prices for  cane sugar for the  1994/95 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(1) 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  1994/95 delivery period, 

(1) 
(2) 

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

3 

HAS DECIDED AS FOLLOWS: 

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 Zambia, the Republic of Zimbabwe and, 

on the  other  hand, the  Republic of  India  on the guaranteed  prices for  cane  sugar for  the 

1994/95 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 

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 Oepublic 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 Zambia, the Republic of Zimbabwe 
and, on the other hand, the  Republic of India 
on the guaranteed prices for cane sugar for the  1994/95 delivery period. 

Letter  No 1 

Brussels, 

Sir, 

The representatives of the ACP 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 
Community, have agreed, pursuant to the provisions of the said Protocol, on the following: 

For the delivery  period  1 July  1994 to 30 June  1995, 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(1): 

(a) 
(b) 

for  raw sugar: 
for white sugar: 

ECU 52.37 per  100 kilograms; 
ECU 64.65 per  100 kilograms. 

These  prices  shall refer to sugar of standard  quality  as defined  in Community  legislation, 
unpacked, cif free out 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. 

(1) 

It  is  understood  by  both  parties  that  the  prices  contained  in  this  agreement  are 
expressed  in the  Ecu as it exists at the time of the agreement.  In terms of the  Ecu 
which are applied until 31.1.1995 the prices should be understood as being : 

a) 
b) 

for raw sugar: 
for white sugar: 

ECU 43.37 per  100 kilograms; 
ECU 53.54 per  100 kilograms. 

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 

Brussels, 

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 

Text No It 

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 the 1994/95 delivery  period 

Letter No 1 

Brussels, 

Sir, 

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 1994 to 30 June 1995 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(1): 

(a) 
(b) 

for  raw sugar: 
for white sugar: 

ECU 52.37 per  100 kilograms; 
ECU 64.65 per  100 kilograms. 

These  prices shall refer to sugar  of standard  quality  as defined  in Community  legislation, 
unpacked, cif free out 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. 

d) 

It  is  understood  by  both  parties  that  the  prices  contained  in  this  agreement  are 
expressed  in the  Ecu as it exists at the time of the agreement.  In terms  of the  Ecu 
which are applied until 31.1.1995 the prices should  be understood as being : 

a) 
b) 

for  raw sugar: 
for white sugar: 

ECU 43.37  per  100 kilograms; 
ECU 53.54 per  100 kilograms. 

> 

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 

Letter No 2 

Brussels, 

Sir, 

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

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 

BUDGET  HEADING:  11 

APPROPRIATIONS: 
ECU  1.789  million 

2. 

TITLE: 
Council  Decision  No ... on  the conclusion  of the  Agreements  in the  form  of an  exchange  of  letters  between  the 
European  Community  and, on  the one  hand, the ACP states and, on  the other  hand,  the  Republic  of  India  on (he 
guaranteed  prices  for  cane  sugar  or the  1994/95 delivery  period. 

3. 

LEGAL  BASIS: Article  113 of the  Treaty 

AIMS: 
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 
1994/95 delivery  period. 

FINANCIAL  IMPLICATIONS: 

PERIOD OF  12 
MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR 
(95) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR 
(96) 
(ECU  million) 

5.0. 

EXPENDITURE 
-  CHARGED  TO THE  EC  BUDGET 

(REFUNDS/INTERVENTION) 

-  NATIONAL  AUTHORITIES 
- OTHER 

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

-  NATIONAL 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

5.1. 

5.0.1. 
5.1.1. 

5.2. 

1997 

1998 

1999 

2000 

6.0. 

CAN  THE  PROJECT  BE FINANCED FROM APPROPRIATIONS  ENTERED  IN THE  RELEVANT 
CHAPTER  OF THE CURRENT  BUDGET? 

YES 

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT 
BUDGET? 

6.2. 

6.3. 

WILL A SUPPLEMENTARY  BUDGET  BE  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE NECESSARY? 

NO 

YES 

OBSERVATIONS  The  financial  consequences  of this proposed  Regulation  have  already  been  calculated  in the 

recommendation  for  a Council  Decision  covering  the  same  subject. 

Cf.  Written procedure  E  1674/94 of  11 October  1994. 

ISSN 0254-1475 

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