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 Côte d' Ivoire, Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of Saint Mauritius, the Republic of Suriname, the Republik of Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia and the Republic of Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices for cane sugar for the 1995/1996 delivery period
Date: 1996-02-07
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

Brussels,  07.02.1996 
C()M(96)  35  final 

96/0032  (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  Côte  d'Ivoire,  Jamaica,  the  Republic  of  Kenya, 
the  Republic  of  Madagascar,  the  Republic  of  Malawi, 
the  Republic  of  Mauritius,  the  Republic  of  Suriname, 
Saint  Christopher  and  Nevis,  the  Kingdom  of  Swaziland, 
the  United  Republic  of  Tanzania,  the  Republic  of  Trinidad  and  Tobago, 
the  Republic  of  Uganda,  the  Republic  of  Zambia  and the  Republic  of  Zimbabwe  and, 
on  the  other  hand, the  Republic  of  India  on  the  guaranteed  prices 
for  cane  sugar  for  the  1995/1996  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  1995/96 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 24.10.1995. 

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  1995 budget and the 1996 preliminary  draft  budget. 

Proposal  for  a 

COUNCIL  DECISION  (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  Côte  d'Ivoire,  Jamaica,  the  Republic  of  Kenya, 
the  Republic  of  Madagascar,  the  Republic  of  Malawi, 
the  Republic  of  Mauritius,  the  Republic  of  Suriname, 
Saint  Christopher  and  Nevis, the  Kingdom  of  Swaziland, 
the  United  Republic  of  Tanzania,  the  Republic  of  Trinidad  and  Tobago, 
the  Republic  of  Uganda,  the  Republic  of  Zambia  and the  Republic  of  Zimbabwe  and, 
on  the  other  hand, the  Republic  of  India  on the  guaranteed  prices 
for  cane  sugar  for  the  1995/1996  delivery  period 

THE  COUNCIL  OF THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 

Article  113,  in  conjunction  with  the  first  sentence  of  Article  228(2),  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  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  sugar  market; 

Whereas  it  is  appropriate  to  approve  the  Agreements  in the  form  of  an  Exchange  of  Letters 

between  the  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 

1995/1996  delivery  period, 

(1)  OJ  No  L 2 2 9,  1 7 . 8 . 1 9 9 1,  p.  216. 
(2)  OJ  No  L  190,  2 2 . 7 . 1 9 7 5,  p,  35. 

HAS  DECIDED  AS  FOLLOWS: 

Article  1 

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  Côte  d'Ivoire,  Jamaica,  the  Republic  of  Kenya,  the 

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

Suriname,  Saint  Christopher  and  Nevis,  the  Kingdom  of  Swaziland,  the  United  Republic  of 

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

Zambia  and  the  Republic  of  Zimbabwe  and, on  the  other  hand, the  Republic  of  India  on  the 

guaranteed  prices  for  cane  sugar  for  the  1995/1996  delivery  period  are  hereby  approved  on 

behalf  of  the  Community. 

The  text  of  the  Agreements  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 

The  President 

^ 

Text  No I 

AGREEMENT 

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  CÔTE  D'IVOIRE, 

JAMAICA,  THE  REPUBLIC  OF  KENYA, 

THE  REPUBLIC  OF  MADAGASCAR,  THE  REPUBLIC  OF  MALAWI, 

THE  REPUBLIC  OF  MAURITIUS,  THE  REPUBLIC  OF  SURINAME, 

SAINT  CHRISTOPHER  AND  NEVIS,  THE  KINGDOM  OF  SWAZILAND, 

THE  UNITED  REPUBLIC  OF TANZANIA,  THE  REPUBLIC  OF  TRINIDAD 

AND  TOBAGO,  THE  REPUBLIC  OF  UGANDA,  THE  REPUBLIC  OF ZAMBIA  AND 

THE  REPUBLIC  OF  ZIMBABWE 

ON  THE  GUARANTEED  PRICES  FOR  CANE  SUGAR 

FOR THE  1995/1996  DELIVERY  PERIOD 

A.  Letter  No  1 

Sir, 

Brussels, 

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

the  Fourth  ACP-EEC  Convention  and  of  the  Commission,  acting  on  behalf  of  the  European 

Commuriity,  have  agreed,  pursuant  to  the  provisions  of  the  said  Protocol,  on  the  following: 

For  the  delivery  period  1  July  1995  to  30  June  1996,  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  52,37  per  100  kilograms; 

(b)  for  white  sugar:  ECU  64,65  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  the  Governments  of  the 

abovementioned  ACP  States  and  the  Community. 

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

B.  Letter  No  2 

Sir, 

On  behalf  of  the  Council 

of  the  European  Union 

Brussels, 

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

"The  representatives  of  the  ACP  States  referred  to  in  Protocol  8  on  ACP  sugar 
annexed  to  the  Fourth  ACP-EEC  Convention  and  of  the  Commission,  acting  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  1995  to  30  June  1996,  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  52,37  per  100  kilograms; 
(b)  for  white  sugar:  ECU  64,65  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  the  Governments  of  the 
abovementioned  ACP  States  and  the  Community." 

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 

of  the  ACP  States 

referred  to  in  Protocol  8 

io 

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  1995/1996 

A.  Letter  No  1 

Sir, 

Brussels, 

The  Representatives  of  India  and  of  the  Commission,  acting  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  Economic  Community  and  the 

Republic  of  India  on  cane  sugar,  on  the  following: 

For  the  delivery  period  1 July  1995  to  30  June  1996,  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  52,37  per  100  kilograms; 

(b)  for  white  sugar:  ECU  64,65  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. 

On  behalf  of  the  Council  of  the 

European  Union 

B.  Letter  No  2 

Sir, 

Brussels, 

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

"The  Representatives  of  India  and  of  the  Commission,  acting  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  Economic 
Community  and  the  Republic  of  India  on  cane  sugar,  on  the  following: 

For  the  delivery  period  1 July  1995  to  30  June  1996,  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  52,37  per  100  kilograms; 
(b)  for  white  sugar:  ECU  64,65  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.". 

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 

BUDGET  HEADING:  1 î 

APPROPRIATIONS: 
ECU  1.467  million 

2. 

TITLE: 
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,  the ACP  States  and,  on the other  hand,  the Republic  of India  on  the  guaranteed 
prices  for  cane  sugar  for  the  1995/96  delivery  period. 

LEGAL  BASIS: Article  113 of the EEC  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 
1995/96 delivery  period. 

FINANCIAL  IMPLICATIONS: 

PERIOD  OF  12 
MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR 
(96) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR 
(97) 
(ECU  million) 

5.0. 

EXPENDITURE 
-  CHARGED  TO THE  EC  BUDGET 

634 

603 

31 

(REFUNDS/INTERVENTION) 

- NATIONAL  AUTHORITIES 
-  OTHER 

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

-  NATIONAL 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

METHOD  OF  CALCULATION: 
1,3  million  t x ECU  465/t  (refunds) 
1,3  million  t x ECU  13/t (refining  aid) 

1998 

1999 

2000 

2001 

x  1,020  (DT)  -
x  1,019  (DT) = 

ECU  616,6  million  (B) 
ECU  17,2 million  (B) 

ECU  633,8  million  (B) 

In  1996: ECU  616,6  million  x 0,95  (export  coefficient)  + ECU  17,2 million  =  ECU  603 million  (B) 
In  1997:  ECU  616,6  million  x 0,05  (export  coefficient) 

= ECU  30,8  million  (B) 

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? 

WILL  A SUPPLEMENTARY  BUDGET  BE NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE NECESSARY? 

XXXXXX 

NO 

YES 

5.1. 

5.0.1. 
5.1.1. 

5.2. 

6.0. 

6.1. 

6.2. 

6.3. 

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, 
will  be taken  into  account  in the  1996 budget. 

ISSN 0254-1475 

COM(96) 35  final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-96-042-EN-C 

ISBN 92-77-99980-2 

Office for Official Publications of the European Communities 

L-2985 Luxembourg 

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