COMMON POSITION (EC) No 59/96 adopted by the Council on 23 July 96 with a view to adopting Council Regulation (EC) No .../96 continuing a special system of assistance to traditional ACP suppliers of bananas established by Regulation (EC) No 2686/94
Date: 1996-07-23
Institutions: Council of the European Union
Subjects: ACP countries, financial aid, production aid, supplier, technical cooperation, tropical fruit













EUR-Lex - 51996AG1107(01) - EN






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51996AG1107(01)

COMMON POSITION (EC) No 59/96 adopted by the Council on 23 July 96 with a view to adopting Council Regulation (EC) No .../96 continuing a special system of assistance to traditional ACP suppliers of bananas established by Regulation (EC) No 2686/94  


Official Journal C 333 , 07/11/1996 P. 0001 





COMMON POSITION (EC) No 59/96 adopted by the Council on 23 July 96 with a view to adopting Council  Regulation (EC) No . . ./96 continuing a special system of assistance to traditional ACP suppliers  of bananas established by Regulation (EC) No 2686/94 (96/C 333/01)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 (1), Having regard to the opinion of the Economic and Social Committee (2), Acting in accordance with the procedure laid down in Article 189c of the Treaty (3), Whereas Protocol 5 on bananas to the Fourth ACP-EC 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 organizations 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 organization of the market in bananas established by Regulation (EEC) No 404/93  (4) set the framework for continuing, on the Community market, the advantages enjoyed by  traditional ACP suppliers, in accordance with the Community's commitment set out above; Whereas risks exist nevertheless that the introduction of a new market organization and the need to  adapt to it could jeopardize 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 marketing 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 procedure could reasonably foresee. Whereas technical and financial assistance, additional to that provided for in the Fourth ACP-EC  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 competitiveness; Whereas the new conditions prevailing on the market may result in temporary market disturbances,  particularly in the sectors of the Community market traditionally supplied by the ACP States; Whereas such disturbances could seriously affect the income of the ACP States from the market and  therefore the continued viability of the production in question; Whereas financial assistance should therefore be provided to permit the ACP States to remain on the  market, until such time as the market stabilizes and a satisfactory economic return from the market  can be received; Whereas income support should be complementary to transfers under the export earnings stabilization  system (Stabex) triggered by the same set of circumstances; Whereas it is therefore appropriate to align calculation of income support with the calculation of  Stabex transfers; Whereas Regulation (EC) No 2686/94 (1) introduced financial assistance in the form of income  support; Whereas that Regulation expired on 28 February 1996; Whereas the statistics necessary for the calculation of Stabex transfers and income support to be  granted for the preceding year are not available until the second quarter of each year, thus, in  order to satisfy the overall requirements of the system, the rules laid down by Regulation (EC) No  2686/94 should continue to be applied until 31 December 1996; Whereas that Regulation also establishes technical and financial assistance, additional to that  provided for in the Fourth ACP-EC Convention and granted to programmes designed to assist producers  in adapting to new market conditions, HAS ADOPTED THIS REGULATION: Article 1 A special system of assistance to traditional ACP suppliers of  bananas is hereby established. This assistance may consist of technical and financial assistance  and/or income support. Article 2 For the purposes of this Regulation: - 'traditional ACP suppliers` means the ACP States listed in the Annex, - 'bananas` means fresh or dried bananas covered by CN code 0803, excepting plantains.TITLE I  TECHNICAL AND FINANCIAL ASSISTANCE Article 3 1. Technical and financial assistance shall be  provided to traditional ACP suppliers with a view to helping them adapt to the new market  conditions following the establishment of a common organization of the market in bananas. 2. This technical and financial assistance shall be provided to contribute to the carrying-out of  programmes in the banana sector to achieve one or more of the following objectives: - to improve quality, - to adapt production, distribution or marketing methods to meet the quality standards provided for  in Article 2 of Regulation (EEC) 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 and/or marketing strategy to meet the requirements of the market in the  Community in the light of the common organization of the market in bananas, - to assist with training, market intelligence, the development of environmentally sound production  methods, improving the distribution infrastructure, improving trade and financial services to  banana producers and/or improving competitiveness. 3. Assistance may be given to programmes having similar objectives which are currently financed  under the Fourth ACP-EC Convention or by the public authorities of the Member States parties to  that Convention where such assistance would result in more rapid completion of the programme. Article 4 The Commission shall decide on the eligibility of the programme and the level of  assistance after consultation with the traditional ACP supplier concerned. It shall also take into  account the consistency of the envisaged programme with the general development objectives of the  ACP State concerned and its impact on regional cooperation with other banana producers, in  particular the Community producers.TITLE II INCOME SUPPORT Article 5 1. Within the limits  indicated in Article 15 (1) of Regulation (EEC) No 404/93, traditional ACP suppliers shall be  eligible for income support. 2. Income support shall be paid where the reduction in income derived from exportation to the  Community of bananas complying with the common standards is directly related to conditions  prevailing on the market subsequent to the establishment of the common organization of the market  in bananas. Article 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 preceding 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 envisaged year of application. 3. The statistics needed for the calculation of income support shall be those drawn up and  published on Community imports by the Statistical Office of the European Communities. 4. Before 1 July of each year, the Commission shall determine the income support for the previous  year after consultation with the ACP State concerned.TITLE III GENERAL PROVISIONS Article 7 1.  Financial commitments under Title I shall be in addition to any funds available for ACP States  under the provisions of the Fourth ACP-EC Convention. 2. Financial commitments made under Title II shall be complementary to funds available under the  system guaranteeing the stabilization of export earnings provided for in Articles 186 et seq. of  the Fourth ACP-EC Convention. Title II therefore only permits payments of income support in as far  as transfers, made for identical quantities in accordance with Articles 186 et seq. of the Fourth  ACP-EC Convention, do not entirely offset the effects of price decreases on the income 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 to enhance the economic  viability of production. 4. (a) Where application of Title II gives rise to a transfer basis, the ACP State concerned shall,  in the month following receipt of the notification referred to in Article 6 (4), send the  Commission a substantial analysis of the sector recording the loss of earnings, the causes of the  loss, the policies pursued by the authorities and the projects, programmes or operations to which  the resources are to be allocated in accordance with the objectives set out in paragraph 3 hereof. (b) Projects, programmes or operations to which the recipient ACP States undertake to allocate the  transferred resources shall be examined jointly by the Commission and the ACP State concerned. (c) Resources shall be used to support immediate operations to sustain the economic viability of  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. The granting of assistance as defined in Article 1 shall be subject to the  designation by the ACP State concerned of a representative organization entitled to act and to  receive payments on its behalf within the framework of this Regulation. 2. The representative organizations shall present the following characteristics: (a) be composed entirely or mainly of producers of bananas from one or more traditional ACP  suppliers; (b) pursue at least two of the following objectives: - improvement of the quality of the produce, - improvement of the quality of the distribution and marketing network, - improvement of the returns to producers, - improvement of the role of producers in the organization of the banana market. 3. The representative organization designated in accordance with paragraph 2 must be notified to  the Commission. Article 9 As far as necessary, detailed rules for the application of this Regulation shall be  determined by the Commission in accordance with the procedure laid down in Article 10. Article 10 The Commission shall be assisted by a committee of an advisory nature composed of the  representatives of the Member States and chaired by the representatives of the Commission. 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. 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. 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 into account. Article 11 This Regulation shall enter into force on the date of its publication in the Official  Journal of the European Communities. It shall apply with effect from 29 February 1996. It shall expire on 31 December 1996. This Regulation shall be binding in its entirety and directly applicable in all  Member States. Done at Brussels, . . . For the Council The President (1) OJ No C 92, 28. 3. 1996, p. 16. (2) OJ No C 204, 15. 7. 1996, p. 37. (3) Opinion of the European Parliament of 21 June 1996 (not yet published in the Official Journal),  Council common position 23 July 1996 (not yet published in the Official Journal) and Decision of  the European Parliament of . . . (not yet published in the Official Journal). (4) OJ No L 47, 25. 2. 1993, p. 1. Regulation as last amended by Regulation (EC) No 3290/94 (OJ No  L 349, 31. 12. 1994, p. 105). (1) OJ No L 286, 5. 11. 1994, p. 1. ANNEX LIST PROVIDED FOR IN THE FIRST INDENT OF ARTICLE 2 Traditional ACP  suppliers of bananas Belize Cameroon Cape Verde Côte d'Ivoire Dominica Grenada Jamaica Madagascar Saint Lucia Saint Vincent and the Grenadines Somalia Suriname  STATEMENT OF THE COUNCIL'S REASONS I. INTRODUCTION 1. On 1 February 1996 the  Commission presented a proposal (1) based on Article 130w of the EC Treaty amending Council  Regulation 2686/94 establishing a special system of assistance to traditional ACP suppliers of  bananas (2). 2. The European Parliament adopted its opinion on first reading of the proposal on 21 June 1996. 3. On 7 October 1996, the Council adopted its Common Position in accordance with Article 189c of  the Treaty. II. OBJECTIVE OF THE PROPOSAL The purpose of the proposal is to extend the  expiry date of Regulation 2686/94 from 28 February 1996 to 31 December 1996. III. ANALYSIS OF THE COMMON POSITION The Common Position adopted by the Council  reproduces the content of the Commission proposal. The Council has however modified the proposal  for the simple reason that it is not legally possible to prolong a regulation which has expired, as  would have been the case with the present Regulation, in view of the time consuming procedures  foreseen for its prolongation. The Council therefore decided to adopt a new regulation with the  same text as the expired Regulation except for the changed dates of application. (1) OJ No C 92, 28. 3. 1996, p. 16. (2) OJ No L 286, 5. 11. 1994, p. 1.