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 1996/97 delivery period
Date: 1997-03-21
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price, import policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  21.03.1997 
COM(97) 114  final 

97/ 0109 (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  1996/97 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 1996/97 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 22.9.1996. 

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  1997 budget. 

ci 

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 1996/97 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 

1996/97 delivery period, 

HAS DECIDED AS FOLLOWS: 

(1)  OJ No L 229,  17.8.1991,  p. 216. 
(2)  OJ No L 190, 22.7.1975,  p,  35. 

3 

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  1996/97  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 

4 

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  1996/97  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 
Community, have agreed, pursuant to the provisions of the said Protocol, on the following: 

For the delivery  period  1 July  1996 to 30 June  1997, 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) 
(b) 

for  raw sugar: 
ECU 52,37 per  100 kilograms; 
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. 

On behalf of the Council 
of the European  Union 

fT 

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  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  1996  to 30  June  1997,  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 

C 

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 THE  1996/97 DELIVERY  PERIOD 

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  1996 to 30 June  1997, 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) 
(b) 

for  raw sugar:  ECU 52,37 per  100 kilograms; 
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 

1~ 

B. Letter No 2 

Sir, 

Brussels, 

I have the honour to acknowledge reoeipt 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  1996  to  30  June  1997,  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 

? 

FINANCIAL  STATEMENT 

BUDGET  HEADING:  11 

APPROPRIATIONS: 
ECU  1.833,5 million 

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  1996/97 delivery  period. 

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 
1996/97 delivery  period. 

FINANCIAL  IMPLICATIONS: 

PERIOD OF 
12 MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR  (97) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR  (98) 
(ECU  million) 

5.0. 

EXPENDITURE 
-  CHARGED  TO THE EC  BUDGET 

648,4 

616,0 

32,4 

(REFUNDS/INTERVENTION) 

- NATIONAL  AUTHORITIES 
-OTHER 

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

-  NATIONAL 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

1999 

2000 

2001 

2002 

METHOD  OF  CALCULATION: 
1,3  million  t x ECU  470/t  (refunds) 
1,3  million t x ECU  24,2/t  (refining  aid) 

x  1,009  (DT) =  ECU 616,5 million  (B) 
x  1,014  (DT) =  ECU  31,9 million  (B) 

95% of the  expenditure  is to be charged  to the  1997 financial  year and  5% to the  1998 financial  year. 

ECU 648,4 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? 

YES/NO 

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  1997 budget. 

9 

ISSN 0254-1475 

C0M(97) 114  final 

DOCUMENTS 

EN 

03  11 

Catalogue number  :  CB-CO-97-107-EN-C 

ISBN  92-78-17167-0 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

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