Commission report on the operation in 1996 of the export earnings stabilisation system under the fourth ACP-EC Convention as revised by the Agreement signed in Mauritius
Date: 1997-07-18
Institutions: European Commission
Subjects: ACP-EU Convention, Stabex, export revenue, financial protocol, marketing

I 

Hi 

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  18.07.1997 
COM(97) 374 final 

COMMISSION REPORT 

On the operation in 1996 of the 

export earnings stabilisation system under the 

fourth ACP-EC Convention as revised by the 

Agreement signed in Mauritius 

«R 

I. 

1. 

2. 

INTRODUCTION 

Article 31(3) of the Internal Agreement on the financing and administration of 
Community aid states: 

"Each year  the Commission  shall draw up a  comprehensive  report for  the 
Member  States  on  the  operation of  the  system  of  stabilisation of  export 
earnings and the use made by the ACP States of the funds transferred. " 

This  report  covers  the  activities  of  the  ACP-EC  institutions  and  the 
administration of the system in 1996, paying special attention to the allocation 
of transfers  for  1995, the first  year of application  of  Stabex under the  fourth 
ACP-EC Convention as revised by the Agreement signed in Mauritius. 

The Stabex financial situation has continued to improve; for the second year of 
application in a row it has been possible to cover all transfers. 

II. 

3. 

4. 

ACTIVITIES OF THE ACP-EC INSTITUTIONS 

The  operation  of  Stabex  was  discussed  at  the  21st  session  of  the  ACP-EC 
Council  of  Ministers  (Apia,  27-28  June  1996)  and  the  43rd  meeting  of  the 
ACP-EC Committee of Ambassadors (Brussels, 31 May 1996). 

Items covered were the preparation of a Decision of the ACP-EC  Council of 
Ministers to permit transfers in respect of the 1995 year of application pending 
entry  into  force  of  the  fourth  ACP-EC  Convention,  as  revised  by  the 
Agreement signed in Mauritius (see point 8). 

m. 

5. 

TRANSFERS  FOR THE 1995 YEAR OF APPLICATION 

Calculation of the transfer  bases 

For the  1995 year  of  application,  the Commission  found  19 ACP  States  to  be 
The 
eligible 
21 country/product  groups  for  which 
for 
compensation were recorded  are listed in Table  1  of this report (see page 24). 

losses  of  earnings  eligible 

arrangements. 

21 transfers 

Stabex 

under 

the 

for 

6. 

After  calculating  the  reduction  provided  for  in  Article  197(3)  and  (4)  of  the 
Convention, the transfer  bases totalled ECU 87 989 500. 

Under  Article  204  of  the  Convention  the  transfer  basis  calculated  from  the 
Community's  import  statistics  is  reduced  to  the  level  of  the  transfer  basis 
calculated  from  the  statistics  on  the  exports  to  all  destinations  of  the  ACP 
States concerned, where the latter amount is less than the former.  -

7. 

Reductions under Article 203 

Trends  in marketed  output,  total  exports  and  exports  to the  Community  of  the 
products  in  question  meant  that,  in  many  instances,  consultations  under 
Article 203 of the Convention had to be held between the Commission  and  the 
representatives  of the ACP  States.  The consultations  resulted  in the  following 
reductions being made: 

7.1  Reductions  applied  as  a  result  of  significant  changes  in  trends  in 

marketed  output of the product in question. 

ACP  State 

Product 

Reduction 

Amount  in 
ECU 

%  of  transfer 
basis  (TB) 

CapeVerde 

Fresh bananas 

Sierra Leone 

Cocoa beans 

Benin 

Palm products 

Equatorial  Guinea 

Cocoa 

Rwanda 

Dominica 

Grenada 

Saint Vincent 

Tuvalu 

Tea* 

Bananas 

Bananas 

Bananas 

Copra 

206 239 

1 293 024 

308 017 

168 058 

1 478 865 

1 450  157 

614 930 

1 407 941 

11 319 

23.80 

51.80 

34.20 

17.50 

68.80 

10.19 

34.02 

9.46 

52.30 

It  should be noted  that,  on 24 October  1996, Rwanda  requested  the re-opening  of  the  Article 203 
consultations in respect of tea and coffee.  In the case of coffee,  tlie Commission's position resulted 
in a 100% reduction of the transfer base. The negotiations were still continuing at tlie time this report 
went to press. 

7.2  Reductions  applied  as  a result  of  a decline  in  exports  to  all  destinations 

as a proportion of marketed  output: 

ACP  State 

Product 

Reduction 

Amount in  %  of 
ECU 

transfer 
basis (TB) 

Togo 

Tuvalu 

Vanuatu 

Cocoa beans 

1 364  177 

52.40 

Copra 

Cocoa 

7 514 

72.80 

268 957 

37.10 

7.3  Reductions  applied  as  a result  of  a decline  in the ratio  of  exports  to  the 

Community to other exports (all destinations): 

ACP  State 

Product 

Reduction 

Amount in 
ECU 

%of 
transfer 
basis  (TB) 

Benin 

Burundi 

Malawi 

Palm products 

Raw hides 

Tea 

388 389 

200 259 

2 579 830 

65.40 

40.10 

24.14 

Calculating the  transfers 

Following  consultation,  where  appropriate  and  as required  under  Articles 202 
and 203 of the Convention, the total amount of eligible transfers  was  therefore 
calculated  as ECU 76 241 824. 

As  calculated  in  line  with  the  provisions  of  Article  191  of  the  revised 
Convention  and  the  annexed  second  Financial  Protocol,  the  annual  instalment 
for the  1995 year of application is approximately ECU 360 million. 

Nevertheless,  as  this  instalment  will  not  be  released  until  the  revised 
Convention  enters into force  - and the second Financial  Protocol  has  therefore 
been ratified  - and to ensure the continuity  of the system  by  allowing  transfers 
in  respect  of  the  1995  year  of  application,  the  ACP-EC  Council  of  Ministers 
agreed  as follows  in Decision 2/96 of 28 June 1996: 

The  Commission  shall  deduct  temporarily  funds  unused  under  the  First 
Financial  Protocol  to  the  fourth  Lomé  Convention  and  shall  add  the 
accumulated  interest  on  the  Stabex  account  opened  pursuant  to  Article 
192  of  the  said  Convention,  to  pay  in  full  or  to  a  large  extent  for 
"transfers to the ACP States for the  1995 implementing  year. 

Should  the  second  Financial  Protocol  not  be  ratified,  the  Community 
shall guarantee the availability  of the resources  so deducted,  by  recourse 
to unallocated  appropriations. 

thus 
Upon  ratification  of  the  second  Financial  Protocol,  transfers 
deducted  will be  again made available to the ACP  States by payment  to 
the Stabex account referred  to in Article  192 of the Lomé Convention. 

As the unused funds-mentioned  in the Decision  exceed the total transfers  to be 
made  in  respect  of  the  1995  year  of  application,  it  will  be  possible  to  cover 
those transfers  in full. 

9. 

Results by recipient country and product 

Table  2 (page  25)  gives  the results  by  recipient  country.  As  in  1994,  banana-
exporting  Caribbean  countries  are  the  main  recipients,  their  eligible  earnings 
losses  being  due  to  a  number  of  causes  such  as  a  hurricane,  drought  and 
structural problems in the sector. 

'10. 

t he  balance  per  product  (see  Table  3,  page  26)  confirms  the  1994  trends, 
bananas  and  cotton  still being responsible for  the largest  share of the  transfers 
(60  and  15.9%  respectively).  In  many  cases  the  transfers  made  represent  a 
substantial  addition  to  the  recipient  State's  total  export  earnings,  examples 
being: 

ACP  State 

Product 

Dominica 

Saint Lucia 

Bananas 

Bananas 

S aint Vincent 

B ananas 

Tuvalu 

Copra 

Transfers  as a percentage  of 1995 
earnings from  all  products 
(estimate) 

38.7 

24.7 

30.8 

20.4 

11. 

However,  a  more  precise  measure  of  the  effect  of  the  additional  Stabex 
revenue on the sector showing a loss of earnings can be obtained by  comparing 
the  amounts  transferred  with  the  earnings  from  the  products  for  which  the 
transfer  is requested: 

ACP  States 

Product 

Equatorial  Guinea 

Cocoa 

Rwanda 

Burundi 

Zimbabwe 

Malawi 

Dominica 

Saint Lucia 

Saint Vincent 

Tuvalu 

Vanuatu 

Raw hides 

Raw hides 

Cotton 

Tea 

Bananas 

Bananas 

Bananas 

Copra 

Cocoa 

Transfers  as a percentage of  1995 
earnings from  the product in 
question 

17.9 

38.2 

21.7 

31.6 

37.9 

99.9 

48.8 

77.7 

62.1 

43.2 

These  proportions  can  be  high,  especially  when  exports  of  the  product  in 
question are fairly  low and fluctuate  substantially from  year to year. When  low 
market  prices  combine  with  temporary  difficulties  in  the  sector,  losses  of 
revenue  can  be  severe  and  give  rise  to  relatively  large  transfers.  Even  when 
export  revenue  from  a  particular  product  is  high,  the  transfers  make  a 
significant  contribution. 

IV. 

USE OF  TRANSFERS 

12. 

Frameworks of Mutual  Obligations 

12.1  BENIN 

Year of  application 

1993 

Product 

Date paid 

Palm products 

Palm products 

1993 

1993 
(additional) 

ECU 662 709 

ECU  7 049 

09.03.1995(1993) 
16.09.1996 (1993 additional)* 

FMO signed 

25.11.96 

Summary: 

The Stabex funds will be used for the following  purposes: 

- 

- 

to  diversify  agricultural  production  and  exports  of  agricultural  products  by 
promoting  those  lines  for  which  there  is  a  market  either  at  world  or  sub-
regional  level. Preference will go to products that can be both  exported  and 
sold on the national market,  e.g. maize, peanuts, fruit  and vegetables; 

to  reactivate  the  oil  palm  sector  by  financing  the  rehabilitation  of  existing 
plantations  and  providing  support  for  new  village  or  privately  owned 
plantations  and  the  maintenance  of  cooperatively  run  rural  development 
plantations. 

cf.  p. 23. 

12 2  BURKINA FASO 

Year of  application 

1992 and  1993 

Product 

Hides and skins 

Cotton 

Cotton 

Cotton 

1992 

1992 

1993 

1993 
(additional) 

ECU 783 508 

ECU 792 762 

ECU 704 412 

ECU  28  751* 

Date paid 

08.02.1995(1992) 
08.02.1995(1993) 
05.09.1996 (1993 additional)* 

FMO  signed 

21.10.1996 

Summary 

The  government  is interested  in improving  access  to  areas with  a good  cotton 
growing  potential  as this  is essential  if results  in the sector  are to be  improved 
and  it  is  to  make  a  bigger  contribution  to  the  national  economy.  The 
government  and  the  Commission  have  therefore  decided 
to  assign  the 
resources  earned by the sector to the rebuilding  and  repair  of unsurfaced  roads 
in  the  cotton  growing  Province  of  Sissili.  In  the  last  few  years  cotton 
production  has  risen  significantly  with  a  big  increase  in  the  area  down  to 
cotton  (up  164%)  and  a  corresponding  increase  in  production  in  the  1994/95 
season. 

Nevertheless,  it  is  clear  that  development  in  the  region  will  depend  on  its 
becoming  more  accessible  and  that  the  current  state  of  secondary  unsurfaced 
roads is one of the main obstacles to increasing  production. 

A study  on repairing  105 km  of  such tracks  in  Sissili Province  identified  four 
main  sections  as  requiring  attention,  i.e.  those  from  Léo  to  Beune,  Boura  to 
Niabouri,  To to  Silly  and  Godé to Nébiélianayou.  Repairs  to  these  roads  will 
have  major  economic  consequences  for  all  cotton  producers  and  the  entire 
region,  as well as improving living standards for the rural population.  The road 
works  themselves  are to be financed  entirely  from  the  1992/1993  Stabex  fund 
whilst maintenance  is to be resourced  from  the national budget  in line with  the 
terms laid  down in the Sectoral Transport Adjustment  Plan (PASECT). 

cf.  P. 23 

12 3  CAPE  VERDE 

Year of application 

1993 and  1994 

Product 

Fresh bananas 

Fresh bananas 

1993 

1994 

ECU 355 847 

ECU 716 057 

Date paid 

06.04.1995  (1993) 

03.11.1995(1994) 

FMO signed 

01.03.96 

Summary 

Losses  in  1993  and  1994  resulted  mainly  from  exports  coming  to  a  halt 
because  of  the  poor  quality  of  the  bananas  reaching  the  European  market,  a 
factor  due partly to the obsolete method  of  sea transport used  and  partly  to the 
poor quality of the fruit  at the outset. 

The  1993  and  1994  transfers  will  therefore  be  used  primarily  to  obtain  a 
product  of  international  standard  meeting  the  requirements  of  the  European 
market.  This means  establishing: 

-  a high-quality  chain  of production  encompassing  every  stage from  planting 

to delivery  at port; 

-  a  cooling  system  in  which  bananas  are  placed  as  soon  as  possible  after 
packing, and one which does not involve repacking until they  reach the port 
of unloading; 

-  a maritime transport system which uses refrigerated  containers. 

If  exports  are  to  resume,  production  will  have  to  meet  the  export  quality 
standard. Banana growers will therefore  have to adopt basic intensive  methods 
as well as: 

-  good techniques  and  a method  of  cultivation which  does not use pesticides, 

thereby  allowing exporters to use the "biological product" label; 

- 

irrigation  so  as  to  provide  banana  plants  with  optimum  water  supplies, 
thereby  reducing water  consumption by some 50%. 

10 

12 4  CENTRAL AFRICAN  REPUBLIC 

Year of  application 

1992 and  1993 

Product 

Date paid 

Cotton 

Cotton 

Wood 

3.5.94(1992) 

1.12.94(1993) 

FMO signed 

25.9.96 

1992 

1993 

1993 

ECU  450 591 

ECU  724 213 

ECU  1 022 587 

Summary 

The FMO  contributes to an emergency programme  in the form  of aid  covering 
one  sixth  of  the residual  requirements  of  the programme,  which  also  receives 
financial  support from  the country's main donors. 

This  support  serves  mainly  to  secure  the  State's  priority  expenditure  and  is 
provided  in addition to the Community's  Structural Adjustment  Facility. 

Together,  the  FMO  and  the  SAF  cover  the  operating  expenditure,  totalling 
CFAF 2 900 million, of the following  ministries: health, education,  land, water 
and  forest  administration,  environment,  agriculture,  transport,  public  works, 
social affairs, justice, finance  and the plan, 

11 

12 5  DOMINICA 

Year of application 

1994 

Product 

Datepaid 

Bananas 

ECU 9.159.385 

(+ECU 221  588* ) 

13.09.1995 

(11.10.1996*) 

FMO signed 

30.10.1996 

Summary 

See Saint  Vincent 

cf.  p. 27. 

12 

12 6  GUINEA  BISSAU 

Year of  application 

1993 

Product 

Groundnuts 

1993 

Palm 
kernels 

nuts 

and  1993 

ECU 83 256 

ECU 30  192 

Date paid 

02.02.1995(1993) 

FMO  signed 

28.03.96 

Summary 

Losses in  1993 were mainly due to: 

-  short rains in the case of groundnuts; 

-  old  palm  trees  and  the unsatisfactory  system  of  harvesting,  processing  and 

storage in the case of palm products. 

The main aims of the measures introduced under the FMO are: 

- 

- 

to  re-activate  the  production,  harvesting,  conservation  and  transport  of 
tropical fruit  and help set up domestic and foreign  marketing systems; 

to  improve the quality  and  increase the production  of  palm  products  with  a 
view  to  exporting  them,  replant  palm  trees,  introduce  new  species  and 
increase the area under palms. 

13 

12 6  HAITI 

Year of application 

1994 

Product 

Date paid 

Coffee 

ECU 6.495.387 

(+ECU 287 225* ) 

03.12.1995 

(02.12.1996*) 

FMO signed 

10.03.1997 

Summary 

The funds  transferred  to the Republic of Haiti for  the  1994 year  of  application 
will  be  added  to  the  funding  for  measures  begun  with  resources  allocated 
earlier.  The  main  purpose  is  to  reactivate  export  systems  by  supporting 
farming,  trade, and various bodies and institutions. 

The following  results are aimed at: 
-  a better quality of product, 
-  higher earnings for producers; 
-  higher export earnings; 
-  more capable institutions; 
- 

to provide support for the job  creation policy. 

The Government of the Republic of Haiti undertakes to: 
-  maintain its programme of economic reform  and structural  adjustment; 
-  define  and start implementing  a policy of financial  security; 
-  continue decentralising the public administration; 
-  encourage private initiative in rural  development. 

cf.  p. 27. 

14 

127  MALAWI 

Year of application 

1990 and  1991 

Products 

Tea 

Tea 

Coffee 

1990 

1991 

1991 

ECU  1 705  852 

ECU 2 288 885 

ECU  220 364 

Date paid 

FMO signed 

02.08.1995 

13.09.1996 

Summary : 

The  project  on  which  the  balance  of  the  1990/91  Stabex  funds  will  be  used 
aims  at  increasing  yield  per  hectare  and  the  quality  of  Malawi  tea  by 
accelerating  the  tea  replanting  programme.  It  covers  a period  of  between  two 
and  three  years  and  is  a  bonus  (cash)  payment  scheme  which  will  partially 
compensate for  losses incurred by tea estates during the first  five years. 

Given  the  tea  sector's  importance  as  the  second  largest  foreign  exchange 
earner,  GOM  is  committed  to  improving  the  economic  viability  of  the  tea 
industry through a clonal tea replanting programme. 

15 

12 8  SAINT LUCIA 

Application year  : 

1994 

Bananas 

ECU 22  176 403 

(+ ECU 302 130*) 

24.08.1995 

(26.11.1996) 

05.09.1996 

Product 

Payment date 

FMO signed: 

Summary : 

see Saint Vincent 

cf.  p. 27. 

16 

12.9  SAINT VINCENT 

Year of application : 

1994 

Product 

Date paid 

Bananas 

ECU 25 724 865 

(+ ECU  173 908*) 

24.08.1995 

(26.11.1996) 

FMO signed: 

05.09.1996 

Summary : 

Problems  encountered  in  the  banana  sector  being  very  much  alike  in  the 
different  Windward  Islands,  among  them  Dominica,  Saint  Lucia  and  Saint 
Vincent,  it  is  not  surprising  that  the  intended  use  of  1994  Stabex  funds  is 
similar,  if not identical, as well. 

As  the  intention  is  to  allow  producers  in  these  islands  to  increase  their 
production  efficiency,  thereby  enabling  them  to  compete  in  international 
markets  by  the  end  of  the  century,  the  1994  Stabex  resources  should  not  be 
seen  simply  as additional to those used to finance  projects  funded  by  previous 
Stabex  transfers.  Because  there  is  a  large  sum  available  in  the  1994  fund,  its 
use should be broadly  defined. 

In  the  three  islands  concerned,  the  1994  Stabex  resources  will  therefore  be 
used  not  only  for  the benefit  of  economic  operators  adversely  affected  by  the 
loss  of  export  earnings,  but  also  for  diversification  measures  within  the 
agricultural  sector  and  the  economy  at  large.  Some  of  the  specific  objectives 
are to: 

- 

improve banana quality and increase productivity; 

-  promote agricultural  and broader economic  diversification; 

-  provide social safety nets. 

The  Governments  of  Dominica,  Saint  Lucia  and  Saint  Vincent  undertake  to 
continue  restructuring  their  respective  banana  industries  (with  particular 
attention  to  fruit  quality  control  systems),  to  maintain  the  drive  towards 
economic  diversification, 
institutional,  government, 
the  elimination  of 
managerial  and financial  deficiencies,  and to  encourage their  growers  to  adopt 
more rigorous cultivation  and post-harvest discipline. 

cf.  p. 27. 

17 

12.10 

SENEGAL 

Year of application 

1994 

Product 

Date paid 

Groundnut products 

1994 

ECU 5 455  077 

14.09.1995 

FMO signed 

26.04.96 

Summary 

If work  on  the  programme  to  reactivate  groundnut  production  is  to  continue, 
some  specific  short  and  medium-term  measures  will  have  to  be  adopted  and 
these  will  have  to  be  based  on  some  of  the  conditions  underlying  this  FMO, 
namely: 

-  one  central  professional  body  for  all  those  involved  in  groundnuts  will 
have  to  be  established  and  given  the  mandate  to  structure  relations 
between the different  operators in the production  chain; 

-  a mechanism  for  setting  the various  prices  within  that  chain  will  have  to 
be adopted.  It will  be required  to reflect  international  rates  and  guarantee 
the  financial  soundness  of  the  production  chain ^o  that  the  individual 
producer can gain sufficient  insight into the workings of that chain,  obtain 
the necessary inputs and replace his main items of equipment; 

-  groundnut  processing  activities  will  have  to  be  privatised  whilst  at  the 
same  time  imposing  minimum  obligations  on  those  taking  over  oil 
production  at  the  time  of  privatisation  and  protecting  the  legitimate 
interests of the producer; 

-  support  will  have  to  go  to  implementing  a  project  to  back  up  the 
management of the financial  instruments  available to the production  chain 
and  to  structuring  the  agricultural  producers'  bodies  coming  under  the 
single central body. 

18 

1993 

1994 

ECU 4 439 203 

ECU 6 530 755 

12  12  CHAD 

Year of  application 

1993 and  1994 

Product 

Date paid 

Cotton 

Cotton 

16.12.1994(1993) 

08.01.1996(1994) 

FMO signed 

29.05.96 

Summary 

Stabex transfers  will be used for two purposes: 

to  improve  production  and  marketing  conditions  in  the  cotton  growing 
area,  particularly  by  taking  steps to  ensure  that unsurfaced  roads  are  kept 
repaired. 

to  improve  Chad's  overall  economic  situation,  particularly  by  providing 
aid specifically  for the road maintenance budget. 

19 

12.12 

ZIMBABWE 

Year of application 

1993 

Product 

Date paid 

Cotton 

ECU 5 439 952 

(+ ECU 222,039*) 

14.12.1994 

(20.08.1996) 

FMO signed: 

03.10.1996 

Summary : 

STABEX  1993 resources  are  to  be  used  for  drought  relief  operations  to  help 
speed  up  the recovery  of  the  agricultural  sector  after  the  1994/95  drought.  In 
particular,  in  the  1995/96  cropping  season,  support  is  to  go  to  the  GOZ 
programme of distribution of seeds and agricultural  inputs to farmers  in need. 

GOZ  is  committed  to  putting  in  place  and  implementing  the  drought  relief 
and, in particular,  crop pack programmes, as presented to donors. 

cf.  p. 23 

20 

13  OVERALL EVALUATION OF STABEX 

Following  some  fifteen  individual  country  evaluations,  this  comprehensive 
evaluation was begun towards the end of  1996 and should be completed  by mid 
• 1997. The results will be presented  and analysed  in the next Commission  report 
on the operation of Stabex. 

21 

V. 

BALANCE REMAINING  UNDER THE FIRST FINANCIAL  PROTOCOL 

14. 

Under  the  provisions  of  Article  195(a)  of  the  fourth  ACP-EEC  Convention  the 
Commission decided on 3 June  1996 to repay to the eligible ACP  States the  funds 
and  interest  remaining  after  the  end  of  1995,  the  last  year  in  which  the  Stabex 
system  was  implemented  under  the  first  Financial  Protocol  to  the  above 
Convention. 

At the end of  1995 the -above amount totalled ECU 67 661 825, made up of  ECU 
49  640  081.69  in  capital  and  ECU  18  021  743.31  in  interest.  This  balance  is 
mainly  for  the  1994  year  of  application,  for  which  the  transfers  were  made  in 
1995  -  the  only  year  of  application  under  the  first  Financial  Protocol  when  the 
resources  available under  the system  exceeded  the total  transfers  for  which  ACP 
States were eligible. 

15. 

As provided for  in the Convention, the total balance (i.e. ECU 67 661-825) has to 
be  divided  up  between  the  ACP  States  in  proportion  to  the  amount  or  amounts 
retained  in respect of each of them under the provisions  of Article  197(3) and  (4) 
of  the  Convention.  These  provisions  cover  what  has  come  to  be  known  as  the 
"franchise"  (the  amount  retained)  and  require  that,  under  certain  circumstances, 
such  an  amount  may  be  retained  to  reduce  the  loss  of  eligible  earnings  by  the 
ACP  State concerned  and, therefore,  the amount transferred  under  Stabex. 

Table 4 (page 27) shows the "franchises"  (amounts retained) for  the  1990 to  1994 
years  of  application  and  the  pro  rata  repayments  from  the  total  accumulated 
balance of ECU 67 661 825 to all eligible ACP States. 

The retained  amounts redistributed  to the ACP  States are additional  funds  for  use 
under  a  framework  of  mutual  obligations  either  already  in  application  or 
currently  in preparation. 

22 

VI. 

16. 

17. 

ADDITIONAL  FUNDS  FOR  THE  1993  APPLICATION  YEAR 
(Commission Decision of 2.5.1996) 

On  29  March  1995  the  Ethiopian  authorities  informed  the  Commission, 
through  the  Delegation,  that  the  statistics  forwarded  in  connection  with 
the  1993  transfers  for  coffee,  hides  and  skins  had  undergone  major 
revision. 

Using  the  revised  statistics  and  the  same  basis  as  for  the  1993  year  of 
application,  the  Commission  tl^en  recalculated  the  transfers  for  Ethiopia 
(See Commission Decision,  Minutes  of the  121st Commission  meeting  of 
19 July  1994). 

The  difference  between  the  sum  transferred 
the 
recalculated  sum  showed  that  an  excess  of  ECU  10  894  357  had  been 
transferred. 

to  Ethiopia  and 

As  transfers  to  Ethiopia  in  respect  of  coming  years  could  not  be 
prejudiced,  the Commission asked Ethiopia to repay the sum to the  Stabex 
account  of  the  European  Development  Fund.  Ethiopia  did  so  on  27 
November  1995. 

Another  revision  of  statistics  for  the  1993  year  of  application,  by 
Vanuatu,  showed  that  the  transfer  calculated  for  copra  (ECU  547  401) 
needed  to be reduced  to ECU  265  281. As the  error  was  noticed  prior  to 
any  transfer  being  made,  the  actual  sum  transferred  to  Vanuatu  therefore 
did  not  exceed  ECU  265  281.  Also,  as  the  difference  between  the  two 
sums  (ECU 282  120) was so small,  it would  not,  of itself,  have given  rise 
to  a  transfer  to  eligible  ACP  States  in  respect  of  the  1993  year  of 
application.  However,  for  the sake of  consistency,  it was  decided  that  the 
sum  deducted  from  the transfer  to Vanuatu  should  be added  to that  repaid 
by Ethiopia. 

18. 

Since  there  were  insufficient  funds  available  in  the  1993  year  of 
application,  the sums  referred  to  (i.e.  a total  ECU  11  176  477)  had  to  be 
divided  in  the  same  proportion  as  the  adjusted  transfers  between  the 
various ACP States (including Ethiopia and Vanuatu). 

The  result  of  this  distribution  is  shown  in  Table  5.  The  additional  funds 
made  available  by  this  distribution  are to  be  used  under  the  rules  of  the 
frameworks  of mutual obligations for the  1993 year of  application. 

23 

TABLE 1 : STABEX 1995 YEAR OF APPLICATION 
Transfers 
(in ECU) 

Country 
code 

236 
247 
248 
264 
280 
284 
310 
324 

328 
350 
382 
386 
460 
465 
467 
473 

806 
807 
816 

Country 

Product 

Reference level 

Earnings for 
year of 
application 

Loss of 
earnings 

Burkina Faso 
Cape Verde 
Senegal 
Sierra Leone 
Togo 
Benin 
Equatorial Guinea 
Rwanda 

Burundi 
Uganda 
Zimbabwe 
Malawi 
Dominica 
St Lucia 
Saint Vincent and the Grenadines 
Granada 

Solomon Islands 
Tuvalu 
Vanuatu 

Raw hides 
Fresh bananas 
Groundnut products 
Cocoa beans 
Cocoa beans 
Palm products 
Cocoa beans 
Tea 
Raw hides 
Raw hides 
Tea 
Cotton not carded or combed 
Tea 
Fresh bananas 
Fresh bananas 
Fresh bananas 
Fresh bananas 
Nutmeg and mace 
Cocoa beans 
Copra 
Cocoa beans 

5,725,787 
903,192 
78,938,347 
5,305,628 
7,902,523 
2,092,556 
«5,404.285 
3.333,272 
2,823,113 
2,880,413 
637,842 
56,092,468 
44,792,020 
33,084,870 
73,048,802 
42,538.191 
4,083.060 
2,768,040 
4,018,295 
26,173 
1,780,660 
378,179,537 

5.066,939 
36,933 
74,757,140 
2,755,037 
5,219,213 
1,190,708 
4.442,305 
1,149,770 
2,252,745 
2,380,914 
207,630 
41,427,062 
33,657,590 
18,524,240 
54,612,020 
27,223,411 
2,275,346 
2,236,740 
3,835,306 
4.528 
1,055,884 
284,311.461 

658,848 
866,259 
4,181,207 
2,550.591 
2,683,310 
901,848 
961,980 
2,183,502 
570,368 
499,499 
430,212 
14,665,406 
11,134,430 
14,560,630 
18,436,782 
15,314,780 
1,807,714 
531,300 
182,989 
21.645 
724.776 
93,868,076 

franchise" 

0 
0 
1,254,362 
53,056 
79.025 
0 
0 
33,333 
0 
0 
0 
2,524,161 
447,920 
330,849 
730,488 
425,382 
0 
0 
0 
0 
0 
5.878,576 

Transfer basis 
after 
"franchise" 

Art. 202/203 
consultations 

Transfer basis 
after 
consultations 

Art. 194(2) 
reduction 

Art. 194(4) 
reduction 

Transfer 
amount 

658.848 
866,259 
2,926,845 
2,497.535 
2,604,285 
901,848 
961,980 
2.150,169 
570,368 
499,499 
430,212 
12,141,245 
10,686.510 
14,229,781 
17,706.294 
14,889,398 
1,807,714 
531,300 
182,989 
21,645 
724,776 
87,989,500 

0 
206,239 
0 
1,293.024 
1.364.177 
696,406 
168,058 
1,478.865 
0 
200,259 
0 
0 
2,579,830 
1,450,157 
0 
1,407,941 
614,930 
0 
0 
18.833 
268,957 
11,747,676 

658.848 
660,020 
2,926,845 
,1,204,511 
1,240.108 
205,442 
793,922 
671,304 
570,368 
299,240 
430,212 
12,141,245 
8,106,680 
12,779,624 
17,706,294 
13,481,457 
1,192,784 
531,300 
182.989 
2,812 
455,819 
76,241,824 

0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 

0 

0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 

0 

658,848 
660,020 
2,926,845 
1,204,511 
1,240,108 
205,442 
793.922 
671.304 
570.368 
299,240 
430.212 
12,141,245 
8.106,680 
12,779,624 
17.706.294 
13,481.457 
1.192,784 
531,300 
182,989 
2,812 
455,819 
76,241,824 

24 

TABLE 2 : OVERVIEW PER BENEFICIARY COUNTRY 
APPLICATION YEAR 1995 

Country 

Amount in ECU 

%  of  total  amount 

St Lucia 

Saint Vincent and the Grenadines 

Dominica 

Zimbabwe 

Malawi 

Senegal 

Grenada 

Rwanda 

Togo 

Sierra Leone 

Equatorial Guinea 

Cape Verde 

Burkina  Faso 

Vanuatu 

Uganda 

Burundi 

Benin 

Solomon  Islands 

Tuvalu 

17,706,294 

13,481,457 

12,779,624 

12,141,245 

8.106,680 

2,926,845 

1,724,084 

1,241,672 

1,240,108 

1,204,511 

793,922 

660,020 

658,848 

455,819 

430.212 

299,240 

205,442 

182.989 

2.812 

23.224 

17.682 

16.762 

15.925 

10.633 

3.839 

2.261 

'1.629 

1.627 

1.580 

1.041 

0.866 

0.864 

0.598 

0.564 

0.392 

0.269 

0.240 

0.004 

TOTAL 

76.241.824 

100.000 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

25 

TABLE 3 : OVERVIEW PER PRODUCT 
APPLICATION YEAR 1995 

Products 

Amount  in  ECU 

%  of  total  amount 

1 

2 

3 

4 

5 

6 

7 

8 

9 

Fresh bananes 

Cotton not carded or combed 

Tea 

Cocoa beans 

Groundnut  products 

Raw hides 

Nutmeg and mace 

Palm products 

Copra 

45.820,179 

12,141.245 

9,208,196 

3,877,349 

2,926,845 

1,528,456 

531,300 

205.442 

2,812 

60.098 

15.925 

12.078 

5.086 

3.839 

2.005 

0.697 

0.269 

0.004 

76,241.824 

100.000 

26 

TABLE 4 : REDISTRIBUTION FRANCHISES ON ACCOUNT OF THE FIRST FINANCIAL PROTOCOL OF LOME IV 

Country 
code 

224 

Sudan 

Country 

Product 

1990 "franchise"  1991 "franchise"  1992 "franchise"  1993 "franchise"  1994 "franchise" 

total 

228 
236 

244 
248 
264 

Mauritania 
Burkina Faso 

Chad 
Senegal 
Sierra  Leone 

272 

Côte d'Ivoire 

276 
280 

284 
302 

Ghana 
Togo 

Benin 
Cameroun 

306 

Central African Republic 

310 
311 
324 

328 
334 

Equatorial Guinea 
Sâo Tome and Principe 
Rwanda 

Burundi 
Ethiopia 

346 

Kenya 

350 

Uganda 

352 

Tanzania 

366 
370 

Mozambique 
Madagascar 

375 

Comoros 

382 

Zimbabwe 

386 
395 

Malawi 
Lesotho 

452 

Haiti 

460 
465 
467 
473 
801 

Dominica 
St Lucia 
St Vincent 
Grenada 
Papua New  Guinea 

806 
816 
819 

Solomon Islands 
Vanuatu 
Western  Samoa 

27 

TOTAL 

Groundnut  products 
Cotton products 
Hides and skins 
Gum Arabic 
Sesame seed 
Oil cakes 
Squid, octopus and cuttlefish 
Cotton 
Hides and skins 
Cotton 
Groundnut  products 
Cocoa 
Coffee 
Cocoa products 
Coffee  products 
Cotton 
Wood 
Cocoa  products 
Cocoa 
Coffee 
Palm  products 
Cocoa  products 
Coffee 
Coffee 
Cotton 
Cocoa 
Cocoa 
Coffee 
Hides and skins 
Coffee 
Coffee 
Hides and skins 
Coffee 
Tea 
Coffee 
Cotton 
Hides and skins 
Coffee 
Cotton 
Cashew nuts and kernels 
Coffee 
Vanilla 
Cloves 
Vanilla 
Cloves 
Coffee 
Cotton 
Tea 
Wool 
Mohair 
Cocoa 
Coffee 
Fresh bananas 
Fresh bananas 
Fresh bananas 
Nutmeg and mace 
Cocoa  products 
Coffee 
Copra  products 
Palm products 
Copra 
Copra 
Copra products 

84,708 
2,061,180 

468,874 

530,286 
509,308 
35,086 

3,616,477 
96,075 
86,310 

12,780,957 
1,693,395 

5,378,625 
66,462 
213,131 

7,794,383 
6,361,122 
183,142 
43,522 
93,041 
49,285 
858,593 
35,870 
791,116 
2,169,466 
273,563 
6,801,717 
311,234 
1,676,165 

77,820 
743,110 
189,630 
0 
2,739,229 
621,825 
132,075 

31,023 
606,184 
2,404,890 

58,036 
0 
0 
264,372 
399,008 
0 

66,070 
1,469,025 
3,408,559 

161,459 
2,832,293 
175,385 
566,906 
453,307 
145,643 
1,394,282 

101,117 
20,371,339 
26,162,882 

8,415,000 
134,277 
251,558 
0 
12,106,695 
8,961,075 
335,130 
144,332 
134,546 
68,770 
1,091,670 
58,466 
971,388 
2,899,003 
408,230 
9,572,502 

2,391,240 
48,500 

1,114,090 

4,096,463 
835,031 
170,775 
117,159 
42,453 

687,652 

53,767 
417,425 
0 

69,502 
2,029,376 
3,802,590 
1,288,013 
2,526,458 
148,506 
130,913 
68,778 
117,955,946 

0 
2,305,670 
134,505 
512,344 
406,492 
89,529 
1,394,282 

43,003 

118,342 
101,117 

17,961,289 

6,640,050 
9,072,855 
96,562 
251,558 
28,385 
10,144,405 
7,818,649 
256,722 

107,817 
75,373 
991,600 
46,878 
928,441 
2,569,533 
341,027 
8,430,863 

2,107,647 

87,025 
894,172 
598,184 
50,095 
3,485,014 
752,895 
147,071 

572,080 
0 
113,148 

374,925 
0 

70,655 
1,750,095 
3,753,889 
890,921 

87,830 
0 
53,504 

325,457 
23,947 

271,292 

0 
768,627 

405,137 
2,648,567 
63,745 
0 

5,539,371 

63,391 

743,831 

428,681 
536,321 
254,530 
0 

167,992 
353,115 
768,347 
451,635 
0 
948,454 

405,137 
3,414,353 
80,527 
80,208 
6,860,025 
10,458,135 

8,284,219 
121,720 
176,837 
0 
6,314,232 
5,523,401 
174,856 
0 
74,292 

701,300 
1,655,104 
202,086 
6,065,539 

1,859,622 

0 
908,301 

40,757 
2,047,500 

77,500 

2,127,375 

0 
0 
0 
213,355 
398,797 
800,908 
451,635 
54,160 
1,192,151 
2,956,748 

0 
37,268 
64,107,452 

0 
0 
26,481 
14,439,517 

246,167 
7,795,892 
333,837 
1,548,124 
859,799 
235,172 
3,318,850 
1,277,935 
78,089 
810,274 
9,679,397 
358,689 
368,752 
27,231,364 
67,363,263 
1,693,395 
6,640,050 
31,150,699 
419,021 
893,084 
28,385 
41,899,086 
28,664,247 
949,850 
187,854 
473,087 
193,428 
2,941,863 
141,214 
3,392,245 
9,293,106 
1,224,906 
30,870,621 
311,234 
8,034,674 
48,500 
164,845 
4,403,504 
787,814 
90,852 
12,368,206 
2,209,751 
527,421 
117,159 
73,476 
1,034,865 
5,068,586 
1,514,262 
' 58,036 
113,148 
53,767 
1,438,069 
1,150,920 
1,569,255 
.  903,270 
'  260,387 
7,389,101 
13,921,786 
2,178,934 
2,526,458 
236.336 
130,913 
186,031 
351,433,305 

total "franchise' 
by country 

11,018,991 

3,318,850 
1,356,024 

810,274 
9,679,397 
727,441 

102-,928,072 

31,150,699 
1,312,105 

28.385 
70,563,333 

1,137,704 

473,087 
193,428 
3,083,077 

3,392.245 
10,518,012 

31,181,855 

8,248,019 

5,191,318 

90,852 
15,105,378 

190,635 

6,103,451 

1.514,262 
171,184 

1,491,836 

1,150,920 
1,569,255 
903,270 
260,387 
26,016,279 

236,336 
130,913 
186,031 
351,433,305 

redistribution 
franchise" by 
product 

REDISTRIBUTION 
"FRANCHISE" BY 
COUNTRY 

47,395 
1,500,951 
64,274 
298,062 
165,538 
45,278 
638,982 
246.042 
15,035 
156,003 
1,863,584 
69,059 
70,996 
5,242,883 
12,969,520 
326,031 
1,278,416 
5,997,477 
,80,675 
171,946 
5,465 
8,066,875 
5,518,758 
182,875 
36,168 
91,084 
37,241 
566,400 
27,188 
653.113 
1,789,212 
235,832 
5,943,553 
59.922 
1,546,924 
9,338 
31,738 
847,811 
151,679 
17,492 
2,381,263 
425,446 
101,545 
22,557 
14,146 
199,244 
975.860 
291,542 
11,173 
21,785 
10,352 
276,873 
221,588 
302,130 
173,908 
50,133 
1,422,631 
2,680,376 
419,512 
486,422 
45,502 
25,205 
35,817 
67,661,825 

2,121,498 

638,982 
261,077 

156,003 
1,863,584 
140,055 

19.816,850 

5,997,477 
252,621 

5,465 
13,585,633 

219,043 

91,084 
37,241 
593,588 

653,113 
2,025,044 

6,003,475 

1,588,000 

999,490 

17,492 
2,908,254 

36,703 

1.175,104 

291,542 
32,958 

287,225 

221,588 
302,130 
173,908 
50,133 
5,008,941 

45,502 
25,205 
35,817 
67,661,825 

TABLE 5 : Additional payments for application year 1993 

Country 

Product 

calculated for 

after 

the amounts after 

Transfers 

Transfers 1993 

Redistribution of 

Total 

by 

1993* 

adjustment ** 

adjustment 

country 

Country 

Code 

224 

Sudan 

236 

244 

247 

248 

257 

Burkina Faso 

Chad 

Cape Verde 

Senegal 

Guinea-Bissau 

264 

Sierra Leone 

272 

Côte d'Ivoire 

276 

280 

Ghana 

Togo 

284 

302 

Benin 

Cameroon 

306 

Central African Republic 

310 

328 

Equatorial Guinea 

Burundi 

334 

Ethiopia 

346 

350 

Kenya 

Uganda 

366 

Mozambique 

352 

370 

Tanzania 

Madagascar 

375 

Comoros 

382 

395 

Zimbabwe 

Lesotho 

452 

Haiti 

460 

465 

467 

473 

Dornirica 

Saint Lucia 

Grenada 

801 

Papua New Guinea 

806 

807 

812 

816 

817 

819 

Solomon Islands 

Tuvalu 

Kiribati 

Vanuatu 

Tonga 

Western Samoa 

Cotton 

Hides & Skins 

Cotton 

Cotton 

Fresh bananas 

Groundnut products 

Groundnuts 

Palm nuts and kernels 

Coffee 

Cocoa 

Cocoa products 

Coffee products 

Cocoa products 

Cocoa 

Coffee 

Shea nuts and oil 

Palm products 

Cocoa products 

Coffee 

Coffee 

Cotton 

Wood 

Cocoa 

Coffee 

Hides & Skins 

Coffee 

Hides & Skins 

Coffee 

Coffee 

Hides & Skins 

Copra 

Cashew nuts and kernels 

Coffee 

Coffee 

Cloves 

Cloves 

Essential oils 

Cotton 

Wool 

Mohair 

Cocoa 

Coffee 

Fresh bananas 

Fresh bananas 

Cocoa 

Fresh bananas 

Nutmeg & Mace 

Cocoa products 

Coffee 

Cocoa 

Copra 

Copra 

Copra 

Copra products. 

Copra products. 

Oil cake 

Saint Vincentand the Grenadines 

Fresh bananas 

1,632,015 

1,632,015 

784.283 

704,412 

4,439,203 

355,847 

15,123,888 

83,256 

30.192 

1,595,960 

1,011,865 

8,678,825 

23,171,128 

15,738,690 

1,937,651 

1,718,417 

281,571 

662,709 

20,076,543 

12,499,807 

4,596,992 

724,213 

1,022,587 

850,805 

19,577,265 

273,078 

27,643,660 

4,949,289 

16,048,216 

43,995,103 

439,021 

157,685 

1,568,577 

8,300,103 

3,752,286 

542.199 

317,372 

493,726 

5,439,952 

969,858 

69,814 

80,947 

4,471,097 

3,368,793 

3,481,275 

5,452,277 

213,084 

589,553 

1,445,902 

4,335.550 

7,878,555 

599,132 

3,622 

36,024 

547,401 

110,264 

111,859 

784,283 

704,412 

4,439,203 

355.847 

15.123,888 

83,256 

30,192 

1,595.960 

1,011,865 

8,678,825 

23,171,128 

15,738,690 

1,937,651 

1,718.417 

281,571 

662,709 

20,076,543 

12,499,807 

4,596,992 

724,213 

1,022.587 

850,805 
19,577,265 

273,078 

19,318,033 

2,380,559 

16,048,216 

43,995,103 

439,021 

157,685 

1.568,577 

8,300,103 

3,752,286 

542,199 

317,372 

493,726 

5,439,952 

969,858 

69,614 

80,947 

4,471,097 

3,368,793 

3,481,275 

5,452,277 

213,084 

589,553 

1,445,902 

4,335,550 

7,878,555 

599,132 

3,622 

36,024 

265,281 

110,264 

111,859 

66,613 

32,012 

28,751 

181.192 

14,524 

617,301 

3,398 

1,232 

65,141 

41,301 

354,238 

945,761 

642,396 

79,088 

70,139 

11,493 

27,049 

98,625 

28,751 

181,192 

14,524 

617,301 

4,630 

106,442 

1,299,999 

642.396 

160.720 

27,049 

819,451 

1,329,648 

510,197 

187,632 

29,560 

41,738 

34,727 

799,072 

11,146 

7.88,492 

97,166 

655,030 

258,930 

34,727 

810,218 

885,658 

655,030 

1,795,720 

1,813,639 

17,919 

6,436 

64,024 

338,780 

153,155 

22,131 

12,954 

20,152 

222,039 

39,586 

2,850 

3,304 

182,494 

137,502 

142,093 

222,542 

8,697 

24,063 

59,016 

176,961 

321,574 

24,454 

148 

1,470 

10,828 

4,501 

4,566 

70,460 

338,780 

175,286 

33,106 

222,039 

42,436 

185,798 

137,502 

142,093 

222,542 

91,776 

498,535 

24,454 

148 

1,470 

10,828 

4,501 

5,244 

16,602 
285,000,000 

16,602 
273,823,523 

678 
11,176,477 

11,176,477 

28 

ISSN 0254-1475 

COM(97) 374 final 

DOCUMENTS 

EN 

11  02  17 

Catalogue  number  :  CB-CO-97-366-EN-C 

ISBN  92-78-22774-9 

Office  for  Official  Publications  of the European  Communities 

L-2985  Luxembourg 

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