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 Surinam, 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 1997/98 delivery period
Date: 1998-03-25
Institutions: European Commission
Subjects: India, cane sugar, fourth Lomé Convention, guaranteed price, ratification of an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.03.1998 
COM(1998) 187  final 

98/0119 (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 Surinam, 
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 1997/98 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. 

2. 

For the  1997/98 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 22.9.1997. 

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 1998 budget. 

z. 

Proposal for a 

COUNCIL DECISION  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 Surinam, 
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 1997/98 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 organisation 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 1997/98 

delivery period, 

(1) 
(2) 

OJL229,  17.8.1991, p. 216. 
OJL190, 22.7.1975, p. 35. 

3 

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 

Surinam,  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  1997/98 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  authorised 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 

For the Council 

M 

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 SURINAM, 
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 1997/98 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  1997 to  30 June  1998, 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. 

! 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 
above mentionec ACP States 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  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 1997 to 30 June 1998, 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 
above mentioned 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 

G 

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 1997/98 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  1997 to  30 June  1998, 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 Setter 
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 

3 

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  1997  to  30  June  1998,  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 

^ 

2. 

3. 

4. 

5.0. 

5.1. 

5.0.1. 
5.1.1. 

5.2. 

6.0. 

6.1. 

6.2. 

6.3. 

IJUDGEÏ  HEADING:  Bl 

APPROPRIATIONS: 
I ( I i I,OM) 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 1997/98 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 1997/98 
delivery period. 

ÏNANCIAL IMPLICATIONS: 

EXPENDITURE 
-CHARGEDTO  HIE EC BUDGET 
(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 443/1 (refunds)  x 1.007 (DT) 
1.2 million I x ECU 29.2/t (refining aid) 

x 1.021 (DT) 

PERIOD OF 
12 MONTHS 

(ECU million) 

CURRENT 
FINANCIAL YEAR 
(98) 
, 
(ECU million) 

FOLLOWING 
FINANCIAL YEAR 
(99) 
(ECU million) 

M 5.7 

615.7 

1999 

2000 

2001 

2002 

ECU 579.9 million (B) 

ECU  35.8 million (Li) 

I'CU 615.7 million (B) 

CAN Till-: PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT 
CI IAITER OF' THE CURRENT BUDGET? 

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 

XXXXXX 

NO 

YES 

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  1998 budget. 

*3 

ISSN 0254-1475 

COM(98)  187 final 

DOCUMENTS 

EN 

03  10  11  02 

Catalogue  number  :  CB-CO-98-201-EN-C 

ISBN  92-78-32588-0 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

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