COMMON POSITION (EC) No 60/98 adopted by the Council on 5 October 1998 with a view to adopting Council Regulation (EC) No .../98 establishing a special framework of assistance for traditional ACP suppliers of bananas
Date: 1998-10-05
Institutions: Council of the European Union
Subjects: ACP countries, financial cooperation, import, technical cooperation, tropical fruit

C 364/14

EN

Official  Journal  of  the  European  Communities

25.11.98

COMMON  POSITION  (EC)  No  60/98

adopted  by  the  Council  on  5  October  1998

with a view to adopting Council Regulation (EC) No . . ./98 establishing a special framework of
assistance  for  traditional  ACP  suppliers  of  bananas

(98/C 364/03)

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  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  the  common  organisation  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 in the past by traditional
ACP  suppliers;

Whereas, in particular, the trade arrangements with third
countries  established  by  Title  IV  of  that  Regulation  were
designed  to  allow  bananas  produced  by  the  ACP  States
which  are  traditional  suppliers  to  the  Community  to  be
disposed  of  on  the  Community  market  providing  an
adequate  income  for  the  producers,  in  accordance  with
the  Community’s  commitment  set  out  above;

Whereas these trade arrangements have been amended by
Regulation  (EC)  No  2362/98;

Whereas  these  modifications  have  substantially  altered
the  market  conditions  for  traditional  ACP  suppliers;

(1) OJ  C  108,  7.4.1998,  p.  91.
(2) Not  yet  published  in  the  Official  Journal.
(3) Opinion  of  the  European  Parliament  of  19  June  1998  (OJ
C  210,  6.7.1998,  p.  320),  Council  Common  Position  of
5  October  1998,  and  Decision  of  the  European  Parliament
of  . . .  (not  yet  published  in  the  Official  Journal).

(4) OJ  L  47,  25.2.1993,  p.  1.  Regulation  as  last  amended  by
Regulation  (EC)  No  2362/98  (OJ  L  293,  31.10.1998,
p.  32).

Whereas  particular  efforts  will  thus  be  needed  by
traditional  ACP  suppliers  to  adapt  to  these  new  market
conditions  in  order  to  maintain  a  presence  on  the
Community  market  and  to  allow  for  the  continuing
viability  of  traditional  ACP  supplies;

Whereas  technical  and  financial  assistance,  additional  to
that  provided  for  in  the  Fourth  ACP-EC  Convention,
should  therefore  be  granted  to  traditional  ACP  suppliers
to  enable  them  to  adapt  to  new  market  conditions  and
in  particular  to  improve  competitiveness;  whereas  at
the  same  time  environment-friendly  production  and
marketing  methods  which  also  respect  social  standards
should  be  encouraged;

Whereas,  as  this  assistance  should  relate  to  the  special
efforts  required  as  a  consequence  of  the  new  market
conditions, objective criteria should be fixed to determine
the  extent  of  such  assistance;

Whereas,  in  order  to  ensure  the  appropriateness  of  such
assistance  with  regard  to  the  objectives  pursued,  this
assistance  should  be  temporary  and  gradually  and
smoothly  phased  out;

Whereas, to facilitate implementation of these provisions,
a  procedure  involving  close  cooperation  between  the
Member  States  and 
should  be
established,

the  Commission 

HAS  ADOPTED  THIS  REGULATION:

Article  1

1.
A  special  framework  for  technical  and  financial
assistance  is  hereby  established  to  assist  traditional  ACP
suppliers  of  bananas  to  adapt  to  the  new  market
conditions  following  the  amendments  made  to  the
common  organisation  of  the  market  in  bananas  by
Regulation  (EC)  No  2362/98.

2.
This  special  framework  shall  be  implemented  for  a
period  not  exceeding  ten  years  starting  on  1  January
1999.

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C 364/15

Article  2

For  the  purposes  of  this  Regulation:

— ‘traditional  ACP  suppliers’  means  the  ACP  countries

listed  in  the  Annex,

— ‘bananas’  means  fresh  or  dried  bananas  covered  by

CN  code  0803,  except  for  plantains.

the 

taken  of 

traditional  ACP 

suppliers  concerned 

in
with 
accordance  with  the  procedures  laid  down  in  Article  6.
Special  account  will  be 
individual
circumstances  of  each  ACP  supplier,  which  particular
regard  to  the  need  for  specific  solutions  for  Somalia.  It
shall  also  take  into  account  the  consistency  of  the
envisaged  programme  with  the  general  development
objectives  of  the  ACP  State  concerned  and  its  coherence
with  regional  cooperation  with  other  banana  producers,
in  particular  the  Community  producers.

the 

Article  3

Article  5

Traditional  ACP  suppliers  shall  be  eligible  for

1.
technical  and  financial  assistance.

Technical  and  financial  assistance  shall  be  granted
2.
at  the  request  of  the  ACP  to  contribute  to  the
implementation  of  programmes  aiming

(a)

to  improve  competitiveness  in  the  banana  sector,  in
particular  through:

— increasing  productivity,  without  causing  damage

to  the  environment,

— improving  quality, 

including  phytosanitary

measures,

— adapting  production,  distribution  or  marketing
methods  to  meet  the  quality  standards  provided
for  in  Article  2  of  Regulation  (EEC)  No  404/93,

their  objective 

— establishing  producers’  organisations  which  have
as 
the
the 
marketing  and  competitiveness  of  their  products
and  the  development  of  systems  for  certifying
environment-friendly 
methods,
including  fair  trade  bananas,

improvement  of 

production 

— developing  a  production  and/or  marketing
strategy  to  meet  the  requirements  of  the  market
in 
the  Community’s  common
organisation  of  the  market  in  bananas,

light  of 

the 

— assisting  with  training,  market  intelligence,  the
development  of  environment-friendly  production
methods  including  fair  trade  bananas,  improving
the  distribution 
improving
commercial  and  financial  services  to  banana
producers;

infrastructure  and 

(b)

to  support  diversification  where  improvement  in
the  competitiveness  of  the  banana  sector  is  not
sustainable.

1.
The Commission shall be responsible for appraising,
taking  decisions  on  and  managing  operations  conducted
under  this  Regulation,  in  accordance  with  the  budgetary
and other procedures in force, notably those laid down in
the Financial Regulation applicable to the general budget
of  the  European  Communities.

Decisions  concerning  any  operation  financed  under
2.
this  Regulation  at  a  cost  of  over  ECU  2  million,  or  any
adjustment  of  such  an  operation  involving  an  increase  of
more  than  20 %  in  the  amount  initially  agreed,  and
proposals  for  fundamental  amendments  to  be  made  as  a
result  of  difficulties  which  emerged  in  implementing
projects  which  have  already  started,  shall  be  adopted  by
means  of  the  procedure  laid  down  in  Article  6.

Where  the  overrun  referred  to  in  the  first  paragraph  is
more  than  ECU  4  million  but  less  than  20 %  of  the
original  commitment,  the  opinion  of  the  Committee,  as
defined  in  Article  6,  shall  be  sought  by  simplified  and
accelerated procedures.

The  Commission  shall  inform  the  Committee  succinctly
of  financing  decisions  it  intends  to  take  concerning
projects  and  programmes  of  a  value  of  under  ECU
2  million.  Such  information  shall  be  given  at  least  one
week  before  the  decision  is  taken.

3.
All  financing  agreements  or  contracts  concluded
under  this  Regulation  shall  provide  for  on-the-spot
checks  by  the  Commission  and  the  Court  of  Auditors  in
accordance  with  the  usual  arrangements  established  by
the  Commission  pursuant  to  the  rules  in  force,  in
particular  those  laid  down  in  the  Financial  Regulation
applicable  to  the  general  budget  of  the  European
Communities.

4. Where  operations  give  rise  to  financing  agreements
between  the  Community  and  the  recipient  country,  such
agreements  shall  stipulate  that  taxes,  duties  and  charges
shall  not  be  borne  by  the  Community.

Article  4

The  Commission  shall  decide  on  the  eligibility  of  the
programmes  referred  to  in  Article  3  after  consultation

5.
Participation  in  invitations  to  tender  and  contracts
shall  be  open  on  equal  terms  to  all  natural  and  legal
persons  in  the  Member  States,  the  recipient  country  and

C 364/16

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Official  Journal  of  the  European  Communities

25.11.98

the ACP States. Participation may be extended to include
other  developing  countries  in  duly  substantiated  cases
and  in  order  to  ensure  the  best  cost-effectiveness  ratio.

Article  7

Supplies shall originate in the Member States or the
6.
ACP  States.  In  duly  substantiated  exceptional  cases,  they
may  originate  in  other  developing  countries.

7.

Particular  attention  will  be  given  to:

— the  pursuit  of  cost  effectiveness  and  sustainable

impact  in  project  design;

— the  clear  definition  and  monitoring  of  objectives  and

indicators  of  achievement  for  all  projects.

The  assistance  provided  for  under  this  Regulation
8.
shall complement and reinforce assistance provided under
other  instruments  of  development  cooperation.

Article  6

The  Commission 

the
shall  be  assisted  by 
1.
geographically  determined  committee  competent 
for
development, consisting of representatives of the Member
States  and  chaired  by 
the
Commission.

the  representative  of 

2.
The  representative  of  the  Commission  shall  submit
to  the  committee  a  draft  of  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.  The  opinion  shall  be
delivered  by  the  majority  laid  down  in  Article  148(2)  of
the  Treaty  in  the  case  of  decisions  which  the  Council  is
required  to  adopt  on  a  proposal  from  the  Commission.
The  votes  of  the  representatives  of  the  Member  States
wihtin the committee shall be weighted in the manner set
out  in  that  Article.  The  chairman  shall  not  vote.

3. (a) The  Commission  shall  adopt 

the  measures
envisaged  if  they  are  in  accordance  with  the
opinion  of  the  committee.

(b)

If  the  measures  envisaged  are  not  in  accordance
with  the  opinion  of  the  committee,  or  if  no
opinion 
the  Commission  shall,
without  delay,  submit  to  the  Council  a  proposal
relating to the measures to be taken. The Council
shall  act  by  a  qualified  majority.

is  delivered, 

1. Within the global amount available for a given year,
the Commission shall fix the maximum amount available
to  each  traditional  ACP  supplier  for  the  financing  of  the
programmes  referred  to  in  Article  3(2),  on  the  basis  of
the  competitivity  gap  observed  and  taking  into  account
the  importance  of  banana  production  of  the  country
concerned.  Where  only  programmes  as  defined 
in
Article  3(2)(b)  are  implemented,  the  Commission  will
allocate an amount comparable to that given to the other
traditional  suppliers.

2.
From  the  year  2004  and  for  each  subsequent  year
thereafter, a maximum reduction coefficient of 15 % shall
be  applied  to  the  level  of  assistance  made  available  to
individual  traditional  ACP  suppliers.  Where  programmes
implemented,  this
defined  under  Article  3(2)(a)  are 
reduction  coefficient  shall  be  reduced  to  the  same  extent
that  an  increase  in  competitiveness  has  been  observed
compared  to  the  previous  year.

Detailed 

3.
the
Commission in accordance with the procedure laid down
in  Article  8.

rules  will  be 

established  by 

Article  8

Detailed rules for the application of this Regulation

1.
shall  be  laid  down  by  the  Commission.

2.
The  Commission  shall  be  assisted  by  a  committee
composed  of  the  representatives  of  the  Member  States
and  chaired  by  a  representative  of  the  Commission.

3.
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.  The  opinion  shall  be
delivered  by  the  majority  laid  down  in  Article  148(2)  of
the  Treaty  in  the  case  of  decisions  which  the  Council  is
required  to  adopt  on  a  proposal  from  the  Commission.
The  votes  of  the  representatives  of  the  Member  States
within the committee shall be weighted in the manner set
out  in  that  Article.  The  chairman  shall  not  vote.

4. (a) The  Commission  shall  adopt 

the  measures
envisaged  if  they  are  in  accordance  with  the
opinion  of  the  committee.

If, on the expiry of a period of one month from the date
of  referral  to  the  Council,  the  Council  has  not  acted,
the  proposed  measures  shall  be  adopted  by 
the
Commission.

(b)

If  the  measures  envisaged  are  not  in  accordance
with  the  opinion  of  the  committee,  or  if  no
the  Commission  shall,
opinion 

is  delivered, 

25.11.98

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Official  Journal  of  the  European  Communities

C 364/17

without  delay,  submit  to  the  Council  a  proposal
relating to the measures to be taken. The Council
shall  act  by  a  qualified  majority.

If,  on  the  expiry  of  a  period  of  three  months  from  the
date of referral to the Council, the Council has not acted,
the  proposed  measures  shall  be  adopted  by 
the
Commission.

Article  10

This  Regulation  shall  enter  into  force  on  the  third  day
following that of its publication in the Official Journal of
the  European  Communities.

This  Regulation  shall  be  binding  in  its  entirety  and
directly  applicable  in  all  Member  States.

Article  9

By  31  December  2000,  and  every  two  years  thereafter,
the  Commission  shall  present  a  report,  accompanied  if
appropriate  by  proposals,  on  the  operation  of  this
Regulation  to  the  European  Parliament  and  the  Council.

Done  at  . . .

For  the  Council

The  President

ANNEX

List  referred  to  in  Article  2(1)

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

C 364/18

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25.11.98

STATEMENT  OF  THE  COUNCIL’S  REASONS

I.

INTRODUCTION

1. On  17  February  1998  the  Commission  presented  a  proposal  based  on  Article  130w  of
the  EC  Treaty  establishing  a  special  framework  of  assistance  for  traditional  ACP
suppliers  of  bananas (1).

2. The  European  Parliament  adopted  its  opinion  on  first  reading  of  the  proposal  on

19  June  1998 (2).

3. On  5  October  1998,  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 establish a special framework of assistance for traditional
ACP  suppliers  of  bananas.

III. ANALYSIS  OF  THE  COMMON  POSITION

The Common Position adopted by the Council is substantially the same as the Commission
proposal.  However,  the  Council  has  however  modified  the  proposal  so  that  particular
attention  is  paid  to  diversification  and  fair  trade.

It  was  agreed  that  the  decision-making  procedures  would  be  in  accordance  with  the  III(a)
procedure  of  the  Decision  on  committee  procedure.

Taking  account  of  amendments  9,  10,  15,  29  proposed  by  the  Parliament,  it  paid  special
attention  to  the  particular  case  of  Somalia  arising  from  the  fact  that  in  the  absence  of  a
government  or  a  recognised  legitimate  authority  it  is  not  able  to  benefit  for  the  moment
from  all  provisions  of  this  Regulation.  Therefore  Articles  2  and  4  give  particular  attention
to  the  need  for  specific  solutions  for  Somalia  to  avoid  that  the  absence  of  a  government
could  prejudge  the  Somalian  producers.

The  Council  took  on  board  amendment  7,  which  includes  reference  to  social  standards.  It
also  accepted,  at  least  partially,  amendment  27  (taking  into  account  the  competitiveness
gap)  and  amendment  33  (report  on  the  operation  of  the  regulation  by  the  Commission  to
Parliament  and  Council).

Concerning amendments 5, 6, 7, 18, 19, 22, 23, 25, 26 and 35 it noted an agreement with
the  principles  reflected  in  those  amendments  and  accepted  the  principles  behind  them.
Nevertheless the Council decided to stick to its own wording which it considered sufficient
and  more  coherent  with  the  regulation.

The Council could not accept amendments 1, 2, 3, 8, 11, 20, 21, and 32 because in its view
they  are  superfluous  or  repetitive.

Amendments 12 and 13 by the Parliament were rejected because the Council disagreed with
the  establishing  of  an  income  system  through  the  creation  of  a  special  fund.

Amendment  14  was  rejected  because  it  included  a  wrong  CN  code.

(1) OJ  C  108,  7.4.1998,  p.  91.
(2) OJ  C  210,  6.7.1998,  p.  320.

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Concerning  amendment  16  by  Parliament  the  Council  recalled  that  the  present  proposal
should be seen in relation to Protocol No 5 of the Lomé Convention, which only referes to
traditional  ACP  suppliers.  The  proposal  does  therefore  not  concern  non-traditional
suppliers.  In  addition  it  recalled  that  the  extension  just  to  the  Dominican  Republic  and
Ghana,  as  proposed  by  the  Parliament,  would  also  discriminate  against  other  ACP
countries.  Therefore  amendment  16  has  been  rejected.

The  idea  of  income  support  solely  to  the  most  disadvantaged  traditional  ACP  suppliers,  as
suggested  by  amendment  17,  has  been  rejected  because  of  possible  discrimination  within
international obligations.

Furthermore the Council disagreed with amendment 24 and the idea of additional funds for
urgent  measures.

Amendment  28  by  the  Parliament  and  its  idea  to  make  funds  primarily  available  for  the
benefit  of  small  independent  producers  and  therefore  to  exclude  multinational  firms  from
benefiting  from  this  regulation,  has  not  been  taken  on  board  because  of  possible  violation
of  the  principle  of  non-discrimination.

The  Council  disagreed  with  amendment  30.  It  does  not  see  any  necessity  for  direct  aid  to
producers  or  producer  organizations.

Finally,  amendment  31  has  been  rejected  because  it  would  prejudice  the  annual  budget
negotiations  of  the  Community.