Council Regulation (EC) No 856/1999 of 22 April 1999 establishing a special framework of assistance for traditional ACP suppliers of bananas
Date: 1999-04-22
Institutions: Council of the European Union
Subjects: ACP countries, aid system, common organisation of markets, financial aid, import (EU), supplier, technical cooperation, tropical fruit

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 856/1999

of 22 April 1999

establishing a special framework of assistance for traditional ACP suppliers of
bananas

THE COUNCIL OF THE EUROPEAN UNION,

(4) Whereas

these trade arrangements have been

amended by Regulation (EC) No 1637/98;

Having regard to the Treaty establishing the European
Community, and in particular Article 130w thereof,

Having regard to the proposal from the Commission (1),

Acting in accordance with the procedure laid down in
Article 189c of the Treaty (2),

(1) Whereas the European Union is bound by the
undertakings it made to the ACP countries under
and more particularly
the Lom(cid:130) Convention,
Protocol 5 thereof, which seeks to guarantee main-
tenance for the ACP States of their advantages on
the European market, access to that market
in
conditions that may not be less favourable than
they have previously enjoyed and
those that
improvement of production and marketing condi-
tions for ACP bananas;

(2) Whereas the common organisation of the market
in bananas established by Regulation (EEC) No
404/93 (3) set the framework for continuing, on the
Community market, the advantages enjoyed in the
past by traditional ACP suppliers;

(3) Whereas, in particular, the trade arrangements with
third countries established by Title IV of the said
allow bananas
Regulation were designed to
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;

(1) OJ C 364, 25.11.1998, p. 14.
(2) Opinion of the European Parliament of 19 June 1998 (OJ C
210, 6.7.1998), Council Common Position of 5 October 1998
(OJ C 364, 25.11.1998) and Decision of the European Parlia-
ment of 28 January 1999 (not yet published in the Official
Journal).

(3) OJ L 47, 25.2.1993, p. 1. Regulation as last amended by
Regulation (EC) No 1637/98 (OJ L 210, 28.7.1998, p. 28).

(5) Whereas these trade modifications have substan-
tially altered the market conditions for traditional
ACP suppliers and might, in particular, harm the
most disadvantaged suppliers;

(6) 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;

(7) Whereas technical and financial assistance, addi-
tional to that provided for in the fourth ACP-EC
Convention of Lom(cid:130), 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;

(8) 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;

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

(10) Whereas,

to facilitate implementation of

these
provisions, a procedure involving close cooperation
between the Member States and the Commission
should be established,

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HAS ADOPTED THIS REGULATION:

Article 1

A special

1.
framework for technical and financial
assistance is hereby established to assist traditional ACP
suppliers of bananas to adapt to the new market condi-
tions following the amendments made to the common
organisation of the market in bananas by Regulation (EC)
No 1637/98.

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

Article 2

For the purposes of this Regulation:

(cid:190) ‘traditional ACP suppliers' means the ACP countries

listed in the Annex,

(cid:190) ‘bananas' means fresh or dried bananas covered by

CN code 0803, except for plantains.

Article 3

Traditional ACP suppliers shall be eligible for tech-

1.
nical and financial assistance.

2.
Technical and financial assistance shall be granted at
the request of the ACP to contribute to the implementa-
tion of programmes aiming:

(a) to improve competitiveness in the banana sector, in

particular through:

(cid:190) increasing productivity, without causing damage to

the environment,

(cid:190) improving quality, including phytosanitary meas-

ures,

(cid:190) adapting production, distribution or marketing
methods to meet the quality standards provided
for in Article 2 of Regulation (EEC) No 404/93,

their objective

(cid:190) establishing producers’ organisations which have
the
the
as
marketing and competitiveness of their products
and the development of systems of certifying
environment-friendly production methods, includ-
ing fair-trade bananas,

improvement of

(cid:190) developing a production and/or marketing strategy
to meet the requirements of the market in the
light of the Community’s common organisation of
the market in bananas,

(cid:190) assisting with training, market

the
development of environment-friendly production
methods including fair-trade bananas, improving
and improving
the distribution infrastructure

intelligence,

commercial and financial
producers;

services

to banana

(b) to support diversification where improvement in the
competitiveness of the banana sector is not sustain-
able.

Article 4

The Commission shall decide on the eligibility of the
programmes referred to in Article 3 after consultation
with the traditional ACP suppliers concerned in accord-
ance with the procedures laid down in Article 6. Special
account will be taken of the individual circumstances of
each ACP supplier, with 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
the
producers,
Community producers.

particular

banana

other

in

Article 5

The Commission shall be responsible for appraising,
1.
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.

2. Decisions concerning any operation financed under
this Regulation at a cost of over EUR 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 EUR 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.

financing decisions it

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

All

financing agreements or contracts concluded
3.
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 partic-
ular those laid down in the Financial Regulation applic-
able to the general budget of the European Communities.

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4. Where operations given 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.

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
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.

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

7.

Particular attention will be given to:

(cid:190) the pursuit of cost effectiveness and sustainable

impact in project design,

(cid:190) the clear definition and monitoring of objectives and

indicators of achievement for all projects.

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

Article 7

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
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.

the

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
defined under Article 3(2)(a) are implemented, this reduc-
tion coefficient shall be reduced to the same extent that
an increase
in competitiveness has been observed
compared to the previous year.

3. Detailed rules will be established by the Commis-
sion in accordance with the procedure laid down in
Article 8.

Article 6

Article 8

1.
The Commission shall be assisted by the geographi-
cally determined committee competent for development,
consisting of representatives of the Member States and
chaired by the representative of the Commission.

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 deliv-
ered 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.

The Commission shall adopt the measures envis-
3.
aged if they are in accordance with the opinion of the
committee.

If the measures envisaged are not in accordance with the
opinion of the committee, or if no opinion is delivered,
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.

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.

1. Detailed rules for the application of this Regulation
shall be laid down by the Commission.

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

The representative of the Commission shall submit
3.
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 deliv-
ered 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.
The Commission shall adopt the measures envis-
aged if they are in accordance with the opinion of the
committee.

If the measures envisaged are not in accordance with the
opinion of the committee, or if no opinion is delivered,
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.

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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 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.

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

Article 10

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

Done at Luxembourg, 22 April 1999.

For the Council

The President

W. M(cid:154)LLER

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ANNEX

LIST REFERRED TO IN THE FIRST SUBPARAGRAPH OF ARTICLE 2

Traditional ACP suppliers of bananas

Belize

Cameroon

Cape Verde

C(cid:147)te d’Ivoire

Dominica

Grenada

Jamaica

Madagascar

Saint Lucia

Saint Vincent and the Grenadines

Somalia

Suriname