Proposal for a Council Decision on the conclusion of the Agreements in the form of an Exchange of Letters between the European Community and, of the one part, 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, of the other part, the Republic of India on the guaranteed prices for cane sugar for the 1999/2000 delivery period
Date: 2000-06-09
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 09.06.2000
COM(2000) 356 final

2000/0141 (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, of the one part, 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, of the
other part, the Republic of India on the guaranteed prices for cane sugar for the
1999/2000 delivery period

(presented by the Commission)

1.

2.

3.

4.

EXPLANATORY MEMORANDUM

Protocol No 8 on ACP sugar annexed to the Fourth ACP-EC Convention, which has
become Protocol 3 from 1 March 2000 under Article 3 of Decision 1/2000 of the
ACP-EC Committee of Ambassadors, 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 1999/2000 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, which has become Protocol 3 from 1 March 2000 under
Article 3 of Decision 1/2000 of the ACP-EC Committee of Ambassadors, and the
agreement with India on cane sugar as well as in conformity with the guidelines for
negotiations given by the Council on 14.2.2000.

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 the Annex.

Financial impact:

These proposals have no financial impact other than that taken into account within
the framework of the 2000 budget.

2

2000/0141 (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, of the one part, 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, of the
other part, the Republic of India on the guaranteed prices for cane sugar for the
1999/2000 delivery period

THE COUNCIL OF THE EUROPEAN UNION,

having regard to the Treaty establishing the European Community, and in particular Article 133,
in conjunction with the first sentence of the first subparagraph of Article 300(2) thereof,

having regard to the proposal from the Commission,

Whereas:

(1)

(2)

Implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-EC
Convention1, which has become Protocol 3 from 1 March 2000 under Article 3 of
Decision 1/2000 of the ACP-EC Committee of Ambassadors2, and of the Agreement
between the European Community and the Republic of India on cane sugar3 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.

It is appropriate to approve the Agreements in the form of an Exchange of Letters
between the Community and, of the one part, the States referred to in the Protocol and,
of the other part, the Republic of India on the guaranteed prices for cane sugar for the
1999/2000 delivery period.

1

2

3

OJ L 229, 17.8.1991, p. 216.
OJ L 56, 1.3.2000, p. 47.
OJ L 190, 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,
of the one part, 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, of the other part, the Republic of India on the guaranteed prices for
cane sugar for the 1999/2000 delivery period are hereby approved on behalf of the Community.

The text of the Agreements is attached to this Decision.

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 2

Article 3

This Decision will be published in the Official Journal of the European Communities.

Done at Brussels,

For the Council
The President

4

ANNEX

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 1999/2000 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-EC Convention, which has become Protocol 3 from 1 March 2000 under Article 3
of Decision 1/2000 of the ACP-EC Committee of Ambassadors, 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 1999 to 30 June 2000, 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: EUR 52,37 per 100 kilograms;

for white sugar: EUR 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.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council
of the European Union

5

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-EC Convention, which has become Protocol 3 from
1 March 2000 under Article 3 of Decision 1/2000 of the ACP-EC Committee of
Ambassadors, 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 1999 to 30 June 2000, 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: EUR 52,37 per 100 kilograms;

(b)

for white sugar: EUR 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 3

6

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 1999/2000 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 Community and the Republic of India on cane sugar, on
the following:

For the delivery period 1 July 1999 to 30 June 2000, 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: EUR 52,37 per 100 kilograms;

for white sugar: EUR 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

7

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 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 Community and
the Republic of India on cane sugar, on the following:

For the delivery period 1 July 1999 to 30 June 2000, 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: EUR 52,37 per 100 kilograms;

(b)

for white sugar: EUR 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

8

FINANCIAL STATEMENT

1.

2.

3.

4.

BUDGET HEADING:
B1-11

APPROPRIATIONS:
EUR 1 996 million

TITLE:
Council Decision on the conclusion of the Agreements in the form of an exchange of letters between the
European Community and, of the one part, the ACP States and, of the other part, the Republic of India on the
guaranteed prices for cane sugar for the 1999/2000 delivery period.

LEGAL BASIS:
Article 133 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 1999/2000 delivery period.

PERIOD OF
12 MONTHS

(EUR million)

CURRENT
FINANCIAL
YEAR (2000)
(EUR million)

FOLLOWING
FINANCIAL
YEAR (2001)
(EUR million)

718

718

-

5.

FINANCIAL IMPLICATIONS

EXPENDITURE
-

CHARGED TO THE EC BUDGET
(REFUNDS/INTERVENTION)
NATIONAL AUTHORITIES
OTHER

5.0

5.1

OWN RESOURCES OF THE EC
(LEVIES/CUSTOMS DUTIES)
NATIONAL

-
-
REVENUE
-

-

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

2001
-

2002
-

2003
-

2004
-

1.3 million t x EUR 525.50/t (refunds)
1.2 million t x EUR 29.2/t (refining aid)

=
=

EUR
EUR
EUR

683.50 million (B)
35.04 million (B)
718.54 million (B)

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?

CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE
CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?

YES / NO

YES / NO

YES / NO

YES / NO

OBSERVATIONS:
This is an implementing measure under Protocol 8 annexed to the Fourth Lomé Convention, which has become
Protocol 3 from 1 March 2000. 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 2000 budget.

9