Proposal for a Council Regulation introducing specific measures for certain agricultural products for the French overseas departments (COM(2000) 791 final — 2000/0313(CNS))
Date: 2001-03-27
Institutions: European Commission
Subjects: French overseas department and region, agricultural product, aid system, aid to agriculture, production aid, supply

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Proposal for a Council Regulation introducing specific measures for certain agricultural products
for the French overseas departments

(2001/C 96 E/25)

COM(2000) 791 final (cid:151) 2000/0313(CNS)

(Submitted by the Commission on 1 December 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 and Article
299(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) By Decision 89/687/EEC (1),
the Council adopted a
specific to the remote and
programme of options
French overseas departments
insular nature of
the
(Poseidom)
in accordance with the Community’s policy
of assistance for the most remote regions. The purpose
of the programme is to facilitate the economic and social
development of those regions and enable them to benefit
from the advantages of the single market of which they
are an integral part despite the objective factors leaving
them geographically and economically isolated. The
programme calls for the CAP to be applied in those
to be
regions
adopted.
to
improve the conditions in which agricultural products
are produced and marketed in those departments and to
their exceptional geographical
mitigate the effects of
situation and constraints as since recognised in Article
299(2) of the Treaty.

and provides
In particular,

for
it provides

special measures

for measures

(2) The particular geographical

situation of

the French
overseas departments imposes additional transport costs
in supplying essential products for human consumption,
for processing and as agricultural
In addition,
objective factors arising as a result of insularity impose
further constraints on economic operators and producers
in these islands that severely handicap their activities. This
is true particularly in the case of the supply of cereals,
which are not and cannot be produced in the overseas
rendering them dependent on external
departments,

inputs.

(1) Council Decision of 22 December 1989 establishing a Programme
of options specific to the remote and insular nature of the French
(OJ L 399, 30.12.1989, p. 39).
overseas departments (Poseidom)

sources of supply. These handicaps can be alleviated by
It
lowering the price of
is
therefore
supply
appropriate
arrangements with a view to ensuring supply to the
overseas departments from local production and to miti-
gating the additional costs of the remoteness and insu-
larity of these departments.

these essential products.
to introduce

specific

(3) To that end, notwithstanding Article 23 of the Treaty,
imports of the products concerned from third countries
should be exempt from the applicable import duties. In
the interests of regional cooperation and regional devel-
opment in the context of the Community’s scheme of
generalised tariff preferences and its commitments under
the agreements with the ACP States, preference should be
given to imports of the said products into the French
from the developing countries.
overseas departments
However,
the import duty
exemption arrangements may also, exceptionally, be
applied to imports of cereals from other third countries.

in the event of difficulty,

(4) In order to achieve the goal of

of Community
traditional

lowering prices in the
French overseas departments and mitigating the additional
costs of their remoteness and insularity while maintaining
the
and
competitiveness
preventing disruption of
trade flows, aid
should be granted for the supply to these departments
of products of Community origin. Such aid must take
account of
to the
overseas departments and the prices applied to exports
to third countries and, in the case of agricultural inputs
and products intended for processing, the additional costs
of insularity.

the additional cost of

transport

products

(5) Since the quantities covered by the specific supply
arrangements are limited to the supply requirements of
the overseas departments,
those arrangements do not
impair the proper functioning of the internal market. In
addition, the economic advantages of the specific supply
arrangements must not provoke deflections of trade in the
products concerned. Re-exportation or re-dispatching of
those products from the French overseas departments
should therefore be prohibited unless authorised by the
Commission. However, this prohibition should not apply
to trade flows between the overseas departments or, in
the
and
consignments.

case of processing,

to traditional

exports

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(6) The

the

advantages of

supply
economic
arrangements must
reduce production costs and be
passed on to the end user in lower consumer prices.
They should therefore be granted only on condition that
they actually are passed on, and monitoring must be
carried out to that end.

specific

the end of

(7) In the light of recent agricultural developments in French
Guiana, Council Regulation (EEC) No 3763/91 introduced
a measure to develop rice cultivation (1). That measure
expired at
the 1996 marketing year and
since the Member State concerned has not asked for it
to be extended,
that measure should be abolished. A
measure has been introduced to dispose of and market
rice in Guadeloupe,
part of
Martinique and the rest of the Union. Since not all of
the local production can be consumed in the region,
facilities and local conditions make
and since lack of
this measure,
storage in the region scarcely feasible,
which is vital to maintain balance in the local production
sector, should continue on the terms laid down in the
current rules.

the local production of

(8) Traditional

should

livestock

activities

be
farming
supported in order to meet local consumption needs. To
that end, derogations are needed from some of
the
provisions of the common market organisations which
restrict production, to take account of the development
and particular conditions of local production, which are
quite different from those in the rest of the Community.
This objective may also be pursued indirectly by financing
genetic improvement programmes involving the purchase
of pure-bred breeding animals, by purchasing commercial
breeds more suited to local conditions, by supplementing
the suckler cow premium and the slaughter premium, and
by granting aid to develop cow’s milk production.

high-quality sector to pick up speed. The principle of
extending this support to French Guiana and Guadeloupe
has been accepted, on condition that local
inter-branch
organisations are set up.

(10)

In the fruit, vegetables, plants and floricultural sector,
measures have been introduced to improve farm produc-
tivity and product quality, structure the production and
distribution chains, develop local processed products and
maintain certain traditional production (vanilla, essential
oils, etc.), with a view to supporting the local marketing,
processing and export sales of
those products. These
measures have helped to start improving the ability of
local products to compete with products from elsewhere
on high-growth markets, to satisfy the requirements of
consumers
and to
establish these upgraded products on the Community
market, and should therefore be continued.

and new distribution channels

to have a future, all

(11) Council Regulation (EEC) No 525/77 (2) established a
system of production aid for tinned pineapple which
has been applied only in Martinique. Given the specific
features of the scheme and the production region, in the
interests of legislative and administrative harmonisation,
the scheme should be included in this Regulation and
If
Regulation (EEC) No 525/77 should be repealed.
pineapple production is
those
engaged in the sector must be mobilised. Pineapple
for
production is particularly important in Martinique,
are
reasons. Pineapples
both economic
expensive to produce and products processed from
them face competition from third countries. Support
should continue to be granted for processing and to
ensure the survival of small
farms, ensure a regular
supply to the processing industry and reinforce the role
of producer organisations while opening the way in the
medium term to improved profitability and,
if appro-
priate, the marketing of fresh produce.

and social

(9) The Community is

contributing funds

to regional
programmes to support the production and marketing
local products in the livestock and milk products
of
in Martinique and RØunion as a temporary
sectors
measure from 1996-2000. The level of
local self-suffi-
low. Community support
ciency in those sectors is still
can be mobilised effectively only if the local production
structures are able to implement strategies tailored to the
local context for economic development, spatial organi-
sation of production and increasing the professionalism of
producers. This assistance should be continued as a
temporary measure to help the production of a modern,

overseas

departments.

to the economy of

the
(12) The sugar-cane sector is vital
overseas
departments
The
continue to face serious handicaps (remoteness, insularity,
difficult mountainous terrain, small and widely dispersed
farms, few factories, high local transport costs, difficult
access because of poor roads) which push up costs.
Sugar-cane production also faces specific handicaps in
comparison with the production of
in
mainland Europe, particularly regarding the harvesting
of cane. To ensure that the sector develops properly and
to alleviate these difficulties, measures are needed to
partially offset the additional costs of transporting the
cane from the fields to reception centres.

sugarbeet

(1) OJ L 356, 24.12.1991, p. 1. Regulation last amended by Regulation

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

(2) OJ L 73, 21.3.1977, p. 46.

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abolition of

certain benefits

(13) Rum is a product of great economic importance for the
French overseas departments, and market outlets are vital.
The gradual
currently
accorded to rum production would have a serious
impact on the earnings of the producers. The measures
to support the cultivation of sugar cane and its direct
processing into agricultural rum and sugar syrup should
be continued because these measures are helping to
ensure continued deliveries of cane to distilleries, which
in their
can thus plan and rationalise investments
production facilities, and because they help improve the
incomes of cane growers and encourage them to improve
their production methods to ensure higher yields and
deliver better quality cane.

(14) Agricultural producers in the overseas departments should
be encouraged to supply quality products and the
marketing of
assisted. Using the
should be
Community’s graphic symbol might help achieve this.

these

HAS ADOPTED THIS REGULATION:

Article 1

This Regulation lays down specific measures to remedy the
difficulties caused by the remote and insular nature of the
French overseas departments in respect of certain agricultural
products.

TITLE I

SPECIFIC SUPPLY ARRANGEMENTS

Article 2

Specific supply arrangements are hereby introduced for
1.
the agricultural products listed in Annex I to this Regulation,
which are essential for human consumption, for processing and
as agricultural inputs in the French overseas departments.

(15) The plant health of agricultural crops in the French
overseas departments is subject
to particular problems
associated with the climate and the inadequacy of the
control measures hitherto applied there. Programmes
should be implemented to combat harmful organisms.
The Community’s financial contribution towards such
programmes should be specified.

2.
A forecast supply balance shall be drawn up stating the
quantity of the agricultural products listed in Annex I needed
to meet supply requirements each year. A separate forecast
balance may be drawn up for
the
industries processing and packaging products intended for
the local market and for traditional export or consignment to
the rest of the Community.

the requirements of

(16) The structures of certain farms and processing and
marketing firms in the French overseas departments are
seriously defective and face specific difficulties. It should
therefore be possible to derogate for some types of
investment from the provisions restricting or prohibiting
the grant of some of the structural aid provided for in
Council Regulation (EC) No 1257/1999 (1).

Article 3

No duties shall apply to direct imports into the overseas
1.
departments of products covered by the specific supply
arrangements if they originate in the countries and territories
listed in Annex III to Regulation (EC) No 2820/98, within the
limit of the quantities determined in the supply balance.

(17) Article 29(3) of Regulation (EC) No 1257/1999 restricts
the grant of aid for forestry to forests and wooded areas
owned by private owners or municipalities or associations
thereof. Most of the forests and wooded areas in these
departments are owned by public authorities other than
municipalities. The terms laid down in Article 29 should
therefore be relaxed.

In the event of exceptional supply difficulties, exemption from
duty may be extended to products originating in other third
countries. The competent French authorities shall inform the
Commission immediately of cases where they intend to avail
themselves of this option.

(18) A derogation may be granted from the Commission’s
consistent policy of not authorising State operating aid
for the production, processing and marketing of agri-
cultural products covered by Annex I to the Treaty in
order to mitigate the specific constraints on farming in
the overseas departments as a result of their remoteness,
insularity, small area, mountainous terrain and climate
and their economic dependency on a small number of
products,

(1) OJ L 160, 26.6.1999, p. 80.

Products which have entered the rest of
the Community’s
customs territory under inward processing or customs ware-
housing arrangements shall be considered as direct imports for
the purposes of this Title.

To ensure coverage of the requirements established in
2.
accordance with Article 2 in terms of quantity, price and
quality, while taking care to maintain the Community’s share
in supplies, aid shall be granted to supply the overseas
departments with Community products held in public inter-
vention storage or available on the Community market.

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Such aid shall be fixed to take account of the additional cost of
transport to the overseas departments and the prices applied to
exports to third countries and, in the case of agricultural inputs
and products intended for processing, the additional costs of
insularity.

The Commission shall draw up supply balances in accordance
with the procedure referred to in the first subparagraph. It may
revise those balances, and the list of products in Annex I, in
accordance with the same procedure, in the light of changes in
the overseas departments’ requirements.

In implementing the scheme introduced by this Article,

3.
account shall be taken, in particular, of the following:

TITLE II

MEASURES TO ASSIST LOCAL PRODUCTS

(cid:151) the specific requirements of the overseas departments and,
in the case of products intended for processing and agri-
cultural inputs, the specific quality requirements,

(cid:151) traditional trade flows with the rest of the Community,

(cid:151) the possibilities

for
developing countries,

supply

from the neighbouring

(cid:151) the economic aspect of the proposed aid.

Entitlement under the supply arrangements provided for
4.
the
in this Article shall be subject
economic advantage derived either
from exemption from
import duties or from aid in the case of supply from the
rest of the Community is actually passed on to the end user.

to the condition that

re-dispatched to the rest of

5.
Products covered by the specific supply arrangements
introduced by this Title may not be re-exported to third
the Community
countries or
without authorisation from the Commission. The Commission
shall determine the conditions for such authorisation, which
shall include, in particular, reimbursement of the aid received
under
the products
referred to in Article 3(2) or payment of the import duty on
the products referred to in Article 3(1). This prohibition shall
not apply to trade flows between the overseas departments.

the specific supply arrangements

for

Where the products concerned are processed in the overseas
departments, the aforesaid prohibition shall not apply to tradi-
tional exports or shipments of the processed products to the
rest of the Community. In the case of traditional exports, no
refund shall be granted.

6.
Detailed rules for applying this Title shall be adopted in
accordance with the procedure referred to in Article 19(2).
These shall include, in particular:

(cid:151) the fixing of aid for

supply from the rest of

the

Community,

(cid:151) provisions

to ensure that

the advantages granted are

actually passed on to the end user,

(cid:151) application where necessary of the second subparagraph of

Article 3(1),

CHAPTER I

RICE

Article 4

1.
Community aid shall be granted for the conclusion of
annual contracts concerning the disposal and marketing in
Guadeloupe, Martinique and the rest of the Community of
rice harvested in French Guiana, within the limit of an
annual volume of 12 000 tonnes of wholly milled rice
equivalent. As regards disposal and marketing in the rest of
the Community, aid shall be granted for a maximum of 4 000
tonnes.

The contracts shall be concluded between producers in French
Guiana and natural or legal persons established in Guadeloupe,
Martinique or the rest of the Community.

The amount of the aid shall be 10 % of
the
marketed produce sold in Guadeloupe, Martinique or the rest
of the Community, for merchandise delivered at the first port
of unloading. This percentage shall be raised to 13 % where the
contractor for the producers is a group or association of
producers.

the value of

The aid shall be paid to the purchaser who markets the
products under the annual contracts.

Detailed rules for applying this Article shall be adopted in

2.
accordance with the procedure referred to in Article 19(2).

CHAPTER II

LIVESTOCK AND MILK PRODUCTS

Article 5

In the livestock sector, aid shall be granted for the supply
1.
to the overseas departments of the pure-bred animals, animals
of commercial breeds and livestock products, originating in the
Community.

in particular, of

The terms for granting aid shall be laid down taking
2.
account,
the
overseas departments for starting up production and genetic
livestock and the need for the breeds best
improvement of
suited to local conditions.

the supply requirements of

(cid:151) introduction if necessary of a system of import or delivery

licences.

The aid shall be paid for the delivery of goods which fulfil the
requirements specified in Community rules.

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The following shall be taken into account when aid is

3.
being fixed:

(d) the stocking density of animals kept on the farm, laid down

in Article 12 of that Regulation,

(cid:151) the conditions and in particular the costs of supply to the
from their
departments

resulting

French
geographical situation,

overseas

(cid:151) the price of products on the Community market and on the

world market,

(cid:151) whether or not duties are charged on imports from third

countries,

(cid:151) the economic aspect of the proposed aid.

Article 3(4) and (5) shall apply to goods qualifying for aid

4.
under paragraph 1.

5.
The list of products, the level of the aid referred to in
paragraph 1and the detailed rules for applying this Article shall
be adopted in accordance with the procedure referred to in
Article 19(2).

Article 6

The aid provided for in (a) and (b) below shall be granted
1.
to assist
traditional activities connected with beef and veal
production and measures to improve product quality, within
the overseas
the
departments as assessed in the context of a periodic supply
balance.

consumption needs of

limits of

the

The balance shall take account of breeding animals supplied
under Article 5.

(a) A supplement to the suckler cow premium provided for in
Article 6 of Regulation (EC) No 1254/1999 shall be paid to
beef and veal producerp. The amount of this supplement
shall be EUR 50 per suckler cow held by the producer on
the day on which the application is submitted.

(b) A supplement to the slaughter premium provided for in
Article 11 of Regulation (EC) No 1254/1999 shall be paid
to beef and veal producers. The amount of the supplement
shall be EUR 25 per head.

shall not apply in the overseas departments in the case of the
basic special premium, the basic suckler cow premium, the
basic slaughter premium or
the supplementary premiums
referred to in paragraph 1(a) and (b).

The basic and supplementary premiums referred to in
(3)
paragraph 1 shall be granted each year for a maximum of
10 000 male bovine animals, 35 000 suckler cows and
20 000 slaughtered animals, respectively.

(4)
Detailed rules for applying this Article shall be adopted
in accordance with the procedure referred to in Article 19(2).
They shall cover drawing up the balances referred to in
paragraph 1 and any reviews to take account of changing
requirements and,

(a) as regards the special premium for male bovine animals,

they shall provide for:

(cid:151) the (cid:145)freezing(cid:146), within the regional ceiling set in Article 4
of Regulation (EC) No 1254/1999, of the number of
animals for which the special premium was granted in
the overseas departments for 1994,

(cid:151) the grant of basic premiums within the limit of 90
animals per age group, per calendar year and per
holding;

(b) as regards the suckler cow premium, these detailed rules:

(cid:151) shall

to the extent
include provisions to guarantee,
necessary,
to whom a
rights of producers
premium has been granted under Article 6 of Regu-
lation (EC) No 1254/1999,

the

(cid:151) may provide for the establishment of a specific reserve
for the overseas departments and special conditions for
allocating or reallocating rights, taking into account the
objectives pursued in the livestock farming sector; the
size of the reserve shall be determined on the basis of
the ceiling set
in paragraph 3 and the number of
premiums granted for the year 1994;

2.

The provisions relating to:

(c) as regards the slaughter premium, they shall provide for:

(a) the regional ceiling laid down by Article 4 of Regulation
(EC) No 1254/1999 as regards the basic special premium;

(b) the individual ceiling for animals kept on the holding as
laid down in Article 6 of the aforementioned Regulation, as
regards the basic suckler cow premium;

(cid:151) the (cid:145)freezing(cid:146), within the national ceiling set in Article
38(1) of Regulation (EC) No 2342/1999, of the number
of animals
for which the slaughter premium was
granted for 2000.

The detailed implementing rules may include additional
conditions for granting supplementary premiums.

(c) the national ceiling laid down under Article 11 of Regu-
lation (EC) No 1254/1999 as regards the basic slaughter
premium;

The Commission may review the ceilings fixed in paragraph 3
in accordance with the same procedure.

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Article 7

1.
Aid shall be granted to increase the production of cow’s
milk, within the limit of the local requirements in the overseas
departments of milk products for human consumption, such
in a
requirements being determined each marketing year
balance. The quantities of milk used for the manufacture of
skimmed milk intended for animal feed shall not be eligible for
aid.

The aid shall be granted to producers and producer groups for
the quantities delivered to dairies. It shall be paid through the
dairies.

The aid shall amount to EUR 8,45 per 100 kg of whole milk.

Aid shall be paid each year within the limits of a maximum
quantity of 40 000 tonnes of milk.

levy scheme applicable to producers of
2.
The additional
cow’s milk provided for
in Council Regulation (EEC) No
3950/92 of 28 December 1992 establishing an additional
levy in the milk and milk products sector (1) shall not apply
in the overseas departments.

3.
The Commission shall adopt detailed rules for applying
this Article and the balance referred to in paragraph 1 in
accordance with the procedure referred to in Article 19(2).
The Commission may review the maximum quantity referred
to in the fourth subparagraph of paragraph 1 in accordance
with the same procedure.

Article 8

1.
In the period 2001-2005, aid shall be granted to
implement in both Martinique and RØunion a comprehensive
programme to support the production and marketing of local
produce in the livestock and milk products sectors.

The programme may include measures to encourage improved
quality and hygiene, marketing, sector structuring, the rational-
isation of production and marketing structures and the
provision of
technical assistance. The programme may not
include the grant of aid in addition to the premiums paid
under Articles 6 and 7.

The programme shall be prepared and implemented by the
competent
authorities designated by the Member State,
working in close collaboration with the existing inter-branch
organisations recognised as most representative in the sectors
concerned.

2.
Draft programmes, to run for no more than five years,
shall be presented to the Commission by the competent auth-
orities. The Commission shall approve them in accordance
with the procedure referred to in Article 19(2). In accordance
with the same procedure, the Commission may extend the
scope of this Article to cover the departments of Guadeloupe
and French Guiana, provided inter-branch organisations are
established in those departments.

Each year the French authorities shall present a report on

3.
implementation of the programme.

CHAPTER III

FRUIT, VEGETABLES, PLANTS AND FLOWERS

Article 9

Aid shall be granted in respect of the fruits, vegetables,
1.
flowers and live plants listed in Chapters 6, 7 and 8 of the
combined nomenclature, the peppers and fruits of the genus
Capsicum and of the genus Pimenta falling within CN code
0904 and the spices falling within CN code 0910 harvested
in the overseas departments and intended to supply their
domestic market. The aid shall not be granted for bananas
other than plantains falling within CN code 0803 00 11.

The aid shall be granted for products which conform to
common standards fixed by Community legislation or, where
no such standards exist,
to specifications written into the
supply contracts.

Grant of the aid shall be subject to the conclusion of supply
contracts lasting one or more years between producers or
producer organisations as referred to in Articles 11, 13 and
14 of Council Regulation (EC) No 2200/96 of 28 October
1996 on the common organisation of
in fruit
and vegetables (2) and distributors, restaurants and the like or
local authorities.

the market

The aid shall be paid out to the abovementioned producers or
producer organisations within the limits of annual quantities
established for each product category.

The amount of the aid shall be fixed on a flat-rate basis for
each of the product categories to be determined, based on the
average value of the products covered. The amount of aid shall
be differentiated according to whether the beneficiary is a
producer or one of the producer organisations referred to in
Articles 11, 13 and 14 of Regulation (EC) No 2200/96.

2.
Aid amounting to EUR 6,04 per kilogram shall be paid
out for the production of green vanilla falling within CN code
ex 0905 and used to produce dried (black) vanilla or vanilla
extracts.

The aid shall be paid out up to an annual maximum quantity
of 75 tonnes.

3.
Aid amounting to EUR 44,68 per kilogram shall be paid
out for the production of essential geranium and vetiver oils,
falling within CN codes 3301 21 to 3301 90 90.

The aid shall be paid up to an annual maximum of 30 tonnes
in the case of geranium oil and 5 tonnes in the case of vetiver
oil.

(1) OJ L 405, 31.12.1992, p. 1. Regulation last

amended by
Commission Regulation (EC) No 749/2000 (OJ L 90, 12.4.2000,
p. 4).

(2) OJ L 297, 21.11.1996, p. 1. Regulation last amended by Regulation

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

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Detailed rules for applying this Article shall be adopted in
4.
accordance with the procedure referred to in Article 19(2). The
same procedure shall be used to fix the product categories and
the amounts of aid referred to in paragraph 1, and to review,
referred to in
the maximum quantities
where necessary,
paragraphs 2 and 3.

Article 12

Aid shall be granted for

the conclusion of annual
1.
contracts concerning the disposal and marketing of
the
products specified in Article 9(1). This aid shall be paid up
to a limit of a volume of trade of 3 000 tonnes per product
per year and per department.

Article 10

1.
Aid shall be granted for the production of processed
fruits and vegetables obtained from products harvested in the
French overseas departments.

The contracts shall be concluded between individual producers
or producer organisations as referred to in Articles 11, 13 and
14 of Regulation (EC) No 2200/96 and natural or legal persons
established in the rest of the Community.

The production aid shall be paid to processors who have paid
producers for their raw materials a price not less than the
contracts between producers or
minimum price under
recognised producer organisations within the meaning of
Council Regulation (EC) No 2200/96 and processors or their
legally constituted organisations or associations. The Member
State shall fix the minimum price for the raw materials on the
basis of the production costs involved.

2.
The amount of aid shall be fixed on a flat-rate basis for
each of the product categories to be determined, by reference
to the prices of the local raw materials used and the import
prices for the same raw materials.

The aid shall be paid out within the limits of annual

3.
quantities established for each product category.

The amount of the aid shall be 10 % of the value of the

2.
production marketed, free at destination.

3.
The aid shall be granted to purchasers who undertake to
market the overseas department products under the contracts
referred to in paragraph 1.

4. Where the measures provided for in paragraph 1 are
undertaken by joint ventures constituted, with the aim of
marketing products harvested in the overseas departments, by
producers or producer groups or associations
in those
departments and natural or legal persons established in the
rest of the Community, and where the partners undertake to
pool the knowledge and know-how required to achieve the
objective of
the joint venture over a minimum period of
three years, the amount of the aid specified in paragraph 2
shall be increased to 13 % of
the annual
production marketed jointly.

the value of

4.
The list of processed products for which aid is granted
and detailed rules for applying this Article shall be adopted in
accordance with the procedure referred to in Article 19(2). The
same procedure shall be used to fix the product categories and
the amounts of aid referred to in paragraph 2 and the
maximum quantities referred to in paragraph 3.

The aid provided for in this Article shall also be paid, on

5.
the terms laid down in paragraphs 1 to 4, in respect of:

(cid:151) products processed from fruit or vegetables harvested in

the overseas departments,

Article 11

(cid:151) essential geranium and vetiver oils falling within CN codes

3301 21 to 3301 90 90,

The French authorities shall present to the Commission a

1.
programme to support the pineapple sector in Martinique.

include incentives

This programme shall
to improve the
conditions in which pineapple is produced, marketed and
processed, to restructure and improve the competitiveness of
farms. The
the sector, and to ensure the survival of small
programme shall not qualify for aid granted under Articles 9,
10 and 12.

2.
The French authorities shall present to the Commission
draft programmes, to run for no more than five years, accom-
panied by a report on the implementation of the previous
programme. The Commission
them in
accordance with the procedure laid down in Article 19(2).

approve

shall

(cid:151) dried (black) vanilla falling within CN code ex 0905 and

vanilla extracts falling within CN code 3301 90 90,

for which annual disposal and marketing contracts have been
concluded.

in respect of melons falling within CN code ex
However,
for a
0807 10 90, aid may be granted in a department
quantity exceeding 3 000 tonnes provided that
the total
volume eligible for aid for all the overseas departments is not
exceeded.

Detailed rules for applying this Article shall be adopted in

6.
accordance with the procedure referred to in Article 19(2).

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CHAPTER IV

SUGAR AND THE CANE-SUGAR-RUM SECTOR

Article 13

1.
Aid for the transport of cane from the fields where it is
harvested to the reception centres shall be granted to producers
who have concluded a supply contract with the processing
industry.

2.
The amount of the aid shall be determined by the French
authorities on the basis of distance and other objective criteria
relating to transport. It may not exceed half of the transport
costs per tonne fixed on a flat-rate basis by the French auth-
orities in each department.

Article 14

1.
Aid shall be granted for the direct processing of sugar
cane produced in the overseas departments into sugar syrup or
agricultural rum as defined in Article 1(4)(a)(2) of Council
Regulation (EEC) No 1576/89 of 29 May 1989 laying down
general rules on the definition, description and presentation of
spirit drinks (1).

The aid shall be paid to the manufacturer of sugar syrup or to
the distiller on condition that they pay the sugar cane producer
a minimum price, to be determined.

2.

The aid shall be paid:

(cid:151) in the case of sugar syrup, up to the limit of an annual

quantity of 250 tonnes,

(cid:151) in the case of agricultural rum, up to the limit of an overall

quantity of 75 600 hectolitres of pure alcohol.

Article 15

Detailed rules for applying this Chapter shall be adopted and
the amount of aid and the minimum price referred to in Article
14(1) shall be fixed in accordance with the procedure referred
to in Article 19(2).

CHAPTER V

GRAPHIC SYMBOL

Article 16

1.
The conditions for using the graphic symbol introduced
with a view to ensuring greater awareness and consumption of
quality agricultural products, whether natural or processed,
specific to the French overseas departments as most remote
regions, shall be proposed by the professional organisations.
forward such proposals, with
The French authorities shall
their opinion, to the Commission for approval.

Use of the symbol shall be monitored by an official authority
or a body approved by the competent French authorities.

Detailed rules for applying this Article shall be adopted as
2.
necessary in accordance with the procedure referred to in
Article 19(2).

TITLE III

PLANT-HEALTH MEASURES

Article 17

1.
The French authorities shall submit to the Commission
programmes for the control of organisms harmful to plants or
plant products. The programmes shall specify in particular the
objectives to be achieved, the measures to be carried out, their
duration and their cost. The programmes submitted pursuant
to this Article shall not concern protective measures for
bananas.

2.
The Community shall contribute to the financing of such
programmes on the basis of a technical analysis of the regional
situation.

3.
The financial participation of the Community and the
amount of the aid shall be decided in accordance with the
procedure laid down Article 19(2). The measures eligible for
Community financing shall be defined in accordance with the
same procedure.

Such participation may cover up to 60 % of the eligible
4.
expenditure. Payment shall be made on the basis of documen-
tation supplied by the French authorities. If necessary, investi-
gations may be organised by the Commission and conducted
on its behalf by experts as referred to in Article 21 of Directive
2000/29/EC.

TITLE IV

STRUCTURAL DEROGATIONS

Article 18

Notwithstanding Article 7 of Regulation (EC) No
1.
1257/1999 of 17 May 1999 on support for rural development
from the European Agricultural Guidance and Guarantee Fund
(EAGGF) and amending and repealing certain Regulations (2),
the total value of the aid, expressed as a percentage of the
volume of eligible investments, shall not exceed 75 % for
investments intended in particular to encourage diversification,
restructuring or a shift towards sustainable agriculture on agri-
cultural holdings of very small economic size to be defined in
the programming complement referred to in Article 19(4) of
Council Regulation (EC) No 1260/1999 of 21 June 1999 laying
down general provisions on the Structural Funds (3).

(1) OJ L 160, 12.6.1989, p. 1. Regulation last amended by Regulation
(EC) No 3378/94 of the European Parliament and of the Council (OJ
L 366, 31.12.1994, p. 1).

(2) OJ L 160, 26.6.1999, p. 80.
(3) OJ L 161, 26.6.1999, p. 1.

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Notwithstanding Article 28(2) of Regulation (EC) No
2.
1257/1999, the total value of the aid, expressed as a percentage
of the volume of eligible investments, shall not exceed 65 % for
investments in small and medium-sized enterprises engaged in
processing and marketing agricultural products consisting
mainly of
local produce in sectors to be defined in the
programming complement referred to in Article 19(4) of Regu-
lation (EC) No 1260/1999.

For the purposes of implementing Title III, the Commission
shall be assisted by the Standing Committee on Plant Health
established by Council Decision of 23 November 1976 estab-
lishing a Standing Committee on Plant Health (4).

For the purposes of implementing Title IV, the Commission
shall be assisted by the Committee on Agricultural Structures
and Rural Development established by Article 50 of Council
Regulation (EC) No 1260/1999 of 21 June 1999 laying down
general provisions on the Structural Funds (5).

3.
The restriction provided for in Article 29(3) of Regulation
(EC) No 1257/1999 shall not apply to forests and wooded areas
situated in the territory of the French overseas departments.

The measures planned under

this Article shall be
4.
described in single programming documents
these
departments, as referred to in Article 19 of Regulation (EC)
No 1260/1999.

for

reference

is made

to this paragraph,

2. Where
the
management procedure provided for in Article 4 of Council
Decision 1999/468/EC of 28 June 1999 laying down the
powers
procedures
of
conferred on the Commission (6),
to
Article 7(3) of that Decision.

implementing

shall apply,

exercise

subject

the

for

However, in the case of Title III, the procedure laid down in
Article 18 of Council Directive 2000/29/EC of 8 May 2000 on
protective measures
introduction into the
Community of organisms harmful to plants or plant products
and against their spread within the Community (7) shall apply.

against

the

TITLE V

GENERAL AND FINAL PROVISIONS

Article 19

The period provided for in Article 4(3) of Decision

3.
1999/468/EC shall be one month.

Article 20

The Commission shall be assisted by the Management
1.
Committee for Cereals established by Article 22 of Council
Regulation (EEC) No 1766/92 of 30 June 1992 on the
common organisation of the market in cereals (1), or by the
management committees established by the other regulations
on the common organisation of the market for the products
concerned.

For the agricultural products covered by Annex I to the Treaty
establishing the European Community, to which Articles 87, 88
and 89 thereof apply, the Commission may authorise operating
aid in the sectors producing, processing and marketing those
products, with a view to mitigating the specific constraints on
their
farming in the overseas departments as a result of
remoteness and insularity.

In the case of agricultural products covered by Regulation
(EEC) No 827/68 and products not covered by a common
organisation of the markets, the Commission shall be assisted
by the Management Committee for Hops established by Article
20 of Council Regulation (EEC) No 1696/71 of 26 July 1971
on the common organisation of the market in hops (2).

In the case of the graphic symbol and other cases provided for
in this Regulation, the Commission shall be assisted by the
Management Committee for Fresh Fruit and Vegetables estab-
lished by Council Regulation (EC) No 2200/96 of 28 October
1996 on the common organisation of the market in fruit and
vegetables (3).

Article 21

The measures provided for in this Regulation, except for Article
18, shall constitute intervention intended to stabilise the agri-
cultural markets within the meaning of Article 2(2) of Council
Regulation (EC) No 1258/1999 of 17 May 1999 on the
financing of the common agricultural policy (8).

Article 22

The Member States shall take the measures necessary to ensure
regards
compliance with this Regulation,
controls and administrative penalties, and shall
inform the
Commission thereof.

in particular as

The detailed rules for applying this Article shall be adopted by
the procedure provided for in Article 19(2).

(1) OJ L 181, 1.7.1992, p. 21. Regulation last amended by Regulation

(EC) No 1666/2000 (OJ L 193, 29.7.2000, p. 1).

(2) OJ L 175, 4.8.1971 p. 1. Regulation last amended by Regulation

(EC) No 191/2000 (OJ L 23, 28.1.2000, p. 4).

(3) OJ L 297, 20.11.1996, p. 1. Regulation last amended by Regulation

(EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

(4) OJ L 340, 9.12.1976, p. 25.
(5) OJ L 161, 26.6.1999, p. 1.
(6) OJ L 184, 17.7.1999, p. 23.
(7) OJ L 169, 10.7.2000, p. 1.
(8) OJ L 160, 26.6.1999, p. 103.

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Article 23

1.
France shall present to the Commission an annual report
on the implementation of the measures provided for in this
Regulation.

2.
At the end of the fifth year of application of the system
the Commission shall submit to Parliament and the Council a
general report showing the impact of the action taken under
this Regulation.

Article 24

to this Regulation and should be read in accordance with the
correlation table in Annex II.

Regulation (EEC) No 525/77 is hereby repealed.

Article 25

This Regulation shall enter
into force on the 20th day
following its publication in the Official Journal of the European
Communities.

Regulation (EEC) No 3763/91 is hereby repealed. References to
Regulation (EEC) No 3763/91 shall be construed as references

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

ANNEX I

Products eligible for the supply arrangements referred to in Articles 2 and 3:

(cid:151) Cereals and cereal products intended for human consumption and animal feed

(cid:151) Hops

(cid:151) Seed potatoes

(cid:151) Vegetable oils for use in the processing industry

(cid:151) Fruit pulps, purØes and concentrated juices for processing, other than those qualifying for the aid provided for in

Article 14

(cid:151) Preparations

for animal

feed falling within CN codes 2309 90 31, 2309 90 33, 2309 90 41, 2309 90 43,

2309 90 51 and 2309 90 53 (1)

(cid:151) Wheat bran falling within CN code 2302 30 (2).

(1) For French Guiana only, until the manufacturing facilities become operational; for imported products, eligibility for exemption from

import duties shall be restricted to levies fixed under Article 11 of Regulation (EEC) No 1766/92.

(2) Only RØunion qualifies for the supply arrangements referred to in Articles 2 and 3, and only for products originating in the ACP

States, up to an annual quantity of 8 000 tonnes.

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ANNEX II

CORRELATION TABLE

Regulation (EEC) No 3763/91

This Regulation

Article 1

Article 2(1)

Article 2(2)

Article 2(3)

First subparagraph of Article 2(4)

Second subparagraph of Article 2(4)

Article 2(5)

Article 2(6)

Article 3(1)

Article 3(2)

Article 3(3)

Article 4

Article 5(1)

Article 5(1)(a)

Article 5(1)(b)

Article 5(2)(a)

Article 5(2)(b)

Article 5(2)(c)

First subparagraph of Article 5(3)

Second subparagraph of Article 5(3)

Third subparagraph of Article 5(3)

Article 5(4)

Article 5(5)

Article 6

Article 7

Article 8(1)

Article 8(2)

Article 8(3)

Article 9

Article 9a

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

Article 20

Article 21

Article 22

Article 1

Article 2(1)

Article 2(2)

Article 3(1)

Article 3(1)

First subparagraph of Article 3(2)

Second subparagraph of Article 3(2)

Article 3(4)

Article 3(3) and 3(6)

Annex I

Deleted

Article 4

Article 5

Article 6(1)

Deleted

Article 6(1)(a)

Article 6(1)(b)

Article 6(2)(a)

Article 6(2)(b)

Article 6(2)(c)

Article 6(2)(d)

Article 6(3)

Article 6(4)

Second subparagraph of Article 6(4)

Article 6(4)

Deleted

Article 7

Deleted

First subparagraph of Article 3(5)

Second subparagraph of Article 3(5)

Third subparagraph of Article 3(5)

Second subparagraph of Article 3(5)

Deleted

Article 8

Deleted

Article 17

Deleted

Article 9

Article 10

Article 11

Article 12

Deleted

Article 13

Article 14

Article 15

Article 16

Article 18

Article 20

Article 21

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Regulation (EEC) No 3763/91

This Regulation

Article 22a

Article 23

Article 24

Annex

Article 19

Article 22

Article 23

Article 24

Article 25

Annex I

Annex II