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 2001/02 and 2002/03 delivery periods
Date: 2003-03-26
Institutions: European Commission
Subjects: ACP countries, India, cane sugar, guaranteed price, import (EU), protocol on sugar, ratification of an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.3.2003
COM(2003) 137 final

2003/0053 (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 2001/02 and 2002/03 delivery periods

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

2.

3.

4.

Protocol  No  3  on  ACP  sugar  attached  to  Annex  V  to  the  ACP-EC  Partnership
Agreement, 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  2001/02  and  2002/03  delivery  periods,  the  Commission  has  negotiated
guaranteed  prices  with  the  ACP  States  and  the  Republic  of  India  pursuant  to
Article 5(4) of Protocol No 3 on ACP sugar, referred to in point 1, and the agreement
with India on cane sugar as well as in conformity with the guidelines for negotiations
given by the Council on 22 April 2002.

The  Commission  therefore  proposes  that  the  Council  adopt  the  proposal  for  a
decision on the conclusion of these agreements in the form of an exchange of letters
as set out in the Annex.

Financial impact:

These  proposals  have  no  new  financial  impact  as  compared  with  the  previous
legislation.

2

2003/0053 (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 2001/02 and 2002/03 delivery periods

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 Commission1,

Whereas:

(1) 

(2) 

Implementation  of  Protocol  3  on  ACP  Sugar  attached  to  Annex  V  to  the  ACP-EC
Partnership Agreement2 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
2001/02 and 2002/03 delivery periods,

HAS DECIDED AS FOLLOWS:

1

2

3

OJ C …, …, p. …
OJ L 195, 1.8.2000, p. 46.
OJ L 190, 22.7.1985, p. 35.

3

                                                
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  2001/02  and  2002/03  delivery  periods  are  hereby
approved on behalf of the Community.

The texts of the agreements are set out in Annex A (2001/02 delivery period) and in Annex B
(2002/03 delivery period) 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 shall be published in the Official Journal of the European Union.

Done at Brussels,

For the Council
The President

4

ANNEX A

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 2001/02 DELIVERY PERIOD

A.

Letter No 1

Sir,

Brussels, ……….

The  representatives  of  the  ACP  States  referred  to  in  Protocol  3  on  ACP  sugar  attached  to
Annex V to the ACP-EC Partnership Agreement 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  2001  to  30  June  2002,  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  abovementioned
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  3  on  ACP  sugar
attached to Annex V to the ACP-EC Partnership Agreement 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 2001 to 30 June 2002, 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
abovementioned 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

ANNEX B

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 UGANDA, 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 2002/03 DELIVERY PERIOD

A.

Letter No 1

Sir,

Brussels, ……….

The  representatives  of  the  ACP  States  referred  to  in  Protocol  3  on  ACP  sugar  attached  to
Annex V to the ACP-EC Partnership Agreement 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  2002  to  30  June  2003,  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  abovementioned
ACP States 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  the  ACP  States  referred  to  in  Protocol  3  on  ACP  sugar
attached to Annex V to the ACP-EC Partnership Agreement 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 2002 to 30 June 2003, 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
abovementioned 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

8

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 2001/02 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  2001  to  30  June  2002,  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

9

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 2001 to 30 June 2002, the guaranteed prices referred to
in  Article  5(4)  of  the  Agreement  shall,  for  the  purpose  of  intervention  within  the
terms of Article 6 of the Agreement, be:

(a)

for raw sugar: 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

10

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 2002/03 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  2002  to  30  June  2003,  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

11

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 2002 to 30 June 2003, the guaranteed prices referred to
in  Article  5(4)  of  the  Agreement  shall,  for  the  purpose  of  intervention  within  the
terms of Article 6 of the Agreement, be:

(a)

for raw sugar: 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

12

1.

2.

3.

4.

5.

5.0

5.1

FINANCIAL STATEMENT

BUDGET HEADING:
B1-110 and B1-119

APPROPRIATIONS:
EUR 1 257 million and EUR
41 million (2003 budget)

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 2001/02 and 2002/03 delivery periods.

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 and raw cane
sugar  to  the  Community  which  are  comparable  with  the  prices  guaranteed  to  sugar  producers  in  the
Community for the 2001/02 and 2002/03 delivery periods.
FINANCIAL IMPLICATIONS

PERIOD OF
12 MONTHS

CURRENT
FINANCIAL
YEAR 2003)
(EUR million)
662.9

FOLLOWING
FINANCIAL
YEAR 2004
(EUR million)
-

(EUR million)
662.9

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTION)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
-

NATIONAL

OWN RESOURCES OF THE EC

2005

2006

2007

2008

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:
1.3 million t x EUR 483/t (refund)
1.2 million t x EUR 29.2/t (refining aid)

=
=

EUR 627.9 million
EUR 35.0 million
EUR 662.9 million

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 provision under Protocol 3 annexed to the ACP-EC Partnership Agreement. As such it has
no additional financial impact compared with the legislation in force.
For the 2001/02 marketing year the expenditure chargeable to the 2002 EC budget was:

1.3 million t x EUR 448/t (refund):
1.2 million t x EUR 29.2/t (refining aid):

EUR 582.4 million
EUR 35.0 million
----------------------
EUR 617.4 million

This amount was very close to the estimate contained in the financial statement accompanying the recommendation
for  a  Council  Decision  (SEC(2002) 274 final)  authorising  the  Commission  to  negotiate  the  guaranteed  prices
(EUR 608 million).

13