European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing accompanying measures for Sugar Protocol countries affected by the reform of the EU sugar regime (COM(2005)0266 - C6-0210/2005 - 2005/0117(COD))
Date: 2005-12-15
Institutions: Committee on Development, European Parliament
Subjects: ACP countries, agreement (EU), common organisation of markets, cooperation agreement, development aid, protocol on sugar, sustainable development

23.11.2006

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P6_TA(2005)0520

Measures for Sugar Protocol countries ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council establishing accompanying measures for Sugar Protocol countries affected
by the reform of the EU sugar regime (COM(2005)0266 — C6-0210/2005 — 2005/0117(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal to the European Parliament and the Council (COM(2005)

0266) (1),

— having regard to Article 251(2) and Article 179 of the EC Treaty, pursuant to which the Commission

submitted the proposal to Parliament (C6-0210/2005),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Development and the opinion of the Committee on

Budgets (A6-0281/2005),

1.

Approves the Commission proposal as amended;

2.
Considers that the financial framework is compatible with the heading 4 ceiling of the financial per-
spective only if it respects the overall financing solution for heading 4, pursuant to the provisions of the
Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Com-
mission on budgetary discipline and improvement of the budgetary procedure (2);

Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal

3.
substantially or replace it with another text;

4.

Instructs its President to forward its position to the Council and the Commission.

(1) Not yet published in OJ.
(2) OJ C 172, 18.6.1999, p. 1. Agreement as last amended by Decision 2005/708/EC of the European Parliament and the

Council (OJ L 269, 14.10.2005, p. 24).

P6_TC1-COD(2005)0117

Position of the European Parliament adopted at first reading on 15 December 2005 with a view to
the adoption of Regulation (CE) No …/2005 of the European Parliament and of the Council estab-
lishing accompanying measures for Sugar Protocol countries affected by the reform of the EU sugar
regime

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 179 thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in Article 251 of the Treaty (1),

(1) Position of the European Parliament of 15 December 2005.

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Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

The European Community is committed, within the framework of the ACP-EC Partnership Agree-
ment (1), to supporting the ACP countries on their path to poverty reduction and to sustainable
development, and recognises the importance of the commodity sectors and their related Protocols.

The provisions of the common organisation of the markets in the sugar sector established by Council
Regulation (EC) No 1260/2001 of 19 June 2001 (2) will be revised, taking into account the legis-
lative proposals presented by the Commission to the Council.

Under the Sugar Protocol, attached to Annex V of the ACP-EC Partnership Agreement, some ACP
countries rely on the EU market to export sugar. The reform will significantly alter their market
conditions.

The adjustment process of the Sugar Protocol countries to these new market conditions will be com-
plex, considering the socio-economic importance and the multifunctional role of the sugar sector
and its significant degree of reliance on the EU market, for several of these states.

In its Communication to the Council and the European Parliament on accomplishing a sustainable agricultural
model for Europe through the reformed CAP — sugar sector reform, the Commission committed itself to
supporting the adjustment process of Sugar Protocol countries, and set out the principles for its
support proposals in the Staff Working Document on an Action Plan on accompanying measures for
Sugar Protocol countries affected by the reform of the EU sugar regime. This Working Document was discussed
with the Sugar Protocol countries.

It is essential that Sugar Protocol countries receive support as quickly as possible to maximise the
chances of successful adaptation to the new conditions, in full complementarity with existing assist-
ance.

It is therefore necessary to grant Sugar Protocol countries financial and technical assistance, includ-
ing budget support where appropriate, additional to that provided for in the framework of the ACP-
EC Partnership Agreement, to enable them to adapt to the new market conditions, offering a broad
range of support to take into account heterogeneity of situations between countries and within a
country. This must include upgrading the competitiveness of their sugar cane sector, developing alter-
native economic activities, and coping, with the help of adequate resources, with the serious broader
social, environmental and economic consequences of a reduction of the contribution of the sugar
sector to their economies, or a combination of several of these.

As this assistance should reflect the specific adjustment efforts required by each of these ACP sup-
pliers as a consequence of the reform, objective criteria should be laid down to determine the extent of
such assistance.

Such assistance should be provided for a period of one year, with continued support to be made
available until 2013, by means of the development part of the Development Cooperation and Econ-
omic Cooperation Instrument.

(10) Since the objective of the action to be taken, namely to accompany the adaptation process of Sugar
Protocol countries affected by the EU sugar reform, cannot be sufficiently achieved by the Member
States and can therefore, by reason of the scale and effects of the proposed action, be better achieved
at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity
set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that
Article, this Regulation does not go beyond what is necessary to achieve that objective.

(11) The measures necessary for the implementation of this Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of
implementing powers conferred on the Commission (3),

(1) Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the
European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (OJ L 317, 15.12.2000,
p. 3).

(2) OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commission Regulation (EC) No 39/2004 (OJ L 6,

10.1.2004, p. 16).

(3) OJ L 184, 17.7.1999, p. 23.

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HAVE ADOPTED THIS REGULATION:

Article 1

Subject

1.
A scheme for financial and technical assistance, including budget support where appropriate, is hereby
established to accompany the adjustment process of Sugar Protocol countries, faced with new conditions on
the sugar market due to the forthcoming reform of the common organisation of the market in sugar.

2.

Subject to Article 11(3), this scheme shall be implemented for the year 2006.

Article 2

Definitions

For the purpose of this Regulation:

1)

2)

‘Sugar Protocol countries’ means the ACP countries listed in the Annex,

‘sugar’ means raw cane or white cane sugar.

Article 3

Eligibility for assistance and procedure

Sugar Protocol countries shall be eligible for financial and technical assistance, including budget sup-

1.
port, where appropriate.

Financial and technical assistance shall be granted at the request of each Sugar Protocol country.

2.
Requests for financial and technical assistance shall be presented by … (*).

The requests shall be based on a comprehensive multi-annual adaptation strategy, defined by the
3.
country concerned in accordance with Article 4, in consultation with all stakeholders. The multi-annual
adaptation strategy may include measures in the process of being implemented and also current and
future financial impacts of social plans already implemented, on the express condition that the measures
and social plans concerned are clearly in line with the objectives laid down in Article 4(1).

4.
Sugar Protocol countries which submit a request which is not based on a comprehensive, multi-annual
adaptation strategy shall only be eligible in 2006 to financial and technical assistance aiming to contribute
to the development of such a strategy.

Article 4

Multi-annual adaptation strategy

1.

(a)

(b)

(c)

The multi-annual adaptation strategy shall pursue one or more of the following objectives:

to enhance the competitiveness of the sugar and cane sector, where this is a sustainable process, in
particular in terms of the long-term economic viability of the sector, taking into account the situation
of the different stakeholders in the chain,

to promote the economic diversification of sugar-dependent areas, for example by redirecting current
sugar production towards the production of bio-ethanol and other non-food applications of sugar,

to address broader impacts generated by the adaptation process, possibly related, but not restricted, to
employment and social services, land use and environmental restoration, the energy sector, research and
innovation and macro-economic stability.

(*) 60 days after the entry into force of this Regulation.

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The strategy shall at least define the objectives pursued, the approach and means identified to achieve

2.
them, the responsibilities of the different stakeholders, and the financial plan to implement the strategy.

It shall assess its sustainability under present and future market conditions, and in social and environmental
terms. It shall demonstrate its consistency with general development strategies of the country and its
poverty focus.

3. Within the multi-annual strategy, a specific assistance plan for 2006 shall be defined. In the design of
this plan, particular attention shall be given to:

— the pursuit of cost effectiveness and sustainable impact,

— the clear definition and monitoring of objectives and indicators of achievement.

Article 5

Measures adopted by the Commission

After consultation with the Sugar Protocol country concerned, the multi-annual adaptation strategy shall

1.
be adopted under the procedure referred to in Article 7(2) and in accordance with Article 4.

2.
Special account will be taken of the individual situation of each Sugar Protocol country. For countries
finding themselves in a political crisis, unrelated to the evolution of the sugar sector, the delivery of assist-
ance under this Regulation will be assessed by the Commission on a case by case basis.

Assistance to Sugar Protocol countries without a multi-annual adaptation strategy shall be subject in

3.
2006 to an annual work programme, adopted under the procedure referred to in Article 7(2).

The assistance provided for under this Regulation shall be complementary but additional to assistance

4.
provided under other instruments of development cooperation.

Article 6

Implementation of measures

The measures financed under this Regulation shall be implemented in accordance with general rules as set
out in Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation appli-
cable to the general budget of the European Communities (1). As regards management procedures, this refers
in particular to Article 53(1)(a) and (2) of the Financial Regulation and Article 36 of Commission Regulation
(EC, Euratom) No 2342/2002 of 23 December 2002 (2) laying down detailed rules for the implementation of
Regulation EC, Euratom No 1605/2002.

Article 7

Committee procedure

1.

The Commission shall be assisted by the geographically competent committee for development.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply,
having regard to the provisions of Article 8 thereof. The period laid down in Article 4(3) of Decision
1999/468/EC shall be set at 30 days. The European Parliament's right to be informed on a regular basis,
in accordance with Article 7(3) of that Decision, must be fully respected.

3.

The Committee shall adopt its rules of procedure.

(1) OJ L 248, 16.9.2002, p. 1.
(2) OJ L 357, 31.12.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1261/2005 (OJ L 201, 2.8.2005,

p. 3).

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Article 8

Overall amount

The financial reference amount for implementation of this Regulation for 2006 is EUR 40 000 000.

Article 9

Allocation of overall amount

1. Within the overall amount available for the year of validity of this Regulation, the Commission shall
fix the maximum amount available to each Sugar Protocol country for financing the actions referred to in
Articles 3(3) and 4(3), on the basis of the needs of each country, related in particular to the impact of the
reform of the sugar sector in the country concerned and to the importance of the sugar sector to the
economy. The measurement of the allocation criteria shall be based on data of campaigns preceding 2004.

Further instructions regarding the allocation of the overall amount between Sugar Protocol countries

2.
shall be defined by the Commission, acting in accordance with the procedure referred to in Article 7(2).

The financial reference amount for the implementation of the financial and technical assistance refer-

3.
red to in Article 3(4), aiming to contribute to the elaboration of a multi-annual strategy, is EUR 300 000.

4. Within the overall amount, an indicative amount of 3 % will be used to cover the human and material
resources required for effective administration and supervision of the assistance.

Article 10

Protection of the financial interests of the Community

1.
Any agreements resulting from this Regulation shall contain provisions ensuring the protection of the
Community's financial interests, in particular with respect to fraud, corruption and any other irregularities,
(Euratom, EC) No 2185/96 (2) and (EC)
in accordance with Regulations (EC, Euratom) No 2988/95 (1),
No 1073/1999 (3).

2.
Agreements shall expressly entitle the Commission and the Court of Auditors to perform a document
audit or an on-the-spot audit of any contractor or subcontractor who has received Community funds. They
shall also expressly authorise the Commission to carry out on-the-spot checks and inspections, as provided
for in Regulation (Euratom, EC) No 2185/96.

All contracts resulting from the implementation of assistance shall ensure the rights of the Commis-

3.
sion and the Court of Auditors under paragraph 2 during and after the performance of the contracts.

(1) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial

interests (OJ L 312, 23.12.1995, p. 1).

(2) Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried
out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities
(OJ L 292, 15.11. 1996, p. 2).

(3) Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations

conducted by the European Anti-Fraud Office (OLAF) (OJ L 136, 31.5.1999, p. 1).

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Article 11

Period of validity

This Regulation shall enter into force on the seventh day following its publication in the Official

1.
Journal of the European Union.

It shall apply until 31 December 2006. It shall continue to apply for legal acts and commitments

2.
relating to the implementation of the 2006 budget year.

3.
In the event that the Development Cooperation and Economic Cooperation Instrument has not
entered into force on 1 January 2007, the period of validity of this Regulation shall be extended until the
date of entry into force of that instrument.

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

Done at …, on …

For the European Parliament
The President

For the Council
The President

ANNEX

SUGAR PROTOCOL COUNTRIES AS
REFERRED TO IN ARTICLE 2

1.

2.

3.

4.

5.

6.

7.

8.

9.

Barbados

Belize

Guyana

Jamaica

Saint Kitts and Nevis

Trinidad and Tobago

Fiji

Republic of the Congo

Côte d'Ivoire

10.

Kenya

11. Madagascar

12. Malawi

13. Mauritius

14. Mozambique

15.

16.

Swaziland

Tanzania

17.

Zambia

18.

Zimbabwe