Regulation (EC) No 266/2006 of the European Parliament and of the Council of  15 February 2006  establishing accompanying measures for Sugar Protocol countries affected by the reform of the EU sugar regime
Date: 2006-02-15
Institutions: Council of the European Union, European Parliament
Subjects: ACP countries, EU aid, aid policy, common organisation of markets, financial aid, protocol on sugar

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(Acts whose publication is obligatory)

REGULATION (EC) No 266/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing accompanying measures for Sugar Protocol countries affected by the reform of the
EU sugar regime

of 15 February 2006

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

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

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),

Whereas:

(1) The European Community is committed, within the
framework of the 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 (2) (hereinafter referred to as
the ACP-EC Partnership Agreement), 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.

(2) The provisions of

the common organisation of

the
markets in the sugar sector established by Council
Regulation (EC) No 1260/2001 (3) will be revised, taking
into account the legislative proposals presented by the
Commission to the Council.

(1)

Position of the European Parliament of 15 December 2005 (not
yet published in the Official Journal) and Council Decision of
23 January 2006.

(2) OJ L 317, 15.12.2000, p. 3. Agreement as last amended by
Agreement of 25 June 2005 (OJ L 287, 28.10.2005, p. 4).
(3) 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).

(4) The adjustment process of the Sugar Protocol countries
to these new market conditions will be complex,
considering the socioeconomic importance and the
multifunctional role of the sugar sector and its significant
degree of reliance on the EU market, for several of these
States.

(5)

(6)

(7)

reform,

the Commission committed itself

In its Communication to the European Parliament and
the Council on accomplishing a sustainable agricultural
model for Europe through the reformed CAP — sugar
sector
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.

is essential

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

in the framework of

It is therefore necessary to grant Sugar Protocol countries
financial and technical assistance,
including budget
support where appropriate, additional to that provided
for
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
alternative economic activities, and coping, with the help
of adequate resources, with the serious broader social,
environmental and economic consequences of a reduc-
tion in the contribution of the sugar sector to their
economies, or a combination of several of these.

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

Article 2

Definitions

(9)

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

the development part of

(10) Since the objective of

this Regulation, 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
proposed action, be better achieved at Community level,
the Community may adopt measures, in accordance with
the principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportion-
ality, as set out in that Article, this Regulation does not
go beyond what is necessary to achieve that objective.

the scale and effects of

(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 (1),

HAVE ADOPTED THIS REGULATION:

Article 1

Subject

For the purpose of this Regulation:

1.

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

2.

‘sugar’ means raw cane or white cane sugar.

Article 3

Eligibility for assistance and procedure

Sugar Protocol countries shall be eligible for financial and
1.
technical assistance, including budget support, where appro-
priate.

2.
Financial and technical assistance shall be granted at the
request of each Sugar Protocol country. Requests for financial
and technical assistance shall be presented by 29 April 2006.

3. The requests shall be based on a comprehensive multi-
annual adaptation strategy, defined by the country concerned
in accordance with Article 4,
in consultation with all
stakeholders. The multiannual 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, multiannual adaptation
strategy shall only be eligible in 2006 to financial and
technical assistance aiming to contribute to the development
of such a strategy.

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.

Article 4

Multiannual adaptation strategy

Subject to Article 11(3), this scheme shall be implemented

2.
for the year 2006.

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

1. The multiannual adaptation strategy shall pursue one or
more of the following objectives:

(a)

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,
the different
taking into account
stakeholders in the chain;

the situation of

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

Article 6

Implementation of measures

(b)

(c)

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

2. The strategy shall at least define the objectives pursued,
the
the approach and means identified to achieve them,
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 the general develop-
ment strategies of the country and its poverty focus.

financed under

The measures
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 applicable to the general
budget of the European Communities (1) (hereinafter referred
to as the Financial Regulation). 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 (2)
laying down
detailed rules
the Financial
the implementation of
Regulation.

for

Article 7

Committee procedure

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

1. The Commission shall be assisted by the geographically
competent committee for development (hereinafter referred to
as the Committee).

(a)

the pursuit of cost effectiveness and sustainable impact;

(b)

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

Article 5

Measures adopted by the Commission

1. After consultation with the Sugar Protocol country
concerned,
the multiannual adaptation strategy shall be
adopted under the procedure referred to in Article 7(2) and
in accordance with Article 4.

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

3. Assistance to Sugar Protocol countries without a multi-
annual adaptation strategy shall be subject in 2006 to an
annual work programme, adopted in accordance with the
procedure referred to in Article 7(2).

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.

Article 8

Overall amount

The financial reference amount for implementation of this
Regulation for 2006 shall be EUR 40 000 000 (hereinafter
referred to as the overall amount).

4. The assistance provided for under this Regulation shall be
complementary but additional to assistance provided under
other instruments of development cooperation.

(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 9

Allocation of the overall amount

this Regulation,

the Commission shall

1. Within the overall amount available for the period of
validity of
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.

corruption and any other irregularities, in accordance with
(EC, Euratom) No 2988/95 (1) and
Council Regulations
(Euratom,
and 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) (3).

EC) No 2185/96 (2),

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.

2.
Further instructions regarding the allocation of the overall
amount between Sugar Protocol countries shall be defined by
the Commission, acting in accordance with the procedure
referred to in Article 7(2).

3. All contracts
resulting from the implementation of
assistance shall ensure the rights of the Commission and the
Court of Auditors under paragraph 2 during and after the
performance of the contracts.

3. The financial reference amount for the implementation of
the financial and technical assistance referred to in Article 3
(4), aiming to contribute to the development of a multiannual
strategy, shall be EUR 300 000.

Article 11

Period of validity

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.

1. This Regulation shall enter into force on the seventh day
following that of its publication in the Official Journal of the
European Union.

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 Commu-
nity's financial interests, in particular with respect to fraud,

It shall apply until 31 December 2006. It shall continue to
relating to the

2.
apply for
implementation of the 2006 budget year.

legal acts and commitments

that

In the event

3.
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 Strasbourg, 15 February 2006.

For the European Parliament

The President

J. BORRELL FONTELLES

For the Council

The President

H. WINKLER

(1) OJ L 312, 23.12.1995, p. 1.
(2) OJ L 292, 15.11.1996, p. 2.
(3) OJ L 136, 31.5.1999, p. 1.

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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.

Swaziland

16. Tanzania

17. Zambia

18. Zimbabwe