Proposal for a Council Decision on the conclusion of 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 2005/06 delivery period
Date: 2006-06-13
Institutions: European Commission
Subjects: ACP countries, European Community, India, agreement (EU), cane sugar, guaranteed price, trade policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.6.2006 
COM(2006) 303 final 

2006/0101 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of 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 2005/06 delivery period 

(presented by the Commission) 

EN 

   EN

 
 
 
  
EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

Protocol  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 2005/2006 delivery period, the Commission has negotiated guaranteed prices 
with the ACP States and the Republic of India pursuant to Articles 5(4) of Protocol 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. 

4. 

Financial impact: 

The expenditure related to htese proposals are already covered by the appropriations 
included in the Budget 2006. 

EN 

2 

   EN 

 
 
 
2006/0101 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of 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 2005/06 delivery period 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

Implementation  of  Protocol  3  on  ACP  Sugar  attached  to  Annex  V  to  the  ACP-EC 
Partnership Agreement1 and of the Agreement between the European Community and 
the Republic of India on cane sugar2 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 
2005/06 delivery period, 

1 
2 

OJ L 317, 15.12.2000, p. 27. 
OJ L 190, 23.7.1975, p. 35. 

EN 

3 

   EN 

 
                                                 
HAS DECIDED AS FOLLOWS: 

Article 1 

The  Agreements  in  the  form  of  an  Exchange  of  Letters  between  the  European  Community 
and,  of  the  one  part,  Barbados,  Belize,  the  Republic  of  the  Congo,  Fiji,  the  Cooperative 
Republic  of  Guyana,  the  Republic  of  Côte  d'Ivoire,  Jamaica,  the  Republic  of  Kenya,  the 
Republic of Madagascar, the Republic of Malawi, the Republic of Mauritius, the Republic of 
Surinam,  Saint  Christopher  and  Nevis,  the  Kingdom  of  Swaziland,  the  United  Republic  of 
Tanzania,  the  Republic  of  Trinidad  and  Tobago,  the  Republic  of  Uganda,  the  Republic  of 
Zambia  and  the  Republic  of  Zimbabwe  and,  of  the  other  part,  the  Republic  of  India  on  the 
guaranteed  prices  for  cane  sugar  for  the  2005/06  delivery  period  are  hereby  approved  on 
behalf of the Community. 

The texts of the agreements are set out in the Annex 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 

EN 

4 

   EN 

 
 
 
ANNEX 

Text No I 

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

between the European Community and Barbados, Belize, the Republic of the Congo, Fiji, 
the Cooperative Republic of Guyana, the Republic of Côte d'Ivoire, Jamaica, the Republic 
of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of Mauritius, 
the Republic of Surinam, Saint Christopher and Nevis, the Kingdom of Swaziland, the United 
Republic of Tanzania, the Republic of Trinidad and Tobago, the Republic of Uganda, 
the Republic of Zambia and the Republic of Zimbabwe on the guaranteed prices  
for cane sugar for the 2005/06 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  2005  to  30  June  2006,  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. 

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

On behalf of the Council 
of the European Union 

EN 

5 

   EN 

 
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 2005 to 30 June 2006, 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 

EN 

6 

   EN 

 
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 2005/06 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  2005  to  30  June  2006,  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. 

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

On behalf of the Council 
of the European Union 

EN 

7 

   EN 

 
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 2005 to 30 June 2006, 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 

EN 

8 

   EN 

 
FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
120 
05 02 05 01 
05 02 05 07 

APPROPRIATIONS (2006 budget): 
€12 905 M 
€801 M  
€38 M 

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 2005/06 delivery period. 

LEGAL BASIS: 
Article  133  of  the  Treaty,  in  conjunction  with  the  first  sentence  of  the  first  subparagraph  of  Article  300(2) 
thereof 

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 2005/06 delivery period (1 July 2005 to 30 June2006). 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC 

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

PERIOD OF 
12 MONTHS 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR  2006 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2007 
(EUR million) 

542 

542 

0 

0 

2008 

2009 

2010 

2011 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

1.3 million t x EUR 390/t (export refund) 
1.2 million t x EUR 29.20/t (refining aid) 

=
= 

EUR 507 million 
EUR 35 million 
EUR 542 million 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  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  

YES / NO 

NO 

NO 

EN 

9 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OBSERVATIONS: 
–> Expenditure 
These expenditure are already covered by the appropriations included in the Budget 2006. 
The export refund rate is based on the refunds which are applied from the beginning of the marketing year 2005/06. 
–> Revenue: The import duty is zero. 

EN 

10 

   EN