2008/494/EC: Decision No 1/2008 of the ACP-EC Council of Ministers of 13 June 2008 regarding the revision of the terms and conditions of financing for short-term fluctuations in export earnings
Date: 2008-06-13
Institutions: ACP Council of Ministers
Subjects: ACP countries, additional resources, cooperation agreement (EU), eligibility criteria, export revenue, financial aid, financing

1.7.2008

EN

Official Journal of the European Union

L 171/63

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

ACP-CE COUNCIL OF MINISTERS

DECISION No 1/2008 OF THE ACP-EC COUNCIL OF MINISTERS

of 13 June 2008

regarding the revision of the terms and conditions of financing for short-term fluctuations in export
earnings

(2008/494/EC)

THE ACP-EC COUNCIL OF MINISTERS,

(4)

Having regard to the ACP-EC Partnership Agreement signed in
Cotonou on 23 June 2000 and revised in Luxembourg on
25 June 2005 (hereinafter referred to as the ACP-EC Partnership
Agreement), and in particular Article 100 thereof,

Whereas:

to the development of

the ACP-EC Partnership
The signatory countries of
Agreement, aware that the instability of export earnings
could be prejudicial
the ACP
States, have set up a system of additional support to
mitigate the adverse effects of any instability in export
earnings, including those of the agricultural and mining
sectors; they confirm that the aim of this support is to
safeguard socio-economic reforms and policies that could
be affected negatively as a result of a drop in earnings
and to remedy the adverse effects of instability of export
earnings from agricultural and mining products.

the signing of

in Luxembourg on 25 June 2005,

the revised ACP-EC Partnership
At
the
Agreement
‘The ACP-EC
Parties made a joint declaration that:
Council of Ministers will examine, in application of the
provisions contained in Article 100 of
the Cotonou
Agreement, the proposals of the ACP side concerning
Annex II thereof on short-term fluctuations in export
earnings’.

(5)

It is necessary to improve the functioning of the system
in export
financing for
of
earnings so that
it responds more adequately to its
objectives,

short-term fluctuations

HAS DECIDED AS FOLLOWS:

Article 1

Chapter 3 of Annex II to the ACP-EC Partnership Agreement is
hereby amended as follows:

1. Article 9(1) shall be replaced by the following:

In accordance with Article 11 of Annex II to the ACP-EC
Partnership Agreement, the provisions of Chapter 3 of
that Annex covering the financing of short-term fluc-
tuations in export earnings are subject to review at the
latest after two years and subsequently at the request of
either Party.

‘Eligibility criteria

Eligibility for additional resources shall be established

1.
by:

The system of support to mitigate the adverse effects of
any instability in export earnings was amended for the
first time by Decision No 2/2004 of the ACP-EC Council
of Ministers of 30 June 2004.

— a 10 % (2 % in the case of least-developed, landlocked,
island, post-conflict and post-natural disaster States) loss
from goods compared with the
of export earnings
arithmetic mean of
in the four years
the earnings
preceding the application year, excluding the most
extreme value, or

(1)

(2)

(3)

L 171/64

EN

Official Journal of the European Union

1.7.2008

— a 10 % (2 % in the case of least-developed, landlocked,
island, post-conflict and post-natural disaster States) loss
of export earnings from the total of agricultural or
mineral products compared with the arithmetic mean
of the earnings in the four years preceding the appli-
cation year, excluding the most extreme value for
countries where the agricultural or mineral
export
earnings
total export
earnings from goods, or

represent more than 40 % of

— a 10 % (2 % in the case of least-developed, landlocked,
island, post-conflict and post-natural disaster States) loss
of export earnings from the total of agricultural or
mineral products compared with the arithmetic mean
of the earnings in the four years preceding the appli-
cation year, excluding the most extreme value for
export
countries where the agricultural or mineral
earnings represent between 20 % and 40 % of
total
total
from goods, provided that
export
earnings do not increase more than proportionally with
respect to the impact of the loss of export earnings from
agricultural or mineral products as a proportion of total
exports.’;

earnings

of

revenue/gross
the
arithmetic mean
domestic product” ratio of
the four years preceding the
application year, excluding the most extreme value and
capping that ratio at 25 %.

“government

2.
The Commission shall analyse the data provided by the
ACP States for the purpose of establishing eligibility and
additional financial support as defined in Article 9 in the
local currency corrected for inflation. The Commission will
then convert the potential amount of additional financial
support into euro in accordance with its procedures.

covering all ACP countries

Each year, within the total
indicative programmes,

financial allocation for
3.
the Commission shall
national
establish an envelope
to
provide support in the event of short-term fluctuations in
export earnings. If the amount of financial support calculated
on the basis of the criteria defined in Article 9 exceeds the
amount of that envelope, each ACP State’s share will be
established in proportion to the potential amount of
its
additional financial support expressed in euro.’;

2. Article 9(2) shall be replaced by the following:

5. Article 10 shall be replaced by the following:

‘2.
The loss of export earnings defined in paragraph 1
must be 0,5 % of GDP or more for there to be entitlement
to additional support. Entitlement to additional support shall
be limited to three successive years.’;

3. Article 9(3) shall be replaced by the following:

‘3.
The additional resources shall be reflected in the public
accounts of the country concerned. They shall be utilised in
accordance with programming rules and methods, including
the specific provisions of Annex IV “Implementation and
management procedures”, on the basis of
agreements
drawn up in advance between the Community and the
ACP State concerned in the year following the application
year. By agreement of both Parties the resources may be used
to finance programmes included in the national budget.
the additional resources may be set
However, a part of
in particular to develop market-
aside for specific sectors,
based insurance schemes offering protection against
the
risk of fluctuations in export earnings.’;

‘The system for allocating additional resources shall provide
for advances to cover any delays in obtaining consolidated
trade statistics and to ensure that the resources in question
can be included in the budget of the second year following
the application year at the latest. Advances shall be reserved
for States where Flex financial support can be implemented
by means of general budgetary support. They shall be
mobilised on the basis of provisional export
statistics
drawn up by the government and submitted to the
Commission. The maximum advance shall be 100 % of the
amount of additional financial support for the application
year. The amounts thus mobilised shall be adjusted in the
light of
statistics. Those
statistics shall be submitted no later than 31 December of
the second year following the application year.’

the final consolidated export

Article 2

This Decision shall enter into force on the day of its adoption.

4. An Article 9a shall be added to Chapter 3 of Annex II:

Done at Addis Ababa, 13 June 2008.

‘Article 9a

1.
equal

The amount of additional financial support shall be
to the loss of export earnings multiplied by the

For the ACP-EC Council of Ministers
The President

Mohamed Ahmed AWALEH