Proposal for a Council Decision on the conclusion of an Agreement in the form of Exchange of Letters between the European Community and Barbados, Belize, the Republic of Congo, the Republic of Côte d'Ivoire, the Republic of the Fiji Islands, the Republic of Guyana, Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of Mauritius, the Republic of Mozambique, the Federation of Saint Kitts and Nevis, the Republic of Suriname, 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 2006/2007, 2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods and on the conclusion of an Agreement in the form of Exchange of Letters between the European Community and the Republic of India on the guaranteed prices for cane sugar for the same delivery periods
Date: 2008-10-09
Institutions: European Commission
Subjects: ACP countries, India, agreement (EU), cane sugar, guaranteed price

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.10.2008 
COM(2008) 622 final 

2008/0189 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of Exchange of Letters between the 
European Community and Barbados, Belize, the Republic of Congo, the Republic of 
Côte d'Ivoire, the Republic of the Fiji Islands, the Republic of Guyana, Jamaica, the 
Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic 
of Mauritius, the Republic of Mozambique, the Federation of Saint Kitts and Nevis, the 
Republic of Suriname, 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 2006/2007, 
2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods and on the 
conclusion of an Agreement in the form of Exchange of Letters between the European 
Community and the Republic of India on the guaranteed prices for cane sugar for the 
same delivery periods 

(presented by the Commission) 

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1. 

2. 

3. 

4. 

5. 

EXPLANATORY MEMORANDUM 

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. 

In  conformity  with  the  guidelines  for  negotiations  given  by  the  Council  for  the 
2006/2007,  2007/2008,  2008/2009  and  1  July  2009  to  30  September  2009  delivery 
periods, 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, as well as the agreement with India on cane sugar. 

ACP Sugar Protocol countries expressed their agreement with the Community offers 
on  24  June  2008.  India  which  had  agreed  previously  for  the  preceding  campaigns, 
expressed its agreement with the EU offer for the 2008/2009 and 1 July 2009 to 30 
September 2009 delivery periods on 11 July 2008. 

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

Financial  impact:  The  budgetary  implications  for  the  2009  and  2010  budgets  will 
depend  on  the  sugar  market  situation  and  notably  on  the  uptake  of  the  sugar 
restructuring  scheme  and  other  management  decisions  (potential  preventive 
withdrawal).  Consequently,  in  case  of  an  insufficient  uptake  of  the  restructuring 
scheme, these imports might contribute to a potential sugar surplus and hence have 
an impact on the 2009 and 2010 budgets. However, this impact is not quantifiable as 
yet. 

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2008/0189 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of Exchange of Letters between the 
European Community and Barbados, Belize, the Republic of Congo, the Republic of 
Côte d'Ivoire, the Republic of the Fiji Islands, the Republic of Guyana, Jamaica, the 
Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic 
of Mauritius, the Republic of Mozambique, the Federation of Saint Kitts and Nevis, the 
Republic of Suriname, 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 2006/2007, 
2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods and on the 
conclusion of an Agreement in the form of Exchange of Letters between the European 
Community and the Republic of India on the guaranteed prices for cane sugar for the 
same 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 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  Agreement,  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  Exchange  of  Letters 
between  the  Community  and,  on  the  one  part,  the  States  referred  to  in  the  Protocol 
and, on the other part, the Republic of India on the guaranteed prices for cane sugar for 
the 2006/2007, 2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery 
periods. 

1 
2 

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

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HAS DECIDED AS FOLLOWS: 

Article 1 

The  Agreement  in  the  form  of  Exchange  of  Letters  between  the  European  Community  and 
Barbados, Belize, the Republic of Congo, the Republic of Côte d'Ivoire, the Republic of the 
Fiji  Islands,  the  Republic  of  Guyana,  Jamaica,  the  Republic  of  Kenya,  the  Republic  of 
Madagascar,  the  Republic  of  Malawi,  the  Republic  of  Mauritius,  the  Republic  of 
Mozambique,  the  Federation  of  Saint  Kitts  and  Nevis,  the  Republic  of  Suriname,  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  2006/2007,  2007/2008,  2008/2009  and  1  July 
2009 to 30 September 2009 delivery periods, and the Agreement in the form of Exchange of 
Letters between the European Community and the Republic of India on the guaranteed prices 
for  cane  sugar  for  the  2006/2007,  2007/2008,  2008/2009  and  1  July  2009  to  30  September 
2009 delivery periods, are hereby approved on behalf of the Community. 

The texts of these agreements are set out in Annexes I and II 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 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

Article 3 

For the Council 
The President 

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ANNEX I 

AGREEMENT IN THE FORM OF EXCHANGE OF LETTERS 

between the European Community and Barbados, Belize, the Republic of Congo, the 
Republic of Côte d'Ivoire, the Republic of the Fiji Islands, the Republic of Guyana, Jamaica, 
the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of 
Mauritius, the Republic of Mozambique, the Federation of Saint Kitts and Nevis, the Republic 
of Suriname, 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 2006/2007, 2007/2008, 2008/2009 
and 1 July 2009 to 30 September 2009 delivery periods 

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  2006  to  30  June  2007,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

(a) 

(b) 

for raw sugar: 496.8 € per tonne; 

for white sugar: 631.9 € per tonne. 

For  the  delivery  period  1  July  2007  to  30  June  2008,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be: 

(a) 

for raw sugar: are 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne. 

For  the  delivery  period  1  July  2008  to  30  June  2009,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

–  1) From 1 July 2008 to 30 September 2008; 

(a) 

for raw sugar: 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne. 

–  2) From 1 October 2008 to 30 June 2009; 

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne 

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For the delivery period 1 July 2009 to 30 September 2009, the guaranteed prices referred to in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne. 

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  European 
Community. 

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

On behalf of the Council 
of the European Union 

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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  2006  to  30  June  2007,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

(a) 

(b) 

for raw sugar: 496.8 € per tonne; 

for white sugar: 631.9 € per tonne. 

For  the  delivery  period  1  July  2007  to  30  June  2008,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be: 

(a) 

for raw sugar: are 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

For  the  delivery  period  1  July  2008  to  30  June  2009,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

–  1) From 1 July 2008 to 30 September 2008; 

(a) 

for raw sugar: 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

–  2) From 1 October 2008 to 30 June 2009; 

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne. 

For the delivery period 1 July 2009 to 30 September 2009, the guaranteed prices referred to in 
Article 5(4)  of  the  Sugar  Protocol  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Protocol, be:  

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne. 

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. 

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I should be obliged if you would acknowledge receipt of this letter and confirm that this letter 
and  your  reply  constitute  an  Agreement  between  my  Government  and  the  European 
Community." 

I have the honour to confirm the agreement of my Government to this letter. 

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

For the respective Governments of the 
ACP States referred to in Protocol 3 

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ANNEX II 

AGREEMENT IN THE FORM OF EXCHANGE OF LETTERS 

between the European Community and the Republic of India on the guaranteed prices for 
cane sugar for the 2006/2007, 2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 
delivery periods  

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  2006  to  30  June  2007,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement, be:  

(a) 

(b) 

for raw sugar: 496.8 € per tonne; 

for white sugar: 631.9 € per tonne. 

For  the  delivery  period  1  July  2007  to  30  June  2008,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be: 

(a) 

for raw sugar: are 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

For  the  delivery  period  1  July  2008  to  30  June  2009,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be:  

–  1) From 1 July 2008 to 30 September 2008; 

(a) 

for raw sugar: 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

–  2) From 1 October 2008 to 30 June 2009; 

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne 

For the delivery period 1 July 2009 to 30 September 2009, the guaranteed prices referred to in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be:  

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne 

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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 

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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  2006  to  30  June  2007,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be:  

(a) 

(b) 

for raw sugar: 496.8 € per tonne; 

for white sugar: 631.9 € per tonne. 

For  the  delivery  period  1  July  2007  to  30  June  2008,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be: 

(a) 

for raw sugar: are 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

For  the  delivery  period  1  July  2008  to  30  June  2009,  the  guaranteed  prices  referred  to  in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be:  

–  1) From 1 July 2008 to 30 September 2008; 

(a) 

for raw sugar: 496.8 € per tonne; 

(b) 

for white sugar: 631.9 € per tonne 

–  2) From 1 October 2008 to 30 June 2009; 

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne 

For the delivery period 1 July 2009 to 30 September 2009, the guaranteed prices referred to in 
Article 5(4)  of  the  Sugar  Agreement  shall,  for  the  purpose  of  intervention  within  the  terms  of 
Article 6 of the Agreement , be:  

(a) 

for raw sugar: 448.8 € per tonne; 

(b) 

for white sugar: 541.5 € per tonne 

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. 

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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  Government  of  India  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 

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FINANCIAL STATEMENT 

BUDGET HEADING: 
05 02 05 

(fichefin/08/22009) (OJ) 
6.2.2008.1 

16/07/2008 

APPROPRIATIONS: 
102 M EUR (PDB 2009) 

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 2006/2007, 2007/2008, 2008/2009 and from 1 July 2009 to 30 September 2009 
delivery periods. 

LEGAL BASIS: Article 133 of the Treaty 

AIMS: 
To guarantee prices for deliveries from the ACP States and the Republic of India of white or raw cane 
sugar  to  the  Community  so  that  they  are  comparable  to  the  prices  guaranteed  to  Community  sugar 
producers for the delivery periods stated in the title of the regulation. 

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTION) 
- 
- 

NATIONAL ADMINISTRATION 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC 

- 
(LEVIES/CUSTOMS DUTIES) 
- 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 

5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

PERIOD OF 
12 MONTHS

FINANCIAL 
YEAR  2008 

FINANCIAL 
YEAR  2009 

(EUR million)

(EUR million) 

(EUR million) 

- 

- 

- 

- 

see observations 

- 

2010 

2011 

2012 

2013 

see 
observations
- 

- 

- 

- 

- 

- 

- 

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 

IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3  WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES / NO 

YES / NO 

YES / NO 

YES / NO 

OBSERVATIONS: 
The  budgetary  implications  for  the  2009  and  2010  budgets  will  depend  on  the  sugar  market  situation  and 
notably on the uptake of the sugar restructuring scheme and other management decisions (potential preventive 
withdrawal). Consequently, in case of an insufficient uptake of the restructuring scheme, these imports might 
contribute to a potential sugar surplus and hence have an impact on the 2009 and 2010 budgets. However, this 
impact is not quantifiable at this stage. 

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