CELEX: 51990PC0097
Language: en
Date: 1990-08-13
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN GENERAL RULES ON THE MARKETING OF PREFERENTIAL SUGAR IN THE COMMUNITY FOR THE 1989/1990, 1990/91 AND 1991/92 MARKETING YEARS

COflOSSION OF THE ECBOPBAN CCWflDNITIES
                                                          C0MC90) 97 final
                                                          Brussels, 13 August 1990
          5B?F
                                                 Proposal for a
                                            rmiNCIL REGULATION (EEC)
                           laying down genera, rules on the marketing of preferential
                                sugar In the Community for the 1989/1990, 1990/91
                                           and 1991/92 marketing years
                                           (presented by the C o h e s i o n )
jjj^MWJÏH'Jgl'gi'gH''
       Bl^aMR;-;
 ---pagebreak---                                       - 2 -
                            EXPLANATORY MEMORANDUM
Article 1 of the Protocol on ACP sugarC) provides that:
    a) the Community will commit itself to purchasing and Importing, at
       guaranteed prices, specified quantities of sugar originating in the
       ACP States which those States undertake to supply to It;
   b) the Protocol will be Implemented within the framework of the common
       organization of the markets in sugar.
The guaranteed prices are therefore an essential factor in this reciprocal
obligation to deliver and Import. In the past they were normally
negotiated and fixed so as not to exceed the corresponding intervention
price in the Community.
In its proposal to the Council on the agricultural prices for the 1989/90
marketing year, the Commission recognized that the contemplated 5%
reduction for sugar will raise problems for the States supplying the
preferential sugar. In the meantime the Council has finally decided on a
2% reduction and has given the Commission responsibility for negotiating
guaranteed prices for sugar for that marketing year at the same reduced
level. The reduction In the guaranteed prices, which follows a period of
four marketing years when prices were frozen, is likely to be a heavy
burden on the sugar Industry In the countries concerned, which is less
competitive than the Community Industry. This could Jeopardize the
undertakings entered into and accordingly the sound operation of the common
organization of the markets In sugar.
A major portion of the Community sugar market comprises Imports of raw
preferential sugar intended for the Community refining Industry. However,
the Community still has an overall shortfall In such raw sugar intended for
refining. Deliveries of preferential sugar mainly involve such raw sugar
but also to a lesser extent white sugar and other sugars directly Intended
for consumption. The latter portion of deliveries, which is more
remunerative, will no doubt increase further (with some impact on the
budget) following the restrictive prices policy In the sugar sector If
accompanying measures do not stabilize at the same time the trading
relations between the Community refiners and the suppliers of raw sugar.
The proposal to Introduce a marketing premium (reassigned by the Importer
to the supplier of the preferential sugar), which will be limited to an
overall appropriation of ECU 30 million for a period of three years,
therefore alms to ensure the supply of raw sugar to Community refiners and
to enable the supplying States to adapt their industries to this new
situation through preferential trade relations.
(1)    The «âme provisions «ppaar In the agreement «in csn* sugar coRCluded
       with todla.
 ---pagebreak---                                         - 3 -
                                   Proposal for a
                             COUNCIL REGULATION (EEC)
          laying down general rules on the marketing of preferential
               sugar In the Community for the 1989/1990, 1990/91
                           and 1991/92 marketing years
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the
common organization of the markets In the sugar sectorC), as last amended
by   Regulation   (EEC) No 1069/89<2>,      and   In particular    Article   37(1)(a)
thereof,
Whereas, pursuant to Article 1(1) of Protocol 7 on ACP/EEC sugar annexed to
the   Lomé  Convention,   hereinafter     referred    to  as   "the  Protocol",   the
Community   has   undertaken   to   purchase    and  import   at  guaranteed   prices
quantities of cane sugar originating In the ACP States which those States
undertake to supply; whereas, pursuant          to Article 1(1) of the Agreement
between the European Economic Community and the Republic of India on cane
sugar, hereinafter     referred   to as "the Agreement",        the same   reciprocal
commitments   were   entered   Into   as   regards   sugar   originating   In  India;
whereas, pursuant to Article 1(2) of the Protocol and Article 1(2) of the
Agreement, those texts are to be Implemented for the sugar              in question,
 hereinafter  referred to as "preferential sugar", within the framework of
 the common organization of the markets in sugar-,
  (1) OJ No L 177, 1.7.1981, p. 4.
  (2) OJ No L 114, 27.4.1989, p. 1.
 ---pagebreak---                                       - 4 -
Whereas   the  measures  to   be  adopted   by  the Community   to  ensure   this
implementation of the Protocol and the Agreement must be such as to permit
the  observance   of  the   relevant   commitments  entered   Into  under   those
instruments, namely the supply of preferential sugar and the purchase of
that  sugar   and therefore   the supply of    the Community   market   and  more
particularly that of port refineries In the Community;
Whereas, owing to the freeze on guaranteed prices for sugar during several
delivery periods, the fall In such prices for the 1989/90 delivery period
and the prejudicial effects which those measures will have on the sugar
industry of the countries concerned unless accompanying measures are taken,
there appears to be a short-term risk that the reciprocal commitments to
deliver and import sugar provided for in the Protocol and the Agreement may
no longer be fully observed under these circumstances; whereas almost all
those deliveries comprise raw sugar Intended for refining-, whereas supplies
to Community refineries are therefore seriously threatened;
Whereas to that end a special accompanying measure for a limited period
involving the granting of a marketing premium for raw preferential          sugar
intended for refining In the Community would enable the sugar        industry in
the producing countries to adjust to this new situation during that period,
HAS ADOPTED THIS REGULATION:
                                    Article 1
1. During   the 1989/90, 1990/91 and 1991/92 marketing      years, a marketing
   premium for the import of raw preferential cane sugar refined into white
   sugar  during that period     In the refineries referred    to  in the third
   subparagraph of Article 9(4) of Regulation       (EEC) No 1785/81    shall  be
   granted as an Intervention measure.
 ---pagebreak---                                     - 5 -
2. The premium referred to in paragraph 1 may be granted only In respect of
    the quantities laid down In the Protocol and the Agreement that have
    been imported and only If the premium is reassigned by the importer to
    the producer of the preferential sugar In question.
3. The marketing premium provided for in paragraph 1 shall be determined
    per 100 kilograms of white sugar for each marketing year taking account
    of a total appropriation of ECU 30 million for the three marketing years
    referred to In paragraph 1.
                                  Article 2
This Regulation shall enter Into force on the third day following that of
Its publication in the Official Journal of the European Communities.
It shall apply from 1 July 1989.
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
Done at Brussels,                                      For the Council
 ---pagebreak---                                                           -  6 -
        F I N A N C I A L              S T A T E M E N T
                                                                         DATE:
 1 . BUDGET HEADING:                                                     APPROPRIATIONS: ECU 2.125 ml 11 Ion
     Chapter 11
 2. TITLE: General rules in respect of the marketing of preferential sugar In the Comunity durlnb the
     1989/90 to 1991/92 market Irg years
 3. LEGAL BASIS: EEC Treaty
 4. AIMS OF PROJECT:
     Adoption of a marketing premium for a perlod of 3 years In order to enable the ACP states to adapt
     their industries to the lowering of the guaranteed prices by the EEC
                                      Period of 12 months   Current Financial Year     Following Financial Year
 5.   FINANCIAL IMPLICATIONS                  19                     1990                      1991
 5.0 EXPENDITURE
      - CHARGED TO THE EC BUDGET
      - (REFUNDS/INTERVENT ION)          ECU 10 ml 11 Ion         ECU 11 million             ECU 10 ml 11 Ion
 5.1 REVENUE
      - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
      -NATIONAL
                                           1992                 1993                 1994                    1995
 5.0.1 ESTIMATED EXPENDITURE              ECU 9 ml 11 Ion
 5.1.1 ESTIMATED REVENUE                                                                             I
 5.2 METHOD OF CALCULATION:
      Marketing premium restricted to an amount of ECU 30 ml 11 Ion to be divided between the three marketing
      years conrmenclng on 1 July 1989 (1989/90 marketing year). Amount for each year: ECU 10 nrilllon
      1990 marketing year: period concerned: 1 July 1969-15 August 1990, namely ECU 11.25 million, rounded
                             to ECU 11 ml 11 ion
      1991 marketing year: period concerned 16 August 1990-15 August 1991, namely ECU 10 million
       1992 market Irg year: period concerned 16 August 1991-30 June 1992, nan» I y ECU 8.75 m i l l i o n , rounded
                             to ECU 9 ml 11 ion
 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?"
                                                                                                                  YES
 6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                                  xxxxxx
 6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                                      NO
 6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                                  YES
 OBSERVÂT ICCS:
 Th-a mc^aire wi I i be appl Icable untl I the 1991/92 marketing year inclusive.
I
 ---pagebreak---                                    - 7-                          eN
           FICHE D'IMPACT SUR LA COMPETITIVITE ET L'EMPLOI
     Quelle est la Justification principale de la mesure ?
     Mesure d'accompagnement destinée à compenser la diminution
     des prix garantis aux pays ACP et à i'inde pour le sucre et à
     permettre aux Industries des pays ACP de supporter cette
     diminution de recettes. Cette mesure concerne indirectement
     les raffineurs communautaires qui ne sont pas des PME.
II.  Caractéristiques des entreprises concernées. En particulier
     (a) Y a-t-ll un grand nombre de PME ?
          /
     (b) Note-t-on des concentrations dans des réglons
          I. éllgibles aux aides régionales des Etats membres ?
               /
          II. éllgibles au Feder ?
               /
III. Quelles sont les obiIgatIons imposées directement aux
     entreprises ?
     /
IV.  Quelles sont les obligations susceptibles d'être Imposées
      Indirectement aux entreprises via les autorités locales ?
     /
V.   Y a-t-ll des mesures spéciales pour les MPE ?      Lesquelles ?
     /                                                      /
VI.  Quel est l'effet prévisible
     a) sur la compétitivité des entreprises?
          /
     b)   sur l'emploi ?
          /
VII. Les partenaires sociaux ont-Ils été consultés ?
     Quels sont leurs avis ?
     /
 ---pagebreak---  ---pagebreak---                                          -S-
                                                                              Ï35N 0254-1475
                       ?>.
                                                                  COM(90) 97 final
                                                     DOCUMENTS
EN                                                                                       03
                                Catalogue number : CB-CO-90-399-EN-C
                                                            ISBN 92-77-63247-X
PRICE                        1-30 pages: 3.5» ECU      per addiliomal 10 pagec t2S ECU
Office for Officiai Publications of the Europwn Communities
L-2985 Luxembourg