CELEX: 51982PC0073
Language: nl
Date: 1982-03-04 00:00:00
Title: AANBEVELING VAN EEN BESLUIT VAN DE RAAD inzake de richtsnoeren voor onderhandelingen met bepaalde derde landen over kaderovereenkomsten voor meerjarige levering van landbouwprodukten (door de Commisie bij de Raad ingediend)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 73
Vol. 1982/0028
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSIE VAN DE EUROPESE GEMEENSCHAPPEN
                                                                   COM(82)73 def.
                                                                   Brussel,  maart 1982
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             ,     "              <•" <a / AANBEVELING VAN EEN
         V,.. , .                  v       BESLUIT VAN DE RAAD
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                        inzake de richtsnoeren voor onderhandelingen met bepaalde
                                  derde landen over kaderovereenkomsten
                             voor meerjarige levering van landbouwprodukten
                                 (door de Commisie bij de Raad ingediend)
                                             \
 COM(82) 73 def.
 ---pagebreak--- 1 . In haar mededeling aan de Raad van 22 juli jl betreffende onderhandelingen
    over kaderovereenkomsten voor meerjarige levering van landbouwprodukten
    heeft de Commissie aangekondigd dat zij > na een discussie in de verschil­
    lende instanties van de Raad en in het licht van de oriëntatie die daar
    zal blijken , een ontwerp zal voorleggen over de hoofdlijnen voor het
    openen van onderhandelingen met bepaalde derde landen die om dergelijke
    kaderovereenkomsten hebben verzocht .
2 . Het in de bijlage opgenomen ontwerp-besluit dat de Commissie aan de Raad
    voorlegt heeft ten doel haar te machtigen om , met bijstand van het Spe­
    ciaal Comité van artikel 113 , met Algerije , Egypte , Marokko en Tunesië ,
    onderhandelingen te beginnen om te komen tot de sluiting van kaderovereen-
    komsten voor meerjarige levering van landbouwprodukten .
3 . Met het oog op een duideli j kerdiscussie ter zake heeft de Commissie het
    dienstig geacht in de bijlage bij dit ontwerp-besluit het verslag op te
    nemen van de verkennende besprekingen die in bovengenoemde landen zijn
    gevoerd .
 ---pagebreak---                                                                     BIJLAGE I
                                AANBEVELING VAN EEN
                                 BESLUIT VAN DE RAAD
nzake de richtsnoeren voor onderhandelingen met bepaalde derde lanrtpn over
    kaderovereenkomsten voor meerjarige levering van landbouwprodukten .
    DE RAAD VAN DE EUROPESE GEMEENSCHAPPEN ,
    Gelet op het Verdrag tot oprichting van de Europese Economische Gemeenschap ,
    Gezien de aanbeveling van de Commissie ,
    Overwegende dat een aantal derde landen belangstelling heeft getoond voor
    geprogrammeerde levering van landbouwprodukten uit de ' lid-staten van de Gemeen­
    schap ,
    Overwegende dat overeenkomsten inzake meerjarige levering van landbouwproduk-
    ten een geordende ontwikkeling van de uitvoer van landbouwprodukten uit de
    Europese Economische Gemeenschap kunnen bevorderen ;
    Overwegende dat de Commissie derhalve gemachtigd dient te worden onderhande­
    lingen te beginnen met het oog op de sluiting m?t de betrokken landen van
    overeenkomsten die beantwoorden aan de hoofdlijnen aangegeven in het schema
    voor een kaderovereenkomst .
    BESLUIT  :
                                     Artikel 1
    De Commissie wordt gemachtigd onderhandelingen te beginnen over de sluiting
    met de bevoegde autoriteiten van Algerije , Egypte , Marokko en Tunesië van
    kaderovereenkomsten voor meerjarige levering van landbouwprodukten .
 ---pagebreak---                        - J*-
                             Artikel 2
De Commissie voert deze onderhandelingen , in overleg met het Comité 113 ,
volgens de richtsnoeren neergelegd in het schema voor een kader-
overeenkomst dat is opgenomen in de bijlage .
                                                Voor de Raad
                                                De Voorzitter
 ---pagebreak---                                                                BIJLAGE
SCHEMA VOOR EEN KADEROVEREENKOMST VOOR MEERJARIGE LEVERING VAN LANDBOUW-
PRODUKTEN
De Raad van de Europese Gemeenschappen enerzijds en de regering van
/ ... naam van het land .../
Verlangende een bijdrage te leveren tot de ontwikkeling van de handelsbe­
trekkingen en tot nauwere samenwerking tussen /... naam van het land
en de Europese Economische Gemeenschap ;
Ernaar   strevend bij te dragen tot grotere zekerheid ten aanzien van de
voedselvoorziening van /_... naam van het land ..._?
Hebben besloten een kaderovereenkomst voor de levering van landbouwprodukten
te sluiten en daartoe als gevolmachtigden aangewezen /... namen van de per­
sonen ..._/
Die het volgende overeengekomen zijn :
                                 TITEL I
                           ALGEMENE BEPALINGEN
Artikel 1
Deze kaderovereenkomst , hierna Overeenkomst te noemen , heeft ten doel
/... naam van het land .../ egn voo rz -f en i ng met landbouwprodukten en de
Europese Economische Gemeenschap een afzet voor diezelfde produkten te
waarborgen, zulks tegen geregelde , voorspelbare en wederzijds
bevredigende voorwaarden .
Artikel 2
De autoriteiten die de voor het beheer van de overeenkomst noodzakelijke
verbintenissen mogen aangaan zijn :
- voor de Europese Economische Gemeenschap, de Commissie van de Europese
  Gemeenschappen,
 ---pagebreak---                               - 5 –
- voor        naam van het land ..._/, /... naam van de instantie
Artikel 3
Deze Overeenkomst heeft betrekking op /... lijst van produkten
Artikel 4
1 . Deze Overeenkomst houdt de verbintenis in , op de voorwaarden die
    zijn vermeld in de navolgende artikelen ,
voorde Europese Economische Gemeenschap tot levering aan /... naam van het
      land ..._/ van bepaalde hoeveelheden /... lijst van produkten ..._/,
 voor /. naam van het land Q tot invoer uit de Europese Gemeenschap van
      dezelfde hoeveelheden produkten .
2 . In deze Overeenkomst :
    - betekent de uitdrukking "verbintenis tot levering" dat de Commissie van de
      Europese Gemeenschappen zich ertoe verbindt alle noodzakelijke en met de
      communautaire wetgeving verenigbare maatregelen te nemen om te verzeke­
      ren dat /_... omschrijving van de produkten ...J beschikbaar zijn op de
      in deze Overeenkomst vermelde voorwaarden ;
    - betekent de uitdrukking "verbintenis tot invoer" dat_7^.. naam van het
      land ...J zich ertoe verbindt alle maatregelen te nemen die noodzakelijk
      zijn    om invoer van /... omschrijving van de produkten . . ._/ uit de Euro­
      pese Economische Gemeenschap op de in deze Overeenkomst vermelde voor­
      waarden te verzekeren .
Artikel 5
De volgens de condities voortvloeiend uit de door de Europese Economische
Gemeenschap aangegane verbintenis , zoals vastgesteld in artikel 4 van deze
Overeenkomst , uit te voeren transacties liggen op het terrein van de parti­
culiere handel .
 ---pagebreak--- Artikel 6
1 . /_. .. naam van het land ..._/ neemt de nodige maatregelen om ervoor te
      zorgen dat , bij het vaststellen van procedures voor de invoer van
      /_... omschrijving van de produkten . .._/ uit de Gemeenschap, niet wordt
      gediscrimineerd tussen handelaren uit de Europese Economische Gemeenschap .
2 . /... naam van het land ...J verbindt zich ertoe al het mogelijke te doen
      om te waarborgen dat bij toewijzing van het zeevervoer geen afbreuk wordt
      gedaan aan een vrije en eerlijke concurrentie ( 1 ).
Artikel 7
De Commissie van de Europese Gemeenschappen en /... naam van het land . ../
verbinden zich ertoe elkaar op de hoogte te stellen van de bepalingen en de
maatregelen die zijn vastgesteld met het oog op het nakomen en de uitvoering
van de op grond van deze Overeenkomst aangegane verplichtingen .
Artikel 8
1 . Er wordt een Gemengd Comité opgericht dat dient toe te zien op de goede
      uitvoering van deze Overeenkomst .
2 . Het Gemengd Comité bestaat enerzijds uit vertegenwoordigers van de Commiss
      van de Europese Gemeenschap en anderzijds uit vertegenwoordigers van
      /_... naam van het land ..._/.
3 . Het Gemengd Comité komt eenmaal per vier maanden bijeen op een in onder­
      linge overeenstemming vastgestelde datum en plaats .    Het komt bovendien
      telkens bijeen wanneer dit noodzakelijk is en één van de partijen bij deze
      overeenkomst daarom verzoekt .
 ( 1 ) Deze clausule is identiek aan die welke voorkomt in langlopende overeen
       komsten gesloten door een aantal landen en in het Voedselhulpverdrag .
 ---pagebreak---                                  TITEL II
                          BIJZONDERE BEPALINGEN
Artikel 9
1 . De tijdens elk verkoopseizoen door /... naam van het Land ..._/ in te
    voeren en door de Europese Economische Gemeenschap te Leveren hoevee L-
    heden /... omschrijving van de produkten . .._/, zulks volgens de voor­
    waarden vastgesteld in artikel 4 van deze Overeenkomst , zijn :
    - zachte tarwe (of het equivalent daarvan in de vorm van tarwemeel ) :
      ten minste               metrieke ton
      en ten hoogste           metrieke ton
    - griesmeel van durumtarwe :
      ten minste               metrieke ton
      en ten hoogste           metrieke ton
    - gerst  :
      ten minste               metrieke ton
      en ten hoogste           metrieke ton
    - enz .
2 . Het verkoopseizoen in de zin van deze overeenkomst begint voor
    /... omschrijving van het produkt ...1 op ... en eindigt op ... van het
    volgende jaar , begint voor /_... omschrijving van het andere produkt ..._/
    op ... en eindigt op ... .
Artikel 10 .
/_... Omschrijving van het produkt ..._/ waarop deze Overeenkomst betrekking
heeft , moet de kwaliteit hebben en voldoen aan de normen die traditioneel
gebruikelijk zijn bij transacties tussen de Europese Economische Gemeenschap
en /... naam van het   land .../.
 ---pagebreak--- Artikel 11
Ongeveer twee maanden voor het begin van ieder verkoopseizoen komt het
Gemengd Comité bijeen om de exacte hoeveelheden te bepalen die tijdens dat
verkoopseizoen op grond van deze Overeenkomst moeten worden geleverd en om
te beslissen over de spreiding en de periodiciteit van de aankopen die
tijdens dat verkoopseizoen moeten worden gedaan .
 ---pagebreak--- Artikel 12
Indien als gevolg van buitengewone omstandigheden grote hoeveelheden beschik­
baar zijn in /... naam van het land ...1 of te geringe hoeveelheden beschikbaar
zijn in de Gemeenschap / komt het Gemengd Comité bijeen om een besluit te nemen
inzake overeenkomstige wijziging van de in artikel 9 , lid 1 , vastgestelde
hoeveelheden .
Artikel 13
1 . /••• naam van het land ..._/ en de Europese Economische Gemeenschap komen
    overeen elk de nodige maatregelen te nemen opdat de transacties kunnen
    plaatsvinden tegen de prijzen of noteringen die gangbaar zijn op de wereld­
    markt .
2 . Beide partijen bij deze Overeenkomst zullen de mogelijkheid nagaan ten aan­
    zien van de contracten die op grond van deze Overeenkomst worden gesloten
    de kredietvoorwaarden toe te passen die worden gehanteerd door de lid­
    staten van de Gemeenschap of hun gemachtigden .
                                   TITEL III
                                 SLOTBEPALINGEN
Artikel 14
Deze Overeenkomst geldt voor een periode van drie verkoopseizoenen .   Deze
geldigheidsduur kan stilzwijgend worden verlengd voor een nieuwe periode
van drie jaar .
Artikel 15
Deze Overeenkomst treedt in werking op de eerste dag van het verkoopseizoen
na dat waarin /... naam van de instantie ...J en de Commissie van de Europese
Gemeenschappen er elkaar van in kennis hebben gesteld dat de    nodige proce­
dures zijn vervuld .
 ---pagebreak---                                 - </D -
Artikel 16
Deze Overeenkomst wordt in twee exemplaren opgemaakt in één van de talen
van de Gemeenschap en in het ( naam van de officiële taal van het derde
land ), zijnde beide teksten gelijkelijk authentiek .
                                        Voor de Commissie van de
                                        Europese Gemeenschappen
                                        Voor ( naam van het land )
                                        Gedaan te
                                                                     1
 ---pagebreak---        - y/-
NOTULEN VAN DE VERKENNENDE BESPREKINGEN
IN ALGERIJE - EGYPTE , TUNESIE EN MAROKKO
 ---pagebreak---                                    REPORT
        CONCERNING      EXPLORATORY      TALKS   WITH    THE   ALGERIAN
AND     EGYPTIAN      AUTHORITIES     REGARDING     A   FRAMEWORK    AGREEMENT
   FOR    THE    MULT I ANNUAL     SUPPLY   OF   AGRICULTURAL     PRODUCTS
I. MISSION TO ALGIERS
   1 . Two rounds of talks were held in Algiers from 4 to 6 May , one
       with , and under the auspices of , the Ministry of Trade , and the
       other with the Ministry of Agriculture and the Agrarian Revolu­
       tion ( MARA ). The heads ( and deputy heads ) of the state corpora­
       tions or public boards .
 ---pagebreak---                                –   ' J -                                                 -
                                                                                           2.
             acting on behalf of one or other of these two Ministries C1 ) in directing
             supplies were present at each set of talks .      Also, with the agreement of
             the Presidency , a briefing session with the Member States' representati­
             ves was organized by the Commission Delegation in Algiers , since the
             Algerian authorities had sent formal and detailed requests direct to
             certain embassies at the end of February, concerning the conclusion of
             long-term agreements .
         2 . On a general level the great importance attached by the Algerian autho­
             rities to the rapid conclusion of a framework agreement between the
             Community and Algeria for the multiannual supply of agricultural products
             should be stressed .      The fact that they have placed such strong emphasis
             on this ties in with political and also economic motives which were very
             clearly stated in each round of discussions .
             •                        The Algerians consider the Commission as a special
               discussion partner , since the talks are made easier from their point
               of view by the absence , when dealing with the European Economic Com­
               munity as such , of other considerations or extrapolated political and
               psychological conflicts which stop any further progress at a certain
               stage in government - to- government relations .   Algeria considers it
               necessary to strengthen the Association Agreement with the EEC by
               means of a new approach to food security ( markets and supplies ).
             • l£2D2!Di£_!D2ii ^§§ : Algeria has requirements which become greater every
               year , particularly as a result of population growth ( 550 000 more
               mouths to feed every year ), the rise in the standard of living , and
               the very slow growth rate of agricultural production ; the Community
               is near Algeria , which reduces the costs of transporting supplies
               accordingly , and only the Community can provide the very varied range
               of products which this country with a population of almost 20 million
               requires ;
                                                                                    ./...
( 1 ) 0RGANIZATI0N_0F_IMP0RTS INT0_ALGERI A : The Government has given the monopoly
      for procurement from abroad to national corporations or boards , some of which
      come under the Ministry of Trade while others come under the Ministry of
      Agriculture ( MARA ). Those coming under Trade are the 0NAC0 ( Office National
      de Commercialisation ), responsible mainly for milk products for direct consump
      tion , and the SNNGA ( Society Nationale des Nouvelles Galeries Algeriennes ),
      responsible for all supplies for the large stores . Those coming under Agri­
      culture are the OAIC ( Office Algerien interprofessionnel des Cereales ) which
      is responsible for wheat and barley, the SN SEMPAC ( Societe Nationale des
      Semouleries , Meuneries , Fabriques de pates alimentaires et Couscous ) respon­
      sible for purchasing meal , flour and pasta , the 0NA8 ( Office National des
      Aliments du Betail ) and ONALAIT ( Office National du Lait et Produits Laitiers )
      responsible for domestic production and the reconst itution of milk .
 ---pagebreak---      Algeria is also anxious to embark upon a programme for the development of
     agricultural production ( poultry-raising and dairy farming , one of these
    to be financed by the EEC under the 1976 Financial Protocol ) and only the
     Community can provide effective help and support in all sectors .
3 . With regard to the general scope and form of a long-term agreement , the
    Commission representatives noted that the approach suggested in the draft
    Communication to the Council ( C0M(81)75 ) corresponded " almost perfectly "
    to that envisaged by the Algerian authorities .
     (i )    The type of agreement being considered by Algeria would be a frame­
            work agreement ( or a framework convention ) providing general criteria
             for the negotiation and conclusion of commercial contracts between
             Community operators and the corporations , boards or organizations
            which hold the purchasing monopoly in Algeria ;
    ( ii )  The framework agreement or framework convention would be concluded
            between a Community authority and an Algerian ministerial authority .
            Two additional remarks should be made on this subject : the Algerians
            are aware of the fact that where the export of a Community agricultu­
            ral product entails the granting of a refund , a framework agreement
            for multiannual supplies involves an undertaking on the part of the
            Community as such , as they have learnt from experience that a Commu­
            nity operator or even a Member State always waits for a Commission
            refund decision before acting .  They have also left open the matter
            of whether one or two framework agreements would have to be concluded ,
            in view of the fact that , even though the Ministry of Trade 's Direc-
            torate-General for Coordination and Supervision has a horizontal role
            and is responsible for all external supplies , certains boards or state
            corporations come under the Ministry of Agriculture .
    ( iii ) The provisions to be included in the framework agreement should , in
            the opinion of our Algerian partners , be flexible and straightforward ,
            so that they can , if necessary, be adapted as circumstances require
            and also so that trade can be conducted freely, but the commitments
            made by the two sides should not be merely nominal or insufficiently
            binding .
 ---pagebreak---                           - Λ;-
 4 . On the matter of the actual content of the framework agreement , there is
      again a striking similarity of approach between what was proposed to the
      Commission on 19 February and the Algerians' stance now .
      The framework agreement would cover the following : the period of applica­
      tion (a three-year period has been mentioned , but a request has also been
      made for linkage with the present five-year plan ); the range of products
      covered ; the quantities concerned (a very marked preference has been stated
      for a quantity bracket , the actual supply and purchase figures for a given
      year being fixed by common accord before the beginning of that year in the
       light of the respective situations of the contracting parties ); the wording
      of the undertakings given by the two sides , including the description of
      the administrative measures adopted to ensure the agreement is implemented
      through normal trading channels ; the terms of reference - with particular
      regard to prices - for the commercial delivery or purchase contracts between
      Community operators and the Algerian state corporations ; lastly the adminis­
      trative machinery ( for the annual negotiation of quantities , operation of
      the arrangements , etc .).
     The Algerian authorities also put forward certain points which it should ,
      in their opinion , be possible to include in the framework agreement .    Assu­
      rances should thus be given , with proper backing , that products whose avai­
      lability is guaranteed under the framework agreement really are of Community
     origin and that no single operator or Member State can artificially esta­
     blish a de facto monopoly (" there is no single automatic channel "), as this
     would prevent Algeria from stabilizing its purchase flows on the basis of
     other external or domestic requirements ( equilibrium in its trade balance
     with a particular country, etc .).     The Algerian authorities also consider
     that if such a framework agreement were concluded , a joint effort to improve
     the quality of the products sold by the EEC should be undertaken - hence the
     need to include qualitative terms of reference corresponding , for example ,
     to the standards of the Algerian Ministry of Health - and that the syste­
     matic use of letters of credit by Community operators ( sign of mistrust )
     should be abandoned in paying for supplies under the Agreement .
5 . A very detailed discussion was held on the matter of prices .       Various points
     should be singled out .     Firstly, Algeria considers that , in the light of
     the two sides , and above all in view of the fact that , for example , the
 ---pagebreak---                           - /<r_
     EEC plays only an indirect role in price formation through the refund
    mechanism , fixed purchasing or selling prices or even a price bracket
     cannot be established in the framework agreement .    It notes , however ,
     that the level of the refund and its degree of continuity during a mar­
     keting year are determining factors for the conclusion of contracts by
    operators .   The Algerian authorities have voiced a number of criticisms
     in this respect concerning the present system of administering refunds ,
    pointing to its somewhat arbitrary nature , which prevents the Algerian
    authorities from being able to relyon the Community at all times ; in
    their opinion , a " preferential difference " should be established between
    the rules governing the refund applicable to supplies under the Agreement
    and the rules relating to supplies not covered by the agreement .      In other
    words, it does not seem to be a matter of fixing a preferential refund
     level but of laying down special rules for the fixing of the refund
     ( advance fixing - duration of the advance fixing arrangement , terms of
    reference of the world price used to calculate the refund ) for only those
    quantities covered by the framework agreement .
                                                                              /
    The Algerian authorities have raised the matter of the financing facilities
    granted to Algeria in one form or another by other trading partners : export
    credit granted by Sweden under the long-term wheat agreement , virtually
    free installation - 1 X interest over 50 years - of intake silos under the
     long-term durum wheat and barley agreement with Canada , deferred payment
    under the red meat supply agreements concluded with Argentina and Australia ,
    etc .    They have expressed the wish that the EEC ,   which , as explained ,
    does not yet have an export credit mechanism , should follow up any opera­
    tions undertaken by the Member States and or finance the installation in
    Algeria of intake capacity for some of the products supplied ( refrigeration
    facilities , silos , warehouses , port infrastructure , etc .).
6 . As regards products and quantities , the Algerians have supplied a list of
    what they estimate to be their import requirements ( see Annex I ), speci­
    fying that this did not mean that all these products and quantities should
    come solely from the Community and that even the quantities which could
    come from the Community should be covered by the framework agreement on
    multiannual supplies; this last remark ties in with the ideas expressed
    in COM (81 ) 75 ( see paragraph 5 . ( ii ).
 ---pagebreak---      They stressed that , when negotiations were initiated , their authorities
     would make precise proposals concerning the range of products and the
     quantities to be covered by the framework agreement .
     They also drew attention to the fact that there were , strictly speaking ,
     three categories of products which could come under a framework agreement :
     - agricultural commodities : wheat , sugar , milk products for reconstitution ;
     - agricultural products for direct consumption : red meat , butter , flour ,
        meal , rice , pasta , eggs for direct consumption ;
     - products intended for the programme for the development of agricultural
        production : eggs for hatching , day-old chicks , dairy cows , compound
        feedingstuff s .
     In the case of the last category, the Ministry of Trade and the Ministry of
     Agriculture stressed this request and the particular urgency of making a
     start on meeting it , even if only on a very small scale ( poultry farming ),
     since this would provide an additional source of products for one of the
     projects financed under the EEC-Algeria Financial Protocol and would be of
    great importance to the implementation of that project .
7 . Cone lusions : Algeria is obviously anxious to conclude with the Community a
     framework agreement for the multiannual supply of agricultural products ,
     and to do so very shortly .     The Algerian authorities expressed in this res­
     pect their heartfelt      wish that the Commission ( and the Council ) should
    pass very quickly from this exploratory stage to actual negotiations , and
    they hoped that 1982 could be the first year of application of a framework
    agreement .    The Community can meet this request without causing an increase
    in Community agricultural production ( the products and quantities requested
    are less than present supplies ),, or excessive expenditure on refunds, or
    adverse effects on other countries' trade ( supplementary or sole source of
    supply ).
    It is obvious , however , that the real significance of such a framework ,
    agreement for the supply of agricultural products goes far beyond the trade
    sphere , for it would not only provide supplies for direct consumption but
    also ensure regular supplies of raw materials for the food processing in­
    dustry and of agricultural inputs for a developing farm sector .        The im­
    pression obtained was that Algeria thus attributes deep political signifi­
    cance to it , that it could have economic repercussions on sectors other
    than agriculture , and that such a mutual commitment would pave the way for
    a new type of relations between Algeria and the EEC and its Member States
    in the context of the new international economic order .
                                                                                 ./...
 ---pagebreak---                       - //-
                                                            ANNEX I
      ESTIMATED REQUIREMENTS FOR ANNUAL IMPORTS OF AGRICULTURAL PRODUCTS
                                INTO ALGERIA
MILK PRODUCTS
Milk for infant feeding                 15 Q00 -   20 000 t
Flour for infant feeding                 2 000 -    3 000 t
Evaporated and instant milk            100 000 - 120 000 t
Butter ( not more than
            3 months old )              25 000 -   30 000 t
Cheese for processing                    7 000 -   10 000 t
Cheese for direct consumption :
     Emmental .                          3 000 -    4 000 t
     Gouda - type                        4 000 -    7 000 t
Butteroi l                                         10 000 t
CEREALS
Wheat - flour and meal                  to be specified by the MARA and 0IAC
Barley and malt
Rice
OTHER PRODUCTS
Seed potatoes                                      10 000 t
Red meat ( mutton , beef )              20 000 -   30 000 t
Eggs for direct consumption             1 000 000 000 units
Powdered eggs                              100 -      500 t
Animal fat                              40 000 t
Eggs for hatching                       100 000 000 - 150 000 000 units
Day-old chicks                          1 000 000 - 2 000 000 units
Dairy cows                              2 000 head
Cattle on the hoof                      2 000 - 3 000 head
Sugar                                   500 000 t
Point -of - lay pullets                 100 000 - 200 000 units
Colza oil                               200 000 t
Colza seed                              70 000 - 90 000 t
 ---pagebreak--- II . MISSION TO CAIRO
     8 . The general objective which , in the view of the Egyptian authorities ,
          should guide any framework agreement concluded between the EEC and
          Egypt on the mutiannual supply of agricultural products is somewhat
          different from the situation in the case of   Algeria .  It should be
         based on the national food strategy which President Sadat has made the
          cornerstone of his internal policy and which aims to satisfy the food
          requirements of a population growing at the rate of almost 100 000 per
         month and whose standard of living is improving every year ( whence the
          growing need for high protein products such as meat and milk products ).
         This " food strategy policy " aspect was emphasized forcefully at each of
         the meetings which the Commission representatives had with the ministers
         responsible for supply , financial affairs , economic affairs and agricul­
         ture during their visit to Cairo from 7 to 9 June .    Egypt bases this
         policy partly on the expansion of domestic agricultural production , which
          requires external financial and technical support ( bilateral , plurilateral
         or multilateral ), and partly on the conclusion of supply agreements with
         other countries .  The Commission representatives were accordingly infoi–
         med of the need for an overall cooperation agreement , thus confirming
         the impressions formed by Mr Cheysson during his official visit to Egypt
         from 27 October to 2 November 1980 .
     9 . On the more specific question of a possible multiannual supply agreement ,
         whereas in Algeria the Community is able , it seems , to play the leading
         part , in Egypt it finds that other countries are already fulfilling that
         role .  In particular , the United States exports to Egypt in the region
         of t 750 million of agricultural products , thus accounting for over a
         third of its agricultural imports , in addition to which Australia and
         Argentina have concluded long-term agreements with Egypt ( on cereals and
         beef and veal respectively ).
                                                                                ■ /• • •
 ---pagebreak---                         ~£o
     The Egyptian ministers stressed the need , however , to diversify their
     sources of supply and , in this context , described the role which they
     envisage for the Community which exports to Egypt a mere 2 375 million
     of agricultural products ( i.e. around half the United States' exports ).
     The ministers considered that the Community possessed an immense advan­
     tage in being able to offer a wide range of the     food products which
     Egypt requires .
10 . Another notable difference compared with Algeria , at least at this stage ,
     concerns the terms under which transactions are carried out ; credit sales
     seem to have reached unprecedented proportions in Egypt.'
     According to information provided by the Minister for Economic Affairs ,
     Dr Nour El Dine ( confirmed by a USDA report ), approximately 70 % of US
     agricultural exports to Egypt were sold in 1980 through US6 financing
     programmes PL 480 and the Commodity Import Program .    Egypt is , for the
     USA , the principal recipient of PL 480 and all cereals sold (a third of
     PL 480 to Egypt ) are covered by this aid ( i.e. 1.6 million t of wheat
     and flour and 100 000 t of maize ).   The terms of the agreement are those
     normally applicable ( down payment 5 % , the  balance payable in 31 annui­
     ties , ten years after the final delivery , interest rate 2 % rising to 3 % ) .
     The Commodity Import Program (2 129 million in    1986 ) covers the greater
     part of other US agricultural exports to Egypt : lard, maize , tobacco ,
     poultrymeat and lentils .
     Australia , which on 5 February announced the signing of a long-term agree­
     ment ( lasting five years , the 1977 agreement having lasted three years )
     for an annual supply of one million t of wheat ( possibly 1.5 million t
     in the event of a good Australian harvest ), is granting Egypt credit fa­
     cilities (for three years with interest negotiable at commercial rates in
     a trade-off with the price formula ).   In addition to this contract there
     is a food aid scheme involving 20 000 to 25 000 t of cereals .
     France , at the end of April , granted Egypt a loan Available until 1 Au­
     gust 1982 ) to import French agricultural products up to a value of
     FF 1 500 million ( i.e. approximately t 270 million ).   An earlier loan
     of the same type was worth FF 930 million but allowed Cairo to buy only
     wheat and flour ; the new agreement of April 1981 permits the additional
     purchase of sugar, milk products , meat , live cattle , eggs and oils .
 ---pagebreak---             Undoubtedly , other countries are similarly involved though not to such
            an obvious extent .    Egypt has always attached major importance to the
            " special conditions of sale " aspect and a long-term agreement with that
            country cannot ignore it .
      11 . In relation to Algeria , the final difference concerns the arrangements
            for marketing Egyptian imports .    According to information provided by
            Dr Fouad Hussein , Minister for Financial Affairs , a third of t~e gcrrs
            entering the country are imported by private companies direct ( under
           monetary authorizations granted by the Central Bank ).        This free trade
            is increasing along with the increase in demand for goods ( not covered
           by special conditions of sale stipulated by exporting countries ) and
           their greater diversification ( linked to the improving standard of li­
           ving ).   There are in Egypt no rules requiring all imports to be covered
           by long-term agreements , i.e. essentially bilateral agreements between
           governments .    A fairly substantial share of Egypt 's EEC exports would
           not be covered , therefore , by a framework agreement and private imports
           would continue .
      12 . Mr Ahmed Nouh , the Minister for Supply , who had a long meeting with the
           Commission representatives and was accompanied by Mr Darwish , Deputy
           Minister and Chairman of the      General Authority for Supply Commodities
           ( 6ASC ), the central import agency , answered detailed questions and argu­
           ments by confirming that the Government was interested in entering into
           negotiations with a view to concluding between the EEC and Egypt an
           agreement on the multilateral supply of agricultural products .
           (i )    The general pattern of such a framework agreement could, according
                   to the Egyptians , be virtually identical to that envisaged in the
                   communication to the Commission of 19 February 1981 ( C0M(81 ) 75 ) ;
                   Algeria is thinking along the same lines , as indicated above .
           ( ii )  With regard to the range of products which could be covered, the
                   Minister for Supply mentioned :
                   - cereals : wheat , Western White type preferably required ( EEC stan­
                     dard wheat is not far    behind ( 1 ), wheat flour , maize ( not cur­
                     rently supplied by the EEC , which is a net importer ) ;
( 1 ) The current question of a S 20 - 30 / t preference premium for this' type of
       wheat compared with EEC wheat - for which there is no justification in purely
       commercial terms - has not been clarified .
 ---pagebreak---         - mUk_products : butter , butteroil , milk powder , certain types
          of cheese ( gouda , processed cheeses , blue ) ;
        - sugar : 1n t ^ie ®yes of the  population this product is the key
          to the Government 's success in the manangement of its food po­
           licy , though account should be taken of Egypt 's membership of
           the International Agreement and the provisions of that Agreement
          concerning restrictions on purchases from non-members ( including
           the EEC , which nevertheless sold around 100 000 t on average in
          1979 and 1980 ) ;
        - vegetable oils : sunflower or cotton seed oi I ;
        - eggs ;
        - meat : red meat ( beef and sheepmeat ), bone-in or boneless , live
          animals for slaughter or stock-building , corned beef , poultry-
          meat and day-old chicks ;
        - fish : fillets and preserved fish ( mainly mackerel ).
                                                                       .
( iii ) No quantity was mentioned .    The Minister for Supply refused to
        give any details on the grounds that the prices or terms of payment
        offered by the EEC would determine what Egypt would ask for during
        the negotiations .    He expressed interest in receiving official of­
        fers from the EEC regarding quantities in due course .
( iv )  The question of prices and price conditions was the subject of a
        long and wide-ranging exchange of views .
        First , the Egyptian authorities clearly had an erroneous view of
        the respective responsibilities of the Commission , the Member States
        and Community operators in each export operation ; the Community as
        such was seen as having more power or more resources ( credit ) than
        it in fact has at present , and certain operators or Member States
        had omitted to point out to their opposite numbers that the refund ,
        which was necessary for each operation , was a Community instrument .
                                 /
 ---pagebreak---              –   ^ –
 Secondly , it is clear that being accustomed to trading on
'the basis of special conditions of sale , the Egyptians do
 not wish to contemplate a framework agreement containing no
 reference to some sort of " preference ", at least for major
products .   The terms of payment ( credit ) were discussed , but
 also alternative arrangements involving a link with food aid .
 Solutions to these questions are feasible and include the
 possibility of a parallel arrangement involving both a frame­
work agreement and food aid , the incorporation in the frame­
work agreement of national credit packages for the purchase
by Egypt of foodstuffs , or arrangements for financing develop­
ment projects .    It appears that Egypt has realized that a
 higher refund ( the preferential price idea ) is not necessarily
 reflected in the prices charged by Community operators .