CELEX: 51982PC0275
Language: en
Date: 1982-05-24 00:00:00
Title: Recommendation for a COUNCIL DECISION concerning the conclusion of at Cooperation Agreement between the European Economic Community and Thailand on manioc production, marketing and trade (submitted to the Council by the Commission)

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COM (82) 275
Vol. 1982/0107
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                              I
                                               COM(82 ) 275 final
                                               Brussels , 24 May 1982
                           Recommendation for a
                              COUNCIL DECISION
    concerning the conclusion of at Cooperation Agreement between the
                 O- ■'     «»         "\
    European Economic f, Community and Thailand on manioc production ,
                             marketing and trade
                 ■            v
                                ^
            ( submitted to the Council by the Commission )
C0MC82 ) 275 final
 ---pagebreak---                                                   Com 275
                  EXPLANATORY MEMORANDUM
                                                         i  ,
                                                           i
                                                           f
On December 16 1980 the Council adopted a decision authorizing the
Commission to enter into negotiations for the conclusion of a cooperation
agreement on manioc production, marketing and trade between the European
                                                            I
Economic Community and Thailand on the basis of the draft agreement drawn
up on November 5 1980 by the Minister of Commerce of thjj Kingdom of
Thailand and by Mr. Gundelach , Vice-President of the Commission .
Negotiations took place in accordance with that decision and on the 23
April 1982, a draft agreement was initialled by the heads of delegation .
The basic provisions of the draft agreement which was drawn up following
the negotiations are as follows :
   a ) It covers the period running from the 1 January 1982 up to 31
       December 1986 .
   b) A commitment on the part of Thailand to limit its exports of manioc
       to the Community; this commitment will stabi lize; Thai land export
       possibilities in the years 1983 and 1984 at the level of its exports
       in 1981 and 1982 , and foresees a clear degressivity of these exports
                                                                     /       ,
       in the years 1985 and 1986 .
   c ) A commitment on the part of the Community to limit the levy applicable
       to imports of manioc from Thailand for the agreed quantities to a
       maximum amount of 6% ad valorem and to take appropriate measures to
       protect Thailand 's position on the Community market . In this context
       the Commission draWs the attention of the Council to its proposals
       concerning the conclusion of the negotiations with Indonesia and ,
       other GATT-suppliers of manioc and the related tariff quotas for
       the imports of manioc to be established for 1982 . The proposed tariff
       quota for Thailand corresponds to the quantity now agreed .
   d) The draft agreement also contains provisions whereby the Community
       will do its utmost to provide assistance for certain projects aimed
       at rural development and crop diversification in Thailand, particularly
       in the poorest manioc-producing regions of the country .
 ---pagebreak---    e ) The setting up of a permanent joint working group to monitor the
       proper application of the provisions of the Agreement .
The Commission consic! ? rs that the draft is in accordance with the
Commission 's proposal concerning cereal substitutes , and complies with
the negotiating directives . It therefore recommends that the Council
should ;
   a ) approve this agreement ; and
   b) to that end adopt the decision, the draft of which is attached
       hereto .
 ---pagebreak---           RECOMMENDATION  FOR A COUNCIL DECISION
      concerning the conclusion of a Cooperation Agreement
      between the European Economic Community and Thailand
        on manioc production , marketing and trade
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 113 thereof ,
                                                                              t
Having regard to the Recommendation from the Commission,
                                                                          «
                                                   é                 . /'   '
Whereas the conclusion of a Cooperation Agreement between the European
                                                                                *4
Economic Community and Thailand on manioc production,marketing and trade
is in their mutual interest ,
HAS DECIDED AS FOLLOWS :
                              Article 1
The Cooperation Agreement between the European Economic Community and Thailand
on manioc production, marketing and trade is hereby approved on behalf of the
Community .
The text of the Agreement is annexed to this Decision .
                              Article 2
The President of the Council is hereby authorized to designate the person
enpowered to sign the Agreement referred to in Article 1 in order to bind
the Community .
Done at                                              For the Council
                                                     The President
 ---pagebreak---                DRAFT GO-OPERATION AGREEMENT
    BETWEEN THAILAND AND THE EUROPEAN ECONOMIC COMMUNITY
          ON MANIOC PRODUCTION, MARKETING AND TRADE"
THE COUNCIL OF THE EUROPEAN COMMUNITIES /
on the one hand ,
THE GOVERNMENT OF THE KINGDOM OF THAILAND ,
on the other hand
 RECOGNISING the dependence of Thailand 's economy on the production of
manioc and its export to the Community and the problems on the Community
market arising from the increasing imports of manioc ;
 CONSCIOUS that manioc production in Thailand is concentrated in the
poorest and most politically sensitive areas ;
TAKING into account the objectives of agricultural development and crop
diversification -in Thailand and the common interest of stabilizing the
                                              V
manioc markets in Thailand and the Community,
AFFIRMING their willingness to cooperate on matter concerning manioc "
production , marketing and trade on the basis of mutual benefit ;
CONSCIOUS that such cooperation should be realised in a progressive
and pragmatic way;         . •
HAVE DECIDED to conclude a Cooperation Agreement on Manioc Production,
Marketing and Trade and to this end have designated as their pleni­
potentiaries :                      •.                               i
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OF THE KINGDOM OF THAILAND :
WHO, having exchanged their Full Powers , found in good and due form,
                                                         1
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                              Article 1
          Taking into account the objectives^of agricultural development and
crop diversification in Thailand and of stabilizing the manioc markets in
Thailand and the Community , Thailand undertakes to manage its exports of
manioc within the subheading 07.06 A of the Common Customs Tariff to the
Community during the five -year period from 1982 to 1986 / divided
                                                          i
           . in such a way as to ensure that these exports do not exceed quan­
tities agreed between Thailand and the Community . ;
          For the year 1982 the export quantity shall       5 million tonnes .
Phase I                          .
           For the years 1983 and 1984, export quantities shall be :
( a ) 5,0 million tonnes per year , and
< b) an additional quantity of not more than 10% of the annual quantity
        mentioned in subparagraph ( a ) which shall be allowed 'for this two-
        year period and which may be utilized in full, eitherj wholly in one
      . year or partially in both years, in order to accommodate the. usual
        fluctuation in the production of primary commodities and to>facili-
        tate the stabilization of manioc markets in Thailand and the Community
 Phase II
          . For the years 1985 and 1986 export quantities shall be :
 ( a ) 4,5 million tonnes per year, and'
 (b) an additional 'quantity of not mpre than 10% of the annual quantity .
        mentioned in subparagraph Ca ) which shall be allowed for this two-
        year period and which may be utilized in full , either wholly in one
        or partially in both years, in. order to accommodate/ the usual fluctua­
         tion in the production' of primary commodities and to facilitate the #
         stabilization of manioc markets in Thailand and the Community.
 ---pagebreak---        It is understood that the quantities referred to , in this Article
shall not cover quantities in transit or re-exported to destinations out­
side the Community/ or those subject to inward processing arrangements .
               •«                                          ;
               *                                           !
                          Article 2
       If serious additional balance of payments difficulties due to the
control of exports of manioc , or major difficulties in the sensitive manioc
production regions arise in Thailand , or if serious difficulties arise on the
Community 's markets for agricultural products , the two parties shall enter
into consultation with a view to establishing whether such difficulties exist
and, if necessary, shall agree on appropriate measures to be applied for the
duration of these-diff iculties .
                   m
                                                :     •      .               . /
                                    •-                       i        •   v'
                          Article 3         ' -
                          –––«                                 ' •)     '
                                                                  I              •
      The Community undertakes to limit ^ the levy applicable to imports of
manioc covered by the agreement to a maximum amount of 6% ad valorem and to
ensure that Thailand enjoys MFN treatment with respect to ! the rate of the
levy. For the agreed quantities , the other import conditions shall be those
existing under the present GATT binding .                           I
 ---pagebreak---                             4
                       Article 4
      Taking into account its international rights and obligations , the      [
Community shall take appropriate measures to ensure that Thailand 's positior t
on the Community manioc market during the period covered by the agree-         Ji
ment will not be significantly undermined by a substantial increase . in the
quantities of manioc imported from other countries * In this context the
Community will also bear in mind the importance of imports of carbohydrate
products which could compete directly with manioc .
                       Article 5                                     '
        •. Thailand shall ensure that the quantities covered by the agree­
ment do not exceed the limits specified therein by ensuring that export
certificates are not issued for any amount beyond such limits .
       For its part , the Community shall undertake to adopt all necessary pro- |
visions to issue import licences for the products referred to above               f
originating in Thailand , subject to the presentation of an export cer- .
tificate, issued by the competent authority designated by the Thai j
Government . The impor* licence shall be issued, within 7 days of stich  *
                                                                                   [
présentation .
       The date of issue of export certificates shall determine the year
to which the quantities shipped are to be attributed .
      .The competent authorities of both parties shall periodically exchange
information necessary for verifying the actual quantities exported and
imported so as to facilitate the implementation of the agreement .
                         Article 6
       The Community shall do its utmost to provide assistance for projects
aimed at rural "development and crop diversification in Thailand, and par­
ticularly in the poorest cassava-producing regions of the country. It is
to be understood that projects under crop diversification shall also in-. ^
elude research projects on the marketing of diversified crops as well as
on the utilization of manioc .                           '                J)
 ---pagebreak---         In providing this assistance , the Community shall , apart from its
 own financial resources , seek the co-operation of other bilateral and
 multilateral donors , including, in particular , Member States of the
 Community .
        The Community shall also consider means of promoting the realization
 of mutually advantageous projects relating to diversification of agricul­
 tural production .
                               Article 7
        When the proper functioning of this agreement so requires meetings
 shall be held at ministerial level between the Government of the Kingdom
 of Thailand and the Commission of the European Communities .
                                                                            >• • »
        A permanent^ joint working group shall be set up, composed of represen­
 tatives of the'Community and of Thailand .
                                                                    «a
        The group shall ensure that the agreement is being properly applied
 and is functioning smoothly .
        It shall review regularly the progress of rural development^ and crop
 diversification in Thailand as well as the trends of production, trade and
 consumption of manioc in "hailand , the Community and the world , and market
developments of carbohydrate products directly competitive with manioc .
        The group shall discuss any matter relating to the application of the
agreement . that may be put forward b>y either party and shall recommend
appropriate solutions to the competent authorities .
      • Meetings of the group shall be held as often as is found necessary,
and in any case at least once a year, at a time and place to be agreed .
                               Article 8
        This Agreement shall apply to the territories , in which the Treaty
establishing the European Economic Community is applied and under the con­
ditions laid down in the said Treaty, on the one hand and to the territc ri e e
i>f the Kirrdci of Thailand, on the other hand.         '               __–
 ---pagebreak---                             Article 9
                                          *
       The agreement is concluded for the period running from 1 January
1982 to 31 December 1986 .
       It shall continue to run for subsequent three-year periods based
on   the quantities establ%hed    for 1985 and 1986 if it is not denounced
by either party at least one year before expiry of the initial five–year
period or of any subsequent three-year period .
       However , before notifying the denunciation of the agreement , either
party should enter into consultation with the other party in order to seek
solutions or to agree upon amendments / which would make it possible to
continue the agreement .
                                                      i
                                                      <
                                                     ι
                r*           Article –10                                 >.
       This Agreement is drawn up in two copies in the Danish , Dutch ,
English , French, German, Greek, Thai and Italian languages , each text
being equally authentic . .                                                 •
       PorA^^némmission
       For          ission         .         For the Goverment of Thailand
    //Poul DALSAGER 1/ \(                          Punnamee FUHSRI
   Ûtémber of the Commission                    Mini star of Commerce
 ---pagebreak---                      FINANCIAL            STATEMENT
                                                                                     Date
                                                                                               4 May      1982
      I. BUDGET HEADING t         1000 refunds                                       APPROPRIATIONS :1 «265,55 mio ECU
                                   100 levies                                                         1.899,1      mio ECU
  r*
  1 2. TITLE : Draft proposal for a Council Decision concerning the conclusion of a
   Cooperation Agreement between the European Economic Community and Thailand on manioc
   production, marketing arrd trade .
     3 . LEGAL BASIS :    Article 113 of the Treaty .
     4. AIMS OF PROJECT : The stabilisation of manioc imports "ttrough                       the conclusion of an
   agreement with Thailand on the trade in manioc-
     5 . FINANCIAL IMPLICATIONS               PERIOD OF 12 MONTHS   CURRENT FINANCIAL YEAR       FOLLOWING FINANCIAL YEAR
                                                                            Í 82        J              (  83     J
 8 5.0 EXPENDITURE
          - CHARGED TO THE EC BUDGET
            ( REFUNDS /                           P.m .                     p.m .                      p.m .
          - NATIONAL ADMINISTRATION
          - OTHER
     5.1 RECEIPTS
          - OWN RESOURCES OF THE EC
            aEviES/ imcK'XXWXKXX                  ρ .m .                    p.m .                      ρ «m .
          - NATIONAL
                                                1984            . 1985
    5.0.1 ESTIMATED EXPENDITURE                   p.m .         - 30,0 MECU                                    1
    5.1.1 ESTIMATED RECEIPTS
                                                  p.m .         - 3,3 MECU
    5.2 METHOD OF CALCULATION This proposal does not change the situation in 1982 , 1983, or
   1984 . Therefore a financial incidence will first appear in 1985 with the reduction
   of imports by 500.000 t .
    In establishing the 1982 Budget and the 1983 Budget proposal it was assumed that
    there would be self-limitation of exports .
r
    6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?         ,
                                                                                                                     YES m
Ί Ό.Ι ΑΧΧ Χ ΧΚ Χ        Χ^Λ Κ& Χ Μ ΚΧΧ Μ                        Χ Χ>Χ ΧΉΚ >£ΜΊ!«Ί Χ*      Κ<Χ Χ
    6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ?
   6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                                     TES /OT
    OBSERVATIONS : The Community support for agricultural development and diversification
   ^n the poorest regions of Thailand which is foreseen in Article 6 ef the Agreement
   will be given within the framework of the existing budget ( Chapter 93 - cooperation
   with non associated developing countries ) »                                             I
                                                                                                              >      »