CELEX: 51973PC1698
Language: en
Date: 1973-10-10 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION ON THE OPENING OF NEGOTIATIONS WITH CYPRUS (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1698
Vol. 1973/0289
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(73)1698 Final
                                                      Brussels , 10 October 1973
                  RECOMMENDATION FOR A COUNCIL DECISION ON THE
                       OPENING OP NEGOTIATIONS WITH CYPRUS
                  (submitted to the Council by the Commission )
   COM(73 ) 1698 Final
 ---pagebreak---                                                                     1/ 2 19/7 3-E
                    FEOOI MEIIDA^'CH FOR A - COUNCIL DECISION ON THE
                    ■«awMM« trufcurr              m *    wumi MjMufrt'xan
                        OPENING 0? ITE-G'OT^A'j'TONS WITH CYPTHS
1 . In a declaration concerning agricultural products , annexed to the
Agreement establishing an Association "between the Community and Cyprus ,
signed on 19 December 1972 } which entered into force on 1 June 1973 , "the
EEC declared that it was "prepared to re-examine with the Republic of
Cyprus the agricultural content of the agreement in the light of the
result      of work in progress with a view to a global approach on the
Community 's relations with Mediterranean countries .           In the course of this
work the interests of Cyprus shall also be taken into consideration".
At its meeting in June 1973 , the Council took decisions for the opening
of negotiations , within the framework of its overall approach to the
Mediterranean countries , with Spain , Israel and the three Maghreb countries .
At the end of July , the Commission opened negotiations with Spain , Israel ,
Morocco and Tunisia .
2.     At the conclusion of the negotiations for an Association Agreement
the Cyprus Delegation sent to the head of the Community Delegation a
letter dated 7 December 1°72         in xvhich it pointed out the importance which
the Government of Cyprus attached to the establishment of economic ,
financial and technical cooperation .
In its communication to the Council concerning relations between the
                                                  2
Community and the Mediterranean countries ", the Commission stated that the
progressive achievement of free trade areas or , as in the case of Cyprus ,
a customs union between the enlarged Community and the Mediterranean
countries should be accompanied by economic cooperation .             At its meeting
on 6/7 November 1972 . the Council agreed to accept the inclusion of a
  SEC ( 72 ) 4552 of 8 December 1972 .
2SEC(72 ) 3111 final of 27 September 1 972 .
 ---pagebreak---                                        –2–                   1/21 9/73-E
section on cooperation ija the - agreement under consideration .
3.   As regards Article 13 of the Protocol to the Association Agreement ,
the annual tariff quota , for the period from 1 January 1974 to 30 June 1 977 a
for imports into the United Kingdom of new potatoes originating in Qyprus
must take into account the traditional United Kingdom imports from Cyprus .
4.   The Commission recommends that the Council adopt the directives
annexed hereto .
 ---pagebreak---                                                              1/219/73-E
                     Recommendation for a Council Decision
The Council of the European Communities ,
Having regard to the Treaty establishing the European Eoonomic Community,
and in particular Article 238 thereof }
Having regard to the Recommendation by the Commission }
Whereas the Agreement establishing an Association between the EEC and
Cyprus should be supplemented within the framework of an overall approach
to the Mediterranean countries ;
HAS DECIDED AS FOLLOWS 1
1,  The Commission is hereby authorized to open negotiations with Cyprus
with a view to concluding an agreement to add to the Association A,graement
new provisions concerning trade in'     agricultural products and with
provisions concerning eoonomio and financial cooperation.
2.  The Commission shall conduct these negotiations in consultation with the
representatives of the Member States within the framework of the annexed
directives .
 ---pagebreak---                                                        1/219/73-E
                                                      AUNEX ■
 NGSIvIEHTS FOR TRADE PT AGRICULTURAL PRODUCTS
 Imports into the Community
 1.   The Community would reduce duties on the agricultural products
 originating in Cyprus listed in Annex I , according to the
 conditions set out "beside each one .
 2.   The concessions would "be "bass d on the duties actually applied
at the time in respect of third countries .
 3.   The transitional measures defined in the Protocol laying down
 certain provisions relating to the Agreement establishing an
Association "between the EEC and Cyprus would apply.
4.    Pursuant to Article 13 of the Protocol to the Association
Agreement , during the period from 1 January 1974 "to 30 June 1977 ,
 imports into the United Kingdom of now potatoes ( 07.01 , A II)
 originating in Cyprus will "bo subject to annual tariff quotas or
 ceilings of 110 000 metric tons , free of customs duties. ,
The Parties to the Agreement would take measures to promote the
hannonious development of trade in agricultural products not covered
"by   the Agreement , in veterinary questions, etc . ..., and to
facilitate the solution of any difficulties which might arise in
their trade in agricultural products .
 ---pagebreak---                                                         1/2 19/7 3-E
PROVISIONS CONCERNIÌTG ECONOMO Al® FINANCIAL COOPERATION
The Agreement would define the objectives of cooperation and prescribe
ways and means to that end .
( a ) Objectives of cooperation
Cooperation would have as its aim to contribute to the development of
Cyprus by an effort additional to that of the country itself and thus
to strengthen the economic links between Cyprus ana the Community on
as wide a basis as possible .
(b ) Scope of cooperation
( i ) Within the limits , as regards activities with financial implications ,
      of the amounts and conditions to be laid down in the financial
      protocol , cooperation would pertain to ways and moans of promoting ,
      inter alia , the following :
      - the exchange of information on the economic and financial situation
        and on future trends , to the extent necessary for the smooth
        operation of the Agreement ;
      - the expansion of production and the development of economic
        infrastructure , with a view to diversifying the economy of Cyprus
        and in particular in order to promote industrialization and the
        modernization of its agriculture ;
      - the marketing and sales promotion of- products exported by Cyprus ;
 ---pagebreak---                                  -4-                    1/21 9/73-E
(ii ) The Commission will also enquire into the potential value for
      Cyprus of specific measures in the following fields :
      - appropriate cooperation in industrial matters and in science ,
         technology and protection of the environment |
      - the encouragement of private- investment from the Community under
         conditions satisfactory to froth parties .
iii ) In the choice of measures of cooperation, account would fre taken
      Ui •
      - the objectives and priorities of Cyprus development plans and
        programmes ;
      - the value of integrated action , with dovetailing of various
        interventions ;
      - the value of promoting forms of cooperation in a regional
        framework .
c ) Financial cocneration (Financial Protocol )
 Financial cooperation would fre covered fry a separate financial protocol
 concluded with Cyprus for a period limited to six years ;
 This Financial Protocol would lay dovm the "broad lines of the activities
 to fre financed and the various forms , general conditions and arrange­
 ments for financial aid to fre granted to Cyprus in the light of that
 country f s economic and financial situation .  The conditions applying
 to individual projects would then fre determined according to the nature
 of each project , which would be examined on its merits .
                                                                 • • • /• '• •
 ---pagebreak---                                        -5-                   1/21 9/73-E
   - Financial assistance would take the form of loans .      Provision would
       be made for the possibility of combining various forms of loan :
     . EIB loans on own resources at market rates ,
       EIB loans with interest rebates , special loans ( as regards rates
       of interest , duration and repayment periods ).
IE , HULBS OF ORIGBTK
              'The rules of origine set down in the agreement with O.yprus -
      should be renewed with a reservation that such r.rrangements which
      would appear necessary with a vie ,; to ensuring an harmonization
      T <;ith those in forco in other countries should be made 0
 ---pagebreak---                                                  ~ 6 –                              1/2 19/73-E
                                                                                    AWW.X T
Description          Tariff Heading                Re duct ion      Pcriod           Other conditions
                            No .
                                                                    –         «
Mew potatoes         07.01 . A II a)                  40%        1.1.-15.5 .
                                                                                                 )
Carrots              07.01 . G II                     40         1.1.-31.3 .
Aubergines           07.01 . ox T                     60%        1.12.-30.4.
Orange s             08.02 . A                        6ofo                           maintenance of
                                                                                     reference price
             i
                                                                               I
Mandarins            08.02 Β                          60T                       I    maintenance of
                                                                                i
                                               !                                i
                                                                                     reference price
                                               I                                I
Lemcns               08.02 C ,                        40i?
Grapefruit           08.02 D                          soi?
Fresh grapes         08.04 A                 !
                                              I
                                                      50i        2.11.-30.4.
                                                                 18.6.-17.7 .
Melons         jcx 08.09
               I
                                                      50%        1.11.-30,4.
Locust beans         12.08 A                        100#
Locust "bean         12,08 B II                       50 fc                       i
                                                                                  I
       seeds
Olive oil            15.07 A I                   economia advantages 5 u.a./ iOO kg^
                                                 trade concessions 0.5 u,a,/ l00 kg
Grapefruit
   segments      jex 20.06 B II
C                |
    segnents fox 20.06 B II o1 )                      40$                               large packs
Orange juice • . 20*97 3 XI »)1                       60$' .                  raaintenance of
                                  "b ) 1aa                                     reference price
Grapefruit
      juico           20.07 ex B II A 2v               50% ( 1 )
                                        b - 2aa
                                             >b
Wines                22.05                            75f»1
Tobacoo              24.01                          100lo
  'Wew concession
  ^Increase in preferenco
 \ainuainea pteforenee '