CELEX: 51993PC0009
Language: en
Date: 1993-01-20
Title: Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of an exchange of letters between the European Economic Community and, on the one hand, Barbados, Belize, the People' s Republic of the Congo, Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices for cane sugar for the 1992/93 delivery period

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(93) 9 final
                                                Brussels, 20 January 1993
       Commission Communication to the Council on the guaranteed prices
            applicable in the 1992/93 delivery period to cane sugar
            originating in the ACP states referred to in Protocol 8
             annexed to the Fourth ACP-EEC convention and in India
                                Proposal for a
                               COUNCIL DECISION
on the conclusion of the Agreements in the form of an exchange of letters
between the European Economic community and, on the one hand, Barbados,
Belize, the People's Republic of the Congo, Fiji, the Cooperative Republic
of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of Kenya,
the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius,
the Republic of Surinam, St. Christopher and Nevis, the Kingdom of
Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the
Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the
Republic of India on the guaranteed prices for cane sugar for the 1992/93
delivery period
                         (presented by the Commission)
 ---pagebreak---                                    - 2 -
      Commission communication to the Council on the guaranteed prices
           applicable in the 1992/93 delivery period to cane sugar
           originating in the ACP states referred to in Protocol 8
            annexed to the Fourth ACP-EEC Convention and in India
1. Protocol No 8 on ACP sugar annexed to the Fourth ACP-EEC Convention and the
   agreement on sugar between the European Economic 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.
2. For the 1992/93 delivery period, the Commission has negotiated guaranteed
   prices with the ACP States and the Republic of India pursuant to Articles
   5(4) of Protocol No 8 on ACP sugar and the agreement with India on cane sugar
   as well as in conformity with the guidelines for negotiations given by the
   Council on 23.7.1992.
3. The Commission therefore proposes that the Council adopt the proposal for a
   decision on the conclusion of the agreements in the form of an exchange of
   letters as set out in Annex 1.
4. Financial impact: These proposals have no financial impact other than that
   taken into account within the framework of the 1992 budget and the 1993
   preliminary draft budget (see financial statement accompanying the
   recommendation for a Council decision authorizing the Commission to negotiate
   the guaranteed prices for 1992/93).
 ---pagebreak---                                      - 3 -
                                   Proposal for a
                                  COUNCIL DECISION
on the conclusion of the Agreements in the form of an exchange d$ letters between
the European Economic Community and, o n the one hand, Barbados, Belize, the
People's Republic of the Congo, Fiji, the Cooperative Republic of Guyana, the
Republic of the Ivory Coast, Jamaica, the Republic of Kenya, the ©eroocratic
Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of
Surinam, St. Christopher and Nevis, the Kingdom of Swaziland., the United Republic
of Tanzania, Trinidad and Tobago, tne Republic of Uganda, the Republic of
Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices
for cane sugar for the 1992/93 delivery period
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty^establishing the European Economic Community, and in
particular Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-EEC
Convention(*} and of the Agreement betweea the European Economic Community and
the Republic of India on cane sugar*2) is carried out, in accordance with
Article 1(2) of each, within the framework of the management of the common
organization of the atigar market,
whereas it is appropriate to approve the Agreement» in the form of exchange of
letters between the European Economic Community and, on the one hand, the States
referred to in the Protocol and, on the other hand, the Republic of India on the
guaranteed prices for cane sugar for the 1992/93 delivery period,
HAS DECIDED AS FOLLOWS:
(1) OJ No L 299, 17.8.1991, p. 1.
(2) OJ No L 190, 22.7.1975, p. 35.
 ---pagebreak---                                       4 -
                                    Article 1
The Agreements in the form of exchange of letters between the European Economic
community and, on the one hand, Barbados, Belize, the People's Republic of the
Congo, Fiji, the Cooperative Républic of Guyana, the Republic of the ivory Coast,
Jamaica, the Republic of Kenya, the Democratic Republic of Madagascar, the
Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and
Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and
Tobago, the Republic of Uganda, the Republic of Zimbabwe and, on the other hand,
the Republic of India on the guaranteed prices for cane sugar for the 1992/93
delivery period are hereby approved on behalf of the Community.
The text of the Agreement is attached to this Decision.
                                    Article 2
The President of the Council is hereby authorized to designate the person
empowered to sign the Agreements referred to in Article 1 in order to bind the
Community.
                                    Article 3
This Decision will be published in the Official Journal of the European
Communities.
Done at Brussels,                                   For the Council
 ---pagebreak---                                    - 5 -
                                    Text No I
                                    AGREEMENT
in the form of exchange of letters between the European Economic Community and,
Barbados, Belize, the People's Republic of the Congo, Fiji, the cooperative
Republic of Guyana, the Republic of the Ivory Coast, Jamaica, the Republic of
Kenya, the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius,
the Republic of Surinam, St. Christopher and Nevis, the Kingdom of Swaziland, thé
United Republic of Tanzania, Trinidad and Tobago, the Republic of. Uganda, and the
Republic of of Zimbabwe on the guaranteed prices for cane sugar for the 1992/93
delivery period.                                                                 ,
                                   Letter No 1
    The representatives of the AGP States referred to in Protocol 8 on ACP sugar
    annexed to the Fourth ACP-EEC Convention of Lomé and of the commission on
    behalf of the European Economic Community, have agreed, pursuant to the
    provisions of the said Protocol, on the following:
    For the delivery period 1 July 1992 to 30 June 1993, the guaranteed prices
    referred to in Article 5(4) of the Protocol shall, for the purpose of
    intervention within the terms of Article 6 of the Protocol, be:
    (a) for raw sugar,      43,94 ECU per 100 kilograms;
    (b) for white sugar,    54,22 ECU per 100 kilograms.
    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.
 ---pagebreak---                                    - 6 -
I should be obliged if you would acknowledge receipt of this letter and confirm
that this letter and your reply constitute an Agreement between teh Governments
of the abovementioned ACP States and the Community.
Please accept, sir, the assurance of my highest consideration.
                                                       For the Council
                                                 of the European Communities
                                   Letter No 2
Sir,
I have the honour to acknowledge receipt of your letter of today which reads as
follows :
I have the honour to confirm the agreement of the Governments of the ACP States
referred to in this letter with the foregoing.
Please accept, sir, the assurance of my highest consideration.
                                                 For the Governments
 ---pagebreak---                                     - 7 -
                                    Text No II
                                     AGREEMENT
in the form of an exchange of letters between the European Economic Community and
the Republic of India on the guaranteed prices for cane sugar for 1992/93
                                   Letter No 1
                                                 Brussels.
Sir,
    The Representatives of India and of the Commission, on behalf of the European
    Economic community, have agreed within the framework of the negotiations
    provided for in Article 5(4) of the Agreement between the European Economic
    Community and the Republic of India on cane sugar, on the following:
    -  for the period 1 July 1992 to 30 June 1993 the guaranteed prices referred
       to in Article 5(4) of the Agreement shall, for the purpose of intervention
       within the terms of Article 6 of the Agreement, be:
       (a) for  raw sugar,    43,94 ECU per 100 kilograms;
       (b) for white sugar,   54,22 ECU per 100 kilograms.
    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.
                                                 For the Council of the
                                                 European CoiTimuniti.es
 ---pagebreak---                                          ;:;
                                   -8 -      ' ;
                                   Letter No 2
Sir,
I have the honour to acknowledge receipt of your letter of today which reads as
follows :
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
 ---pagebreak---         FINANCIAL                        STATEMENT
                                                                           DATE:
  1. BUDGET HEADING: 11                                                    APPROPRIATIONS: ECU 2 110 mi II ion
 2. TITLE:
     Recaimendation for a Decision of the Council to authorize the Conmission to negotiate the guaranteed
     prices applicable in the 1992/93 delivery period to cane sugar originating in the ACP States referred to
      in Article 8 annexed to the Fourth EEC-ACP Convention and in India.
 3. LEGAL BASIS: Article 113 of the Treaty
 4. AIMS OF PROJECT:
     To guarantee cif prices for the ACP States and the Republic of India for their deliveries of white sugar
     and raw cane sugar to the Comrunity which are comparable with the prices guaranteed to sugar
     producers in the Ccrmunity for the 1992/93 delivery period.
                                       Period of 12 months   Current Financial Year      Following Financial Year
 5. FINANCIAL IMPLICATIONS                                            1992                          1993
                                            ECU million            ECU mi 11 ion                  ECU mi I lion
 5.0 EXPENDITURE
      - CHARGED TO THE EC BUDGET
      - (REFUNDS/INTERVENT ION)                638                                                    589
      - NATIONAL ADMINISTRATION
      -OTHER
                                              1994               1995
 5.0.1 ESTIMATED EXPENDITURE                   49
 5.1.1 ESTIMATED REVENUE
 5.2 METHOD OF CALCULATION:
      1,3 mil I ion t x ECU 415/t (refunds)              x 1,114 (DR) - ECU 617 million (B)
      1,1 million t x ECU 15,8/t (refining aid)          x 1,145 (DR) - ECU 20 mi 11 ion (B)
      1,1 million t x ECU 1,125/t (aid to UK)            x 1,116 (DR) = ECU     1 million (B)
                                                                         ECU 638 million (B)
       In 1993: ECU 617 mi 11 ion x 0,92 (export coefficient) + ECU 21 mi 11 ion = ECU 589 mi 11 ion
       In 1994: ECU 617 mi I Mon x 0,03 (export coefficient)                     - E C U 49 mi 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?
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                                   ND
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY (1994) ?
                                                                                                               YES
OBSERVATIONS:
This is an implementing regulation under Protocol 8 annexed to the Fourth Lone Convention.
Accordingly, it has no new financial impact compared with the previous situation.
The cost of re-exporting equivalent quantities of Comunity sugar and of aid for the refining of raw sugar
estimated at ECU 638 mi 11 ion, wi11 be taken into account in the 1993 preliminary draft budget.
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                                COM (93) 9 final
                                                      DOCUMENTS
EN                                                                         02 i l
                                Catalogue number : CB-CO-93-012-EN-C
                                                             ISBN 92-77-51921-5
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