CELEX: 51995PC0707
Language: en
Date: 1996-01-23
Title: Draft Council and Commission Decision (EC/ECSC) concerning the conclusion of the Agreement amending the fourth ACP-EC Convention

COMMISSION OF THE EUROPEAN COMMUNITIES
                                 Brussels, 23.01.1996
                                 COM(95)707 final
                                  96/0023 (AVC)
 Draft Council and Commission Decision (EC/ECSQ
concerning the conclusion of the Agreement amending
           the fourth ACP-EC Convention
 ---pagebreak---  ---pagebreak---                                Explanatory Memorandum
The purpose of the annexed draft Decision is to enable the Council of the European
Union and the Commission of the European Communities to conclude on behalf of the
two Communities concerned (the EC and the ECSC) the Agreement amending the fourth
ACP-EC Convention (Lomé) signed in Mauritius on 4 November this year.
The Decision will enable the Community to deposit, in due order, the act notifying
conclusion of the Agreement - a procedure required for the Convention to enter into
force, as can be seen from Articles 360 and 366 of the Convention taken in conjunction
The Commission as well as the Council is concluding this Agreement because the
Protocol on ECSC products has been incorporated in the text of the Convention itself and
Commission holds certain powers under the ECSC Treaty (this corresponds to the formula
used for the signing of the Convention). Also, the amendments to the rules of origirr
 added in the Agreement revising the Convention apply to these products
 In practice there should be a single act concluding the Agreement and the President of
 the Council alone should notify its conclusion.
                                              A
 ---pagebreak---                  Draft Council and Commission Decision (EC/ECSC)
               concerning the conclusion of the Agreement amending the
                              fourth ACP-EC Convention
THE COUNCIL OF THE EUROPEAN UNION,
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Coal and Steel Community,
Having regard to the Treaty establishing the European Community, and in particular
Article 238 thereof,
Having regard to the assent of the European Parliament,1
Whereas the Agreement amending the fourth ACP-EC Convention, signed in Mauritius
on 4 November 1995, should be approved,
HAVE DECIDED AS FOLLOWS:
                                        Article 1
The Agreement amending the fourth ACP-EC Convention, the Protocols and declarations
annexed thereto and the declarations attached to the Final Act are hereby approved on
behalf of the European Coal and Steel Community and the European Community.
The texts of the Agreement, the Protocols and declarations annexed thereto and the Final
Act are attached to this Decision.
                                        Article 2
 The President of the Council shall deposit the act of notification provided for in
 Article 360 of the Convention for the European Coal and Steel Community and the
 European Community.
 Done at Brussels,
 For the Council                                                  For the Commission
 The President                                             The President
         OJ NoC
                                             I
 ---pagebreak---              AGREEMENT
   AMENDING THE FOURTH ACP-EC
        CONVENTION OF LOMÉ
signed in Mauritius on 4 November 1995
 ---pagebreak---                                  PREAMBLE
HIS MAJESTY THE KING OF THE BELGIANS,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF FINLAND,
HIS MAJESTY THE KING OF SWEDEN,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND,
 ---pagebreak--- Contracting Parties to the Treaty establishing the European Coal and Steel Community and
the Treaty establishing the European Community, hereinafter referred to as "the
Community", the States of the Community being hereinafter referred to as "Member
States",
and
THE COUNCIL OF THE EUROPEAN UNION AND THE COMMISSION OF THE EUROPEAN
COMMUNITIES,
                                              of the one part, and
THE PRESIDENT OF THE REPUBLIC OF ANGOLA,
HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,
THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,
THE HEAD OF STATE OF BARBADOS,
 HER MAJESTY THE QUEEN OF BELIZE,
THE PRESIDENT OF THE REPUBLIC OF BENIN,
 THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
                                                 r
 ---pagebreak--- THE PRESIDENT OF BURKINA FASO,
THE PRESIDENT OF THE REPUBLIC OF BURUNDI,
THE PRESIDENT OF THE REPUBLIC OF CAMEROON,
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,
THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS,
THE PRESIDENT OF THE REPUBLIC OF THE CONGO,
THE PRESIDENT OF THE REPUBLIC OF THE CÔTE D'IVOIRE,
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,
THE PRESIDENT OF THE DOMINICAN REPUBLIC,
THE PRESIDENT OF THE STATE OF ERITREA,
THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,
THE PRESIDENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI,
                                       <
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF GABON,
THE PRESIDENT OF THE REPUBLIC OF GAMBIA,
THE PRESIDENT OF THE REPUBLIC OF GHANA,
HER MAJESTY THE QUEEN OF GRENADA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA,
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA-BISSAU,
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA,
THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA,
THE PRESIDENT OF THE REPUBLIC OF HAITI,
THE HEAD OF STATE OF JAMAICA,
THE PRESIDENT OF THE REPUBLIC OF KENYA,
THE PRESIDENT OF KIRIBATI,
HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,
                                        }
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF LIBERIA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF MADAGASCAR,
THE PRESIDENT OF THE REPUBLIC OF MALAWI,
THE PRESIDENT OF THE REPUBLIC OF MALI,
THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,
THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,
THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
THE PRESIDENT OF THE REPUBLIC OF NIGER,
THE HEAD OF THE FEDERAL REPUBLIC OF NIGERIA,
THE PRESIDENT OF THE REPUBLIC OF UGANDA,
HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,
THE PRESIDENT OF THE RWANDESE REPUBLIC,
HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,
                                       Ç
 ---pagebreak--- HER MAJESTY THE QUEEN OF SAINT LUCIA,
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
THE HEAD OF STATE OF THE INDEPENDENT STATE OF WESTERN SAMOA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÂO TOME AND PRINCIPE,
THE PRESIDENT OF THE REPUBLIC OF SENEGAL,
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,
THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,
HER MAJESTY THE QUEEN OF THE SOLOMON ISLANDS,
THE PRESIDENT OF THE SOMALI DEMOCRATIC REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF THE SUDAN,
THE PRESIDENT OF THE REPUBLIC OF SURINAME,
HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF CHAD,
THE PRESIDENT OF THE TOGOLESE REPUBLIC,
HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA,
THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,
HER MAJESTY THE QUEEN OF TUVALU,
THE GOVERNMENT OF VANUATU,
THE PRESIDENT OF THE REPUBLIC OF ZAIRE,
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
THE PRESIDENT OF THE REPUBLIC OF ZIMBABWE,
whose States are hereinafter referred to as "ACP States",
                                  of the other part,
Contracting Parties to the Fourth ACP-EC Convention signed at Lomé on
15 December 1989, hereinafter referred to as "the Convention",
                                              y(P
 ---pagebreak--- HAVING REGARD to the Treaty establishing the European Community and the Treaty
establishing the European Coal and Steel Community, on the one hand, and the
Georgetown Agreement constituting the group of African, Caribbean and Pacific States, on
the other,
HAVING REGARD to the Convention,
CONSIDERING that Article 366(1) of the Convention lays down that the duration of the
Convention shall be ten years, starting on 1 March 1990;
CONSIDERING that, notwithstanding this provision, Article 366(2) of the Convention
provides for the possibility of amending the Convention by undertaking a mid-term review;
CONSIDERING that Article 4 of the Financial Protocol to thé Convention provides for the
conclusion of a new Financial Protocol for the second five-year period covered by the
Convention;
DESIROUS of reaffirming their attachment to the principles of freedom, democracy,
respect for human rights and fundamental freedoms, and the rule of law and wishing to
make these principles an essential element of the amended Convention;
CONCERNED about the serious deterioration in the trade performance of the ACP States in
recent years;
                                                A
 ---pagebreak--- NOTING that special attention must therefore be paid in ACP-EC cooperation to the
development of trade, a basic element of all self-reliant development;
CONSIDERING that, to this end, it is also essential to ensure that all the instruments
provided for in the Convention are used in an effective, coordinated and consistent
manner;
ANXIOUS to increase the quality and effectiveness of ACP-EC cooperation,
HAVE DECIDED to conclude this Agreement amending the Convention and to this end
have designated as their Plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS:
HER MAJESTY THE QUEEN OF DENMARK:
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
                                                   th
 ---pagebreak--- THE PRESIDENT OF THE HELLENIC REPUBLIC:
HIS MAJESTY THE KING OF SPAIN:
THE PRESIDENT OF THE FRENCH REPUBLIC:
THE PRESIDENT OF IRELAND:
THE PRESIDENT OF THE ITALIAN REPUBLIC:
                                        li
 ---pagebreak--- HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:
HER MAJESTY THE QUEEN OF THE NETHERLANDS:
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA:
THE PRESIDENT OF THE PORTUGUESE REPUBLIC:
THE PRESIDENT OF THE REPUBLIC OF FINLAND:
                                         11
 ---pagebreak--- HIS MAJESTY THE KING OF SWEDEN:
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND:
THE COUNCIL OF THE EUROPEAN UNION AND THE COMMISSION OF THE EUROPEAN
COMMUNITIES:
THE PRESIDENT OF THE REPUBLIC OF ANGOLA:
HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA:
                                        If
 ---pagebreak--- THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS:
THE HEAD OF STATE OF BARBADOS:
HER MAJESTY THE QUEEN OF BELIZE:
THE PRESIDENT OF THE REPUBLIC OF BENIN:
THE PRESIDENT OF THE REPUBLIC OF BOTSWANA:
                                        Ai
 ---pagebreak--- THE PRESIDENT OF BURKINA FASO:
THE PRESIDENT OF THE REPUBLIC OF BURUNDI:
THE PRESIDENT OF THE REPUBLIC OF CAMEROON:
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE:
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC:
                                          M
 ---pagebreak--- THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS:
THE PRESIDENT OF THE REPUBLIC OF THE CONGO:
THE PRESIDENT OF THE REPUBLIC OF THE COTE D'IVOIRE:
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI:
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA:
                                           M
 ---pagebreak--- THE PRESIDENT OF THE DOMINICAN REPUBLIC:
THE PRESIDENT OF THE STATE OF ERITREA:
THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA:
THE PRESIDENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI:
THE PRESIDENT OF THE REPUBLIC OF GABON:
THE PRESIDENT OF THE REPUBLIC OF GAMBIA:
                                         yrt
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF GHANA:
HER MAJESTY THE QUEEN OF GRENADA:
THE PRESIDENT OF THE REPUBLIC OF GUINEA:
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA-BISSAU:
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA:
                                           U>
 ---pagebreak--- THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA:
THE PRESIDENT OF THE REPUBLIC OF HAITI:
THE HEAD OF STATE OF JAMAICA:
THE PRESIDENT OF THE REPUBLIC OF KENYA:
THE PRESIDENT OF KIRIBATI:
                                            M
 ---pagebreak--- HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO:
THE PRESIDENT OF THE REPUBLIC OF LIBERIA:
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF MADAGASCAR:
THE PRESIDENT OF THE REPUBLIC OF MALAWI:
THE PRESIDENT OF THE REPUBLIC OF MALI:
                                           %b
 ---pagebreak--- THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
THE PRESIDENT OF THE REPUBLIC OF MAURITIUS:
THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE:
THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
THE PRESIDENT OF THE REPUBLIC OF NIGER:
THE HEAD OF THE FEDERAL REPUBLIC OF NIGERIA:
                                             V>
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF UGANDA:
HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA:
THE PRESIDENT OF THE RWANDESE REPUBLIC:
HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS:
HER MAJESTY THE QUEEN OF SAINT LUCIA:
                                             M
 ---pagebreak--- HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES:
THE HEAD OF STATE OF THE INDEPENDENT STATE OF WESTERN SAMOA:
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÂO TOME AND PRINCIPE:
THE PRESIDENT OF THE REPUBLIC OF SENEGAL:
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES:
                                             tc
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE:
HER MAJESTY THE QUEEN OF THE SOLOMON ISLANDS:
THE PRESIDENT OF THE SOMALI DEMOCRATIC REPUBLIC:
THE PRESIDENT OF THE REPUBLIC OF THE SUDAN:
THE PRESIDENT OF THE REPUBLIC OF SURINAME:
                                              2^
 ---pagebreak--- HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND:
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA:
THE PRESIDENT OF THE REPUBLIC OF CHAD:
THE PRESIDENT OF THE TOGOLESE REPUBLIC:
HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA:
                                             &r
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO:
HER MAJESTY THE QUEEN OF TUVALU:
THE GOVERNMENT OF VANUATU:
THE PRESIDENT OF THE REPUBLIC OF ZAIRE:
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA:
THE PRESIDENT OF THE REPUBLIC OF ZIMBABWE:
                                             2,%
 ---pagebreak--- WHO, having exchanged their full powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
In accordance with the procedure laid down in its Article 366, the Fourth ACP-EC
Convention shall be amended by the following provisions:
A.    THROUGHOUT THIS CONVENTION:
1. The term "European Economic Community" shall be replaced by the term "European
   Community", the abbreviation "EEC" by "EC" and the term "Council of the European
   Communities" by the term "Council of the European Union".
2. The term "Delegate" shall be replaced by the term "Head of Delegation".
B.    THE PREAMBLE:
3. In the Preamble, the following shall be inserted as a seventh recital:
       "WISHING to strengthen further their links through greater political dialogue and its
       extension to issues and problems of foreign policy and security and those of general
       interest and/or of common interest to a group of countries;".
                                                         Z.H
 ---pagebreak--- C.    PART ONE - GENERAL PROVISIONS OF ACP-EC COOPERATION
4. In Article 4, the following paragraph shall be added:
      "In support of the development strategies of the ACP States, due account shall be
      taken of the objectives and priorities of the Community's cooperation policy and the
      ACP States' development policies and priorities.".
5. Article 5 shall be replaced by the following:
      "Article 5
      1.   Cooperation shall be directed towards development centred on man, the main
      protagonist and beneficiary of development, which thus entails respect for and
      promotion of all human rights. Cooperation operations shall thus be conceived in
      accordance with this positive approach, where respect for human rights is recognized
      as a basic factor of real development and where cooperation is conceived as a
      contribution to the promotion of these rights.
      In this context development policy and cooperation shall be closely linked to respect
      for and enjoyment of fundamental human rights and to the recognition and
      application of democratic principles, the consolidation of the rule of law and good
      governance. The role and potential of initiatives taken by individuals and groups
      shall be recognized in order to achieve in practice real participation of the population
      in the development process in accordance with Article 13. In this context good
      governance shall be a particular aim of cooperation operations.
                                                         ^
 ---pagebreak--- Respect for human rights, democratic principles and the rule of law, w h i c h underpins
relations between the ACP States and the Community and all provisions of the
Convention, and governs the domestic and international policies of the Contracting
Parties, shall constitute an essential element of this Convention.
2.   The Contracting Parties therefore reiterate their deep attachment to human
dignity and human rights, which are legitimate aspirations of individuals and
peoples. The rights in question are all human rights, the various categories thereof
being indivisible and inter-related, each having its o w n legitimacy: non-discriminatory
treatment; fundamental human rights; civil and political rights; economic, social and
cultural rights.
Every individual shall have the right, in his o w n country or in a host country, to
respect for his dignity and to protection by the law.
ACP-EC cooperation shall help abolish the obstacles preventing individuals and
peoples from actually enjoying t o the full their economic, social, political and cultural
rights and this must be achieved through development which is essential to their
dignity, their well-being and their self-fulfilment.
                                                       M
 ---pagebreak--- The Contracting Parties hereby reaffirm their existing obligations and commitment in
international law to strive to eliminate all forms of discrimination based on ethnic
group, origin, race, nationality, colour, sex, language, religion or any other situation.
This commitment applies more particularly to any situation in the ACP States or in
the Community that may adversely affect the pursuit of the objectives of the
Convention. The Member States (and/or, where appropriate, the Community itself)
and the ACP States will continue to ensure, through the legal or administrative
measures w h i c h they have or will have adopted, that migrant workers, students and
other foreign nationals legally within their territory are not subjected to discrimination
on the basis of racial, religious, cultural or social differences, notably in respect of
housing, education, health care, other social services and employment.
3.   A t the request of the ACP States, financial resources may be allocated, in
accordance w i t h the rules governing development finance cooperation, to the
promotion of human rights in the ACP States and to measures aimed at
democratization, a strengthening of the rule of law and good governance. Practical
steps, whether public or private, to promote human rights and democracy, especially
in the legal domain, may be carried out with organizations having internationally
recognized expertise in this sphere.
In addition, w i t h a view to supporting institutional and administrative reform, the
resources provided for in the Financial Protocol for this purpose can be used to
complement the measures taken by the ACP States concerned, w i t h i n the framework
of its indicative programme, in particular at the preparatory and start-up stage of the
relevant projects and programmes."
                                                           zs.
 ---pagebreak--- 6. In Article 6, paragraph 2 shall be replaced by the following:
      "2.   The Contracting Parties recognize that priority must be given to environmental
      protection and the conservation of natural resources, which are essential conditions
      for sustainable and balanced development from both the economic and human
      viewpoints. They recognize the importance of promoting, in ACP States, an
      environment favourable to the development of the market economy and of the
      private sector.".
7. The following Article 6a shall be inserted:
      "Article 6a
      The. Contracting Parties recognize the fundamental importance of trade in energizing
      the development process. The Community and the ACP States therefore agree to
      give high priority to the development of trade with a view to accelerating the growth
      of the ACP States' economies and to integrating them into the world economy in a
      harmonious and gradual manner. In recognition thereof, adequate resources should
      be devoted to the expansion of ACP trade.".
                                                             11
 ---pagebreak--- 8. Article 12 shall be replaced by the following:
      "Article 12
      Without prejudice to Article 366a, where the Community intends, in the exercise of
      its powers, to take a measure which might affect the interests of the ACP States as
      far as this Convention's objectives are concerned, it shall inform in good time the
      said States of its intentions. Towards this end, the Commission shall communicate
      simultaneously to the Secretariat of the ACP States its proposals for such measures.
      Where necessary, a request for information may also take place on the initiative of
      the ACP States.
      At their request, consultations shall be held promptly so that account may be taken
      of their concerns as to the impact of those measures before any final decision is
      made.
      After such consultations have taken place, the ACP States may, in addition, transmit
      their concerns in writing to the Community and submit suggestions for amendments
      indicating the way their concerns should be met.
      If the Community does not accede to the ACP States' submissions, it shall advise
      them as soon as possible giving its reasons.
      The ACP States shall also be provided with adequate information on the entry into
      force of such decisions, in advance whenever possible.".
                                                              jy
 ---pagebreak--- 9. The following Article 12a shall be inserted:
     "Article 1 2a
     Recognizing the potential for positive contributions by the agents of decentralized
     cooperation to the development of the ACP States, the Contracting Parties agree to
     intensify their efforts to encourage the participation of ACP and Community agents in
     cooperation activities. To this end, the resources of this Convention may be used to
     support decentralized cooperation operations. These operations shall conform to the
     priorities, guidelines and development methods determined by the ACP States.".
10.  The following Article 15a shall be inserted:
      "Article 15a
      Trade development shall be aimed at developing, diversifying and increasing the ACP
      States' trade and improving their competitiveness in their domestic markets, the
      regional and intra-ACP market, and in the Community and international markets. The
      Contracting Parties undertake to use all the means available under this Convention,
      including trade cooperation and those on financial and technical cooperation, for the
      achievement of this objective. They also agree to implement the provisions of this
      Convention in a coherent and coordinated manner.".
11.   Articles 2 0 , 21 and 22 shall be deleted.
                                                                3sr
 ---pagebreak--- 12. In Article 3 0 , the following paragraph 3 shall be added:
    "3.   In addition, the Council of Ministers shall conduct an enlarged political dialogue.
    To this end, the Contracting Parties shall organize themselves t o ensure an effective
    dialogue.
    Such dialogue may also take place outside this framework, w i t h a geographical or
    other composition suited to the subjects under discussion, where the need is felt by
    the Contracting Parties.".
13. In Article 3 2 , paragraph 1 shall be replaced by the following:
    "1.   The Joint Assembly shall be composed of equal numbers of, on the one hand,
    members of the European Parliament on the Community side and, on the other hand,
    members of the Parliament or, failing this, representatives designated by the
    Parliament of the ACP State concerned. In the absence of a Parliament, the
    attendance of a representative shall be subject to prior approval by the Joint
    Assembly.".
D.  PART T W O - THE AREAS OF ACP-EC COOPERATION
14. In Article 5 0 , the following paragraph 3 shall be added:
    "3.   The specific agreements referred to in paragraph 2 shall not put in jeopardy
    production and trade flows in ACP regions.".
 ---pagebreak--- 15. In the second paragraph of Article 5 1 , subparagraphs (b), (c) and (e) shall be
    replaced by the following:
    "(b)  where products supplied as food aid are sold, they must be sold at a price
          which will not disrupt the domestic market or restrict the development and
          enhancement of regional trade in the products concerned. The resulting
          counterpart funds shall be used to finance the execution or running of projects
          or programmes w i t h a major rural development component; these funds may
          also be used for all legitimate purposes approved by c o m m o n agreement, taking
          into account Article 226(d);
    (c)   where the products supplied are distributed free of charge, they must form part
          of nutrition programmes aimed in particular at vulnerable sections of the
          population or be delivered as remuneration for work and must take account of
          trade flows of the ACP States concerned and within the region;
    (e)   as a matter of priority, the products supplied must meet the needs of the
          recipients. In the selection of such products, account should be taken in
          particular of the ratio of cost to specific nutritive value and of the effect the
          choice might have on consumer habits, and on domestic and regional trade
          development;".
                                                                  f
 ---pagebreak--- 16. Article 87 shall be replaced by the following:
    "Article 87
    1.   The Committee of Ambassadors shall appoint the members of a Committee on
    Industrial Cooperation, supervise its operation, and determine its composition and its
    rules of operation.
    2.   The Committee on Industrial Cooperation shall review the progress made in the
    implementation of ACP-EC Industrial Cooperation policy. As regards the Centre for
    the Development of Industry, hereinafter referred to as the CDI, the Committee shall
    examine and approve:
    (a)    the overall strategy of the CDI;
    (b)    the apportionment on an annual basis of the overall financial allocation provided
           for in Article 3 of the Second Financial Protocol;
    (c)    the CDI's annual budget and annual accounts.
    3.   The Committee on Industrial Cooperation shall report to the Committee of
    Ambassadors. In addition to the duties referred to above, it shall carry out the duties
    laid d o w n in its rules of procedure and such other duties as may be assigned to it by
    the Committee of Ambassadors.".
                                                               3*
 ---pagebreak--- 17. Article 88 shall be deleted.
18. Article 89 shall be replaced by the following:
    "Article 89
    1.   The CDI shall help to establish and strengthen industrial enterprises in the
    ACP States, especially by encouraging joint initiatives by economic operators of the
    Community and of the ACP States. The CDI shall exercise selectiveness in
    undertaking its tasks, laying emphasis on opportunities for joint ventures and
    subcontracting.
    2.   The CDI shall:
    (a)   with a view to ensuring its effectiveness, focus its efforts on ACP States that
          have:
          (i)   identified support for industrial development, or for the private sector in
                general, within the framework of Article 281 (2)(b) and (c) in their
                indicative programmes; and/or
           (ii) obtained financial contributions and assistance from other Community
                institutions for the promotion and development of the private and/or the
                industrial sector;
                                                              3?
 ---pagebreak--- (b)   carry out its activities in the framework of the implementation of industrial-
      development or private-sector support programmes established by the ACP
      States referred to in subparagraph (a) for their indicative programmes;
(c)   step up its operational presence in the States referred to in subparagraph (a),
      particularly with regard to the identification of projects and project promoters
      and to providing assistance for the presentation of such projects to the
      financing institutions;
(d)   give priority to the identification of operators with viable small to medium-sized
      industrial projects and, in the case of those meeting the needs of the ACP
      States concerned, to assisting them in their promotion and implementation.
3.   The Commission, the European Investment Bank (hereinafter referred to as "the
Bank") and the CDI shall maintain operational cooperation in the context of their
respective responsibilities. To this end, and to ensure the consistency of Community
operations in support of the private sector, in general, and the industrial sector, in
particular, in the ACP States referred to in paragraph 2 (a), the Commission shall, in
consultation with the Bank and in liaison with the CDI, prepare support programmes
for these sectors that incorporate guidelines for the strategy to be pursued.".
                                                             #
 ---pagebreak--- 19. Article 91 shall be replaced by the following:
    "Article 91
    The CDI shall be headed by a Director assisted by a Deputy Director, recruited on the
    basis of their professional qualifications, technical skills and management experience,
    taking due account of the provisions of Annex XIV, both of w h o m shall be appointed
    by the Committee on Industrial Cooperation. The management of the CDI shall
    implement the guidelines laid d o w n by the Committee on Industrial Cooperation and
    shall be answerable to the Governing Board.".
20. Article 9 2 shall be replaced by the following:
    "Article 92
    1.   The Committee on Industrial Cooperation shall appoint the members of the
    Governing Board of the CDI, supervise its operation, and determine its composition
    and its rules of operation. The Board shall be composed of six independent, highly
    qualified persons with considerable experience of industrial cooperation appointed on
    the basis of parity between the ACP and the Community. The Commission, the
    Bank, the ACP Secretariat and the Council Secretariat shall each have a
    representative present at its proceedings as observers.
                                                                  41
 ---pagebreak---     2.   The Board shall:
    (a)    submit t o the Committee on Industrial Cooperation, for its consideration and
           approval proposals concerning the CDI's overall strategy, its annual budget and
           its annual accounts which it has adopted on the basis of proposals submitted to
           it by the CDI management;
    (b)    approve, on a proposal from the Director of the CDI: multiannual and annual
           programmes of activities, the annual report, the organizational structure,
           staffing policy and establishment plan;
    (c)    ensure that the overall strategy and annual budgets approved by the Committee
           on Industrial Cooperation are implemented efficiently and properly by the CDI
           management.
    3.   The Board shall in addition to the duties referred to above, carry out the duties
    laid d o w n in its rules of procedure and such other duties as may be assigned to it by
    the Committee on Industrial Cooperation. The Board shall report to the Committee
    on Industrial Cooperation on a periodic basis on issues arising from the discharge of
    the Board's duties.".
21. In Article 9 3 , paragraph 3 shall be replaced by the following:
    "3.   The CDI's Statute, financial and staff regulations and rules of procedure shall be
    adopted by the Council of Ambassadors after the signing of the Second Financial
    Protocol.".
                                                                 ^
 ---pagebreak--- 22. Articles 94, 95 and 96 shall be deleted.
23. In Article 1 29, " 1 . " shall be inserted at the beginning of the sole paragraph and the
    following paragraphs 2 and 3 shall be added:
    "2.    With a view to contributing to the promotion and development of the ACP
    maritime trade, the contracting parties may, in the framework of the implementation
    of development finance cooperation, give special attention within the existing
    instruments to the facilitation and encouragement of access for ACP maritime
    operators to the resources provided for in this Convention, in particular as regards
    projects and programmes for improving the competitiveness of their maritime
    services.
    3.   The Community may give assistance in the form of risk-capital and/or loans by
    the Bank to finance projects and programmes in the sectors set out in this Article.".
24. Article 135 shall be replaced by the following:
     "Article 135
    With a view to attaining the objectives set out in Article 15a, the Contracting Parties
     shall implement measures for the development of trade at all stages up to final
     distribution of the product.
                                                                 ^
 ---pagebreak---     The object is to ensure that the ACP States derive the maximum benefit from the
    provisions of this Convention and may participate under the most favourable
    conditions in the Community, domestic, sub-regional, regional and international
    markets by diversifying the range and increasing the value and the volume of ACP
    States' trade in goods and services.
    To this end the ACP States and the Community undertake to ensure that high priority
    is given to trade development programmes in the context of establishing national and
    regional programmes as provided for in Article 281 and other relevant provisions of
    this Convention.".
25. In Article 136, paragraphs 1 and 2 shall be replaced by the following:
    "1.    In addition to developing trade between the ACP States and the Community,
    particular attention shall be given to operations designed to increase the ACP States'
    self-reliance, develop intra-ACP and international trade and improve regional
    cooperation in trade and services.
    2.    Within the instruments provided for in this Convention and in accordance w i t h
    the provisions set out in relation thereto, operations shall be undertaken at the
    request of the ACP States and ACP regions, particularly in the following areas:
    -   support for the definition of appropriate macro-economic policies necessary for
        trade development;
    -   support for the creation or reform of appropriate legal and regulatory frameworks
        as well as for the reform of administrative procedures;
                                                            M
 ---pagebreak--- the establishment of coherent trade strategies;
support for ACP States in developing their internal capacities, information
systems and awareness of the role and importance of trade in economic
development;
support for strengthening the infrastructure related to trade and in particular
support for the ACP States' efforts to develop and improve supportive service
infrastructure, including transport and storage facilities, in order to ensure their
effective participation in the distribution of goods and services and in order to
enhance the f l o w of exports from the ACP States;
development of human resources and professional skills in the field of trade and
services, in particular in the processing, marketing, distribution and transport
sectors for the Community, regional and international markets;
support to private sector development and, in particular, to small and
medium-sized enterprises for product identification and development, market
 outlets and export-oriented joint ventures;
 support for ACP actions aimed at encouraging and attracting private investment
 and joint venture operations;
 the establishment, adaptation and strengthening of organizations in the ACP
 States dealing w i t h the development of trade and services, particular attention
 being paid to the special needs of organizations in the least-developed, landlocked
 and island ACP States;
                                                       UC
 ---pagebreak---     -  support for the ACP States' efforts to develop and improve the quality of their
       products, adapt them to market requirements and diversify their outlets;
    -  support for the ACP States' efforts to penetrate third country markets more
       effectively;
    -  market development measures including increasing contacts and exchange of
       information between economic operators in ACP States, the Member States of the
       Community and in third countries;
    - support for ACP States in the application of modern marketing techniques in
       production-oriented sectors and programmes, in particular in areas such as rural
       development and agriculture.".
26. In Article 136, paragraph 4, the word "should" shall be replaced by "may" (concerns
    only the English text);
27. Article 141 shall be replaced by the following:
    "Article 141
    1.   The Foundation for ACP-EC Cultural Cooperation and other specialized
    institutions may make a contribution to the implementation of the objectives of this
    Title in their sphere of activity.
                                                              v<r
 ---pagebreak---     2.  In respect of cultural cooperation, activities undertaken to this end shall cover
    the following areas:
    (a)   studies, research and measures concerning the cultural aspects of taking into
          account the cultural dimension of cooperation;
    (b)   studies, research and measures to promote the cultural identities of the ACP
          peoples and all initiatives likely to contribute to intercultural dialogue.".
28. In Article 1 59, subparagraph (j) shall be replaced by the following:
    (j)   support, at the request of the ACP States concerned, for operations and
          structures which promote the coordination of sectoral policies including trade
          development and structural adjustment efforts;".
29. In Article 164, subparagraph 1 (d) shall be replaced by the following:
    "(d) requests for financing for intra-ACP regional cooperation schemes may be
          submitted by the ACP Council of Ministers, or, by specific delegation, by the
          ACP Committee of Ambassadors. In this context, the Community shall inform
          the ACP States, at the beginning of the period covered by the Second Financial
          Protocol of the amount of financial resources available for intra-ACP regional
          cooperation;".
                                                                   H>
 ---pagebreak--- E.  PART THREE - THE INSTRUMENTS OF ACP-EC COOPERATION
30. In Article 1 6 7 , paragraph 2 shall be replaced by the following:
    "2.   In the pursuit of this objective, particular regard shall be had to securing
    effective additional advantages for ACP States' trade w i t h the Community, and to
    improving the conditions of access for their products to the market in order to
    accelerate the g r o w t h of their trade and, in particular, of the f l o w of their exports to
    the Community, and to ensure a better balance in the trade of the Contracting Parties
    and thus accelerate the exports t o regional and international markets.".
31. In Article 177, paragraph 1 shall be replaced by the following:
    "1.   Should application of this Chapter result in serious disturbances in a sector of
    the economy of the Community or of one or more of the Member States, or
    jeopardize their external financial stability, or if difficulties arise w h i c h may result in a
    deterioration thereof, the Community may take safeguard measures. These
    measures shall be notified immediately to the Council of Ministers.".
32. In Article 1 7 8 , paragraph 3 shall be replaced by the following:
    "3.   However, the prior consultations provided for in paragraphs 1 and 2 shall not
    prevent any immediate decisions which the Community, in accordance w i t h
    Article 177(1), might take where special factors have necessitated such decisions.".
                                                                    4*
 ---pagebreak--- 33. In Article 1 8 1 , second paragraph, subparagraph (4) shall be replaced by the
    following:
    "(4)    where the Community takes safeguard measures in accordance w i t h Article
            1 7 7 , consultations on these measures may take place w i t h i n the Council of
            Ministers, where the Contracting Parties concerned so request, notably w i t h a
            view to ensuring compliance w i t h Article 177(3).".
34. In Article 187, paragraph 1, item 24 shall be replaced by the following:
    " 2 4 . Fresh bananas      0 8 0 3 0 0 11 and 1 9 " ,
    and the following item 50 shall be added:
    " 5 0 . Karakul Skins ex 4 3 0 1 30 0 0
                                ex 4 3 0 2 13 0 0
                                ex 4 3 0 2 30 3 1 . " .
35. In Article 1 9 3 , the following subparagraph 4 shall be added:
    "4.     amounts accruing from the application of the first subparagraph of
            Article 366a(3).".
                                                                 ^
 ---pagebreak--- 36. In Article 1 9 4 , the following paragraph 5 shall be added:
    "5.     Other than the reduction referred to in paragraph 2, there shall be no further
    reduction of the transfer basis as a result of a shortfall in the resources of the system
    if, in the case of least developed or landlocked ACP States, the transfer basis so
    reduced in accordance w i t h paragraph 2 is less than ECU 2 million, or, in the case of
    island States, is less than ECU 1 million.".
37. Article 2 0 3 shall be replaced by the following:
    "Article 2 0 3
     1.   Should the examination of:
     (a)    marketed production in the application year by comparison w i t h the reference
            period; or
     (b)    total exports as a share of marketed production over the same period; or
     (c)    the share of total exports going to the Community over the same period; or
     (d)    the sum of figures referred to in (b) and (c)
     reveal a large decline, consultations shall be held between the Commission and that
     ACP State to determine whether the transfer basis is to be maintained or reduced,
     and if reduced, to what extent.
     2.    For the purpose of applying paragraph 1, a decline shall be deemed to be large if
     it is at least 2 0 % . " .
                                                              S\o
 ---pagebreak--- 38. In Article 2 0 9 , paragraph 4 shall be replaced by the following:
    "4.     Where there is an adjustment programme in place, including operations
    designed to restructure production and export activities, or to achieve diversification,
    the resources will be used in conformity with these efforts and in order to support
    any consistent reform policy.".
39. In Article 2 1 1 , paragraph 1 shall be replaced by the following:
    "1.     The transfer shall be made in ecus upon signature of the transfer agreement
    referred to in Article 205(2) into an interest-bearing account in a Member State, for
    w h i c h the presentation of t w o signatures, that of the ACP State and that of the
    Commission, shall be required. Any interest shall be credited to this account.".
40. In Article 2 2 0 , the following subparagraph (p) shall be added:
    "(p)     provide support for the definition and implementation of trade policies and
             programmes to foster the harmonious and gradual integration of ACP States
             into the world economy.".
                                                                si
 ---pagebreak--- 41. In Article 2 2 4 :
    -  subparagraph (d) shall be replaced by the following:
       "(d)   budgetary support intended to alleviate domestic financial constraints:
              (i)    either directly, for the ACP States whose currencies are convertible and
                     freely transferable;
              (ii)   or indirectly, from counterpart funds generated by the various
                     Community instruments;",
    -  subparagraph (i) shall be replaced by the following:
       "(i)   the human and material resources supplementary to those borne by the ACP
              States which are strictly necessary for efficient and effective administration
              and supervision of projects and programmes financed by the European
              Development Fund, hereinafter referred to as "the F u n d " . " ,
    -  the following subparagraph (m) shall be added:
       "(m) support for institutional and administrative reform measures, w i t h a view to
              democratization and the rule of law.".
                                                              •SL
 ---pagebreak--- 42. In Article 2 3 0 , subparagraph 2(g) shall be replaced by the following:
    "(g)  agents of decentralized cooperation from ACP States and from the Community,
          to enable them to undertake economic, cultural, social and educational projects
          and programmes in the ACP States in the framework of decentralized
          cooperation.".
43. In Article 2 3 3 , paragraph 4 shall be replaced by the following:
     "4.  Where financial assistance is granted to the final recipient through an
    intermediary or directly to the final beneficiary in the private sector:
     (a)   the terms on which the assistance may be made available by the intermediary
           to the final recipient or directly to the final beneficiary in the private sector shall
           be laid d o w n in the financing agreement or loan contract; and
     (b)   any financial benefit accruing to the intermediary from the on-lending
           transaction, or resulting from direct lending operation to the final beneficiary in
           the private sector, shall be used for development purposes, on the conditions
            laid d o w n in the financing agreement or the loan contract, after taking into
            account administrative costs, exchange and financial risks, and the cost of
           technical assistance given to the final recipient.".
                                                                 si
 ---pagebreak--- 44. In Article 2 3 4 :
    -  the introductory words shall be replaced by the following:
       "1.   Risk capital may be deployed in the form of loans, equity participation or
       other quasi-capital assistance",
    -  the following subparagraph 1 (b)a shall be inserted:
       "(b)a     Quasi-capital assistance may consist of shareholders' advances,
                 convertible bonds, loans with participating rights or any other similar form
                 of assistance.",
    -  subparagraph 1 (c) shall be replaced by the following:
       "(c)   The terms of risk capital operations shall depend on the characteristics of
              each project or programme financed and shall in general be more favourable
              than those of subsidized loans. In the case of loans to the ACP or to
              intermediaries the interest rate shall, in any case, be less than 3 % . " ,
    -  the following subparagraphs 1(c)a and 1(c)b shall be inserted:
       "(c)a     Risk capital resources may be used in support of pre-investment studies
                 and technical assistance, as provided for in Article 268(1 )(g). In such
                 cases, the loans shall be repaid only if the investment is carried out.
                                                              SH
 ---pagebreak---           (c)b       Equity participation or other quasi-capital assistance shall be
                     remunerated on the basis of the performance of the project or
                     programme considered and profits generated shall be shared between
                     the Community and the parties engaged in the said project or
                     programme.",
       -  subparagraph 2(b) shall be replaced by the following:
          "(b) in the case of risk capital financing for small and medium-sized
                 enterprises, hereinafter referred to as "SMEs", the exchange rate risk shall
                  be shared by the Community, on the one part, and by the other parties
                  involved, on the other. On average, the foreign exchange risk shall be
               , shared equally.".
45. In Article 235, the following subparagraph (b)a shall be inserted:
    "(b)a     in the case of direct financing of the private sector for strictly commercial
              projects, the rate of subsidy referred to in subparagraph (b) shall not apply
             for loans granted to non ACP borrowers or ACP companies with majority non
              ACP shareholding;",
                                                                iT
 ---pagebreak--- 46. In Article 2 3 6 , subparagraph (a) shall be replaced by the following:
    "(a)  contribute, through the resources it manages, to the economic and industrial
          development of the ACP States on a national and regional scale; and to this
          end, finance as a priority productive projects and programmes, or other
          investments aimed at promoting the private sector, in industry, agro-industry,
          tourism, mining, energy and in transport and telecommunications linked to
          these sectors. These sectoral priorities shall not exclude the possibility of the
          Bank's financing, from its o w n resources, productive projects and programmes
          in other sectors, including commercial agriculture;".
47. In Article 2 4 3 , " 1 . " shall be inserted at the beginning of the sole paragraph and the
    following paragraph 2 shall be added:
    "2.   The ACP States and the Community recognize also the necessity to encourage
    reform programmes at regional level ensuring that, in the preparation and execution
    of national programmes, due consideration is given to regional activities w h i c h have
    an influence on national development. To this end, support for structural adjustment
    shall also seek t o :
    (a)   incorporate, from the beginning of the diagnosis, measures to encourage
          regional integration and take account of the consequences of transborder
          adjustment;
                                                                   fC
 ---pagebreak---            (b)   support the harmonization and coordination of macro-economic and
                 sectoral policies, including fiscal and customs areas, so as to fulfil the
                 dual aim of regional integration and of structural reform at national level;
           (c)   encourage and support implementation of sectoral reform policies at
                 regional level;
           (d)   support the liberalization of trade and payments and transborder
                 investments.".
48. In Article 2 4 4 , subparagraph (c) shall be replaced by the following:
    "(c)   assistance shall be supportive of the ACP States' priority development
           objectives such as agricultural and rural development, food security, PMDT,
           trade development and environment protection and contribute to the
           attenuation of the debt burden;".
49. In Article 2 4 6 , the introductory phrase of paragraph 1 shall be replaced by the
    following:
    "1.    All ACP States shall in principle be eligible for structural adjustment assistance
    depending on the scope of the reforms being undertaken or contemplated at the
    macro-economic or sectoral level, giving consideration to the regional context, their
    effectiveness, and their likely impact on the economic, social and political dimension
    of development, and on economic and social hardships being experienced, as
     reflected by indicators such as:".
                                                                  r*
 ---pagebreak--- 50. In Article 247:
    -  paragraph 2 shall be replaced by the following:
       "2.   Such support for adjustment effort shall take the form of:
       (a)   sectoral or general import programmes in accordance with Articles 224(c)
              and 225;
       (b)    budgetary support in accordance with Article 224(d);
       (c)   technical assistance related to structural adjustment support programmes.",
    -  paragraph 4 shall be replaced by the following:
       "4.   Structural adjustment support shall be implemented flexibly by applying the
       following instruments as the circumstances demand:
       (a)    General import programme (GIP) in keeping with the approach to structural
              adjustment support laid down in this Convention will usually be the most
              appropriate instrument for countries carrying out macro-economic reforms;
                                                              S~Î
 ---pagebreak---        (b)    Budgetary support in order to assist ACP States to improve the
              implementation of their budgets with integrity, efficacy and equity;
       (c)    Sector import programme (SIP) could be used for supporting a sectoral
              adjustment programme or in a situation of macro-economic reforms with a
              view to achieving a greater sectoral impact.",
    - the following paragraph 5 shall be added:
       "5.   The instruments defined in paragraph 4 can also be used, according to the
       same arrangements to support the ACP States eligible according to Article 246
       implementing reforms aiming at intra-regional economic liberalization which
       generate net transitional costs.".
51. In Article 248, subparagraph (c) shall be replaced by the following:
    "(c) ensure that the eligibility of ACP economic operators for access to the
           resources of the programme is as wide and transparent as possible, and that
           the procurement procedures accord with the administrative and commercial
           practices in the State concerned, while ensuring the best possible price/quality
           ratio on imported goods and the necessary consistency with progress achieved
           internationally in harmonizing the procedures for supporting structural
           adjustment;".
                                                               S7
 ---pagebreak--- 52. In Title III, Chapter 2, the following Section 4a shall be inserted:
                                          "Section 4a
                                  Decentralized Cooperation
    Article 251a
    1.   With a view to strengthening and diversifying the basis for the long-term
    development of the ACP States, and in order to encourage all agents from the ACP
    States and the Community which are in a position to contribute to the autonomous
    development of the ACP States to put forward and implement initiatives, ACP-EC
    cooperation shall support, within limits laid d o w n by the ACP States concerned, such
    development operations within the framework of decentralized cooperation, in
    particular where they combine the efforts and resources of organizations from the
    ACP States and their counterparts from the Community. This form of cooperation
    shall, in particular, aim at making available for the development of the ACP States
    the capabilities, innovative operating methods and resources of the agents of
    decentralized cooperation.
                                                                <*sz
 ---pagebreak--- 2.   The agents referred to in this Article are decentralized public authorities, rural and
village groups, cooperatives, trade unions, teaching and research institutions, non-
governmental development organizations, other associations, groups and agents which, are
able and wish to contribute to the development of the ACP States on their o w n initiative,
provided that the agents and/or the operations are non-profit-making.
Article 2 5 1 b
1.   In the framework of ACP-EC cooperation, special efforts shall be made to encourage
and support the initiatives of the agents from the ACP States and, in particular, to
reinforce the capabilities of these agents. In this framework the cooperation shall support
the activities of the ACP agents either on their own or in association w i t h similar agents
from the Community which make their capabilities, experience, technological and
organizational capacities or financial resources available to the ACP counterparts.
2.   Decentralized cooperation shall encourage agents from the ACP States and from the
Community t o provide supplementary financial and technical resources for the
development effort including encouragement of partnerships between such agents. The
cooperation may provide decentralized cooperation operations w i t h financial and/or
technical support drawn from the resources provided for by this Convention under the
conditions laid d o w n in Articles 2 5 1 c , 251 d and 251 e.
3.   This form of cooperation shall be organized in accordance w i t h the role and the
prerogative of the public authorities of the ACP States.
                                                               64
 ---pagebreak--- Article 251c
1.    Decentralized cooperation operations may be supported out of the financial resources
of the indicative programme or from counterpart funds. The extent of the support shall be
that which is necessary for the successful implementation of the proposed operations
provided that the viability of the proposed operations has been established in accordance
with the provisions for development finance cooperation.
2.    Projects or programmes under this form of cooperation may or may not be linked to
programmes in the sectors of concentration of the indicative programmes, but may be a
way of achieving the specific objectives of the indicative programme or the results of
initiatives by decentralized agents.
Article 251d
 1.   Projects and programmes undertaken within the framework of decentralized
cooperation shall be subject to the approval of the ACP States. These operations shall be
financed with contributions from:
(a)    the Fund, in which case the contribution shall not normally exceed three-quarters of
       the total cost of each project, or programme, and may not exceed ECU 300 000.
       The amount representing the Fund's contribution shall be drawn from the grant
        allocation of the national or regional indicative programme;
                                                               ft
 ---pagebreak--- (b)   the agents of decentralized cooperation, provided that the financial, technical,
      material and other resources brought in by such agents shall not normally be less
      than 2 5 % of the estimated cost of the project/programme; and
(c)   exceptionally, by the ACP State concerned, either in the form of financial
      contribution or through the use of public equipment or the supply of services.
2.  The procedures applicable to projects and programmes financed within the framework
of decentralized cooperation shall be those laid down in Chapter 5 of this Title, in
particular, those referred to in Article 2 9 0 .
Article 251 e
In addition to the possibilities offered to the agents of decentralized cooperation in this
section, in Articles 2 5 2 and 253 relating to micro-projects, Article 278(2)(c) on technical
cooperation schemes and Article 3 0 0 on emergency assistance, the ACP States may
request or may agree to the participation of agents of decentralized cooperation in the
implementation of other Fund projects and programmes, in particular, those performed by
direct labour in conformity w i t h Article 299 and other relevant provisions of this
 Convention.".
                                                                a
 ---pagebreak--- 53. In Article 2 5 4 , the following paragraph 3 shall be added:
    "3.     Where the funds provided for an operation under this Article are inadequate to
    deal w i t h the emergency situation, part of the resources of the national indicative
    programme, uncommitted due to the inability of the ACP State concerned to sign or
    implement its indicative programme, may be deployed to the benefit of its population
    for emergency assistance, humanitarian assistance or post-emergency rehabilitation
    assistance at the request of the ACP State concerned, or of the ACP States on
    behalf of the ACP State concerned, or by the Community after prior consultation
    w i t h the ACP States.".
54. In Article 2 7 4 , the following paragraph 3 shall be added:
    "3.     For the purposes of Chapter 5, Section 5 of this Title, "firms of the Member
    States" include firms of the OCT.".
55. Article 281 shall be replaced by the following:
    "Article 281
    1.     A t the beginning of the period of application of the Second Financial Protocol:
    (a)      each ACP State shall obtain from the Community a clear indication of the total
             indicative programmable financial allocation from which it may benefit during
             that period as well as any other relevant information;
                                                                 *V
 ---pagebreak--- (b)  each ACP State eligible for the specific resources earmarked for structural
     adjustment support in accordance w i t h Article 2 4 6 shall be notified of the
     estimated initial instalment that it may receive;
(c)  each ACP State shall obtain from the Bank a global indication of its o w n
     resources and of risk capital resources from which it may benefit during that
     period.
2.  Upon receipt of the information referred to in paragraph 1, each ACP State shall
draw up and submit to the Community a draft indicative programme on the basis of
and consistent w i t h its development objectives and priorities. The draft indicative
programme shall contain:
(a)  the priority development objectives of the ACP State concerned at national and
     regional level;
(b)  the focal sector or sectors on which support should be concentrated, w i t h
     emphasis on poverty alleviation and sustainable development, and the
     resources to be deployed for that purpose;
(c)  proposals for private sector and/or industrial sector development for which the
     ACP State envisages that risk capital and other available resources could be
     used;
                                                           /r
 ---pagebreak--- (d)  the most appropriate measures and operations for attaining the objectives in the
     focal sector or sectors or, where such operations are not sufficiently well-
     defined, the broad outlines of the programmes to support the policies w h i c h the
     ACP State has adopted in the selected focal sectors;
(e)  as appropriate, proposals for management of the indicative programme, and the
     support required in accordance with Article 224(i);
(f)  the resources reserved for projects and programmes outside the focal sector or
     sectors, the broad outlines of the elements for multi-annual programmes
     referred to in Article 2 9 0 , as well, as an indication of the resources to be
     deployed for each of these elements;
(g)  wherever possible, specific and clearly identified national projects and
      programmes, and especially those which constitute a follow-up to existing
      projects and programmes;
 (h)  where appropriate, a limited part of the programmable resources not allocated
     to the focal sector which the ACP State proposes to use for structural
      adjustment support;
 (i)  any proposals for regional projects and programmes;
                                                                tC
 ---pagebreak---     (j)   a timetable for the implementation of the indicative programme, including
          commitments and disbursements;
    (k)   the reserve set aside for insurance against possible claims, and to cover cost
          increases and contingencies.".
56. Article 2 8 2 shall be replaced by the following:
    "Article 2 8 2
    1.   The draft indicative programme shall be the subject of an exchange of views
    between the ACP State concerned and the Community, due regard being given to the
    domestic needs of the ACP States and their sovereign rights to determine their
    development strategies, priorities and models as well as their overall macro-economic
    and sectoral policies.
    2.   The indicative programme shall be adopted by agreement between the
    Community and the ACP State concerned on the basis of the draft indicative
    programme proposed by that State, taking account of the principles set out in
    Articles 3 and 4 , and shall, when adopted, be binding on both the Community and
    that State. It shall specify, inter alia, all the elements referred to in Article 281 (2)
    and an amount representing 7 0 % of the indicative allocation, save for those ACP
    States for which the size of the indicative amount or the concentration of the
    indicative programme on a single project do not justify separate allocations.
                                                                   <
                                                                     '}
 ---pagebreak--- 3.   The indicative programme shall be sufficiently flexible to ensure that operations
are kept constantly in line w i t h the objectives and to take account of any changes
occurring in the economic situation, priorities and objectives of the ACP State
concerned. It may be revised at the request of the ACP State concerned.         It shall be
reviewed when the ACP State concerned has achieved a high level of commitments
in the implementation of the programme and, in any case, not later than three years
after the entry into force of the Second Financial Protocol.
4.   At the end of the review referred to in paragraph 3, the resources required for
completing the implementation of the indicative programme may be allocated giving
due consideration to:
(a)   the indicative allocation;
(b)   progress made in the implementation of the elements of the programme referred
      to in Article 281 (2) and the agreed timetable of commitments and
      disbursements, in the light of the annual reports of the Head of Delegation and
      of the National Authorizing Officer referred to in Article 2 8 4 ( 3 ) ;
(c)   the state of preparation of the activities the ACP State intends to undertake
      within the framework of the second phase of the indicative programme; and
(d)   the specific situation of the ACP State concerned.
                                                              a
 ---pagebreak---     5.   Following the review referred to in paragraphs 3 and 4 and, in any case, not later
    than the end of the period of the Second Financial Protocol, any unallocated
    resources remaining from the programmable resources shall be used for financing
    operations falling within the scope of development finance cooperation, notably
    those relating to programmable assistance, save as otherwise decided by the Council
    of Ministers."
57. Article 2 8 3 shall be replaced by the following:
    "Article 2 8 3
    The Community and the ACP State concerned shall take all necessary measures to
    ensure that the indicative programme is adopted in the shortest possible time and,
    save in exceptional circumstances within twelve months of the signing of the Second
     Financial Protocol.".
58. Article 2 8 4 shall be replaced by the following:
     "Article 2 8 4
     1.  Save for funds reserved for emergency assistance, interest rate subsidies and
     regional cooperation, programmable assistance shall comprise grants.
                                                               a
 ---pagebreak---     2.   In order to take account of the economic and financial difficulties of the least
    developed countries listed in Article 3 3 0 , 5 0 % of risk capital shall be assigned
    globally to these countries. In addition, at least 5 0 % of risk capital resources shall
    be used for assisting ACP States which actively endorse and implement measures to
    support investment in the private sector.
    3.   The National Authorizing Officer and the Head of Delegation shall draw up and
    submit to the Development Finance Cooperation Committee, within 9 0 days of the
    end of each calendar year, a report on the implementation of the indicative
    programme. They shall also take the necessary steps to ensure that the timetable of
    commitments and disbursements agreed at the time of programming is adhered t o ,
    determine the causes of delays in implementation and propose suitable remedial
    measures. The Committee shall examine the reports in accordance w i t h its
    responsibilities and powers under this Convention.".
59. In Article 2 8 7 , paragraph 2 , the following subparagraph (i) shall be added:
    "(i)   the compatibility w i t h the ACP States' trade policies and trade development
           programmes and the impact on their competitiveness in the domestic, regional,
           international and Community markets.".
                                                                  i
 ---pagebreak--- 60. Article 2 9 0 shall be replaced by the following:
    "Article 2 9 0
    1.    W i t h a view to expediting procedures and in derogation from Articles 2 8 8 and
    2 8 9 , financing decisions may be taken on multi-annual programmes where financing
    concerns:
    (a)      training;
    (b)      decentralized operations;
    (c)      micro-projects;
    (d)      trade promotion and trade development;
    (e)      sets of operations of a limited scale in a specific sector;
    (f)      project/programme management support;
    (g)      technical cooperation.
    2.     In cases referred to in paragraph 1, the ACP State concerned may submit to the
    Head of Delegation a multi-annual programme setting out its broad outlines, the
    types of actions envisaged and the financial commitment proposed:
    (a)      The financing decision on each multi-annual programme shall be taken by the
             Chief Authorizing Officer. The letter from the Chief Authorizing Officer to the
             National Authorizing Officer notifying such decision shall constitute the
             financing agreement within the meaning of Article 2 9 1 .
                                                                 h
 ---pagebreak---     (b)    Within the framework of multi-annual programmes thus adopted, the National
           Authorizing Officer or, when the case arises, the agent of decentralized
            cooperation w h i c h has been delegated functions for this purpose or, in
            appropriate cases, other eligible beneficiaries shall implement each individual
            action in accordance with the relevant provisions of this Convention and the
           terms of the financing agreement referred to above. Where implementation is
           to be carried out by agents of decentralized cooperation or other eligible
            beneficiaries, the National Authorizing Officer and the Head of Delegation shall
            maintain financial responsibility and monitor the operations regularly w i t h a
           view to enabling t h e m , inter alia, to carry out their obligations under
            paragraph 3.
    3.    A t the end of each year, the National Authorizing Officer in consultation w i t h the
    Head of Delegation, shall forward a report to the Commission on the implementation
    of the multiannual programmes.".
61. In Article 2 9 4 , paragraph 1(a), subparagraphs (i), (ii) and (iii) shall be replaced by the
    following:
    "(i)    natural persons, companies or firms or public or semi-public agencies of the
            ACP States and the Member States;
    (ii)    cooperative societies and other legal persons governed by public or private law,
            save for those which are non-profit-making, of the Member States and/or the
            ACP States;
    (iii)  joint ventures or groupings of ACP States and/or Member State companies or
            firms.".
                                                                 ?2-
 ---pagebreak--- 6 2 . In Article 2 9 6 , subparagraph 1(b) shall be replaced by the following:
      "(b) the competitiveness of contractors, suppliers and consultants from the Member
              States and the ACP States;"
6 3 . In Article 3 1 6 , paragraph 1 shall be replaced by the following:
      "1.     The Commission shall be represented in each ACP State, or in each regional
        grouping which expressly so requests, by a delegation under the authority of a Head
        of Delegation, w i t h the approval of the ACP State or States concerned."
6 4 . In Article 3 1 7
      -   the following paragraph shall be inserted as a new first paragraph:
          "The Head of Delegation shall represent the Commission in all spheres of its
              competence and in all its activities."
      -   the introductory part of the second paragraph shall be replaced by the following:
           " W i t h particular reference to co-operation, the Head of Delegation shall have the
              necessary instructions and delegated powers to facilitate and expedite the
              preparation, appraisal and execution of projects and programmes and shall be
              provided w i t h the necessary back-up support to do so. To this end, and in close
              cooperation w i t h the national authorizing officer, the Head of Delegation shall:".
64a.       In Article 3 3 1 , point 10, add after the first indent the following indent:
           -   Article 194(5)
64b.       In Article 3 3 1 , point 12, add the following indent:
           -   Article 284(2)
64c.       In Article 3 3 4 , point 9, add before the first indent the following indent:
           -    Article 194(5)
64d.       In Article 3 3 7 , point 9, add before the first indent the following indent:
            -   Article 194(5).
                                                                             }3
 ---pagebreak--- F.    PART F I V E - F I N A L PROVISIONS
6 5 . Article 3 6 4 shall be replaced by the following:
      "Article 3 6 4
       If before the entry into force of the provisions amending this Convention in
       accordance w i t h Article 366(2), the negotiations w i t h South Africa lead to an
       agreement on its accession to this Convention, then, notwithstanding the conditions
       for accession referred to in Article 3 6 3 , the Council of Ministers shall act on the
       outcome of such negotiations and take a decision on the terms and conditions of the
       accession of that State, having regard to the specific characteristics of South Africa.
       These terms and conditions shall be set out in a special Protocol w h i c h shall be an
       integral part of this Convention.
       In case of a positive decision, South Africa shall be added to the States signatory to
       this Convention without further ratification needed by the Signatories of this
       Convention. The decision by the Council of Ministers shall indicate the date of entry
       into force of such accession."
66.    The following Article 364a shall be inserted:
       "Article 364a
          1. Should Somalia ask to accede to this Convention, the Council of Ministers shall
         act on the request and take a decision on that State's accession.
                                                                    ft
 ---pagebreak---      2.   If the Council of Ministers reaches a favourable decision before the entry into
     force of the provisions amending this Convention, Somalia shall be added to the
     signatories on the same footing as the other signatories.
     3.   If the Council of Ministers reaches a favourable decision after the entry into
     force of the provisions amending this Convention, the entry into force of this
     Convention, as amended, in respect of Somalia shall be effective on the first day
     following that on which Somalia lodges its instruments of ratification. The Council
     of Ministers may, however, provide in its decision that certain rights and obligations
     laid down in this Convention shall, in the interest of that country, be applicable to
     Somalia on a different date."
67. The following Article 366a shall be inserted:
    "Article 366a
      1.  Within the meaning of this Article, the term "Party" refers to the Community
      and the Member States of the European Union on the one side, and each ACP
      State, on the other.
                                                              K
 ---pagebreak--- 2.    If one Party considers that another Party has failed t o fulfil an obligation in
respect of one of the essential elements referred to in Article 5, it shall invite the
Party concerned, unless there is special urgency, to hold consultations w i t h a view
t o assessing the situation in detail and, if necessary, remedying it.
For the purposes of such consultations, and w i t h a view to finding a solution:
-    the Community side shall be represented by its Presidency, assisted by the
     previous and next Member States to hold the Presidency, together w i t h the
     Commission;
       the ACP side shall be represented by the ACP State holding the Co-Presidency,
       assisted by the previous and next ACP States to hold the Co-Presidency.         Two
       additional members of the ACP Council of Ministers chosen by the party
       concerned shall also take part in the consultations.
The consultations shall begin no later than 15 days after the invitation and as a rule
last no longer than 3 0 days.
                                                           K
 ---pagebreak---      3.   A t the end of the period referred to in the third subparagraph of paragraph 2 if
     in spite of all efforts no solution has been found, or immediately in the case of
     urgency or refusal of consultations, the Party which invoked the failure to fulfil an
     obligation may take appropriate steps, including, where necessary, the partial or full
     suspension of application of this Convention to the Party concerned. It is
     understood that suspension would be a measure of last resort.
     The party concerned shall receive prior notification of any such measure w h i c h shall
     be revoked as soon as the reasons for taking it have disappeared."
G.  SECOND FINANCIAL PROTOCOL
68. The following Second Financial Protocol shall be applicable during the second five
    year period covered by this Convention:
                              "SECOND FINANCIAL PROTOCOL
                                           Article 1
    1.   For the purposes set out in Part Three, Title II, Chapters 1 and 3, and Title III of
    this Convention for a period of five years commencing 1 March 1 9 9 5 the overall
    amount of the Community's financial assistance to be made available shall be
    ECU 14 6 2 5 million.
                                                                 n
 ---pagebreak--- This overall amount shall comprise:
(a)  an amount of ECU 12 9 6 7 million from the European Development Fund, of
     which ECU 2 9 2 million shall come from unallocated or unusable resources,
     transferred from the previous Funds. This amount shall be allocated as follows:
     (i)   for the purposes set out in Articles 2 2 0 , 221 and 2 2 4 , ECU 9 5 9 2 million
           in the form of grants, including ECU 1 4 0 0 million for structural adjustment
           support, which can be complemented, in accordance w i t h Article
           281 (2)(e), as part of long-term development assistance;
     (ii)  for the purposes set out in Articles 2 2 0 , 221 and 2 2 4 , ECU 1 0 0 0 million
           in the form of risk capital;
     (iii) for the purposes set out in Articles 1 8 6 to 21 2, ECU 1 8 0 0 million in the
           form of grants for the stabilization of export earnings;
     (iv)  for the purposes set out in Articles 2 1 4 to 2 1 9 , ECU 5 7 5 million in the
           form of grants under the SYSMIN scheme;
                                                            P
 ---pagebreak---       (b)  for the purposes set out in Articles 2 2 0 , 221 and 2 2 4 , up to ECU 1 6 5 8
           million from the Bank in the form of loans made from its o w n resources in
           accordance w i t h the terms and conditions provided for by its statute.
           These loans shall be subject to the provisions of Article 235 of this
           Convention relating to interest rate subsidies.
2.   The Bank shall administer the loans made from its o w n resources, including
interest subsidies, as well as risk capital. All other resources of the Convention shall
be administered by the Commission.
                                         Article 2
For the financing of the assistance referred to in Articles 2 5 4 and 255 of this
Convention:
(a)   a special appropriation of ECU 260 million shall be constituted within the funds
      referred to in Article 1 (a)(i), of which ECU 140 million shall be for the
      assistance referred to in Article 2 5 4 and ECU 1 20 million for the assistance
      referred to in Article 2 5 5 ;
(b)   should the special appropriations provided for under one of the aforementioned
      Articles be used up before this Financial Protocol expires, transfers may be
      made from the appropriations provided for in the other Article;
                                                             ft
 ---pagebreak---         (c) on the expiry of this Financial Protocol, appropriations not committed for
            emergency assistance or aid for refugees, returnees and displaced persons shall
            be paid back to the assets of the Fund for the purpose of financing other
            operations coming within the scope of development finance cooperation, save
            as otherwise decided by the Council of Ministers;
        (d) should the special appropriations be used up before this Financial Protocol
            expires, and taking account of other resources from w h i c h the ACP States may
            benefit for the same purposes, the ACP States and the Community, w i t h i n the
            relevant joint institutions, shall adopt appropriate measures to deal w i t h the
            situations referred to in Articles 2 5 4 and 2 5 5 .
                                              Article 3
1.   Of the grants made available under Article 1 (a)(i), an amount of ECU 1 3 0 0 million
shall be reserved for the financing of the regional projects and programmes of the ACP
States.
2.   From the resources earmarked under this Article, the Community shall allocate:
      (i)   a maximum of ECU 73 million by means of a separate allocation to the
            financing of the budget of the Centre for the Development of Industry;
                                                                  K £>
 ---pagebreak---       (ii)  an amount not exceeding ECU 4 million for the purposes referred to in
            Annex LXVIII;
      (iii) an indicative amount of ECU 85 million for the financing of regional
            programmes pertaining to trade development as laid d o w n in Article 1 3 8 ;
      (iv)  an amount of ECU 80 million for the incentive financing of institutional support
            as laid down in Article 224(m).
3.  The Bank may, from the resources it manages, supplement these resources by
contributing to the financing of regional projects and programmes.
                                            Article 4
Any balance remaining from the Fund that has not been committed or disbursed by the
end of the last year of application of this Financial Protocol shall be utilized until it has
been exhausted, in accordance w i t h the same conditions as those laid d o w n in this
Convention."
                                                          H
 ---pagebreak--- H.  PROTOCOL 1 - CONCERNING THE DEFINITION OF THE CONCEPT OF
    "ORIGINATING PRODUCTS" AND METHODS OF ADMINISTRATIVE COOPERATION
69. In Protocol 1 , Tit*» I, Article 5, " 1 0 % " shall be replaced by " 1 5 % " .
70. In Protocol 1 , Title I, Article 6, the following paragraph 5 shall be added:
    "5.  A t the request of the ACP States, products originating in a neighbouring
         developing country, other than an ACP State, belonging to a coherent
         geographical entity, shall be considered as originating in the ACP State where
         they undergo further working or processing, provided that:
               the working or processing carried out in the ACP State exceeds the
               operations listed in Article 3(3). However, products of Chapter 50 to 63
               of the Harmonized System shall in addition undergo in the ACP State at
               least working or processing as a result of which the product obtained
               receives a classification under a heading of the Harmonized System
               different from that covering the products originating in the
               non-ACP developing country. For products listed in Annex X to this
               Protocol, only the specific processing referred to in column 3 shall apply,
               whether or not it involves a change of heading,
                                                                IL
 ---pagebreak---            -    the ACP States, the Community and the other countries concerned have
                concluded an agreement on adequate administrative procedures which will
                ensure correct implementation of this paragraph.
           This paragraph shall not apply to tuna products classified under Harmonized
           System Chapters 3 or 16, rice products of HS code 1006 or the textile
           products listed in Annex XI to this Protocol.
           For the purpose of determining whether the products originate in the
           non-ACP developing country, the provisions of this Protocol shall apply.
           The ACP-EC Council of Ministers shall decide on the ACP requests on the
           basis of a report drawn up by the ACP-EC Customs Cooperation Committee in
           accordance w i t h Article 3 0 . "
71. In Protocol 1, Title II, Article 2 1 , paragraph 1, "ECU 2 8 2 0 " shall be replaced by
    "ECU 3 1 4 0 " and in paragraph 2, " 3 0 April 1 9 9 1 " shall be replaced by
    " 3 0 April 1 9 9 7 " and "1 October 1 9 8 8 " by "1 October 1 9 9 4 " .
72. In Protocol 1, Title II, Article 2 2 , paragraph 2, second subparagraph, "ECU 2 0 0 " and
    "ECU 5 6 5 " shall be replaced by "ECU 2 3 0 " , and "ECU 6 3 0 " respectively.
                                                                %'i
 ---pagebreak--- 73. In Protocol 1 , Title III, Article 3 1 , paragraph 8, the first paragraph shall be replaced
    by the following:
    "8.   Upon request derogations concerning canned tuna and tuna loins shall be
      automatically granted, within an annual quota of 4 0 0 0 tonnes, for canned tuna,
      and, within an annual quota of 5 0 0 tonnes, for tuna loins."
74. Protocol 1 , Title IV shall be replaced by the following:
                                              "TITLE IV
                                      CEUTA AND MELILLA
                                             ARTICLE 32
                                         Special conditions
      1.   The term "Community" used in this Protocol shall not cover Ceuta and Melilla.
      The term "products originating in the Community" shall not cover products
      originating in Ceuta and Melilla.
      2.   The provisions of this Protocol shall apply mutatis mutandis in determining
      whether products may be deemed as originating in the ACP States w h e n imported
      into Ceuta and Melilla.
                                                                  hi
 ---pagebreak---     3.   Where products wholly obtained in Ceuta, Melilla, the OCT or the Community
    undergo working and processing in the ACP States, they shall be considered as
    having been wholly obtained in the ACP States.
    4.   Working or processing carried out in Ceuta, Melilla, the OCT or the Community
    shall be considered as having been carried out in the ACP States, w h e n materials
    undergo further working or processing in the ACP States.
    5.   For the purpose of implementing paragraphs 3 and 4 , the insufficient operations
    listed in Article 3{3)(a), (b), (c), and (d) shall not be considered as working or
    processing.
    6.   Ceuta and Melilla shall be considered as a single territory."
75. In Protocol 1, the following Annexes X and XI shall be added at the end:
                                                                 sr
 ---pagebreak---                                                "ANNEX X
 List of working or processing conferring the character of ACP origin on a product obtained w h e n
working or processing is carried out on textile materials originating in developing countries referred
                                  to in Article 6(5) of this Protocol.
                         Textiles and textile articles falling within Section XI
   CN Code         Description of product            Working or processing carried out on non-
                                                   originating materials that confers the status of
                                                                 originating products
        :D                   (2)                                           (3)
ex 5 1 0 1      Wool, not carded or
                combed:
                      degreased, not            Manufacture from greasy, including piece-wasted
                      carbonized                wool, the value of which does not exceed 5 0 %
                                                of the ex-works price of the product
                       carbonized               Manufacture from degreased w o o l , not
                                                carbonized, the value of which does not exceed
                                                5 0 % of the ex-works price of the product
ex 5'103        Waste of wool or of fine        Manufacture from non-carbonized waste, the
                or coarse animal hair,          value of which does not exceed 5 0 % of the ex-
                 carbonized                     works price of the product
ex 5 2 0 1       Cotton, not carded or          Manufacture from raw cotton, the value of w h i c h
                 combed, bleached               does not exceed 5 0 % of the ex-works price of
                                                the product
 5 5 0 1 to      Man-made staple fibres:
 5507
                       not carded or            Manufacture from chemical materials or textile
                       combed or                pulp
                       otherwise
                       processed for
                       spinning
                       carded or combed         Manufacture from chemical materials or textile
                       or other                 pulp or waste falling within CN code 5505
                                                                       U
 ---pagebreak---       (1)                 (2)                                       (3)
ex Chapters Yarn, monofilament and
5 0 to 55   thread, other than paper
            yarn:
                   printed or dyed       Manufacture f r o m :
                                                natural fibres not carded or combed or
                                                otherwise prepared for spinning,
                                                grege silk or silk waste,
                                                chemical materials or textile pulp, or
                                                man-made staple fibres, filament t o w or
                                                waste of fibres, not carded or combed or
                                                otherwise prepared for spinning
                                         or
                                         Printing or dyeing of yarn or monofilaments,
                                         unbleached or prebleached (1), accompanied by
                                         preparatory or finishing operations, t w i s t i n g or
                                         texturizing not being considered as such, the
                                         value of non-originating material (including yarn),
                                         not exceeding 4 8 % of the ex-works price of the
                                         product
                    other                Manufacture f r o m :
                                                natural fibres not carded or combed or
                                                otherwise prepared for spinning,
                                                grege silk or silk w a s t e ,
                                                chemical materials or textile pulp, or
                                                man-made staple fibres, filament t o w or
                                                 waste of fibres, not carded or combed or
                                                otherwise prepared for spinning
             Woven fabrics, other
             than fabrics of paper
             yarn:
                    printed or dyed       Manufactured from yarn
                                          or
                                          Printing or dyeing of unbleached or prebleached
                                         fabrics, accompanied by preparatory or finishing
                                          operations (1)(2)
 5601               other                 Manufacture from yarn
             Wadding of textile           Manufacture from fibres
             materials and articles
             thereof; textile fibres not
             exceeding 5 mm in
              length (flock), textile
              dust and mill neps
                                                                 Î}
 ---pagebreak---     :D               (2)                                     (3)
5602   Felt, whether or not
       impregnated, coated,
       covered or laminated:
              printed or dyed      Manufacture from fibres
                                   or
                                   Printing or dyeing of unbleached or prebleached
                                   felt, accompanied by preparatory or finishing
                                   operations (1)(2)
              Impregnated,         Impregnation, coating, covering or laminating of
              coated, covered or   non-wovens, unbleached (3)
              laminated
              other                Manufacture from fibres
5603   Non-wovens, whether or
       not impregnated, coated,
       covered or laminated:
              printed or dyed      Manufacture from fibres
                                   or
                                   Printing or dyeing of unbleached or prebleached
                                   non-wovens, accompanied by preparatory or
                                   finishing operations (1)(2)
              impregnated,         Impregnation, coating, covering or laminating of
              coated, covered or   non-wovens; unbleached(3)
              laminated
              other                Manufacture from fibres
5604
       Rubber thread and cord,
       textile covered, textile
       yarn and strip, and the
       like falling within CN
       codes 5 4 0 4 or 5 4 0 5 ,
       impregnated, coated,
       covered or sheathed w i t h
       rubber or plastics:
              rubber thread and    Manufacture from rubber thread or cord, not textile
              cord, textile        covered
              covered
              other                Impregnation, coating, covering or sheathing of
                                   textile yarn and strip and the like, unbleached
                                                           n
 ---pagebreak---       (1)                   (2)                                       (3)
5607       Twine cordage, rope and           Manufacture from fibres, coir yarn, synthetic
           cables, whether or not            or artificial filament yarn or monofilament
           plaited or braided and
           whether or not
           impregnated, coated,
           covered or sheathed w i t h
           rubber or plastics
5609       Articles of yarn, strip or        Manufacture from fibres, coir yarn, synthetic
           the like falling within CN        or artificial filament yarn or monofilament
           codes 5 4 0 4 or 5 4 0 5 ,
           t w i n e , cordage, rope or
           cables, not elsewhere
           specified or included
5704       Carpets and other textile         Manufacture from fibres
           floor coverings, of felt,
           not tufted or flocked,
           whether or not made up
Chapter 58 Special woven fabrics;
           tufted textile fabrics;
           lace; tapestries,
           trimmings; embroidery:
                      embroidery in the      Manufacture in which the value of the
                      piece, in strips or in materials used does not exceed 5 0 % of the
                      motifs (CN code        ex-works price of the product
                      5810)
                      printed or dyed        Manufacture from yarn
                                             or
                                             Printing or dyeing of unbleached or
                                             prebleached fabrics, felt or non-wovens,
                                             accompanied by preparatory or finishing
                                             operations (1)(2)
                      impregnated,           Manufacture from unbleached fabrics, felt or
                      coated or covered      non-wovens
                      other                  Manufacture from yarn
                                                                 ss
 ---pagebreak---     (1)                (2)                                    (3)
5901    Textile fabrics coated       Manufacture from unbleached fabrics
        w i t h gum or amylaceous
        substances, of a kind
        used for the outer covers
        of books or the like;
        tracing cloth;-prepared
        painting canvas, buckram
        and similar stiffened
        textile fabrics of a kind
        for hat foundations
5902    Tyre cord fabric of high     Manufacture from yarn
        tenacity yarn of nylon or
        other polyamides,
        polyesters or viscose
        rayon
5903    Textile fabrics,             Manufacture from unbleached fabrics
        impregnated, coated,         or
        covered or laminated         Printing or dyeing of unbleached or prebleached
        w i t h plastics, other than fabrics, accompanied by preparatory or finishing
        those falling within CN      operations (1)(2)
        code 5 9 0 2
5904    Linoleum, whether or not     Manufacture from unbleached fabrics, felt or non-
        cut to shape; floor          wovens
        coverings consisting of a
        coating or covering
        applied on a textile
        backing, whether or not
        cut to shape
5905    Textile wall coverings       Manufacture from unbleached fabrics
                                     or
                                     Printing or dyeing of unbleached or prebleached
                                     fabrics, accompanied by preparatory or finishing
                                     operations (1)(2)
5906    Rubberized textile           Manufacture from bleached knitted or crocheted
        fabrics, other than those    fabrics, or from other unbleached fabrics
        falling within CN code
        5902
5907    Textile fabrics otherwise    Manufacture from unbleached fabrics
        impregnated, coated or       or
        covered; painted canvas      Printing or dyeing of unbleached or prebleached
        being theatrical scenery,    fabrics, accompanied by preparatory or finishing
        studio backcloths or the     operations (1)(2)
        like
                                                            io
 ---pagebreak---     (1                   (2)                                     (3)
5908       Textile wicks, w o v e n ,     Manufacture from yarn
           plaited or knitted, for
           lamps, stoves, lighters,
           candles and the like;
           incandescent gas
           mantles and tubular
           knitted gas mantle fabric
           therefor, whether or not
           impregnated
5909       Textile hosepiping and         Manufacture from yarn or fibres
           similar textile tubing w i t h
           or without lining, amour
           or accessories of other
           materials
5910       Transmission or                Manufacture from yarn or fibres
           conveyor belts or
            belting, of textile
            material, whether or not
            reinforced w i t h metal or
            other material
5911        Textile products and
            articles, for technical
            uses, specified in Note 7
            to Chapter 59 of the
            combined nomenclature:
                   polishing discs or     Manufacture from yarn, waste fabrics or rags
                   rings other than of    falling within CN code 6 3 1 0
                   felt
                   other                  Manufacture from yarn or fibres
Chapter 60  Knitted or crocheted
            fabrics:
                   printed or dyed        Manufacture from yarn
                                          or
                                          Printing or dyeing of unbleached or prebleached
                                          fabrics, accompanied by preparatory or finishing
                                          operations (1)(2)
                   other                   Manufacture from yarn
                                                               Hi
 ---pagebreak---           1                          (2)                                (3)
  Chapter 61           Articles of apparel and
                       clothing accessories,
                       knitted or crocheted:
                              obtained by sewing   Complete making up (4)
                              together or
                              otherwise
                              assembling, t w o or
                              more pieces of
                              knitted or
                              crocheted fabric
                              which have been
                              either cut to form
                              or obtained directly
                              to form
                              other                Manufacture from yarn
   ex Chapter 62       Articles of apparel and
                       clothing accessories, not
                       knitted or crocheted,
                       except those falling
                       within CN codes 6 2 1 3
                       and 6 2 1 4 for which the
                       rules are set out below:
                              finished or          Complete making up (4)
                              complete
                              unfinished or        Manufacture from yarn
                              incomplete
6 2 1 3 and 6 2 1 4    Handkerchiefs, shawls,
                       scarves, mufflers,
                       mantillas, veils and the
                       like:
                               embroidered         Manufacture from yarn
                                                   or
                                                   Manufacture from unembroidered fabric,
                                                   provided the value of the unembroidered
                                                   fabric used does not exceed 4 0 % of the ex-
                                                   works price of the product
                               other               Manufacture from yarn
        * see also the products excluded from the derogation procedure listed in ANNEX XI
                                                                   fc
 ---pagebreak---     (1)               (2)                                  (3)
6301 to Blankets and travelling
ex 6306 rugs; bed linen, table
        linen, toilet linen and
        kitchen linen; curtains
        (including drapes) and
        interior blinds; curtain
        and bed valances; other
        furnishing articles
         (excluding those falling
        within CN code 9494);
        sacks and bags of a kind
         used for the packing of
        goods; tarpaulins,
         awnings, and camping
         goods:
         -  of felt or non-wovens:
            - not impregnated,     Manufacture from fibres
               coated, covered or
               laminated
            - impregnated,         Impregnation, coating, covering or laminating of
               coated, covered or  felt or non-wovens, unbleached (3)
               laminated
         -  other
            - knitted or
               crocheted
            - unembroidered        Complete making up (4)
            - embroidered          Complete making up (4)
                                   or
                                    Manufacture from unembroidered knitted or
                                   crocheted fabric provided the value of the
                                    unembroidered knitted or crocheted fabric used
                                    does not exceed 40% of the ex-works price of the
                                    product
             - not knitted or
                crocheted:
             - unembroidered        Manufacture from yarn
                                                         13
 ---pagebreak---        (1)                (2)                                      (3)
6 3 0 1 to    embroidered               Manufacture from yarn
ex6306                                  or
(cont'd)                                Manufacture from unembroidered fabric provided
                                        the value of the unembroidered fabric used does
                                        not exceed 4 0 % of the ex-works price of the
                                        product
6307       Other made up textile
           articles (including dress
           patterns), except for fans
           and hand screens,
           nonmechanical, frames
           and handles therefor and
           parts of such frames and
           handles:
           -  floor cloths, dish        Manufacture from yarn
              cloths, dusters and
              the like
           -   other                    Manufacture in w h i c h the value of the materials
                                        used does not exceed 4 0 % of the ex-works price
                                        of the product
6308       Sets consisting of woven     Incorporation in a set in which the total value of all
           fabric and yarn, whether     the non-originating articles incorporated does not
           or not w i t h accessories,  exceed 2 5 % of the ex-works price of the set
           for making up into rugs,
           tapestries, embroidered
           table cloths or serviettes
           or similar textile articles,
           put up in packings for
           retail sale
                                                                 9r
 ---pagebreak--- (1) The term "prebleached", used in the list in Annex X to characterize the level of
    manufacture required when certain non-originating materials are used, applies to
    certain yarns, w o v e n fabrics and knitted or crocheted fabrics w h i c h have only
    been washed after the spinning or weaving operation.
    Prebleached products are at an earlier stage of manufacture than bleached
    products, w h i c h have undergone several baths in bleaching agents (oxydizing
    agents such as hydrogen peroxyde and reducing agents).
(2) However, to be regarded as a working or processing conferring origin,
    thermoprinting has to be accompanied by printing of the transfer paper.
(3) The term "Impregnation, coating, covering or laminating" does not cover those
    operations designed to bind fabrics together.
(4) The term "complete making-up" used in the list in Annex X means that all the
    operations following cutting of the fabric or knitting or crocheting of the fabric
    directly to shape have to be performed.
    However, making-up shall not necessarily be considered as incomplete where one
    or more finishing operations have not been carried out.
    The following is a list of examples of finishing operations:
             fitting of buttons and/or other types of fastenings,
             making of button-holes,
             finishing off the ends of trouser legs and sleeves or the bottom hemming of
             skirts and dresses,
             fitting of trimmings and accessories such as pockets, labels, badges, etc.,
     -       ironing and other preparations of garments for sale "ready made".
     Remarks concerning finishing operations - Special cases
     It is possible that in particular manufacturing operations, the accomplishment of
     finishing operations, especially in the case of a combination of operations, is of
     such importance that these operations must be considered as going beyond simple
     finishing.
     In these particular cases, the non-accomplishing of finishing operations will deprive
     the making-up of its complete nature.
                                                               ?r
 ---pagebreak---                                            ANNEX XI
Textile products excluded from the cumulation procedure w i t h certain developing
countries referred to in Article 6(5) of this Protocol
      6 1 0 1 10 90        Jerseys, pullovers, slip-overs, waistcoats, t w i n s e t s ,
      6 1 0 1 20 90        cardigans, bed-jackets and jumpers (other than jackets
      6 1 0 1 30 90        and blazers), anoraks, windcheaters, waister jackets
                           and the like, knitted or crocheted
      6 1 0 2 10 90
      6 1 0 2 20 90
      6 1 0 2 30 90
      6 1 1 0 10 10
      6110 1031
      6110 1035
      6110 1 0 3 8
      6 1 1 0 10 91
      6110 1095
      6110 1098
      61102091
      61102099
      6 1 1 0 3 0 91
      61103099
      6203    41  10        Men's or boys' woven breeches, shorts other than
      6203    41  90       swimwear and trousers (including slacks); w o m e n ' s or
      6203    42  31       girls' woven trousers and slacks, of w o o l , of cotton or
      6203    42  33       of man-made fibres, lower parts of tracksuits w i t h
      6203    42  35        lining, other than category 1 6 or 2 9 , of cotton or of
      6203    42  90       man-made fibres
      6203    43  19
      6203    43  90
      6203    49  19
      6203 49 50
      6204 61 10
      6204 62 31
      6204 62 33
      6204 62 39
      6204 63 18
      6204 69 18
      6211 32 42
      6211 33 42
      6211 42 42
      621143 42           |
                                                                M
 ---pagebreak--- I.    PROTOCOL 7 ON BEEF AND VEAL
7 6 . In Protocol 7, Articles 1 , 2 and 4 shall be replaced by the following:
      "Article 1
        Within the limits referred to in Article 2, import duties other than customs duties
        applicable to beef and veal originating in the ACP States shall be reduced by
        92%.
        Article 2
        Without prejudice to Article 4 , the reduction in import duties provided for in
        Article 1 shall apply to the following quantities of boneless meat per calendar
        year and per country:
        Botswana                 18 9 1 6      tonnes
        Kenya                         142      tonnes
        Madagascar                  7 579      tonnes
        Swaziland                   3 363      tonnes
        Zimbabwe                    9 100      tonnes
        Namibia                   13 0 0 0      tonnes.
                                                                 n
 ---pagebreak---        Article 4
        If, in the course of a given year, one of the ACP States referred to in Article 2 is
        not in a position to supply the total quantity fixed and does not w i s h to benefit
       from the measures referred to in Article 3, the Commission may share out the
        amount to be made up among the other ACP States concerned. In such a case,
       the ACP States concerned shall put forward a proposal to the Commission, not
        later than 1 September of that year, naming the ACP State or States which will
        be in a position to supply the new additional quantity, at the same time indicating
       to it the ACP State which is not in a position to supply the full amount allocated
       to it, on the understanding that this new temporary allocation will not affect the
        initial quantities.
        The Commission shall ensure that a decision is taken by 1 December at the
        latest."
J.    PROTOCOL 10 ON SUSTAINABLE MANAGEMENT OF FOREST RESOURCES
7 7 . The following Protocol 10 shall be added:
                                        "PROTOCOL 10
                         on sustainable management of forest resources
      1.    The Community and the ACP States acknowledge the importance and the
      need for the rational management of forest resources w i t h a view to ensuring a
      long-term sustainable development of forests in ACP States in conformity w i t h the
      Rio Declaration of Principle on the Environment and Development including the
      non-legally binding Forest Principles, the UN framework agreement on climatic
      changes and the Conventions on Biodiversity and Desertification.
                                                              n
 ---pagebreak--- 2.   Special priority shall be given to actions which support and encourage the
efforts of ACP States and their organizations to preserve, re-establish and use
sustainably their forestry resources, including the fight against desertification.
3.  The Community and the ACP States shall concentrate their efforts on actions
promoting:
(a) conservation of endangered tropical forests and their biodiversity and
    regeneration of the functions of tropical forests which have been damaged,
    bearing in mind the needs and interests of local populations in the sustainable
    use of forest products, the different actors and factors causing deforestation,
    the need to ensure participation by local populations in the identification,
    planning and implementation of actions, the differences between countries and
    regions and measures to address them,
(b) development of buffer zones to assist the conservation, regeneration and
    sustainable development of tropical forests, as a part of a broader land
    utilization plan,
(c) sustainable management of forests destined for the production of timber and
    other products derived therefrom, to ensure that by the year 2 0 0 0 and based
    on appropriate management plans, these products are derived from sustainable
    sources. Special priority will be given to community based and small scale
    forest operations,
                                                        If
 ---pagebreak--- (d) supporting and developing locally adapted re-afforestation and forest
    management activities as weil as restoring the fertility of degraded forest
    lands, especially in the framework of national and regional campaigns against
    desertification,
(e) support for institution building in the forestry sector w i t h emphasis on capacity
    building to address the need for training schemes for local populations, forest
    managers and researchers, for legislation, for increased political and social
    support and strengthening of institutions and for organizations and associations
    active in forestry operations,
(f) development and implementation of action plans at local, national and regional
    level to improve the management, conservation and sustainable development
    of forests, taking into account the causes of deforestation from inside and
    outside the forest sector,
(g) introduction of a strategic and adaptive research policy aimed at imparting
    knowledge and the planning capacity required for the conservation and
    sustainable management of forests and also for the implementation of research
    monitoring activities in the framework of projects and programmes.
                                                       yt^>o
 ---pagebreak--- 4.   Acknowledging the importance of timber and timber products for the
economies of the ACP States, the Community and the ACP States shall
concentrate w i t h i n the confines set out above on the following:
(a) improving the timber trade and marketing from forests under sustainable
    development;
(b) supporting the definition and development of certification systems for timber
    produced from tropical forests bearing in mind sustainable forest management
    principles as part of envisaged internationally harmonized certification systems
    for all kinds of timber and timber products;
(c) supporting measures to increase the share of tropical timber and timber
    products from sustainable sources within the overall production of this sector
    in the ACP States w i t h a view to stimulating economic development and
    industrialization in these States and increasing employment prospects and
    export earnings;
(d) promoting and diversifying international trade in tropical timber from resources
    rendered sustainable through the improvement of the structural characteristics
    of international markets taking account of prices which reflect the cost of
    sustainable management of forests and are at the same time remunerative and
    fair to both parties;
                                                        ^<si
 ---pagebreak--- (e) supporting the development of ACP national policies aimed at the sustainable
    utilization and preservation of tropical timber producing forests and their
    genetic resources as well as the maintenance of an ecological balance in the
    regions concerned within the context of the tropical timber trade;
(f) promoting access to and transfer of technology as well as technical
    cooperation for attaining the objectives of sustainable development.
5.   Acknowledging further the importance of tropical timber for the economies of
the ACP States w i t h timber producing forests and the imperative need to put an
end to desertification in many ACP countries and bearing in mind the incremental
cost of achieving benefits associated with forest preservation and development,
the Community will support the above activities. To this end the Community will
in addition to the resources set aside for national indicative programmes, regional
indicative programmes or all ACP activities and in accordance w i t h the relevant
provisions, use resources available under the Community budget for this purpose."
                                                     > o    ^
 ---pagebreak--- K.    FINAL ACT
7 8 . In the Final A c t , the following Annex Ilia shall be inserted:
                                           "ANNEX Ilia
                                Community declaration on Article 4
      In supporting the development strategies of the ACP States the Community shall,
      in its dialogue w i t h the ACP States, take account of its development objectives
      and priorities, and in particular:
      - the sustainable economic and social development of developing countries,
         especially the poorest among t h e m . In this context the enhancement of human
         resources and the environment shall receive particular attention;
      - their smooth and gradual integration into the world economy, w i t h particular
         emphasis on the revitalization of their economies through the promotion of the
         private sector;
      - poverty alleviation;
       - the development and consolidation of democracy and the rule of law and
         adherence to human rights and fundamental freedoms."
                                                                 ^/Co 5
 ---pagebreak--- 79. In the Final Act, Annex XIV shall be replaced by the following:
                                         "ANNEX XIV
      Joint declaration on Article 91 : Centre for the Development of Industry (CDI)
1.  The Contracting Parties agree that with regard to the appointment of the Director
and the Deputy Director of the CDI, the principle of rotation between ACP and
EC nationals shall be institutionalized.
2.  The rotation shall be effected after a period of five years, which will be the
maximum duration of the term of office of the Director and Deputy Director appointed
by the Committee on Industrial Cooperation.
3.  In appointing the Director and Deputy Director, the Contracting Parties shall consult
on the proposals to be made by either Party, taking cognizance of the joint nature of
the CDI.
4.  An Advisory Council of the CDI will be set up. Its composition and rules of
operation shall be determined in the Statute of the CDI."
                                                             /t»i
 ---pagebreak--- 8 0 . In the Final A c t , Annex XXII shall be replaced by the following:
                                           "ANNEX XXII
         Joint declaration on Article 141 concerning cultural and social cooperation
      1.   Cooperation projects and programmes put forward by the Foundation for
      ACP-EC Cultural Cooperation and other specialized institutions referred to in Article
      141 of this Convention may be eligible, under the conditions set out in Article
      140(2) of this Convention, for financial aid from the Community for their
      implementation.
      2.   Any aid accorded by the Community shall be wholly devoted to the financing
      of cultural and social cooperation projects and programmes."
8 1 . In the Final A c t , Annex XL shall be replaced by the following:
                                            "ANNEX XL
                        Joint declaration concerning agricultural products
                                referred to in Article 168(2)(a)(ii)
       The Contracting Parties have taken note that the Community intends to take the
        measures mentioned in the Annex, and which are laid d o w n at the date of signing
        of this Convention, w i t h a view to granting ACP States the preferential treatment
        provided for in Article 168(2)(a)(ii) for certain agricultural and processed products.
        They have taken note that the Community declares that it will take all the
        measures required to ensure that the corresponding agricultural regulations are
        adopted in good time and that, wherever possible, they come into force at the
        same time as the interim arrangements which will be introduced after the signing
        of the instrument amending the Fourth ACP-EC Convention.
                                                                ^r
 ---pagebreak---                  Import treatment applicable to agricultural products
                    and foodstuffs originating in the ACP States
      Common organization                                  Special treatment for the
           of the market                                          ACP States
BEEF A N D VEAL
CN Code:                                    Exemption from customs duties for all
                                            products covered by the c o m m o n
                                            organization of the market
0102 10 00                                  Where, in the course of a year, imports of
0102 90 10                                  beef and veal falling within CN codes 0 2 0 1 ,
0102 90 31                                  0 2 0 2 , 0 2 0 6 10 9 5 , 0 2 0 6 29 9 1 , 1602 5 0
0102 90 33                                  10 and 1602 9 0 61 originating in an ACP
0102 90 35                                  State exceed a quantity equivalent to that of
0102 90 37                                  imports into the Community from 1 9 6 9 to
0201                                        1 9 7 4 inclusive in which the greatest quantity
0202                                        of Community imports, for the origin in
0206 10 91                                  question was recorded, plus an annual
0206 10 95                                  g r o w t h rate of 7 % , exemption frQm customs
0206 10 99                                  duties on the products of that origin shall be
0206 21 00                                  partially or totally suspended.
0206 22 90
0206 29 91
0206 29 99
0210 20                                     In such cases, the Commission shall report
0210 90 41                                  to the Council of Ministers of the European
0210 90 49                                  Union, w h i c h acting by a qualified majority
0210 90 90                                  on a proposal from the Commission shall
1502 00 91                                  decide on the treatment to be applied to the
1602 50 10                                  imports concerned.
1602 50 90
1602 90 61
1602 90 69
                                                                yU
 ---pagebreak--- SHEEPMEAT AND GOATMEAT
CN Code:               Exemption from customs duties for all
                       products covered by the common
                       organization of the market
                       Non-application of third-country levy for
                       CN codes:
0104
0204
0206 80 99             (a)   0104 10 90
0206 90 99                   0104 20 90
0210 90 11                   (other than pure-bred breeding animals)
0210 90 19             (b) 0204
0210 90 60                   0210 90 11
1502 00 99                   0210 90 19
1602 90 71                   (other than meat of domestic sheep).
1602 90 79                   For this meat, reduction of 65% of the
                             levy for an annual quota of 500 tonnes
POULTRYMEAT
CN code:               16% reduction in customs duties for the
                       following products:
0105 1111                    fowls of the species Gallus domesticus
0105 11 19
0105 11 91
0105 11 99
0105 91 00
0105 19 10                   Geese and turkeys
0105 99 20
0105 99 30
0105 19 90                   Ducks and guinea fowls
0105 99 10
0105 99 50
0209 00 90                   Poultry fat, fresh, chilled or frozen
0210 90 71                   Offal of poultry livers
0210 90 79
1501 00 90                    Poultry fat, rendered
                        Reduction of the third-country levy by 65%
                       for:
0207                          Poultrymeat within the limits of an
                              annual quota of 400 tonnes
1602 31                       Other prepared or preserved meat and
1602 39                       poultry offal within the limits of an
                              annual quota of 500 tonnes
                                      ^
 ---pagebreak--- DAIRY PRODUCTS
CN code:        16% reduction in customs duties for the
               following products:
0401 10              Milk and cream, not concentrated nor
0401 20              containing added sugar or other
0401 30              sweetening matter
0403 10 02 to        Yogurt, not flavoured nor containing
0403 10 36           added fruit, nuts or cocoa
0403 90 11 to        Other fermented or acidified milk and
0403 90 69           cream, not flavoured nor containing
                     added fruit, nuts or cocoa
0404 10              Whey and modified whey
                     Products consisting of natural milk
0404 90              constituents
                     Butter and other fats and oils derived
0405 00              from milk
                     Lactose syrup, flavoured
2106 90 51
2309 10 15           Dog or cat food containing more than
2309 10 19           50% of milk products
2309 10 39
2309 10 59
2309 10 70
2309 90 35     Other preparations of a kind used for animal
2309 90 39     feeding containing more than 50% of milk
2309 90 49     products
2309 90 59
2309 90 70
               Reduction of third-country levy by 65% for:
0402                 Milk and cream, concentrated or
                     containing added sugar within the limits
                     of a quota of 1 000 tonnes
0406                 Cheese and curd within the limits of an
                     annual quota of 1 000 tonnes
EGGS
CN code:       16% reduction in customs duties for
               products covered by the common
               organization of the markets:
0407 00 11           Poultry eggs
0407 00 19
0407 00 30
                            ^>f
 ---pagebreak--- 0408 11 80     — Yolks of birds' eggs
0408 19 81
0408 19 89
0408 91 80          Birds' eggs
0408 99 80
6. PIGMEAT
CN code:       16% reduction in customs duties on the
               following products:
0103 91 10     — Live swine other than pure-bred
0103 92 11          breeding animals
0 1 0 3 9 2 19
1501 00 11          Lard and other pig fat
1501 00 19
1602 10 00     — Prepared or preserved meat of swine
1602 20 90
1602 41 10
1602 41 90
1602 42 10
1602 49
1602 90 10
1602 90 51
1902 20 30      — Pasta stuffed with sausages and the
                    like
               50% reduction in customs duty within a
               quota of 500 tonnes:
0203 11 10      — Meat of swine, fresh or chilled
0203 12 11
0203 12 19
0203 19 11 to
0203 19 59
0203 21 10     Meat of swine, frozen
0203 22 11
0203 22 19
0203 29 11 to
0203 29 59
0206 30 21          Offal of domestic swine, fresh or
0206 30 31          chilled
0206 41 91          Offal of domestic swine, frozen
0206 49 91
0209 00 11          Pig fat
0209 00 19
0209 00 30          Pig fat, other than that falling within
                    subheading 0209 00 11 or
                    0209 00 19
                            MJ
 ---pagebreak--- 0210 11 11 to            Hams, shoulders and cuts thereof,
0210 11 39               w i t h bone in, salted, dried or smoked
0210 12 11               Bellies of domestic swine, salted,
                         dried or smoked
0 2 1 0 19 1 0 t o       Other cuts of domestic swine,
0210 1 9 8 9             salted, dried or smoked
02109031                 Edible flours and meals of offal of
0 2 1 0 9 0 39           domestic swine
                    Reduction of the third-country levy by
                    6 5 % within the limits of an annual quota
                    of 5 0 0 tonnes for:
1601 0 0            — Sausages and similar products of
                         meat, meat offal or blood
7. FISHERY PRODUCTS
CN code: 1          Exemption from customs duties for all
                    products covered by the common
                    organization of the market
03
0 5 1 1 91 9 0
1604
1605
1 9 0 2 2 0 10
2301 20 00
8. SUGAR
CN code:            1 6 % reduction in customs duty: this
1 2 1 2 9 1 10      reduction will not be applicable w h e n the
1 2 1 2 9 1 90      Community, in accordance w i t h its
121292 00           Uruguay Round commitments, applies
1702 20 10          additional duties
1702 20 90
1702 30 10
1702 40 10
1702 60 10
1702 60 90
1702 90 30
1702 90 60
1702 90 71
1702 90 90
2106 90 30
2106 90 59
                    Reduction of the third-country levy by
                    ECU 0 . 5 / 1 0 0 kg within the limits of an
                    annual quota of 6 0 0 0 0 0 tonnes for:
1703                — Molasses
                                    yùUi
 ---pagebreak--- 9. OIL SEEDS AND OLEAGINOUS FRUIT
CN Code:                          Exemption from customs duties for al
                                  products covered by the common
                                  organization of the market
1 2 0 1 0 0 90
1 202 10 90
1 202 20 00
1 203 00 00
1204 00 90
1205 00 90
1 206 00 90
1207 10 90
1 207 20 90
1 207 30 90
1 207 40 90
1207 50 90
1 207 60 90
1207 91 90
1207 92 90
1207 99 91
1207 99 99
1208
1504
1507
1508
1509 90 00
15100090
1511
1512
1513
1514
1515 11 00
1515 19                           Exemption from customs duties
151521
151529
 151550
 15159021
 1515 90 29
 15159031
 1515 90 39
 1 5 1 5 9 0 40
 15159051
 1 5 1 5 9 0 59
 1 5 1 5 9 0 60
 15159091
 1515 90 99
 151610
 15162091
 1 5 1 6 2 0 99
 15171090
                                             y(M
 ---pagebreak--- 15179091
151790 99
15180031
1518 00 39
1522 0091
1522 00 99
2304 00 00
2305 00 00
2306 10 00
2306 20 00
2306 30 00
2306 40 00
2306 50 00
2306 60 00
2306 90 91
2306 90 93
2306 90 99
10. CEREALS
CN Code:              Reduction of the third-country levy by ECU
                      1.81/tonne
0709 90     6 0 Maize
071290      19
1005 10     90
1005 90     00
1 0 0 7 0 0 Sorghum   Reduction of the third-country levy by
                      6 0 % within the limit of an annual ceiling
                      of 100 0 0 0 tonnes and a 5 0 % reduction
                      in the duty reintroduced above the
                      ceiling.
1 0 0 8 20 0 0 Millet
                      Non-application of the third-country levy
                      within the limits of an annual ceiling of
                      60 0 0 0 tonnes and a 5 0 % reduction in
                      the duty reintroduced above the ceiling.
1101 0 0 0 0
1 1 0 2 10 0 0         1 6 % reduction in the customs duty
1103 11 10
1103 11 90
1103 21 00
1001 10 0 0
 1001 9 0 91           5 0 % reduction in the customs duty
 1001 9 0 99           within a quota of 1 5 0 0 0 tonnes.
 1002 00 00
 1003 00 10
 1003 00 90
 1004 00 00
 1008 10 00
                                      ^   <
 ---pagebreak--- 1008 3 0 0 0
1008 9 0 10
1008 90 90
1 1 . RICE
CN Code:                    In compliance w i t h common rules,
                            reduction of the third-country levy per
1006    10 21               100 kg:
to              Paddy rice  — for paddy rice, by 6 5 % and ECU
1006    10 9 8                   0.36
1006     20     Husked rice — for husked rice by 6 5 % and ECU
1006     30     Milled rice       0.36
                            — for wholly milled rice, by the
                                  component for the protection of the
                                  processing industry, by 6 5 % and
                                  ECU 0 . 5 4
                            — for semi-milled rice, by the
                                  component for the protection of the
                                  processing industry converted on the
                                  basis of the conversion rate for
                                  wholly milled rice and semi-milled
                                  rice by 6 5 % and ECU 0 . 5 4
 1006 4 0 0 0  Broken rice   — for broken rice by 6 5 % and
                                  ECU 0 . 3 0
                            This exception is valid only if a charge of
                            an equivalent amount is levied at the time
                            of export by the ACP State concerned.
                            Should 1 25 0 0 0 tonnes (husked rice
                            equivalent) of rice (CN codes 1 0 0 6 10 21
                            to 1006 10 9 8 , 1 0 0 6 2 0 and 1 0 0 6 30)
                            and 20 0 0 0 tonnes of broken rice (CN
                            code 1 0 0 6 4 0 00) be exceeded, the
                            general third-country arrangement shall
                             apply.
                             Non-application of the fixed component
 12. CEREAL SUBSTITUTES AND  of the third-country levy or the customs
 PROCESSED CEREAL AND RICE   duty for all products covered by the
 PRODUCTS                    common organization of the market
 CN code:
 0714                        In addition, reduction of the variable
                             component of the levy per 100 kg:
 1 1 0 2 20                  -     by ECU 0 . 1 8 1 for CN codes
 1102 30 00                       0 7 1 4 1 0 9 9 and 0 7 1 4 9 0 19
 1102 90                           (manioc, salep and other similar
 1103 12 00                        roots and tubers w i t h high starch
 1103 13                           content other than arrowroot)
 1103 14 00
 1103 19
 1103 29
 1104
                                           A<3
 ---pagebreak--- 1106 20
1107
1 1 0 8 (excluding 1108 20 00)
1109 00 00                     -      by ECU 0 . 3 6 3 for CN
1702 30 91                            codes 0 7 1 4 10 10 and ex 1 1 0 6 20
1702 30 99                            (flours and meal of sago and of
1702 40 90                            manioc, salep and other roots and
1702 90 50                            tubers falling w i t h i n CN code 0 7 1 4 ,
1702 90 75                            other than arrowroot flour and
1702 90 79                            meal)
2106 90 55                     -      by 5 0 % for CN codes
2302 10                               ex 1108 14 0 0 and ex 1108 19 9 0
2302 20                               (starches, other, other than
                                      arrowroot starches)
2302 30                        Non-application of the variable
2302 40                        component of the third-country levy for
2302 250 00                    roots, flour, meal and starch of arrowroot
2303 10                        falling within CN codes ex 0 7 1 4 10,
2303 3 0 0 0                   ex 0 7 1 4 90 1 1 , ex 1 1 0 6 2 0 10,
2308 10 0 0                    ex 1106 2 0 91 and ex 1 1 0 6 20 99
2308 9 0 3 0
2309 10 11                     Non-application of the variable
2309 10 13                     component for products falling within CN
2309 1 0 3 1                   codes 0 7 1 4 10 91 and 0 7 1 4 9 0 11
2309 10 33                     (including yams) other than arrowroot.
2309 10 51
2309 10 53
2309 9 0 31
2309 9 0 33
2309 9 0 41
2309 9 0 4 3
2309 9 0 51
2309 9 0 53
13. FRESH OR CHILLED FRUIT AND
VEGETABLES
CN code:                       Exemption from customs duties for the
                               following products:
0706 90 30                     Horse-radish
ex 0706 90 90                  Salad beetroot
ex 0706 90 90                  Radishes (Raphanus sativus)), k n o w n as
                               'mooli'
ex 0 7 0 7 0 0 11              Small winter cucumbers
ex 0 7 0 7 0 0 19
0708                            Leguminous vegetables
                                               A*1
 ---pagebreak--- 0709 30 00     Aubergines (egg-plants)
0709 40 00     Celery other than celeriac
0709 51 90     Mushrooms, other
0709 60 10     Sweet peppers
0709 90 70     Courgettes
0709 90 90     Other vegetables
0802 31 00 and Walnuts, in shell or shelled
0802 32 00
0802 50 00     Pistachios
0802 90 10     Pecans
0802 90 90     Other nuts
0804 30 00     Pineapples
0804 40        Avocados
0404 50 00     Guavas, mangoes and mangosteens
0805 40 00     Grapefruit
0805 30 90     Limes (Citrus aurantifolia)
0805 90 00     Other citrus fruit
0807 10        Melons (including watermelons)
0807 20 00     Pawpaws
0809 40 90     Sloes
0810 40 30     Fruit of the species Vaccinium myrtillus
0810 90        Other fresh fruit
 0813 50 30     Mixtures exclusively of nuts of headings
                CN codes Nos 0 8 0 1 and 0 8 0 2
                Reduction in customs duties on the
                following products:
                          yttf
 ---pagebreak--- ex 0 7 0 2 0 0 10 Tomatoes (other than cherry tomatoes)
                  from 15 November to 3 0 April: reduction
                  of the duty by 6 0 % within the limits of a
                  quota of 2 0 0 0 tonnes
ex 0 7 0 2 0 0 10 Cherry tomatoes from 1 5 November to
                  30 April: exemption from customs duties
                  within the limits of a quota of 2 0 0 0
                  tonnes
ex 0 7 0 3 10 19  Onions from 1 February to 1 5 May:
                  exemption from the customs duty.
                  For the rest of the year, 1 5 % reduction in
                  the customs duty.
ex 0 7 0 3 20 0 0 Garlic from 1 February to 31 May:
                  exemption from the customs duty.
                  For the rest of the year, 1 5 % reduction in
                  the customs duty.
ex 0 7 0 4 90 9 0 Chinese cabbage from 1 November to 31
                  December.exemption from the customs
                  duty.
                  For the rest of the year, 1 5 % reduction in
                  the customs duty.
ex 0 7 0 5 11 10  Iceberg lettuce from 1 July to
                  31 October: exemption from the customs
                  duty.
                  For the rest of the year, 1 5 % reduction in
                  the customs duty.
ex 0 7 0 6 10 0 0 Carrots from 1 January to 31 March:
                  exemption from the customs duty.
                  For the rest of the years, 1 5 % reduction
                  in the customs duty.
ex 0 7 0 9 10 0 0 Artichokes from 1 October to
                   31 December: exemption from the
                   customs duty.
                   For the rest of the year, 1 5 % reduction in
                  the customs duty.
ex 0709 20 00      Asparagus:
                   - exemption from the customs duty
                      from 15 August to 1 5 January
                   - 4 0 % reduction from 16 January to
                      31 January
                   - 1 5 % reduction for the rest of the year
ex 0 8 0 4 20 10   Figs (fresh) from 1 November to 3 0 April:
                   exemption from the customs duty w i t h i n
                   the limits of a quota of 2 0 0 tonnes
                                 ylU
 ---pagebreak--- 0 8 0 5 10        Oranges:
                  —      exemption from the customs duty
                         from 1 5 May to 3 0 September in
                         the framework of a reference
                         quantity of 25 0 0 0 tonnes
                  —      above this quantity and throughout
                         the year an 8 0 % reduction in the
                         customs duty
0805 20           Mandarins (including tangerines and
                  satsumas); clémentines, wilkings and
                  other similar citrus hybrids:
                  —      exemption from the customs duty
                         from 1 5 May to 3 0 September in
                         the framework of a reference
                         quantity of 4 0 0 0 tonnes
                  —      above this quantity and throughout
                         the year an 8 0 % reduction of the
                         customs duty
ex 0806 10 21     Table grapes: exemption from customs
ex 0806 10 29     duties from 1 December to 31 January
ex 0806 10 50     within the limits of a quota of 4 0 0 tonnes
                  and from
                  1 February to 31 March within the limits
                  of a reference quantity of 100 tonnes
0 8 0 8 10        Apples: reduction in the customs duty by
                  5 0 % within the limits of a quota of 1
                  0 0 0 tonnes
ex 0 8 0 8 2 0    Pears:reduction in the customs duty by
                  6 5 % within the limits of a quota
                  of 2 0 0 0 tonnes
ex 0 8 0 9 10 0 0 Apricots: exemption from the customs
                  duty from 1 September to 3 0 April.
                  For the rest of the year, a 1 5 % reduction
                  in the customs duty.
ex 0809 20 90     Cherries: exemption from the customs
                  duty from 1 November to 31 March
 ex 0809 30 00    Peaches, including nectarines: exemption
                  from the customs duty from 1 December
                  to 30 March.
                  For the rest of the year, a 1 5 % reduction
                  in the customs duty.
 ex 0809 40 1 9   Plums: exemption from the customs duty
                  from 1 5 December to 31 March. For the
                   rest of the year, a 1 5 % reduction in the
                   customs duty.
 ex 0810 10 90     Strawberries: exemption from the
                   customs duty from 1 November to end
                   February in the framework of a quota of
                   1 6 0 0 tonnes.
                                 sW]
 ---pagebreak---                Reduction of the customs duty to the
               following levels:
0 8 1 0 4 0 50 —     3 % for fruit of the species
                     Vaccinium macrocarpon
                     and Vaccinium corymbosum
0810 40 90     —     5 % for other fruits of the Vaccinium
                     species
               1 6 % reduction in customs duties for the
               following products:
0703 10 90     Shallots
0703 90 00     Leeks and other alliaceous vegetables
0704 10        Cauliflowers and headed broccoli
0704 20 00     Brussels sprouts
0704 90 10     White cabbages and red cabbages
0704 90 90     Other cabbages
0705 11        Cabbage lettuce, except iceberg
0705 19 00     Other lettuce
0705 21 00     Witloof chicory
0705 29 00     Other chicory
ex 0706 10 00  Turnips
0706 90 11     Celeriac
0706 90 19     Winter cucumbers, other than small
ex 0707 00 11  cucumbers
ex 0707 00 19
0707 00 90     Gherkins
0709 51 10     Cultivated mushrooms
0709 51 30     Chantarelles
0709 51 50     Flap mushrooms
0709 52 00     Truffles
0709 70 00     Spinach, New Zealand spinach and
               orache spinach
0709 90 10 '    Salad vegetables other than lettuce and
               chicory
0709 90 20      Chard (or white beet) and cardoons
0709 90 40      Capers
0709 90 50      Fennel
0802 11 90     Almonds, other
0802 12 90
0802 21 00      Hazelnuts
0802 22 00
0802 40 00      Chestnuts
0808 20 90      Quinces
0810 20 10      Raspberries
0810 20 90      Blackberries and mulberries
0810 30 10      Gooseberries and black-currants
0801 30 30
0810 30 90
                                  ^ / /
 ---pagebreak--- 14. PROCESSED FRUIT AND
VEGETABLE PRODUCTS
CN code:                                         Exemption from customs duties for all
ex 0 7 1 0 (other than 0 7 1 0 4 0 0 0 ,         products covered by the common
0 7 1 0 8 0 10 and 0 7 1 0 8 0 59)               organization of the market
ex 0 7 1 1 (other than 0 7 1 1 2 0 , 0 7 1 1
9 0 10 and 0 7 1 1 9 0 30)
ex 0712 (other than 071 2 10 00,
0712 90 11,0712 90 19 and
0712 90 90)
0804 20 90
0806 20
0811
0812
0813 10 00
0813 20 00
0813 30 00
0813 40
0813 50 11
0813 50 19
0813 50 91
0813 50 99
0814 00 00
0904 20 10
ex 1302 20
2001 10 00
2001 20 00
200190 10
2001 90 50
2001 90 90
2002
2003
2004 10 10
2004 10 99
2004 90 30
2004 90 50
2004 90 91
2004 90 95
2004 90 99 (other than olives)
ex 2005 (other than 2005 70 00,
2005 80 00 and 2005 90 10)
2006 00
2007
2 0 0 8 (other than 2 0 0 8 1 1 1 0 ,
 2 0 0 8 91 0 0 , 2 0 0 8 99 8 5 , 2 0 0 8 99 91
 and 2 0 0 8 99 99)
 ex 2 0 0 9 (other than 2 0 0 9 60)              In addition, non-application of the fixed
                                                 component and non-levying of the
                                                 additional duty on sugar for the following
                                                 products:
                                                 Jams, fruit jellies, marmalades, fruit or
                                                  nut purée and fruit or nut pastes, being
                                                  cooked preparations:
 2 0 0 7 10 10                                    —    Homogenized preparations
                                                            s*i
 ---pagebreak--- 2007 99 10                        Jams, fruit jellies, marmalades, fruit
2007 99 20                        or nut purée and fruit or nut pastes
2007 99 31                        (other than citrus fruit)
2007 99 32
2007 99 33
2007 99 35
2007 99 39
2007 99 51
2007 99 59                 Fruit, prepared or preserved, whether or
                           not containing added sugar or spirit:
ex 2008 20                 —      Pineapples
ex 2008 30                 —      Grapefruit segments
ex 2008 40                 —      Pears
ex 2008*80                 —      Strawberries
ex 2008 92                 —      Mixtures of pineapple, p a w p a w and
                                  pomegranate
ex 2008 99                 —      Grapes
                           —      Plums
                           —      Passionfruit, guava and tamarinds
2009 20 11                 —      Grapefruit juice
2009 20 91
ex 2009 40                 —      Pineapple juice
ex 2009 80                 —      Passionfruit and guava juice
ex 2009 90                 —      Mixtures of pineapple, p a w p a w and
                                  pomegranate juices
15. WINE
CN code:                   Exemption from customs duties for:
2009 60                    Unfermented grape juice (including grape
2204 30 91                 must)
2204 30 99
16. UNMANUFACTURED TOBACCO
CN code:                   Exemption from customs duties
2401
                           If serious disruptions occur as a result of
                           a large increase in duty-free imports of
                           unmanufactured tobacco (CN code 2401)
                           originating in the ACP States, or if these
                           imports create difficulties w h i c h result in
                           deterioration of the economic situation of
                           a region of the Community, the
                                           yito
 ---pagebreak---                                    Community may take the necessary
                                   safeguard measures pursuant to
                                   Article 177(1 ) of the Convention,
                                   including measures to offset deflection of
                                   trade.
17. CERTAIN GOODS RESULTING
FROM THE PROCESSING OF
AGRICULTURAL PRODUCTS
CN code:                           Exemption from the fixed component for
                                   the entire sector of products processed
                                   from agricultural products [Régulation
                                   (EEC) No 3033/80]
0403 10 51 to
0403 10 99
0403 90 71 to
0403 90 99
0710 40 00
0711 90 30
1 5 1 7 1 0 10
1 5 1 7 9 0 10
1702 50 00
1704 (other than 1704 90 10)
1806
1901
1 902 (other than 1902 20 10 and
1902 20 30)
1903
1904
1905
2001 90 30
2 0 0 1 9 0 40
2004 90 10
2005 80 00
ex 2005 90 90 Sweet corn (Zea mays
var. saccharata)
2008 99 85
2008 99 91
2101 30 19
2101 30 99
2102 1 0 3 1
2102 1 0 3 9
2105
2106 (other than 2106 10 10 and
21061091)
2202 90 91
2202 90 95
2202 90 99
2905 43 00
2905 44
3501 (other than 3501 90 10)
3505 10 (other than 3505 10 50)
3505 20
3809 10
                                               JU
 ---pagebreak--- 3823 60
                   In addition, suspension of the variable
                   component for:
1702 50 00         Chemically pure fructose
                   Sugar confectionery (including white
                   chocolate) not containing cocoa
1704 90 30         -       White chocolate
                   Chocolate and other food preparations
                   containing cocoa:
1806 20            —        Preparations in block slabs or bars
                            weighing more than 2 kg or in
                            liquid, paste, powder, granular or
                            other bulk form in containers or
                            immediate packings, of a content
                           exceeding 2 kg, excluding those
                           falling within CN code 1806 20 7 0
1806   31  00      -        Other, in blocks, slabs or bars, filled
1806   32                  or unfilled
1806   90  11      —       Other chocolate and chocolate
1806   90  19              products and sugar confectionery
1806   90  31               and substitutes therefor made from
1806   90  39              sugar substitution products
1806   90  50              containing cocoa
1901               Malt extract, food preparations of flour,
                   meal, starch or malt extract, not
                   containing cocoa powder or containing
                   cocoa powder in a proportion by weight
                   of less than 5 0 % , not elsewhere
                   specified or included; food preparations
                   of goods of CN codes Nos 0 4 0 1 to
                   0 4 0 4 , not containing cocoa powder or
                   containing cocoa powder in a proportion
                   by weight of less than 1 0 % , not
                   elsewhere specified or included (other
                   than CN codes 1901 9 0 11 and
                   1901 9 0 90), not containing milk fats or
                   containing milk fats in a proportion by
                   weight of less than 1.5%, containing
                   5 0 % or more but less than 7 5 % by
                   weight of starches
1903 00 0 0        Tapioca and substitutes therefor prepared
                   from starch, in the form of flakes, grains,
                   pearls, sittings or similar forms
                   Bread, pastry, cakes, biscuits and other
1905               bakers' wares, whether or not containing
                   cocoa: communion wafers, empty
                   cachets of a kind suitable for
                   pharmaceutical use, sealing wafers, rice
                   paper and similar products:
                   Sweet biscuits; waffles and wafers
ex 1 9 0 5 3 0      -       Biscuits
                    —       Rusks, toasted bread and similar
ex 1 9 0 5 4 0 0 0           (toasted products other than ships
                            biscuits)
                                   ^/2.2_
 ---pagebreak--- ex 1 905 90                           —      Other
                                      —      Biscuits
2008 99 85                            Maize (corn), otherwise prepared or
                                      preserved, not containing added sugar or
                                      spirit, other than sweet corn (Zea mays,
                                      var. saccharata)
                                      1 6 % reduction in customs duties for the
1702 10 10                            following products:
1702 10 90                            —      Lactose and lactose syrup
1702 30 51
1702 30 59                            —      Other sugars containing in the dry
2005 20 20                                   state 9 9 % or more by weight of
                                             glucose
2005 20 80                             —     Potatoes, prepared or preserved,
2101 1098                                    other than in the form of flour, meal
                                             or flakes
                                       —     Other preparations of extracts,
2102 20 98                                   essences or concentrates of coffee
                                       —     Other preparation of extracts,
                                             essences or concentrates of tea or
                                             maté
18. SPECIAL ARRANGEMENTS FOR
IMPORTING CERTAIN AGRICULTURAL
PRODUCTS ORIGINATING IN THE ACP
STATES OR THE OCT INTO THE
FRENCH OVERSEAS DEPARTMENTS
CN code:
0 1 0 2 9 0 10 Live animals of the     Non-application of the third-country levy
0 1 0 2 9 0 31 domestic bovine
0 1 0 2 9 0 33 species, other than
0 1 0 2 9 0 35 pure-bred breeding
0102 90 37     animals
0201           Meat of bovine          Non-application of the third-country levy
0202           animals, fresh chilled
               or frozen
0 2 0 6 10 95
0 2 0 6 29 91
0709 90 60     Maize                   Non-application of the third-country
0712 90 19                             levy. Necessary measures against
 1005 10 90                            disturbances of the Community market
 1005 90 90                            should imports exceed 25 0 0 0 tonnes
                                       per annum
 0714 1091
 071490 11     (including yams)        Non-application of the third-country levy
                                       within the limits of an annual quota of
                                       2 0 0 0 tonnes
 19. SPECIAL ARRANGEMENTS FOR
 IMPORTS OF RICE INTO REUNION          Non-application of the third-country levy
                                                    J12
 ---pagebreak--- 82. In the Final Act, Annex XLVI shall be replaced by the following:
                                         "ANNEX XLVI
                                            STABEX
                          Joint declaration on Articles 210 and 211
     Pursuant to the decision of the ACP-EC Council of Ministers of 21 May 1992 in
     Kingston, Jamaica, and with a view to avoiding difficulties in the rapid inception and
     implementation of the Framework of Mutual Obligations, the Contracting Parties agree
     to use all appropriate means including information seminars, appropriate technical
     assistance, etc. within the framework of Development Finance Cooperation."
83. In the Final Act, Annex LIV shall be replaced by the following:
                                          "ANNEX LIV
                               Joint declaration on Article 294
     The definition of the concept of "originating" products for the purpose of
     implementing Article 294 shall be assessed by reference to the relevant international
     agreements. For the purpose of implementing Article 294, supplies originating in the
     Community shall include supplies originating in the OCT."
84. In the final Act, in Annex LXVIII, in paragraph 1, the following expression shall be
     deleted:
     —            "(excluding its general sessions)".
85. In the Final Act, the following Annexes LXXIX to LXXXIX shall be added:
                                                           yHH
 ---pagebreak---                                         "ANNEX LXXIX
             Joint declaration on Articles 1 56(4), 1 57(1 ) and 158(1 )(d) and (h),
                               concerning regional cooperation
Reference in these Articles to overseas territories and departments shall include the Canary
Islands, the Azores and Madeira.
                                         ANNEX LXXX
       Joint declaration on the consultation and information of agents of development
With a view to encouraging the participation of the agents of decentralized cooperation in
Fund projects and programmes and to ensuring that their initiatives are taken into account
in the formulation and in the implementation of indicative programmes, ACP States will
endeavour to organize exchanges of views with such agents. The ACP States and the
Commission will also endeavour to provide information necessary for their participation in
the implementation of the programmes.
                                         ANNEX LXXXI
                           Community declaration on Article 281(1)
The notification of the indicative amount referred to in Article 281 (1) will not apply to the
ACP States with whom the Community has suspended its cooperation.
                                                              JiC
 ---pagebreak---                                             ANNEX LXXXII
                          Joint declaration on implementation procedures
W i t h regard to the implementation procedures, in particular:
- the award of contracts; and
- the role of the executing agents,
the Ministerial Conference calls on the ACP-EC Council of Ministers through the
Development Finance Cooperation Committee to deepen its examination of these
procedures and, where appropriate, to adapt them during the period of application of the
Second Financial Protocol.
In addition, the Ministerial Conference recognizes that in order to improve the finalization
of financing proposals, additional information may be required. In this regard, the
Ministerial Conference calls on the ACP-EC Council of Ministers to establish the necessary
arrangements for providing within the framework of this Convention the necessary
resources required, where the Commission's o w n resources and the interest accruing from
EDF resources are inadequate.
                                           ANNEX LXXXIII
                                  Joint declaration on Article 366a
1.     In the practical application of this Convention, the Contracting Parties will not have
recourse to the provision of "special urgency" in Article 366a, other than in exceptional
cases of particularly serious and flagrant violations that, because of the response time
required, render any prior consultation impossible.
                                                               y(U
 ---pagebreak--- 2.   In the event that either Contracting Party has resort to this measure, the relevant Party
undertakes to make arrangements to consult with the other expeditiously w i t h a view to
assessing the situation in detail and, if necessary, remedying it.
                                        ANNEX LXXXIV
                                 Community declaration on debt
The Community reaffirms its willingness to contribute constructively and actively to the
alleviation of the debt burden of the ACP States.
In this context, it agrees to transform into grants all the special loans of the previous
Conventions w h i c h have not yet been committed.
The Community also confirms its determination to pursue the discussion of these
questions in the appropriate fora, taking into account the specific difficulties of the ACP
States.
                                         ANNEX LXXXV
            Community declaration on Article 2(d) of the Second Financial Protocol
The specific resources provided for in the Second Financial Protocol for emergency
assistance may be supplemented, for the duration of the Second Financial Protocol, by an
additional amount of ECU 160 million from the Community budget.
                                                            /ti:f
 ---pagebreak---                                          ANNEX LXXXVI
                                Joint declaration on cumulation
The Contracting Parties agreed that, for the implementation of Article 6(5) of Protocol 1 ,
the following definitions shall apply:
developing country: any country listed as such by the Development Aid Committee of the
OECD and the Republic of South Africa except the High Income Countries (HIC) and the
countries w i t h a GNP exceeding in 1992 100 billion dollars at current prices;
the expression "neighbouring developing country belonging to a coherent geographical
entity" shall refer to the following list of countries:
- Africa:             Algeria, Egypt, Libya, Morocco, Tunisia and on an ad hoc basis, South
                      Africa;
 - Caribbean:         Colombia, Costa Rica, Cuba, El Salvador, Guatemala, Honduras,
                      Nicaragua, Panama, Venezuela;
 - Pacific:           Nauru.
                                                             /lit
 ---pagebreak---                                        ANNEX LXXXVII
                            Joint declaration on fishery products
The Contracting Parties agree that the Customs Cooperation Committee shall, at the
earliest opportunity, examine in a positive manner difficulties which arise from the
application of the provisions of Article 2(2) of Protocol 1. The Customs Cooperation
Committee shall report to the Council of Ministers within one year of the entry into force
of these provisions.
                                       ANNEX LXXXVIII
                                 Joint declaration on bananas
Special attention shall be granted, when determining the volume of programmable
assistance to ACP bananas suppliers to the Community, where external circumstances
beyond their control have led to the need for restructuring, concerning also the banana
sector.
                                        ANNEX LXXXIX
                           Joint declaration relating to Protocol 10
The Contracting Parties agree to cooperate in the implementation of the provisions of
Protocol 10 to take into account internationally harmonized criteria and indicators on
sustainable management of forests."
or.
                                                              ynj
 ---pagebreak--- FINAL ACT ---pagebreak---                                  FINAL ACT
The plenipotentiaries of:
HIS MAJESTY THE KING OF THE BELGIANS,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
                                               yiv
 ---pagebreak--- HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF FINLAND,
HIS MAJESTY THE KING OF SWEDEN,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND,
                                              SI1Z-
 ---pagebreak--- Contracting Parties to the Treaty establishing the European Coal and Steel Community and
the Treaty establishing the European Community, hereinafter referred to as "the
Community", the States of the Community being hereinafter referred to as "Member
States",
and of the COUNCIL OF THE EUROPEAN UNION and the COMMISSION OF THE
EUROPEAN COMMUNITIES,
                                      of the one part, and
The plenipotentiaries of:
THE PRESIDENT OF THE REPUBLIC OF ANGOLA,
 HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,
THE HEAD OF STATE OF THE COMMONWEALTH OF THE B A H A M A S ,
 THE HEAD OF STATE OF BARBADOS,
 HER MAJESTY THE QUEEN OF BELIZE,
 THE PRESIDENT OF THE REPUBLIC OF BENIN,
 THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,
 THE PRESIDENT OF BURKINA FASO,
 THE PRESIDENT OF THE REPUBLIC OF BURUNDI,
                                                           ^iJ
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF CAMEROON,
THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,
THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,
THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS,
THE PRESIDENT OF THE REPUBLIC OF THE CONGO,
THE PRESIDENT OF THE REPUBLIC OF THE CÔTE D'IVOIRE,
THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,
THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,
THE PRESIDENT OF THE DOMINICAN REPUBLIC,
THE PRESIDENT OF THE STATE OF ERITREA,
THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,
THE PRESIDENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI,
THE PRESIDENT OF THE REPUBLIC OF GABON,
THE PRESIDENT OF THE REPUBLIC OF GAMBIA,
THE PRESIDENT OF THE REPUBLIC OF GHANA,
                                                'jfAV
 ---pagebreak--- HER MAJESTY THE QUEEN OF GRENADA,
THE PRESIDENT OF THE REPUBLIC OF GUINEA,
THE PRESIDENT OF THE COUNCIL OF STATE OF GUINEA-BISSAU,
THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA,
THE PRESIDENT OF THE CO-OPERATIVE REPUBLIC OF GUYANA,
THE PRESIDENT OF THE REPUBLIC OF HAITI,
THE HEAD OF STATE OF JAMAICA,
THE PRESIDENT OF THE REPUBLIC OF KENYA,
THE PRESIDENT OF KIRIBATI,
HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,
THE PRESIDENT OF THE REPUBLIC OF LIBERIA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF MADAGASCAR,
THE PRESIDENT OF THE REPUBLIC OF MALAWI,
THE PRESIDENT OF THE REPUBLIC OF MALI,
THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,
                                               ^/sr
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,
THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,
HE PRESIDENT OF THE REPUBLIC OF NAMIBIA,
THE PRESIDENT OF THE REPUBLIC OF NIGER,
THE HEAD OF THE FEDERAL REPUBLIC OF NIGERIA,
THE PRESIDENT OF THE REPUBLIC OF UGANDA,
HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,
THE PRESIDENT OF THE RWANDESE REPUBLIC,
HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,
HER MAJESTY THE QUEEN OF SAINT LUCIA,
HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,
THE HEAD OF STATE OF THE INDEPENDENT STATE OF WESTERN SAMOA,
THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÂO TOME AND PRÎNCIPE,
THE PRESIDENT OF THE REPUBLIC OF SENEGAL,
THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,
                                             yiti
 ---pagebreak--- THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,
HER MAJESTY THE QUEEN OF THE SOLOMON ISLANDS,
THE PRESIDENT OF THE SOMALI DEMOCRATIC REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF THE SUDAN,
THE PRESIDENT OF THE REPUBLIC OF SURINAME,
HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,
THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,
THE PRESIDENT OF THE REPUBLIC OF CHAD,
THE PRESIDENT OF THE TOGOLESE REPUBLIC,
HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA,
THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,
HER MAJESTY THE QUEEN OF TUVALU,
THE GOVERNMENT OF VANUATU,
THE PRESIDENT OF THE REPUBLIC OF ZAIRE,
THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,
THE PRESIDENT OF THE REPUBLIC OF ZIMBABWE,
                                               sltf
 ---pagebreak--- whose States are hereinafter referred to as "ACP States",
                                         of the other part,
meeting in Mauritius, this                                  for the signing of the Mauritius
Agreement amending the Fourth ACP-EC Convention of Lomé, have adopted the following
texts:
the Mauritius Agreement amending the Fourth ACP-EC Convention of Lomé,
and the Protocols and texts of the declarations listed below which are set out in the
Final A c t of the Convention:
Second Financial Protocol
Protocol 1 concerning the definition of the concept of "originating products" and methods
              of administrative cooperation
Protocol 7 on beef and veal
Protocol 10 on sustainable management of forest resources
Annex XIV       Joint declaration on Article 91 : Centre for the Development of Industry (CDI)
Annex XXII Joint declaration on Article 141 concerning cultural and social cooperation
                                                               m
 ---pagebreak--- Annex XL       Joint declaration concerning agricultural products referred to in
               Article 168(2)(a)(ii)
Annex XLVI     Joint declaration on Articles 210 and 211
Annex LIV      Joint declaration on Article 294
Annex LXXIX    Joint declaration on Articles 156(4), 157(1 ) and 1 58(1 )(d) and (h),
               concerning regional cooperation
Annex LXXX     Joint declaration on the consultation and information of agents of
               development
Annex LXXXII   Joint declaration on implementation procedures
Annex LXXXIII  Joint declaration on Article 366(a)
Annex LXXXVI   Joint declaration on cumulation
Annex LXXXVII  Joint declaration on fishery products
Annex LXXXVIII Joint declaration on bananas
Annex LXXXIX   Joint declaration relating to Protocol 10
                                                       ^3?
 ---pagebreak--- The plenipotentiaries of the Member States and of the Community and the
plenipotentiaries of the ACP States have also agreed to annex to this Final Act the
declaration listed below:
Joint declaration on trade development
The plenipotentiaries of the ACP States have taken note of the declarations listed below
which are set out in the Final Act of the Convention:
Annex Ilia         Community declaration on Article 4
Annex LXXXI        Community declaration on Article 281 (1 )
Annex LXXXIV       Community declaration on debt
Annex LXXXV        Community declaration on Article 2(d) of the Second Financial Protocol
[The plenipotentiaries of the Member States and of the Community have taken note of the
declarations listed below and annexed to this Final Act:]
Done in Mauritius,
                                                          ^//>
 ---pagebreak---                              Joint declaration on trade development
THE REPRESENTATIVES OF THE ACP STATES^THE EUROPEAN COMMUNITY AND ITS
MEMBER STATES, meeting in Mauritius for the signing of the Mauritius Agreement
amending the Fourth ACP-EC Convention of Lomé;
CONCERNED about the serious deterioration of trade performance of ACP States over the
last twenty years;
RECOGNIZING, on the other hand, the crucial importance of trade for any self-sustained
development;
CONSIDERING it essential to ensure that effective use is made of all the instruments
provided for by the Convention to develop trade;
CONSIDERING further that the improvement in the competitiveness of the ACP States
constitutes the key to any future success in trade development;
CONSIDERING finally that trade development is crucial for the achievement of a smooth
and gradual integration of the economies of the ACP States into the world economy
thereby promoting sustainable economic and social development and contributing to the
 alleviation of poverty in these States;
                                                              sit I
 ---pagebreak--- REAFFIRM THEIR COMMITMENT TO:
     the according of priority to trade development in the context of national and regional
     programmes of ACP-EC cooperation under the new Financial Protocol of the
     Eighth EDF;
     the definition and implementation of coherent trade policies and strategies in line with
     the comparative advantages and priorities set by each individual ACP State;
     the improvement of the macro-economic and regulatory framework in the ACP States
     necessary for trade development;
     the establishment and strengthening of the physical and organizational infrastructure
     for trade and private investment with a view to enhancing the competitiveness of
     ACP goods and services in the national, regional and international markets;
     the coordinated deployment of all available instruments of cooperation in support of
     the production, distribution and marketing of ACP goods;
     the general principle that on the level of individual projects each measure shall be
     assessed as to its compatibility with its contribution to the improvement of the
     competitiveness of the economies of the ACP States.
The Council of Ministers shall review progress towards the attainment of these objectives
every two years.
                                                          si ft
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(95) 707 final
                                              DOCUMENTS
EN                                                                            ll
                                    Catalogue number : CB-CO-95-758-EN-C
                                                             ISBN 92-77-98647-6
Office foi Official Publications of the European Communities
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