CELEX: 51975PC0009
Language: en
Date: 1975-01-10
Title: PROPOSAL FOR A REGULATION (ESC) OP THE COUNCIL concerning the second stage of the subsidised importation of sugar and amending Regulation (EEC) No 2931/74 (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 9
Vol. 1975/0002
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 ---pagebreak--- COMMISSION OF THE EUROPEEN COMMUMTIBS
                                                             COM(75 ) 9 final
                                                             Brussels . 10 January 1975
                                  PROPOSAL FOR A
                        REGULATION" ( ESC ) OP THE COUNCIL
           concerning the second stage of the subsidised importation of
                 sugar and amending Regulation ( EEC ) No 2931/74
                  ( submitted to the Council bj the Commission)
  0011(75 ' 9 final
 ---pagebreak---                                EXPLANATORY KMORAKTOUM
1 . When this proposal is presented to the Council the standing- invitations
     to tender for granting import subsidies has attributed '0:1       10 December
     1974 and " on   8 January 1975 a- total quantity of 157*702 tonnes expressed
     in white sugar value ,    therefore , a quantity of 42.000 tonnes remains for
         .firs'; stage *  The attributed quantities are distributed as follows i
     127»7v2 tonnes to United Kingdom , 14.720 tonnes to Prance , 10.000 tonnes
    to Ireland , 2.700 tonnes to Germany and 2.500 tonnes to Belgium .       The
    weighted average of the granted subsidy for the attributed subsidy
    amounts to 40,68 units of account per 100 kilograms .
                                                            an import
2 . After the Commission proposal on the introduction of /subsidy for white
    sugar and rais sugar had been presented to the Council on 2 Ootober 1974
    the supply situation in the Community has become significant        iTQFse
    mostly because of a lower harvest than foreseen due to the very bad
    weather conditions since the start of October 1974 ? this has involved
    severe losses particularly in the nothern regions of the Community .
    This deficit includes the non-appearance of some deliveries from coun­
    tries referred to in Protoocl H617 of the Aocession Treaty .
3 . The first estimates from October 1974 on financial consequences of
    the envisaged operation amounted to the order of 60 - 100 millions
    units of accounts under the assumption , that a subsidy of 20 units of
            per; 100 kilogranmes
    accounts /was granted for import of 300 - 500.000 tonnes of white sugar .
    According to the revised judgment laid down in the frameworkof the
   agriculturel price proposals^rto£al^^i/?ityUforbea?npor?§d'^was estimated
    to 300,000 tonnes with a necessary average subsidy of 25 units of account
    per 100 kilogram^^csulting in         total cosfe of 200 millions units of
    account .
    The Commission estimates that it is possible within the limit of this
    judgment of 200 millions units of account to decide to import a
    supleracntary quantity of 300.000 tonnes .
    On the other hand the unit costs of the operation are likely to be
    reduced progressivly in the coming invitations to tender as the time-lag
    between the date of importation and the day of reproduction will be
    reduced .
    Until now the financial consequences of the attribution of 157*702
    tonnes amount to 64 millions units of account to which the consequence
    of the rise of the common prices frnm 1 July 1975 shall be added .
                                                                           ./•
 ---pagebreak---                                        - 2 -
The difference "between the granted subsidy in respect of the irritations
to tender of 18 December 1974 and 8 January 1975 and- the subsidy estimated as
necessary in November 1974 is explained     in particular by the difficulties
which arose from the Paris Terminal Market and the consequenses thereof ,
that is the absence of real futures market for white sugar and for that
reason the impossibility of making arbitrage .
On the one hand this situation has made it necessary for the operators for
the purpose of reexportation of white sugar to use the London Terminal
Market where the recorded prices for raw sugar consequently increase their
commercial risk , which in turns results in an increase of the costs of the
operation and , on the other hand , the prevention of the ..possibility of
talcing advantage of the premium on the white sugar vis a vis raw sugar .
Moreover ,one- have seen an extension of the difference , which was very
slightly in the autumn 1974 , between the spot prices for immediate deliveries
                                                                  the risk derived fr \
and the October and November 1975 prices . The Commission mentioned /the extension
of this difference when the original proposal was presented .
 ---pagebreak---                                  PRQP03AL FQfi A
                     !•: "A-J..TCIT (!£■/?) oy ,T,ITE roiTTTOIL
               concerning the second stage of the subsidised importation
               of sugar and amending Regulation (EEC)N0 2931/74
 THE COUITCIL OP THE EUROPEAN CCUMUEITIES ,
 Having regard to the Treaty establishing the European Economic Community ;
 Having regard to Council Regulation No IOO9/67/EEC ^ ^ N of 18 December 1967
 on the common organisation of the market in Sugar , as last amended by
 Regulation (EEC ) No 2476/74         and in particular 16 ( 3 ) thereof ;
Having regard to Council Regulation No 293l/74 ^ of 18 November 1974
 introducing a subsidy on import of white and raw sugar , and in particular
Article 2 ( 3 ) thereof ;
Having regard to the proposal from the Commission ;
Whereas Article 2 of Regulation (EEC) No 2931/74 limited the first stage
 of the subsidised imports to 200.000 tonnes ; whereas the same Article
provides that the Council shall decide upon later stages in the light of
 experience and the effectiveness of that measure ; .
Whereas by virtue of the experience gained and of the deterioration in the
 supply situation in the Comnmnity in recent weeks it is necessary to
provide for the subsidised importation of a suppleinntary quantity of
300.000 tonnes of sugar ;
Whereas it is necessary, particularly by virtue of the probable change
in Community sugar prices , to provide for the possibility of an adjustment
being made in the maximum selling price to be observed by tenderers ;
Whereas in order to attain a better balance of supplies throughout the
Community in may be necessary in certain circumstances to restrict these
imports to particular deficit regions ;
Whereas Article 2 of Council Regulation (EEC) No 608/72            of 23 March 1972f
laying down rules of application in the sugar sector in the event of an
appreciable rise in world market prices , provided that the Council may limit
subsidised sugar imports to specified regions ; whereas it is necessary
under certain conditions to provide that such regions are determined accor­
ding to the procedure laid down in Article 40 of RegulationNo IOO9/67/EEC ;
11 O.J. No 308 of 18.12.1967 , p.l          3) O.J.N0 311 of 22.11.1974 , p.8
2 ) 0^. No L 264 of 1.10.1974 , p .70 4 ) 0.J.NO 75 of 28. 3.1972 , p.5          •/•
 ---pagebreak--- HAS ADOPTED THIS RÛJULATIOÏT i
                                   Article 1
Th the quantity referred to in Article 2 ( 2 ) of Regulation ( EEC ) Ho 2931/ 74
she.ll be added a quantity of 300 u 000 tonnes as the second stage .
                                   Article 2
The following shall be added to Article 3(3 ) of Regulation (EEC ) No2931/74
"nevertheless , this maximum price, level nay "be 35?8l units of account per
  100 kilogrammes of white sugar.".
                                   Article 3
The following shal be inserted in Regulation ( EEC ) No2931/74 *
                                  "Article 4(a )
1 . Where on the basis of estimates of Onnrmm ty production and of deliveries
    to the Community from third count ries/assured supply of sugar in one or
    more important consuming regions of the Community is less than 90 % of
    their normal consumption the subsidised imports under the second stage
    shall be wholly or partly limited to the regions in question .
2 . By way of derogation from Article 2(l ) of Regulation (EEC ) N06O8/72
    the importing regions referred to in paragraph 1 shall be determined
    aocording to the procedure in id down in Article 40 of Regulation No IOO9/67/EEC*
                                   Article 4
This Regulation shall enter into force on the                  day following
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in ail Member States
Done at Brussals ,                                For the Council