CELEX: 51989PC0301
Language: en
Date: 1989-06-16
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1277/84 LAYING DOWN GENERAL RULES FOR THE SYSTEM OF PRODUCTION AID FOR PROCESSED FRUIT AND VEGETABLES

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(89) 301 final
                                              Brussels, 16 June 1989
                            Proposal for a
                      COUNCIL REGULATION (EEC)
   amending Regulation (EEC) No 1277/84 laying down general rules
      for the system of production aid for processed fruit and
                              vegetables
                    (presented by the Commission)
 ---pagebreak---                                                              {j&r?'>c4 f-
                        EXPLANATORY MEMORANDUM
Subject:  Council Regulation (EEC) amending Regulation (EEC) No 1277/84
laying down general rules for the system of production aid for processed
fruit and vegetables.
The aim of the above-mentioned regulation is to introduce two
amendments to the regulation laying down general rules for the
system of production aid in this sector.
The first of these measures relates to the laying down of a maximum
ceiling for the levels of production aid which may be paid for tinned
peaches and pears,in order to ensure that the production aid is not
greater than the difference between the minimum price paid to the
community grower and the price paid by competing third country
processors for a comparable quality of raw material.
The second measure provides for the neutralIsing,by means of a system
of monetary adjustment,of the monetary gaps which may arise dulng the
the course of a marketing year between the green rates and the market
rates of the various Community currencies.
The aim of this system Is to re-establish an element of
competitiveness on Community markets and those of Importing third
countries.
 ---pagebreak---  ---pagebreak---                                  Proposal for a
                           COUNCIL REGULATION (EEC)
         amending Regulation (EEC) No 1277/84 laying down general rules
       for the system of production aid for proceaaed fruit and vegetables
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 426/86 of 24 February 1986 on the
common organization of the market in products processed from fruit and
vegetables (1), as last amended by Regulation (EEC) No 1125/89 (2), and in
particular Article 5(4) thereof,
Having regard to the proposal from the Commission,
Whereas the calculation of production aid pursuant to Article 5 of Regulation
(EEC) No 426/86 must take account of the price in third countries; whereas,
in order to assess that factor properly in the case of peaches and pears in
syrup and/or in natural fruit juice, the farm-gate prices actually paid in the
main producing and exporting third countries on the world market for raw
material of a quality comparable to that of fresh Community products used for
processing should be taken into account;   whereas, however, when that price is
recorded, the figures should be weighted on the basis of actual exports of
finished products from the producing countries concerned on the world market;
(1) OJ No L 49, 27.2.1986, p. 1.
(2) OJ No L 118, 29.4.1989, p. 29.
 ---pagebreak---                                        - 2 -
Whereas currency movements of the different national currencies may, in the
absence of specific monetary compensatory mechanisms for this sector, result
in distortion between producers in certain Member States;   whereas provision
should be made, in accordance with a suitable decision-making procedure, for
the possibility of using a system of monetary adjustment if this proves
necessary to ensure normal conditions of competition;
Whereas Regulation (EEC) No 1277/84 should be amended accordingly (3),
HAS ADOPTED THIS REGULATION:
                                    Article 1
The following paragraphs are hereby   added   in Article 3 of Regulation (EEC)
No 1277/84:
              s
"7. For peaches and pears in syrup and/or in natural fruit juice, the
    production aid calculated pursuant to the provisions of this Regulation
    may not exceed the difference between the minimum price paid to the
    Community producer and the price of the raw material in the main producing
    and exporting third countries.
(3) OJ No L 123, 9.5.1984, p. 25.
                                                                               4-
 ---pagebreak---                                       - 3 -
    That latter price shall be determined on the basis of farm-gate prices
    actually applying to fresh products of comparable quality used for
    processing, weighted according to the quantities of finished products
    exported by those third countries on the world market.
8.  The Commission may, in accordance with the procedure laid down in Article
    22 of Council Regulation (EEC) No 426/86 , introduce a system of monetary
    adjustment which takes account of the impact of actual exchange rates on
    the prices of the products in question in the various Member States.
*0J No L 49, 27.2.1986, p. 1."
                                    Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities.                   *
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at             ,                                      For the Council
 ---pagebreak---                                                                        -EN ADD. (PTRA-522)
         F I N A N C I A L      S T A T E M E N T
                                                            Date: 26 May 1989
 1. Budget heading: 1512                         Appropriations: ECU 226 million
 2. Title: Amendment to Regulation (EEC) No 1277/84 laying down general rules for
             the system of production aid for processed fruit and vegetables
 3. Legal basis: Article 5(4) of Council Regulation (EEC) No 426/86 of
                   24 February 1986
 4. Aims of project: With a view to complying with certain undertakings which the
     Community entered into with certain non-member countries within the GATT,
     production aid for tinned peaches and pears must be limited to no more than the
     difference between the minimum Community price and the cost of the raw materials
     in the competing non-member countries.
                                               period of      current           following
                                               12 months   financial year    financial year
 5.    Financial implications                                  (1989)             (1990)
 5.0   Expenditure
       - charged to the EC budget
         (refunds/intervention)                 ECU 26,7                       - ECU 26,7
       - national administration                million                          million
       - other
 5.1   Receipts
       - own resources of the EC
          (levies/customs duties)
       - national
 5.0.1 Estimated expenditure
 5.1.1 Estimated receipts
 5.2 Method of calculation:                          Peaches             Pears
      Aid with current legislation                 ECU 147,8/t        ECU 197,3/t
      Aid after amendment                          ECU 107,1/t        ECU 181,7/T
      Calculation of lower expenditure compared with current regulations
      Peaches in syrup (147,8 - 107,1) x 582 000 t x 1,054 (DR) = ECU 25,0 million
      Pears in syrup     (197,3 - 181,7) x 102 800 t x 1,054 (DR) = ECU 1,7 million
      The monetary adjustment system for production aid for peaches and pears in syrup
      and/or in natural juice has negligible impact on the budget.
 6.0 Can the project be financed from appropriations entered in the relevant chapter
      of the current budget ?                                                      yes
 6.1 Can the project be financed by transfer between chapters of the current budget ?
                                                                                   yes/no
 6.2 Is a supplementary budget necessary ?                                              no
 6.3 Will future budget appropriations be necessary ?                              yes
 Observations :
1. As a guideline, appropriation requirements in tne 1990 preliminary draft budget are
     peaches in syrup : ECU 86,6 million
     pears in syrup     : ECU 19,7 million
                                                                                            c
 ---pagebreak--- Commission of the European Communities
COM(89) 301 final
Proposal for a
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 1277/84 laying down general rules for the
system of production aid for processed fruit and vegetables
(submitted to the Council by the Commission)
 16.6.1989
Office for Official Publications of the European Communities
L - 2985 Luxembourg
Series: DOCUMENTS
 1989 — 6 pp. — Format: 21.0 * 29.7 cm
EN
ISSN 0254-1475
ISBN 92-77-51117-6
Catalogue number: CB-CO-89-256-EN-C
 ---pagebreak---                                           ISSN 0254-1475
COM(89) 301 final
DOCUMENTS
Proposal for a
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 1277/84 laying
down general rules for the system of production
aid for processed fruit and vegetables
(submitted to the Council by the Commission)
03                                       16.6.1989
Catalogue number: CB-CO-89-256-EN-C
ISBN 92-77-51117-6
€
COMMISSION OF THE EUROPEAN COMMUNITIES