CELEX: 51975PC0456
Language: en
Date: 1975-08-01 00:00:00
Title: DECISION OF THE COUNCIL concerning the opening of negotiations with the Arab Republic of Egypt for the conclusion of an agreement for the supply of agricultural products.

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 456
Vol. 1975/0171
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   1
                                           Brus sels , Ist August 1975
                                           COM(75)456 final
                                   i
                 /         ;
                       DECISION OP THE COUNCIL
      concerning the opening of negotiations with the Arab Republic
      of Egypt  for the conclusion of an agreement for the supply
      of agricultural products . ,
                              ;
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
1 . In view of the situation on world markets for agricultural products ,
    the Egyptian authorities recently approached the Commission to explore
    the possibilities of meeting part of their food requirements under
    stable conditions .
2 . On the occasion m question the Egyptian Government gave notice of its
    intention to conclude medium- or long-term agreements whereby it would
    undertake to import given quantities of food products on given price
    conditions .
    For each of the products listed below the commitments in question may
    be summarized in practical terms as follows :
                 -cereals           :  1,000,000 t per year for three years ,
                                       including at least 200.000 t of flour
                 -v;hite sugar      :  75.000 t per year for three years
                 -beef and veal     :  11,000 t per year of frozen meat for three
                                       years , including approximately 1.000 t of
                                       corned beef
                 -milk products     t  10.000 t per year of skimmed-milk powder
                                       for two years through commercial transactions
 ---pagebreak---                                                                                 2.
                          • 10.000 t of skimmed-milk powder for one year at
                            reduced price under a "social programme"
                          • 3.000 t per year of certain types of cheese for two
                            years .
    Moreover , the Egyptian Government has also shown interest in importing from
    the Community milk product substitutes for use as animal feed . In practical
    terms this would involve purchasing in the first year at least 5«000 t of
    these products , in which a substantial proportion of dried milk would "be
     incorporated .
3 , Having examined the proposals of the Egyptian authorities , the Commission
     considers that it is not possible to meet all their requests . However , in
    view of the present and foreseeable trend of Community production and con­
     sumption of the products in question , and thus of export availabilities ,
    it vrould seem desirable for the Community to conclude an agreement on the
     lines indicated in the draft directives in annex. It should also be empha­
     sized that the early conclusion of an agreement of this nature would consti­
    tute a positive step in the development of the Community 's relations with
    Egypt .
4 . For all the above reasons the Commission recommends to the Council that      it
    be authorised to open negotiations for the conclusion of an agreement with
                        #
    Egypt for the supply of certain food products , in accordance with the direc­
    tives annexed hereto .
                                         *
                                     *       *
     It is to be expected that in the negotiations the Egyptian authorities will
     lay particular stress on their desire to obtain increased supplies of certain
     products , especially cereals , in the form of food aid ; they will also be
     eager to establish financial and technical cooperation with the Community
 ---pagebreak---                                                                          3.
for developing production in Egypt 's agriculture and fisheries sectors
so as to ensure that the domestic market is better supplied ,
- As regards food aid it should be noted that aid supplied by the Community
and its Member States has declined considerably in recent years . The Commission
considers that in view of the economic and social conditions still obtaining
in Egypt the Community should give an assurance that any additional requests
submitted by the Egyptian Government for increased Community food aid , in
particular in the form of cereals , will be examined with all due care .
- On the subject of financial and technical cooperation for specific pro­
jects , it should be possible for the Community to agree  to these matters
being examined within the framework of the projected economic and trade
cooperation agreement between the European Economic Community and Egypt ,
exploring in particular the possibility of setting up joint ventures .
 ---pagebreak---                           DECISION OF THE COUNCIL
            concerning the opening of negotiations with the Arab
            Republic of Egypt for the conclusion of an agreement
            for the supply of agricultural products
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Community, and in
particular Article 113 thereof ;
Having regard to the recommendation from the Commission ;
Whereas the Egyptian Government has proposed that outline agreements be
negotiated between the European Economic Community and Egypt for the supply
of agricultural products ; whereas the conditions for the opening of such
negotiations have now been met ,
HAS DECIDED :
                                 Sole Article
The Commission is authorized to open negotiations with the Arab Republic
of Egypt to seek an agreement for the supply of agricultural products on
the basis of the directives adopted by the Council on               and
 ---pagebreak--- annexed to this Decision , subject to any further directives .
The Commission shall conduct the negotiations in consultation with the
Special Committee provided for in Article 113 of the Treaty , which shall
assist it in this task . ,
                                    Pone at              . on
                                       For the Council
                                         The President
 ---pagebreak---                                                            ANNEX
                  DRAFT DIRECTIVES FOR THE NEGOCIATION OF
                  OUTLINE AGREEMENTS BETWEEN EGYPT AND THE
                        EUROPEAN ECONOMIC COMMUNITY
GENERAL OBJECTIVES
The objective of the agreement would be to ensure for given periods guaranteed
supplies to Efeypt of certain agricultural products from the Community#
OBLIGATIONS OF THE PARTIES
For all the products covered by the outline agreements , the European Economic
Community would guarantee to the Egyptian Government that the products in
question would be available for the duration of the agreement and in accordance
with the delivery periods determined jointly by the two parties# In return the
Egyptian Government would undertake to import the corresponding quantities
following the same timetable#
ARRANGEMENTS FOR THE CONCLUSION AND IMPL MENTATION OF   OUTLINE PRODUCT
AGREEMENTS
For each of the products listed below , the two parties would agree to conclude
an outline agreement incorporating obligations and rules adopted jointly and
detailed hereunder#
1#   Cereals
( a) Quantities
The Egyptian Government would undertake to import and the European Economic
Community to supply for the 1975-76 marketing year a quantity of approximately
1 million t of wheat or wheat flour - including at least 200 000 t of flour -
meeting the traditional specifications for European exports to Egyptian markets
 ---pagebreak--- ("b ) Price conditions and, timetable for delivery
The 1975-76 marketing year would "begin on 1 August 1975 * The plan would be for
a quantity equivalent to two-thirds of the total commitments to "be delivered by
1 March 1976 * In any event the Egyptian Government would undertake to accept at
least 50 ^ of this quantity during the reference period in question , and the
remainder should be imported in the six months following 1 February 1976#
The two parties would agree to take all appropriate measures to enable traders
to carry out their wheat dealings within a price bracket comprising a minimum of
US ^ 120 and a maximum of US f> 175 *
Hie price of the flour would be determined by reference to the price of the wheat ,
with account being taken of the technical specifications of the two products#
2•    White sugar
( a) Quantity and timetable for delivery
The Egyptian Government would undertake to import and the European Economic
Community to supply each year , for a three-year period beginning on 1 July 1975» " j
quantites of white sugar equivalent to 75 000 t •
The delivery period for the first year of the agreement would commence on
1 October 1975 *
(b ) Price conditions
The two parties would agree that during the three-year period purchases on the
Community market should be made within a bracket where the minimum and the maximum
correspond respectively to the Community intervention price and target price levels
expressed fob Community .                                                             I
For the current marketing year , the bracket comprising the fob target and inter­
vention prices is between 336*5 and 320.5 u.a . per t .
3.    Frozen beef and veal and corned beef                                          j
( a ) Quantities
The Egyptian Government would undertake to import and the European Economic
Community to supply fop the 1975-76 marketing year approximately 11 000 t of the
frozen beef and veal and corned beef, including approximately 1 000 t of corned
beef .
 ---pagebreak--- Frozen meat exported to Egypt would have to me meat from animal> not more than
three years old , exported in the form of compensated quarters meeting the
traditional specifications for European exports of meat to Egypt#
 (b ) Price conditions and timetable for delivery
The Egyptian Government and the European Economic Community would take all
appropriate steps to ensure that the frozen beef and veal could be exported
to Efeypt by private firms within a price bracket comprising a minimum of US      800
and a maximum of US $ 85O per t •
The marketing year would begin on 1 August 1975 *
4#    Milk products
The two parties would agree to conclude long-term outline agreements in respect
of the following products : skimmed-milk ( 10 000 t ), butter and butteroil
( 10 000 t ) and cheese (3 000 t)#
( a) Skimmed-milk powder
The two parties would agree to establish a two fold programme for skimmed-milk
powder imports to Egypt :
(i)    a long-term outline agreement for imports , spread over two years and covering
       10 000 t of skimmed-milk powder for human consumption , at fob prices within a
       bracket ranging between a minimum of $ 630 per t and a maximum of     650 per
       t# It is understood that these products would be of top quality ( for
       intervention) ;
( ii ) the second programme is set out in detail in the chapter of the agreement
       relating to food aid .
(b ) Cheese
The i^yptian Government would undertake to import from the European Economic
Community an annual quantity of 3 000 t of cheese of the Cheddar , Gouda and
Edam type for two years#
The European Economic Community would take all appropriate steps to ensure that
the offer prices for export to the Egyptian market are within the bracket
& 1 000 - 1 I50 per t for the quantity indicated#
It is understood that in dealings with E&ypt the target and intervention prices
may under no circumstances be affected either by export refunds or by levies#
                                    - 3 -                                         ./
 ---pagebreak--- MILK PRODUCT SUBSTITUTES FOR USE AS ANIMAL PEED
In order to meet part of the requirements of the Egyptian market , the
European Economic Community would undertake for the first year of the
Agreement to deliver at least 5«000 t of milk product substitutes for
use as animal feed .
The composition of these products would normally he approximately 50 $
dried milk , 15 ^ powdered whey , 20 fo vegetable oils and fats , plus minerals
and proteins of various origins .
 ---pagebreak--- V. FOOD AID
   ( a)       In view of the general economic situation in Egypt as regards
        food, the Community should be able to indicate its intention to
        examine with the utmost care the Egyptian Government 's additional
        requests for an increase in Community food aid to Egypt , in particu­
        lar in the form of cereals .
   (b)        Programme for the supply of skimmed-milk powder
              Furthermore , the two parties would agree to establish a one-
        year " social programme " for the supply of 10 000 t of skimmed-milk
        powder.
                                                                                   1
              Supplies under this programme would be conditional upon the
        introduction by the Egyptian Government of a specific scheme for free
        distribution to those in need .
              The Community would undertake to charge a price of    350 fob per t .
              Following their purchase by the Egyptian Government , the supplies
        would reach Egypt via humanitarian organizations designated by the
        Egyptian Government .
              At the request of the Egyptian authorities , deliveries under this
        programme could be made at the rate of up to 1 000 t per month .
                                  - 5 -