CELEX: 51996PC0250
Language: en
Date: 1996-06-04
Title: Re-examined proposal for a COUNCIL REGULATION (EC) on food-aid policy and food-aid management and special operations in support of food security

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       Brussels, 04.06 1996
                                       COM(%) 250 final
                                       95/0160 (SYN)
                  Re-examined proposal tor a
               CQVNÇH ftEQUlATIQN (EC)
                              ON
FOOD-AID POLICY AND FOOD-AID MANAGEMENT AND
SPECIAL OPERATIONS IN SUPPORT OF FOOD SECURITY
  (presented by the Commission pursuant to Article 189 c (d)
                       of the EC Treaty)
 ---pagebreak---  ---pagebreak---                          EXPLANATORY MEMORANDUM
(concerning the amendments accepted and the amendments rejected)
Re-examined proposal for a Council Regulation (EC) on food aid policy and food aid
management and special operations in support of food security
References: Proposal COM(95) 283 final 95/0160 (SYN).
Cooperation procedure second reading Article 189c(d).
BACKGROUND
On 14 July 1995 the Commission presented to Council and Parliament a proposal for a
regulation on food aid policy and food aid management and special operations in support
of food security.
The aim of this proposal is to review, restructure, update and adapt all the legal
instruments of food aid policy and management, including special operations in support
of food security, such as allocations of inputs and seeds and storage programmes or early
warning systems.
The proposal for a Council Regulation on aid and food security, based on Article 130w
of the Treaty, is subject to the cooperation procedure (Article 189c of the Treaty).
Under the cooperation procedure, on 21 May Parliament expressed its opinion upon
second reading and adopted a total of 39 amendments (PE 216/574). In accordance with
Article 189c(d) the Commission presented a re-examined proposal incorporating the
amendments which it accepted.
COMMENTS ON THE AMENDMENTS ADOPTED BY PARLIAMENT UPON
SECOND READING
Taken as a whole, the amendments fall into two categories: those which concern the
content of the Regulation (food aid as an instrument for combating poverty, stepping up
local purchases, supplying drinking water and women's role in food security projects)
and those which concern the form, many of which provide clarification and helpful
explanations that improve the text.
(a)     Brief detailed analysis of the amendments accepted/rejected
        The amendments submitted at second reading fall into four categories.
        The Commission accepted the following amendments in their entirety:
 ---pagebreak---     The Commission accepted the following amendments in their entirety:
    Nos 1, 2, 3, 5, 6, 7, 9, 10, 15 (1st indent), 15 (2nd indent), 15 (3rd indent), 16
    (3rd indent), 17, 18, 19, 20, 21 (1st indent), 21 (2nd indent), 21 (4th indent), 21
    (5th indent), 21 (6th indent), 21 (7th indent), 22, 23, 24, 27, 28, 29, 30, 31, 34,
    35, 37, 38, since they are amendments which are acceptable or even represent
    an improvement.
    The Commission accepted the substance of the following amendments but gave
    them another form, because they are acceptable in terms of substance but the
    Commission prefers other wording: Nos 8, 4, 11, 12, 13 and 14.
    The Commission did not accept the following amendments either because they
    restrict the scope of food aid or because they impose excessive management
    constraints on the Commission's departments (Nos 15 (4th indent), 16 (1st
    indent), 16 (2nd indent), 21 (3rd indent), 32,39 and 40) or because they are very
    difficult to reconcile with the compromise obtained within the Council (Nos
    25, 26, 33 and 36).
(b) Commission position and grounds for that position
    While taking account of the Commission position proposed for the remainder of
    the amendments as indicated under (a), the Commission rejected the amendments
    referred to in the preceding paragraph for the following reasons:
    No 15 (fourth indent): this amendment concerns the reduction of the beneficiary
    countries' dependence on food imports; the Commission supports commercial
    imports as a major component of food security policy in countries with a
    structural shortfall.
    No 16 (1st and 2nd indents): this amendment sets as an exclusive criterion for
    awarding food aid either the inability of the beneficiaries to make up their food
    shortfall themselves or the presence of fundamental food shortfalls. Making the
    award of food aid so exclusive is likely to restrict the scope of food aid and food
    security operations.
    No 21 (3rd indent): the purpose of the amendment is to step up financing for
    those responsible for marketing, transporting and distributing agricultural
    products and foodstuffs. Community financing is for the marketing, transport,
    distribution or processing of agricultural products and food, and is not intended
    to provide aid for "those responsible" for such operations.
    Nos 25 and 26: these amendments concern the mobilization of products on the
    developing countries' markets, the real "hard core" of the Regulation. The
    Commission considers that the priority criterion for purchases established by
    Parliament in amendments 25 and 26, while encouraging and increasing the
    importance of triangular exports, greatly exceeds the "dynamic balance" which
    was achieved with great difficulty within the Working Party on Food Aid by
    means of the proposal for a compromise on Article 11 drawn up by the
    Presidency.
                                              ^ —
 ---pagebreak--- No 32: this amendment calls upon the Commission to undertake the necessary
coordination between its directorates-general and departments in order to
guarantee compatibility between the operations conducted in the sphere of aid and
food security and those conducted in other spheres. The Commission is unable
to accept the amendment since it already undertakes this coordination, which in
any event comes under its own internal management rules.
No 33: this amendment concerns Article 21 of the common position determining
the respective contributions of the Community and the Member States making up
the overall amount of cereals laid down in the Food Aid Convention. This
Article is the result of lengthy discussions within the Council Working Party and
the final text provides for joint action (decision sui generis ) by the Council on
behalf of the Community in respect of the Community share and by the Member
States' representatives on their own behalf for the national quantities.
No 36: the aim of this amendment is to include national aid in the analysis and
monitoring conducted by the Food Aid Committee. The Committee's powers are
confined to food security operations which qualify for Community aid and do not
in any instance extend to national aid.
No 39: this amendment calls on the Commission to draw up a report evaluating
food aid operations and to transmit it to Parliament once a year. In line with the
 "Williamson Declaration", the Commission considers that it would be better to
remove the reference to timing for the presentation of reports other than that
provided for in Article 31 of the common position.
No 40: the aim of this amendment is to have the Commission present targeted
evaluation of how far food aid operations complement the EU's other policies.
A commitment of this kind would oblige the Commission to provide evaluation
of the complementary nature of food aid operations, an evaluation operation
which is now well advanced.
                                          o- -
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 130w thereof,
Having regard to the proposal from the Commission, (1)
Acting in accordance with the procedure laid down in Article 189c of the Treaty, i2)
C)    OJ No C 253, 29.9.95, p.10.
(2)    Parliament decision of....not yet published in the OJ.
                                                                                     —m
                                                                                     S\-2
 ---pagebreak--- Whereas now as ever food aid is an important aspect of the Community's development
cooperation policy;
Whereas food aid must be integrated into the developing countries' policies for the
improvement of their food security, in particular by the establishment of food strategies aimed
at alleviating poverty and geared to achieving the ultimate goal of making food aid
superfluous;
Whereas the European Community and its Member States closely coordinate their
development cooperation policies as regards food-aid programmes and operations aimed
specifically at enhancing food security; whereas the Community, with its Member States, is a
party to certain international agreements in this domain, and in particular the Food Aid
Convention;
Whereas regional, national and household food security, with the long-term aim of securing
universal access to a diet that will promote a healthy and active life, is an important element
in the fight against poverty; whereas it is important for this to be emphasized in all
programmes intended for developing countries;
Whereas food aid must not have any adverse effects on the normal production and
commercial import structures of the recipient countries;
Whereas food aid and operations in support of food security are key features of Community
development cooperation policy and must be taken into account as objectives in all
Community policies likely to affect the developing countries, in particular from the point of
view of economic reforms and structural adjustment;
Whereas, given the different responsibilities of men and women for the food security of
households, systematic account should be taken of their different roles when drawing up
programmes aimed at achieving food security;
Whereas women and communities should be involved to a greater extent in efforts to achieve
food security at national, regional or local level and at the level of households;
                                                                                              EN
                                                                                                3
 ---pagebreak--- Whereas food aid must be an effective instrument ensuring access to an adequate and
appropriate diet and improving the availability and accessibility of foodstuffs to the public,
consistent with local dietary habits and production and trading systems, particularly in food
crises, and fully integrated into development policy;
Whereas the food-aid instrument is a key component of the Community's policy on
preventing or helping in crisis situations in the developing countries; whereas account should
be taken in its implementation of its possible social and political effects;
Whereas food-aid operations cannot be part of a viable solution unless they are integrated
into development operations geared to relaunching local production and trade;
Whereas analysis, diagnosis, programming and monitoring need to be improved to make food
aid more effective and avoid adverse effects on local production, distribution, transport and
marketing capacities;
Whereas food aid should be made a real instrument of the Community's policy of cooperation
with the developing countries, thereby enabling the Community to participate fully in
multiannual development projects;
Whereas it is therefore necessary that the Community be able to provide a steady overall flow
of aid and be in a position, in appropriate cases, to undertake to supply to the developing
countries minimum amounts of products under specific multiannual programmes linked to
development policies as well as to enter into undertakings in relation to international
organizations;
                                                                                               "ÉFJ
                                                                                                 4
 ---pagebreak--- Whereas the Community's support for the developing countries' efforts to achieve food
security could be enhanced by greater flexibility in food aid, granting financial support for
operations concerning food security, and in particular the development of farming and food
crops as an alternative to food aid in certain circumstances, while protecting the environment
and the interests of small farmers and fishermen;
Whereas the Community can assist those in need in rural and urban areas in the developing
countries by helping finance operations in support of food security through the purchase of
food products, seed, agricultural implements and inputs, and various means of production,
and through storage programmes, early-warning systems, mobilization, supervision and
technical and financial assistance;
Whereas it is necessary to strengthen and continue to support regional approaches to food
security, including triangular operations in the field of food aid and local purchasing operations
in order to make use of the natural complementarity between countries belonging to the same
region; whereas the policies conducted in the field of food security should be given a regional
dimension in order to foster regional trade in foodstuffs and promote integration;
Whereas the purchase of foodstuffs at local level reduces inefficiency, costs and damage to
the environment which might be caused by the transport of large quantities of foodstuffs in
the world;
Whereas the genetic potential and bio-diversity of food production must be safeguarded;
Whereas Community food-aid policy must adjust to geopolitical change and the economic
reforms under way in many recipient countries;
Whereas a list should be drawn up of the countries and bodies eligible for Community aid
operations;
Whereas to that end provision should also be made for Community aid to be made available
to international, regional and non-governmental organizations; whereas such organizations
must satisfy a number of conditions guaranteeing the success of food-aid operations;
                                                                                               IN
                                                                                                 5
 ---pagebreak--- Whereas, in order to facilitate the application of certain of the measures envisaged and ensure
that they mesh with the recipient country's food security policy, provision should be made for
close cooperation between the Member States and the Commission within a Food Security
and Food Aid Committee;
Whereas in determining the steps to be taken for the execution of food-aid operations the
implementing procedures should be adjusted to the specific nature of each recipient area,
although within the framework of a common policy and strategy;
Whereas, in order to ensure better management of food aid, aligning it more closely on the
interests and needs of the recipient countries, and to improve the decision-making and
implementing procedures, it is desirable to replace Council Regulation (EEC) No 3 9 7 2 / 8 6 on
food-aid policy and food-aid management, (3) as last amended by Council Regulation (EEC)
No 1930/90 (4), Council Regulation No 1755/84 on the implementation in relation to food of
alternative operations in place of food-aid deliveries, (5) Council Regulation No 2507/88 on the
implementation of storage programmes and early warning systems (6), Council Regulation
No 2508/88 on the implementation of cofinancing operations for the purchase of food
products or seeds by international bodies or non-governmental organizations (7) and Council
Regulation No 1420/87 laying down procedures for the implementation of Regulation (EEC)
No 3972/86 on food-aid policy and food-aid management, (8)
(3)   OJNoL370,          30.12.1986.
(4)   OJ No L 1 7 4 ,  7 . 7 . 1 9 9 0 , p.6.
(5)   OJNoL165,         23. 6.1984, p.7.
(6)   OJNoL220,        1 1 . 8.1988, p. 1.
 (7)  OJNoL220,        1 1 . 8.1988, p.4.
 (8)  OJ NO L 1 3 6 , 2 6 . 5 . 1 9 8 7 , p. 1 .
                                                                                                "ETC
                                                                                                   6
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                           CHAPTER 1
                            Objectives and general guidelines for
                             food aid and operations in support of
                                          food security
                                             Article 1
1.  Under its policy of cooperation with developing countries and in order to respond
    appropriately to situations of food insecurity caused by serious food shortages or food
    crises the Community shall carry out food-aid operations and operations in support of
    food security in the developing countries.
    Food-aid operations of a humanitarian nature shall be carried out in the framework of
    the rules on humanitarian aid and do not fall within the scope of this Regulation. In the
    event of a serious crisis, all the instruments of the Community's aid policy shall be
    implemented in close coordination for the benefit of the population concerned.
2.  Operations under this Regulation shall be appraised after analysis of the desirability and
    effectiveness of this instrument as compared with other means of intervention available
    under Community aid which could have an impact on food security and food aid, and in
    coordination with these means.
    The Commission shall ensure that operations under this Regulation are appraised in
    close coordination with intervention by other donors.
                                                                                               1
 ---pagebreak--- 3. The objectives of the food-aid operations and operations in support of food security
   referred to in paragraph 1 shall, in particular, be:
   - to promote food security geared to alleviating poverty to help the population of
      developing countries and regions;
   - to raise the standard of nutrition of the recipient population and help it obtain a
      balanced diet;
   - to improve the supply of drinking water to the population;
   - to promote the availability and accessibility of foodstuffs to the public;
   - to contribute towards the balanced economic and social development of the recipient
      countries in the rural and urban environment; by paying special attention to the
      respective roles of women and men in the household economy and in the social
      structure; the ultimate objective of Community aid operations shall be to make the
      recipients into agents of their own development;
   - to support the efforts of the recipient countries to improve their own food production
      at regional, national, local and family level;
   - reduce their dependence on food aid;
   - encourage them to be independent in food, either by increasing production, or by
      enhancing and increasing purchasing power;
   - to contribute to the initiatives to combat poverty with development as an objective.
                                                                                           8
 ---pagebreak--- 4.   The Community's aid shall be integrated as thoroughly as possible into the development
     policies, particularly those on agriculture and agri-foodstuffs, and the food strategies of
     the countries concerned. Community aid shall back up the recipient country's policies
     on poverty, nutrition, reproductive health care, environmental protection and
     rehabilitation, with special attention to the continuity of programmes, particularly in a
     post-emergency situation. Whether sold or distributed free of charge, aid must not be
     liable to disrupt the local market.
TITLE I - Food-aid operations
                                             Article 2
1.   The products supplied, along with any other operation in the framework of food aid,
     must reflect as closely as possible the dietary habits of the recipient population and shall
     not adversely affect the recipient country.
     When products are selected, consideration shall be given to how to maximize the
     quantity of food with a view to reaching the maximum number of people, taking into
     account the quality of products in order to ensure adequate levels of nutrition.
                                                                                                 9
 ---pagebreak---    When selecting the products to be supplied as Community aid and the procedures for
   the mobilization and distribution of that aid, particular account shall be taken of the
   social aspects of access to food in the recipient countries, and especially o* the nrcs?
   vulnerable groups and the roie of women in the household economy.
2. Food aid shall primarily be allocated on the basis of an objective evaluation of the real
   needs justifying such aid, as this is the only way to improve the food security of groups
   which do not have the means or possibility of plugging their food shortage themselves.
   To that end, consideration shall be given to the following criteria, without exciudinq
   other relevant considerations:
   - food shortages;
   - the food situation measured using human development and nutritional indicators;
   - per capita income and the existence of particularly poor population groups;
   - social indicators of the welfare of the population in question;
   - the recipient country's balance-of-payments situation;
   - the economic and social impact and financial cost of the proposed operation;
   - the existence in the recipient country of a long-term policy on food security.
                                                                                             10
 ---pagebreak--- 3. The granting of food aid shall, where necessary, be conditional on the implementation of
   short-term, multiannual development projects, sectoral operations or development
   programmes, and as a priority those which promote sustainable long-term food
   production and food security in the recipient countries within the framework of a food
   policy and strategy. Where appropriate, this aid may take the form of a direct
   contribution to the implementation of such projects, operations or programmes. Where
   Community aid is intended for sale, such complementarity must be ensured by the use
   of counterpart funds for purposes agreed by the Community and the recipient country
   or, where appropriate, the body or non-governmental organization which receives the
   aid. Where aid is provided as backing for a development programme spread over a
   number of years, it may be supplied on a multiannual basis linked to the programme in
   question. Besides the allocation of basic foodstuffs, aid may be used for the supply of
   seed, fertilizer, tools, other inputs and commodities, the creation of reserves, technical
   and financial assistance and awareness and training schemes.
4. As a key component of food-security programmes food aid may be given to support
   efforts by the recipient countries to create buffer stocks paying special attention to
   individual farmers' stocks and national reserves, in tandem with the setting-up of
   regional reserves.
                                                                                           IN
                                                                                            11
 ---pagebreak--- 5.    Counterpart funds shall be managed in a manner consistent with other Community aid
      instruments.
      In the case of countries undergoing structural adjustment, and in line with the relevant
      resolutions of the Council, the counterpart funds generated by the various development
      assistance instruments constitute resources which must be managed as part of a single
      and consistent budgetary policy in the context of a programme of reforms. In this
      context, the Community could move from targeting counterpart funds towards more
      general allocation, as soon as progress has been made in improving the effectiveness of
      the monitoring instruments, programming and budget implementation, and as regards
      internalization of reviews of public expenditure. Without prejudice to the foregoing,
      these funds shall be managed in accordance with general Community aid procedures for
      such funds and as a priority to support food-security policies and programmes.
TITLE II - Operations in support of food security
                                             Article 3
Where circumstances warrant it, the Community may carry out operations in support of food
security in developing countries suffering a food shortage.
Such operations may be implemented by the recipient countries, by the Commission, by
international or regional bodies or by non-governmental organizations.
                                                                                               12
 ---pagebreak--- The purpose of these operations shall be to support, using the resources available, the
framing and execution of a food strategy or other measures fostering the food security of the
population concerned and to encourage it to reduce its food dependency and its dependence
on food aid, especially in the case of low-income countries with serious food shortages. The
operations must help to improve the living standards of the poorest people in the countries
concerned.
Operations in support of food security shall take the form of financial and technical
assistance, in accordance with the criteria and procedures laid down in this Regulation.    Such
operations shall be planned and appraised in the light of their consistency w i t h , and
complementarity to, the objectives and operations financed by other Community
development-aid instruments.     They must be part of a multiannual plan.
                                             Article 4
A developing country or international, regional or non-governmental organization eligible for
Community food-aid operations under this Regulation may receive part or all of the food aid
that has been - or may be - allocated to it in the form of operations in support of food
security, with particular account being taken of trends in production, consumption and
reserves in that country, the food situation of its inhabitants and the food aid granted by
other donors.
                                                                                              EN
                                                                                              13
 ---pagebreak---                                              Article 5
Operations in support of food security shall take the form of technical and financial assistance
aimed, in accordance with the objectives laid down in Article 1, at improving sustainable and
long-term food security by helping finance, inter alia:
      the supply of seed, tools and inputs essential to the production of food crops;
      rural credit support schemes targeted in particular at women;
      schemes to supply the population with drinking water;
      storage schemes at the appropriate level;
      operations concerning the marketing, transport, distribution or processmg of agricultural
      and food products;
      measures in support of the private sector for commercial development at national,
      regional and international level;
      applied research and field training;
      projects to develop the production of food crops while respecting the environment;
      flanking, awareness, technical assistance and field training operations, in particular for
      women and producers' organizations;
      support measures for women and producers' organizations;
      projects to produce fertilizer from raw materials and basic materials found in the
      recipient countries;
      schemes to support local food-aid structures, including training schemes on the ground.
                                                                                               EN
                                                                                                14
 ---pagebreak--- TITLE III - Early-warning systems and storage programmes
                                            Article 6
The Community may support existing national early-warning systems and help to strengthen
existing international early-warning systems concerning the food situation in developing
countries and, in exceptional and duly substantiated cases, it may operate such systems, in
accordance with the procedure laid down in Article 27 of this Regulation. It may also cover
the cost of implementing storage programmes in these countries in support of food-aid
operations under this Regulation or comparable measures undertaken by the Member States,
international or regional bodies or non-governmental organizations.
Such operations should be consistent with other Community development aid instruments,
including the use of counterpart funds generated by the sale of food aid, and be compatible
with Community development policy.
These operations are intended to strengthen the food security of the recipient countries.
They must help improve the living conditions of the poorest sections of the population in the
countries concerned and conform with their development objectives, in particular the policy
on food crops.
Community participation in such operations shall take the form of financial and/or technical
assistance, in accordance with the criteria and procedures laid down in this Regulation.
                                                                                             15
 ---pagebreak--- Operations supported by Community aid shall be appraised in the light of and in a manner
consistent with existing programmes managed by specialist international organizations.
                                             Article 7
Community support for storage programmes and early-warning systems may be granted, upon
request, to international or regional bodies or non-governmental organizations for operations
to help developing countries eligible for food aid from the Community and its Member States.
                                             Article 8
Community aid may help finance the following measures:
      early-warning systems and systems for gathering data on trends in harvests, stocks and
      markets, the food situation of households and the vulnerability of the population with a
      view to improving understanding of the food situation in the countries concerned;
      operations aimed at improving storage systems with a view to reducing waste or
      ensuring sufficient storage capacity for emergencies. Such operations may also include
      the establishment of the infrastructure, in particular bagging, unloading, disinfection,
      treatment and storage facilities, needed to handle food products in these countries in
      support of food-aid operations or operations in support of food security;
      preparatory studies and training schemes in connection with the above activities.
                                                                                               "EFÏ
                                                                                                16
 ---pagebreak---                                         CHAPTER II
                           Implementing procedures for food aid
                         and storage and early-warning operations
                                in support of food security
                                         Article 9
1. The countries and bodies eligible for Community aid for operations under this Regulation
   are listed in the Annex. In this connection, priority shall be given to the poorest
   sections of the population and to low-income countries with serious food shortages.
   The Commission may amend that list of countries and bodies eligible for aid after
   consulting the Committee referred to in Article 26 and according to the procedure set
   out in Article 27.
2. Non-governmental organizations (NGOs) eligible for direct or indirect Community
   financing for the implementation of operations under this Regulation must meet the
   following criteria:
                                                                                         IN
                                                                                          17
 ---pagebreak---    (a)     if they are European NGOs they should be non-profit-making autonomous
           organizations in a Member State of the European Community under the laws in
           force in that Member State;
   (b)     have their main headquarters in a Member State of the Community, the recipient
           countries or, exceptionally, in the case of international NGOs, a third country.
           This headquarters must be the effective decision-making centre for all
           co-financed operations;
   (c)     show that they can successfully carry out food-aid operations; in particular
           through:
           -   their administrative and financial management capacity,
           -   their technical and logistical capacity to handle the proposed operation,
           -   the results of operations implemented by the relevant NGOs carried out with
               Community finance or finance from the Member States,
           -   their experience in the field of food aid and food security,
           -   their presence in the recipient country and their knowledge of that country or
               of developing countries;
   (d)     undertake to comply with the conditions laid down by the Commission for the
           allocation of food aid.
                                           Article 10
1. The Community may help finance operations in support of food security of the kind
   described in Titles I, II and III (Chapters I and II) executed by the recipient country, the
   Commission, international or regional bodies or non-governmental organizations.
                                                                                              1R
                                                                                               18
 ---pagebreak--- 2. Cofinancing operations may be carried out at the request of recipient countries,
   international or regional bodies or non-governmental organizations, where such
   operations seem the most appropriate way of enhancing the food security of groups
   without the ways and means to cope with a food shortage themselves.
3. In the design of the Community operations defined in Titles I, II and III, particular
   attention will be given to:
   - the pursuit of sustainable impact and economic viability in project design;
   - the clear definition and monitoring of objectives and indicators of achievement.
                                           Article 11
1. Products shall be mobilized on the Community market, in the recipient country or in one
   of the developing countries (listed in the Annex to this Regulation) if possible one
   belonging to the same geographical region as the recipient country.
2. Exceptionally, products may be mobilized on the market of a country other than those
   provided for in paragraph 1 in accordance with the procedure laid down in Article 27 of
   this Regulation:
    - if the requisite type or quality of product is unavailable on the market of the
      Community or any of the developing countries;
    - if there is a serious food shortage, where such purchases are likely to increase the
       effectiveness of the operation.
                                                                                           19
 ---pagebreak--- 3.    Food products available on the European market may be mobilized on the market of a
      developing country, if the economic efficiency of doing so compares favourably with
      that of mobilizing products on the European market.
4.    Where food is purchased or sold in the recipient country or in a developing country,
      steps must be taken to ensure that such purchases threaten neither to disrupt the
      market of the country concerned or of any other developing countries in the same
      region nor to affect adversely production or the supply of food to their inhabitants.
      Such purchases or sales shall be integrated as thoroughly as possible into the
      implementation of Community development policy towards these countries, particularly
      with regard to the promotion of food security in the country concerned or at regional
      level.
                                            Article 12
Where a recipient country has partially or totally liberalized food imports, the mobilization of
Community aid must be consistent with that country's policy and not distort the market.
In such cases, the Community contribution may take the form of a foreign-currency facility to
be made available to private-sector operators in the country concerned, subject to the
operation being part of a social and economic policy and an agricultural policy aimed at
alleviating poverty (including the strategy on the importation of basic foodstuffs). The
recipients shall be required to prove that they have made proper use of the means put at their
disposal. Priority shall go to small and medium-sized private operators in order to ensure that
operations are complementary. To the extent that its powers to carry out operations enable it,
the Commission may adopt positive discrimination measures for small and medium-sized
private operators.
Such aid shall be governed by the principles laid down in Article 1 1 .
                                                                                               1R
                                                                                                 20
 ---pagebreak---                                               Article 13
1.   The Community may cover costs relating to the transport of food aid.
2.    Where the Commission considers that the Community should cover costs relating to the
      inland transport of food aid, it shall take account of the following general criteria:
      - a serious food shortage;
      - the delivery of food aid to low-income countries suffering from serious food
         shortages;
      - whether the food aid is destined for the international or regional bodies or
         non-governmental organizations referred to in Article 10;
      - the need to increase the efficiency of the food-aid operation in question.
3.   Where food aid is sold in the recipient country, the Community should cover inland
     transport costs only in exceptional circumstances.
4.   The Community may also cover the air transport costs of food-aid operations in
     exceptional circumstances.
                                              Article 14
The Community may cover final distribution costs where the smooth execution of the
food-aid operations concerned requires it.
                                                                                             21
 ---pagebreak---                                              Article 15
Community aid shall take the form of grants.
Aid may cover the external and local costs of implementing operations, including maintenance
and operating costs.
Operations under this Regulation shall be exempt from taxes, duties and customs charges.
Any counterpart funds shall be used in accordance with the objectives laid down in this
Regulation and managed in agreement with the Commission. The competent authority of the
recipient country shall keep accounts on the collection and use of the funds and shall be
obliged to render accounts.
                                             Article 16
The Community contribution may also cover flanking activities necessary to make the
operations under this Regulation more efficient and, in particular, supervision, monitoring and
inspection, distribution and field training.
                                             Article 17
Participation in invitations to tender and other procedures for the award of public contracts
shall be open on equal terms to all natural and legal persons in the European Union and the
recipient countries. It may be extended by the Commission to operations under Article 11 (2)
to include natural and legal persons in the countries where the aid is mobilized.
                                                                                              22
 ---pagebreak--- When implementing this Regulation, the Commission shall guarantee the openness of the
operations in question by publicizing them properly. The Commission shall ensure that
operations by intermediary organizations are also publicized properly.
                                           Article 18
The Commission may authorize a representative to conclude cofinancing agreements in its
name.
                                          Article 19
1.    The Commission shall lay down the allocation, mobilizing and implementation conditions
      for aid under this Regulation.
2.    Aid shall not be implemented unless the recipient country, international or regional
      organization or non-governmental organization complies with these conditions.
                                           Article 20
The Commission shall take all measures necessary for the proper implementation of food-aid
programmes and operations, and operations in support of food security.
To that end, the Member States and the Commission shall afford each other all necessary
assistance and exchange all relevant information.
                                                                                           TN
                                                                                           23
 ---pagebreak---                                          CHAPTER «I
                                 Procedure for implementing
                                    food-aid operations and
                            early-warning and storage operations
                                  in support of food security
                                           Article 21
1.  The Council, acting by a qualified majority on a proposal from the Commission and after
    consulting the European Parliament, shall determine the Community share of the overall
    amount of cereals aid laid down in the Food Aid Convention as the total contribution of
    both the Community and its Member States.
2.  The Commission shall coordinate the operations of the Community and the
    Member States as regards the supply of cereals aid under the Food Aid Convention and
    shall ensure that the total contribution by the Community and its Member States is at
    least as high as the quantities provided for in that Convention^ 9 )
(9)  Statement by the Council and the Commission
     "The Council and the Commission agree that the amount of the Community contribution
    under the Food Aid Convention should be determined at the same time as the amounts
    of the contributions of the Member States, jointly by the Council on behalf of the
    Community and by the representatives of Member States meeting within the Council on
    teir own behalf. To this end, the porposal to be submitted by the Commission to the
     Council will be accompanied by a draft allocation between the Member States of the
    total amount incumbent on them."
                                                                                          _
                                                                                          24
 ---pagebreak---                                            Article 22
The Commission, acting in accordance with the procedure laid down in Article 27, and taking
account of the general policy guidelines for food aid shall:
     adopt the list of products which may be mobilized as aid;
     lay down rules for mobilization, monitoring and evaluation;
     determine each recipient's share, in terms of the quantity and cost of the products;
     where necessary, adjust allocations during the implementation of programmes.
                                           Article 23
Decisions:
     granting food aid or providing for an operation in support of food security and laying
     down the conditions for the latter;
     granting a contribution to international or regional bodies and non-governmental
     organizations for the financing of operations in support of food security;
                                                                                            IN
                                                                                             25
 ---pagebreak---       granting aid for a storage programme or early-warning system;
shall be made by the Commission in accordance with the procedure laid down in Article 27, in
compliance with the limits set in Article 25.
                                            Article 24
1.    In accordance with the Council decisions referred to in Article 21 and the decisions
      taken under Article 22, the Commission shall decide on:
      (a)      emergency or serious food shortage operations, where famine or an imminent
               danger thereof seriously threatens the lives or health of people in a country
               without the ways and means to cope itself with a food shortage, after
               consulting the Member States by the most appropriate means and according
               them three working days in which to put forward any objections. If there are
               any objections, the Committee shall examine the question at its next
               meeting;(10)
      (b)      the conditions governing the supply and implementation of aid, in particular:
             ..^ the general conditions applicable to recipients;
(10)  Statement by the Council and the Commission
      "The procedures and the number of Member States for the purpose of taking into
      account any objections raised in the course of the written procedure will be laid down in
      the Committee's rules of procedure."
                 ;                                                                      !
-                   '   '    '     "*        ;    '      '     •  ;              ;           EN
                                                                                             26
 ---pagebreak---               -  initiation of the procedures governing mobilization, supply of products and
                 implementation of other measures, and conclusion of the relevant contracts.
2.   For the purposes of paragraph 1 (a), the Commission shall be entitled to take all
     necessary measures to speed up the supply of food aid.
     The volume of aid granted in a given case shall be limited to the quantities needed by
     the population affected to cope with the situation for a period not normally exceeding
     six months.
     The Commission shall ensure that priority is given at all stages to the mobilization of
     food aid for the operations provided for in paragraph 1 (a) and (b).
                                            Article 25
Decisions regarding operations the financing for which under this Regulation exceeds
ECU 2 million shall be taken in accordance with the procedure laid down in Article 27.
                                            Article 26
1.   The Commission shall be assisted by a Food Aid Committee, hereinafter referred to as
      "the Committee", composed of the representatives of the Member States and chaired
      by a representative of the Commission.
                                                                                             TN
                                                                                             27
 ---pagebreak--- 2.    The Committee must examine the long-term implications of any proposal to commit
      funds for food security at household, local, national and regional level in the recipient
      countries, bearing in mind the principles laid down in Article 1 of this Regulation. It
      shall also analyse and monitor food-security policies which are in receipt of Community
      aid and examine proposals for joint initiatives.
3.    The Committee shall draw up its own rules of procedure.
                                            Article 27
Th& representative of the Commission shall submit to the Committee a draft of the measures
to be taken. The Committee shall deliver its opinion on the draft within a time limit which the
Chairman may lay down according to the urgency of the matter in question. The opinion shall
be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions
which the Council is required to adopt on a proposal from the Commission. The votes of the
representatives of the Member States within the Committee shall be weighted in the manner
set out in that Article. The Chairman shall not vote.
The Commission shall adopt measures which apply immediately. However, if these measures
are not in accordance with the opinion of the Committee, they shall be communicated by the
Commission to the Council forthwith. In that event, the Commission shall defer application of
the measures which it has adopted for a period of t w o months from the date of such
communication.
The Council, acting by a qualified majority, may take a different decision within the time limit
referred to in the previous paragraph.
                                                                                                28
 ---pagebreak---                                          Article 28
1. In order to guarantee the principle of complementarity referred to in the Treaty and
   enhance the effectiveness and consistency of the Community and national food-aid
   provisions and operations in support of food security, the Commission shall seek to
   ensure that its own activities are as closely coordinated as possible with those of the
   Member States and with other EU policies, both at decision-making level and on the
   ground, and may take any appropriate initiative in pursuit of this end.
   To that end, Member States shall notify the Commission of their national food-aid
   operations and of their food security programmes. The Commission, acting in
   accordance with the procedure laid down in Article 27, shall stipulate how notification
   of national operations is to be effected.
2. The Commission shall ensure that operations implemented by the Community are
   coordinated with those of international organizations and bodies, in particular those
   which form part of the United Nations system.
3. The Commission shall seek to develop collaboration and cooperation between the
   Community and third-country donors in the field of food security.
4. Coordination and cooperation between the Community and the Member States, and
   between the latter and international organizations and third-country donors shall be the
   subject of a regular exchange of information within the Article 27 Committee.
                                                                                           29
 ---pagebreak---                                            Article 29
The Committee may examine any other matter concerning food aid and other operations
under this Regulation raised by its Chairman, either on the fetter's own initiative or at the
request of a representative of a Member State.
The Commission shall inform the Committee, within one month of taking its decision, of the
food-aid or foo#-security operations and projects it has approved, indicating their amount and
nature, the recipient country and the partner entrusted with implementation.
The Commission shall notify the Committee of the general guidelines for products mobilized
as Community food aid.
                                           Article 3 0
The Commission shall undertake regular evaluations of significant food-aid operations to
establish whether the objectives laid down in the appraisal of those operations have been
achieved and to provide guidelines for improving the effectiveness of future operations. It
shall inform the Committee periodically on the evaluation programmes.
Member States and the Commission shall notify each other as soon as possible of the results
of evaluation work and of analyses or studies that would improve aid efficiency. The work
will be analysed in the Committee. Member States and the Commission shall endeavour t o
carry out joint evaluation exercées.
                                                                                              30
 ---pagebreak--- The Commission shall draw up procedures for the dissemination and internal and external
communication of the conclusions of evaluation exercises to the departments and
organizations concerned.
                                            Article 31
At the close of each financial year, the Commission shall submit an annual report on the
implementation of this Regulation to the European Parliament and the Council. The report
shall set out the results of execution of the budget as regards commitments and payments
and projects and programmes financed during the year. As far as possible, the report shall
contain information on the funds committed nationally during the same financial year. As far
as possible, it shall contain the most important statistical data (by recipient country,
nationality, etc.) on contracts awarded for the implementation of projects and programmes.
The report shall also contain a breakdown of expenditure assigned to each type of operation
as provided for in Articles 2, 5 and 8 of this Regulation.
Lastly, the report shall contain information on operations undertaken with the counterpart
funds generated by food aid.
                                                                                           "EN
                                                                                            31
 ---pagebreak---                                              Article 32
Regulation (EEC) No 3972/86, as last amended by Regulation (EEC) No 1930/90, and
Regulations (EEC) No 1755/84, No 2507/88, No 2508/88 and 1420/87 shall be repealed.
As a transitional measure and until the new mobilization Regulation is adopted by the
Commission, Commission Regulation No 2200/87 of 8 July 1987 shall continue to apply.
Three years after the entry into force of this Regulation, the Commission shall submit to the
Council and to the European Parliament an overall evaluation of the operations financed by
the Community under this Regulation, accompanied by suggestions for the future of the
Regulation and, if necessary by proposals for amendments to the Regulation.
                                             Article 33
This Regulation shall enter into force on the third day following that 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 Brussels,
                                                                          For the Council
                                                                                                TR
                                                                                                 32
 ---pagebreak---                                                                                                                    ANNEX
1. COUNTRIES
               LLDCs                     Other LICs                                  LMICs
  (Least-developed countries) (Other low-income countries.   (Lower middle-income countries. Per capita GNP
                              Per capita GNP < $675 in 1992) $676- $2695 in 1992)
  Afghanistan                 China                          Albania                      Peru
  Bangladesh                  Egypt                          Algeria                      Philippines
  Benin                       Eritrea                        Angola                       Senegal
  Bhutan                      Ghana                          Anguilla                     South Africa
  Botswana                    Guyana                         Armenia                      St Helena
  Burkina Faso                Honduras                       Azerbaijan                   St Vincent & the
  Burundi                     India                          Belize                       Grenadines
  Cambodia                    Indonesia                      Bolivia                      States of former
  Cape Verde                  Kenya                          Cameroon                        Yugoslavia
  Central African Republic    Nicaragua                      Chile                        Swaziland
  Chad                        Nigeria                        Colombia                     Syria
  Comoros                     Pakistan                       Congo                        Thailand
  Djibouti                    Sri Lanka                      Costa Rica                   Tokelau
  Equatorial Guinea           Tajikistan                     Côte d'Ivoire                Tonga
  Ethiopia                    Timor                          Cuba                         Tunisia
  Gambia                      Vietnam                        Dominica                     Turkey
  Guinea Bissau               Zimbabwe                       Dominican Republic           Turkmenistan
  Guinea                                                     Ecuador                      Turks and Caicos Islands
  Haiti                                                      El Salvador                  Uzbekistan
  Kiribati                                                   Fiji                         Wallis and Futuna
  Laos                                                       Georgia
  Lesotho                                                    Grenada
  Liberia                                                    Guatemala
  Madagascar                                                 Iran
  Malawi                                                     Iraq
  Maldives                                                   Jamaica
  Mali                                                       Jordan
  Mauritania                                                 Kazakhstan
  Mozambique                                                 Korea (Dem. Rep.)
  Myanmar                                                    Kyrgyzstan
  Nepal                                                      Lebanon
  Niger                                                      Macao
  Rwanda                                                     Marshall Islands
  Sâo Tome and Principe                                      Micronesia, Federated
  Sierra Leone                                               States
  Solomon Islands                                            Moldova
  Somalia                                                    Mongolia
   Sudan                                                     Morocco
  Tanzania                                                   Namibia
  Togo                                                       Niue
   Tuvalu                                                    Occupied Territories (Gaza
   Uganda                                                       & the West Bank)
   Vanuatu                                                   Panama
   Western Samoa                                             Papua New Guinea
   Yemen                                                     Paraguay
   Zaire
   Zambia
                                                                                                                      IN
(ANNEX)                                                                                                                33
 ---pagebreak--- 2.     BODIES
  WFP                                         FAO
  ICRC                                        UNICEF
  IFRC
  UNHCR
  UNRWA
3.     NON-GOVERNMENTAL ORGANIZATIONS
       European NGOs, NGOs of the recipient country or, exceptionally, international NGOs
       specializing in development.
                                        ood/BS/je                                       TR
(ANNEX)                                                                                  34
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(96) 250 final
                                              DOCUMENTS
EN                                                                            11
                                     Catalogue number : CB-CO-96-263-EN-C
                                                             ISBN 92-78-05180-2
Office for Official Publications of the European Communities
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