CELEX: 51996PC0035
Language: en
Date: 1996-02-07
Title: Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of an Exchange of Letters between the European Community and, on the one hand, Barbados, Belize, the Republic of the Congo, Fiji, the Cooperative Republic of Guyana the Republic of the Côte d' Ivoire, Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, the Republic of Saint Mauritius, the Republic of Suriname, the Republik of Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zambia and the Republic of Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices for cane sugar for the 1995/1996 delivery period

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 07.02.1996
                                                      C()M(96) 35 final
                                                      96/0032 (ACC)
                                       Proposal for a
                                   COUNCIL DECISION
     on the conclusion of the Agreements in the form of an Exchange of Letters
               between the European Community and, on the one hand,
                      Barbados, Belize, the Republic of the Congo,
                        Fiji, the Cooperative Republic of Guyana,
            the Republic of Côte d'Ivoire, Jamaica, the Republic of Kenya,
                 the Republic of Madagascar, the Republic of Malawi,
                 the Republic of Mauritius, the Republic of Suriname,
               Saint Christopher and Nevis, the Kingdom of Swaziland,
       the United Republic of Tanzania, the Republic of Trinidad and Tobago,
the Republic of Uganda, the Republic of Zambia and the Republic of Zimbabwe and,
          on the other hand, the Republic of India on the guaranteed prices
                   for cane sugar for the 1995/1996 delivery period
                               (presented by the Commission)
 ---pagebreak---  ---pagebreak---                               EXPLANATORY MEMORANDUM
1. Protocol No 8 on ACP sugar annexed to the Fourth ACP-EEC Convention and the agreement on
   sugar between the European Community and the Republic of India provide for a Community
   undertaking to purchase and import at guaranteed prices cane sugar which the exporting countries
   concerned cannot market in the Community at, prices equivalent to or higher than the guaranteed
   prices.
2. For the 1995/96 delivery period, the Commission has negotiated guaranteed prices with the ACP
   States and the Republic of India pursuant to Articles 5(4) of Protocol No 8 on ACP sugar and the
   agreement with India on cane sugar as well as in conformity with the guidelines for negotiations
   given by the Council on 24.10.1995.
3. The Commission therefore proposes that the Council adopt the proposal for a decision on the
   conclusion of the agreements in the form of an exchange of letters as set out in Annex 1.
4. Financial impact: These proposals have no financial impact other than that taken into account within
   the framework of the 1995 budget and the 1996 preliminary draft budget.
 ---pagebreak---                                                    Proposal for a
                                           COUNCIL DECISION (EC) N.
                                                    of
          on the conclusion of the Agreements in the form of an Exchange of Letters
                     between the European Community and, on the one hand,
                               Barbados, Belize, the Republic of the Congo,
                                  Fiji, the Cooperative Republic of Guyana,
                 the Republic of Côte d'Ivoire, Jamaica, the Republic of Kenya,
                       the Republic of Madagascar, the Republic of Malawi,
                        the Republic of Mauritius, the Republic of Suriname,
                      Saint Christopher and Nevis, the Kingdom of Swaziland,
             the United Republic of Tanzania, the Republic of Trinidad and Tobago,
     the Republic of Uganda, the Republic of Zambia and the Republic of Zimbabwe and,
               on the other hand, the Republic of India on the guaranteed prices
                          for cane sugar for the 1995/1996 delivery period
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113, in conjunction with the first sentence of Article 228(2), thereof,
Having regard to the proposal from the Commission,
Whereas implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-EEC
Convention (1) and of the Agreement between the European Economic Community and the
Republic of India on cane sugar (2) is carried out, in accordance with Article 1 (2) of each,
within the framework of the management of the common organization of the sugar market;
Whereas it is appropriate to approve the Agreements in the form of an Exchange of Letters
between the Community and, on the one hand, the States referred to in the Protocol and, on
the other hand, the Republic of India on the guaranteed prices for cane sugar for the
1995/1996 delivery period,
(1)    OJ No L 2 2 9 , 1 7 . 8 . 1 9 9 1 , p. 216.
(2)    OJ No L 190, 2 2 . 7 . 1 9 7 5 , p, 35.
 ---pagebreak---  HAS DECIDED AS FOLLOWS:
                                              Article 1
The Agreements in the form of an Exchange of Letters between the European Community
and, on the one hand, Barbados, Belize, the Republic of the Congo, Fiji, the Cooperative
 Republic of Guyana, the Republic of Côte d'Ivoire, Jamaica, the Republic of Kenya, the
Republic of Madagascar, the Republic of Malawi, the Republic of Mauritius, the Republic of
Suriname, Saint Christopher and Nevis, the Kingdom of Swaziland, the United Republic of
Tanzania, the Republic of Trinidad and Tobago, the Republic of Uganda, the Republic of
Zambia and the Republic of Zimbabwe and, on the other hand, the Republic of India on the
guaranteed prices for cane sugar for the 1995/1996 delivery period are hereby approved on
behalf of the Community.
The text of the Agreements is attached to this Decision.
                                             Article 2
The President of the Council is hereby authorized to designate the person empowered to sign
the Agreements referred to in Article 1 in order to bind the Community.
                                             Article 3
This Decision will be published in the Official Journal of the European Communities.
Done at Brussels,
                                                           For the Council
                                                            The President
                                                     ^
 ---pagebreak---                                             Text No I
                                           AGREEMENT
                        IN THE FORM OF AN EXCHANGE OF LETTERS
            BETWEEN THE EUROPEAN COMMUNITY AND BARBADOS, BELIZE,
                             THE REPUBLIC OF THE CONGO, FIJI,
      THE COOPERATIVE REPUBLIC OF GUYANA, THE REPUBLIC OF CÔTE D'IVOIRE,
                            JAMAICA, THE REPUBLIC OF KENYA,
              THE REPUBLIC OF MADAGASCAR, THE REPUBLIC OF MALAWI,
               THE REPUBLIC OF MAURITIUS, THE REPUBLIC OF SURINAME,
            SAINT CHRISTOPHER AND NEVIS, THE KINGDOM OF SWAZILAND,
           THE UNITED REPUBLIC OF TANZANIA, THE REPUBLIC OF TRINIDAD
       AND TOBAGO, THE REPUBLIC OF UGANDA, THE REPUBLIC OF ZAMBIA AND
                                THE REPUBLIC OF ZIMBABWE
                      ON THE GUARANTEED PRICES FOR CANE SUGAR
                           FOR THE 1995/1996 DELIVERY PERIOD
A. Letter No 1
                                                                        Brussels,
Sir,
The representatives of the ACP States referred to in Protocol 8 on ACP sugar annexed to
the Fourth ACP-EEC Convention and of the Commission, acting on behalf of the European
Commuriity, have agreed, pursuant to the provisions of the said Protocol, on the following:
For the delivery period 1 July 1995 to 30 June 1996, the guaranteed prices referred to in
Article 5(4) of the Protocol shall, for the purpose of intervention within the terms of Article
6 of the Protocol , be:
(a) for raw sugar   : ECU 52,37 per 100 kilograms;
(b) for white sugar: ECU 64,65 per 100 kilograms.
These prices shall refer to sugar of standard quality as defined in Community legislation,
unpacked, cif, free out of European ports of the Community. The introduction of these
prices in no way prejudices the respective positions of the Contracting Parties in respect
of the principles appertaining to the determination of the guaranteed prices.
                                                  ^>
 ---pagebreak---  I should be obliged if you would acknowledge receipt of this letter and confirm that this
 letter and your reply constitute an Agreement between the Governments of the
 abovementioned ACP States and the Community.
Please accept, Sir, the assurance of my highest consideration.
                                                                  On behalf of the Council
                                                                   of the European Union
B. Letter No 2
                                                                        Brussels,
Sir,
I have the honour to acknowledge receipt of your letter of today which reads as follows:
        "The representatives of the ACP States referred to in Protocol 8 on ACP sugar
       annexed to the Fourth ACP-EEC Convention and of the Commission, acting on behalf
       of the European Community, have agreed, pursuant to the provisions of the said
       Protocol, on the following:
       For the delivery period 1 July 1995 to 30 June 1996, the guaranteed prices referred
       to in Article 5(4) of the Protocol shall, for the purpose of intervention within the
       terms of Article 6 of the Protocol , be:
       (a) for raw sugar : ECU 52,37 per 100 kilograms;
       (b) for white sugar: ECU 64,65 per 100 kilograms.
       These prices shall refer to sugar of standard quality as defined in Community
       legislation, unpacked, cif, free out of European ports of the Community. The
       introduction of these prices in no way prejudices the respective positions of the
       Contracting Parties in respect of the principles appertaining to the determination of
       the guaranteed prices.
       I should be obliged if you would acknowledge receipt of this letter and confirm that
       this letter and your reply constitute an Agreement between the Governments of the
       abovementioned ACP States and the Community."
I have the honour to confirm the agreement of the Governments of the ACP States
referred to in this letter with the foregoing.
Please accept, Sir, the assurance of my highest consideration.
                                                                  For the Governments
                                                                    of the ACP States
                                                                referred to in Protocol 8
                                                 io
 ---pagebreak---                                           Text No II
                                         AGREEMENT
                       IN THE FORM OF AN EXCHANGE OF LETTERS
                           BETWEEN THE EUROPEAN COMMUNITY
                            AND THE REPUBLIC OF INDIA ON THE
                 GUARANTEED PRICES FOR CANE SUGAR FOR 1995/1996
A. Letter No 1
                                                                     Brussels,
Sir,
The Representatives of India and of the Commission, acting on behalf of the European
Community, have agreed within the framework of the negotiations provided for in
Article 5(4) of the Agreement between the European Economic Community and the
Republic of India on cane sugar, on the following:
For the delivery period 1 July 1995 to 30 June 1996, the guaranteed prices referred to in
Article 5(4) of the Agreement shall, for the purpose of intervention within the terms of
Article 6 of the Agreement , be:
(a) for raw sugar   : ECU 52,37 per 100 kilograms;
(b) for white sugar: ECU 64,65 per 100 kilograms.
These prices shall refer to sugar of standard quality as defined in Community legislation,
unpacked, cif, free out of European ports of the Community. The introduction of these
prices in no way prejudices the respective positions of the Contracting Parties in respect
of the principles appertaining to the determination of the guaranteed prices.
I should be obliged if you would acknowledge receipt of this letter and confirm that this
letter and your reply constitute an Agreement between your Government and the
Community.
Please accept, Sir, the assurance of my highest consideration.
                                                          On behalf of the Council of the
                                                                  European Union
 ---pagebreak--- B. Letter No 2
                                                                            Brussels,
Sir,
I have the honour to acknowledge receipt of your letter of today which reads as follows:
         "The Representatives of India and of the Commission, acting on behalf of the
          European Community, have agreed within the framework of the negotiations
          provided for in Article 5(4) of the Agreement between the European Economic
          Community and the Republic of India on cane sugar, on the following:
          For the delivery period 1 July 1995 to 30 June 1996, the guaranteed prices
          referred to in Article 5(4) of the Protocol shall, for the purpose of intervention
          within the terms of Article 6 of the Protocol , be:
          (a) for raw sugar : ECU 52,37 per 100 kilograms;
          (b) for white sugar: ECU 64,65 per 100 kilograms.
          These prices shall refer to sugar of standard quality as defined in Community
          legislation, unpacked, cif, free out of European ports of the Community. The
          introduction of these prices in no way prejudices the respective positions of the
          Contracting Parties in respect of the principles appertaining to the determination
          of the guaranteed prices.
          I should be obliged if you would acknowledge receipt of this letter and confirm
          that this letter and your reply constitute an Agreement between your
          Government and the Community.".
I have the honour to confirm the agreement of my Government with the foregoing.
Please accept, Sir, the assurance of my highest consideration.
                                                               For the Government of
                                                                the Republic of India
 ---pagebreak---        BUDGET HEADING: 1 î                                                              APPROPRIATIONS:
                                                                                        ECU 1.467 million
2.     TITLE:
       Council Decision on the conclusion of the Agreements in the form of an exchange of letters between the European
       Community and, on the one hand, the ACP States and, on the other hand, the Republic of India on the guaranteed
       prices for cane sugar for the 1995/96 delivery period.
       LEGAL BASIS: Article 113 of the EEC Treaty
       AIMS:
       To guarantee cif prices for the ACP States and the Republic of India for their deliveries of white sugar and raw cane
       sugar to the Community which are comparable with the prices guaranteed to sugar producers in the Community for the
       1995/96 delivery period.
       FINANCIAL IMPLICATIONS:                                 PERIOD OF 12             CURRENT                FOLLOWING
                                                                  MONTHS                FINANCIAL               FINANCIAL
                                                                                           YEAR                    YEAR
                                                                                             (96)                   (97)
                                                                (ECU million)          (ECU million)           (ECU million)
5.0.   EXPENDITURE
       - CHARGED TO THE EC BUDGET                                    634                     603                     31
         (REFUNDS/INTERVENTION)
       - NATIONAL AUTHORITIES
       - OTHER
5.1.   REVENUE
       - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                                                  1998            1999               2000              2001
5.0.1. ESTIMATED EXPENDITURE
5.1.1. ESTIMATED REVENUE
5.2.   METHOD OF CALCULATION:
       1,3 million t x ECU 465/t (refunds)         x 1,020 (DT) - ECU 616,6 million (B)
       1,3 million t x ECU 13/t (refining aid)     x 1,019 (DT) = ECU 17,2 million (B)
                                                                     ECU 633,8 million (B)
       In 1996: ECU 616,6 million x 0,95 (export coefficient) + ECU 17,2 million = ECU 603 million (B)
       In 1997: ECU 616,6 million x 0,05 (export coefficient)                    = ECU 30,8 million (B)
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?                                                                                                       XXXXXX
6.2.   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                                          NO
6.3.   WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                                YES
OBSERVATIONS       This is an implementing regulation under Protocol 8 annexed to the Fourth Lomé Convention.
                   Accordingly, it has no new financial impact compared with the previous situation.
                   The cost of re-exporting equivalent quantities of Community sugar and of aid for the refining of raw sugar,
                   will be taken into account in the 1996 budget.
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(96) 35 final
                                              DOCUMENTS
EN                                                                             11
                                     Catalogue number : CB-CO-96-042-EN-C
                                                             ISBN 92-77-99980-2
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