CELEX: 51994PC0426
Language: en
Date: 1994-10-18
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 Ivory Coast, Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and Nevis, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the Republic of India on the guaranteed prices for cane sugar for the 1993/94 delivery period

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  C0M(94) 426 final
                                                  Brussels, 18.10.1994
                                                  94/0237 (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 the Ivory Coast, Jamaica, the Republic of Kenya,
        the Republic of Madagascar, the Republic of Malawi, Mauritius,
              the Republic of Surinam, St. Christopher and Nevis,
     the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad
      and Tobago, the Republic of Uganda, the Republic of Zimbabwe and,
      on the other hand, the Republic of India on the guaranteed prices
                 for cane sugar for the 1993/94 delivery period
                             (presented by the Commission)
 ---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  1993/94  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 19.7.1993.
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 1993 budget and the
   1994 preliminary draft budget (see financial statement accompanying the
   recommendation  for a Council decision authorizing    the Commission to
   negotiate the guaranteed prices for 1993/94).
                                 - 2 -
 ---pagebreak---                                 Proposal for a
                               COUNCIL DECISION
on the conclusion of the Agreements 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 the Ivory
coast, Jamaica, the Republic of Kenya, the Republic      of Madagascar, the
Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and
Nevis, the Kingdom of Swaziland, the united Republic of Tanzania, Trinidad
and  Tobago,  the  Republic  of  Uganda,  the  Republic of Zimbabwe   on the
guaranteed prices for cane sugar for the 1993/94 delivery period
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,      and in
particular Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-
EEC Convention(*) and of the Agreement between the European 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 exchange
of letters between the European 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 1993/94 delivery period,
HAS DECIDED AS FOLLOWS:
 (1) OJ No L 299, 17.8.1991, p. 1.
 (2) OJ No L 190, 22.7.1975, p. 35. - 3 -
 ---pagebreak---                                   Article 1
The Agreements  in the form of 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 Ivory Coast,
Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of
Malawi, Mauritius, the Republic of Surinam, St. Christopher and Nevis, the
Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago,
the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the
Republic of India on the guaranteed prices for cane sugar for the 1993/94
delivery period are hereby approved on behalf of the Community.
The text of the Agreement 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
                                   - 4 -
 ---pagebreak---                                     Text No I
                                    AGREEMENT
in the form of 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 Ivory coast, Jamaica,
the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi,
Mauritius, the Republic of Surinam, St. Christopher and Nevis, the Kingdom
of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the
Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the
Republic of India on the guaranteed prices for cane sugar for the 1993/94
delivery period.
                                   Letter No 1
1.  The representatives of the ACP states referred to in Protocol & on ACP
    sugar  annexed  to the Fourth ACP-EEC Convention        of Lomé and     of the
    commission 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 1993 to 30 June 1994, 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 43,37 per 100 kilograms;
    (b) for white sugar         ECU 53,54 per 100 kilograms.
2.  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.
                                      - 5 -
 ---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 teh
Governments of the abovementioned ACP states and the Community.
Please accept, Sir, the assurance of my highest consideration.
                                                      For the Council
                                               of the European Union
                                 Letter No 2
sir,
I have the honour to acknowledge receipt of your letter of today which reads
as follows:
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
                                   - 6 -
 ---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.1993/94
                                  Letter No 1
                                                        Brussels,
Sir,
1.  The Representatives of India and of the Commission, 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
     Community and the Republic of India on cane sugar, on the following:
         for the period 1 July 1993 to 30 June 1994 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 43,37 per 100 kilograms;
         (b) for white sugar   ECU 53,54 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.
Yours faithfully,
                                                 For the Council of the
                                                 European Union
                                     - 7•••-
 ---pagebreak---                                  Letter No 2
Sir,
I have the honour to acknowledge receipt of your letter of today which reads
as^ follows :
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
                                    - 8 -
 ---pagebreak---        FINANCIAL                        STATEMENT
                                                                             DATE:
1. BUDGET HEADING: 11                                                        APPROPRIATIONS: ECU 2.088 million
2. TITLE:
    Recommendation for a Decision of the Council to authorize the Commission to negotiate the guaranteed
    prices applicable in the 1993/94 delivery period to cane sugar originating           in the ACP States referred to
    in Protocol 8 annexed to the Fourth EEC-ACP Convention and in India.
3. LEGAL BASIS:    Article 113 of the Treaty
4. AIMS OF PROJECT:
    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 1993/94 delivery period.
                                      Period of 12 months     Current   Financial   Year    Following Financial    Year
     FINANCIAL  IMPLICATIONS                                            1993                           1994
                                            ECU million              ECU mi 11 ion .                 ECU mi 11 ion
5.0 EXPENDITURE
     - CHARGED TO THE EC BUDGET
     -  (REFUNDS/INTERVENTION)
     - NATIONAL  ADMINISTRATION
     - OTHER                                    670                                                     617
5.1 REVENUE
                                              1995                 1996                    1997                  1998
5.0.1 ESTIMATED   EXPENDITURE                  53
5.1.1 ESTIMATED   REVENUE
5.2 METHOD OF   CALCULATION:
     1,3 million t x ECU    420/t <refunds)               x 1,207 (DT) = ECU 659       million  (B)
     1,3 million t x ECU    5,8/t  (refining aid)         x 1,207 (DT) = ECU       9,1 million  (B)
     1,1 million t x ECU    4,5/t  (aid to UK)      x 25% x 1,207 (DT) = ECU       1,5 million (B)
                                                                           ECU 669,6 mi 11ion (B)
      In 1994: ECU 659 million x 0,92 (export coefficient) + (9.1 + 1,5) Mio ECU = ECU 616,9 million (B)
      In 1996: ECU 659 million x 0,08 (export coefficient)                                = ECU  52,7 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 BETUEEN CHAPTERS OF THE CURRENT           BUDGET?                      XXXXXX
6.2  IS A SUPPLEMENTARY   BUDGET  NECESSARY?
                                                                                                                        NO
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                            (1994)                                                 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,
estimated at ECU 670 million, will be taken into account       in the 1994 preliminary draft budget.
Furthermore, the lowering of the level of the refining aid from ECU 15.8/t to ECU 5.8/t             results in a saving
of 1.3 million tonnes x (15.8 - 5.8) ECU/t x 1,207 (DR) = ECU 15,7 million ( B ) , the cost first           estimated
in the 1994 PDB.
                                                              3
 ---pagebreak---                                                                      ISSNQ254-1475
                                                              COM(94) 426 final
                                                      DOCUMENTS
EN                                                                        11 02
                                Catalogue number : CB-CO-94-455-EN-C
                                                             ISBN 92-77-81093-9
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