CELEX: 51995PC0307
Language: en
Date: 1995-07-03
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 Zambia, the Republic of Zimbabwe, and on the other hand, the Republic of India on the supply of raw cane sugar to be refined

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   Brussels, 03.07.1995
                                                    COM(95) 307iinal
                                                    95/0172 (ACC)
                                     Proposal for a
                               C O U N C I L 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 Zambia
    the Republic of Zimbabwe, and on the other hand, the Republic of India
                  on the supply of raw cane sugar to be refined.
                            (presented by the Commission)
• %
 ---pagebreak---  ---pagebreak---                            EXPLANATORY MEMORANDUM
1. Article 37 together with Article 16 of Council Regulation No 1785/81,
   as last amended by    Council Regulation (EEC) No 1101/95, provide for
   agreements with the ACP states referred to    in Protocol No 8 annexed to
   the fourth ACP-EEC Convention and India and other states on the opening
   of a tariff quota at a reduced rate of duty for raw cane sugar to be
   refined.
   By this agreement it is aimed at ensuring adequate supplies to the
   Community  refineries  in conformity with the presumed maximum       needs
   fixed by the said Article 37.
2. In conducting the negotiations on access to this tariff quota, it was
   considered appropriate to try to reach an agreement first with the ACP
   countries and India which have supplied the EC market on a regular
   basis.  As  a  result,   the  Commission  has,  in  conformity  with   the
   Negotiating Directives adopted by the Council on 10 May 1995, concluded
   negotiations with the ACP states referred to and India.
3. It is agreed by the negotiating parties to approve the results of the
   negotiations in the form of an exchange of letters.
   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 and 2.
4. However, negotiations on other agreements shall be conducted with other
   exporting countries to the EC for access to the tariff quota.
5. At the end of these negotiations, the preference, if any, granted to
   the ACP countries compared with the other exporting countries will
   have to be notified to the WTO, in conformity with the provisions of
   the waiver granted for the Lomé IV Convention.
6. Financial impact
   The financial consequences are set out in Annex 3
                                     s4
 ---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,
                        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 Zambia
   the Republic of Zimbabwe, and on the other hand, the Republic of India
                  on the supply of raw cane sugar to be refined.
                           (presented by the Commission)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in
particular Article 113 and Article 228 paragraph 2 thereof,
Having regard to the proposal from the Commission,
whereas negotiations with the ACP States Party to Protocol n° 8 on ACP
sugar annexed to the fourth Lomé Convention and India have taken place in
order to define the conditions under which imports of raw cane sugar from
those countries under the additional quota will take place;
 ---pagebreak--- Whereas Article 16 of Council Regulation (EEC) Nol785/81 as last amended by
Council Regulation (EEC) No 1101/95 provides that tariff quotas resulting
from  agreements  concluded   in  the  framework  of   the   Uruguay  Round  of
multinational  trade   negotiation  shall  be   opened   and   administered  in
accordance with detailed rules adopted under the procedure laid down in
Article 41;
whereas Article 37(3) states that a shortfall to fill the maximum needs of
the community refineries shall be covered by importing special preferential
sugar at a special rate of duty under agreements with states referred to in
Article 33 and other States;
whereas the said negotiations have resulted in agreements which are subject
to confirmation by the Governments of the ACP States concerned, on the one
hand, and India, on the other hand, and by the Community;
Whereas it is appropriate to open such a tariff quota for raw cane sugar to
be refined for maintaining the current access for ACP States parties to
Protocol  N°  8 to   the  Fourth  Lomé  convention,   India   and  other  third
countries.
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 supply of raw cane sugar to be refined;
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                 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 Zambia, the Republic of
Zimbabwe and, on the other hand, the Republic of India on the supply of raw
cane sugar to be refined 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
 ---pagebreak---                                 A N N E X
                                  AGREEMENT
IN THE FORM OF 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 ZAMBIA AND THE REPUBLIC OF ZIMBABWE ON THE SUPPLY OF RAW SUGAR
TO BE REFINED.
                                Letter No 1
"The representatives of the ACP States and the European Community       have
agreed as follows:
1.  For the period 1 July 1995 to 30 June 2001
        The European Community undertakes to open annually a special tariff
        quota for the import of raw cane sugar for refining which originate
        in the ACP States, on the basis of the needs determined by the
        Commission in accordance with paragraph 3,
        The ACP states undertake to supply the said quantities under the
        conditions fixed by this agreement and by the measures taken by the
        Commission  for  the  application   of this   agreement  within  the
        framework of the management     of the common   organization of the
        markets in the sugar sector.
 ---pagebreak--- 2. The  European  Commission  and  the   ACP  states   shall  establish  the
   cooperation procedures necessary to enable the two parties to this
   agreement to meet the commitments entered into.
3. The import needs of raw sugar for refining under this agreement shall
   be established by marketing year on the basis of a Community forward
   estimate taking account of:
       the provisions of Council Regulation      (EC) No   1101/95, amending
     . Regulation (EEC) No 1785/81, concerning the system of preferential
       imports, and in particular Article 37 thereof,
       the quantities which will be offered within the framework of other
       agreements with other third countries and which will actually be
       imported.
4. The Commission shall establish a first estimate of the total needs for
   imports of raw sugar for refining at the latest on 30 May preceding the
   marketing year concerned.
   The Commission shall fix at the same time the quantities to cover, as a
   first instalment, the import needs of the Community's refineries for
   the longest practical period and at least 8 months, broken down between
   the tariff quotas opened within the framework of other agreements with
   other third countries and the ACP special quota.
   The ACP   States  shall notify  their   final  export  potential  to  the
   Commission at the latest on 1 February, before a second regular fixing
   shall be make for the further instalment to be covered by imports under
   the special ACP quota.
                                       /
 ---pagebreak--- 5.  The special reduced rate of duty shall be fixed for the 1995/96 -
    2000/2001 marketing years at 6,9 Ecu per 100 kgs raw sugar of the
    standard quality.
    The importers and refiners which want to participate in this special
    reduced duty system must pay a minimum purchase price which is equal to
    the guaranteed price for raw sugar reduced by the adjustment aid fixed
    for the marketing year concerned in accordance with the provisions of
    Article 36 of Regulation (EEC) No 1785/81 mentioned under 3.
    It is agreed that if the adjustment aid is increased or reduced by
    comparison with its existing level of 1.20 Ecu per 100 kgs raw sugar a
    converse adjustment will be made in the reduced levy, so that the
    change in the adjustment aid does not affect the net receipts of the
    ACP suppliers.
It  is  further  agreed  that  the  level  of  the  reduced  levy  will  be
reconsidered if
    a.  the level of the guaranteed price established in accordance with
        the provision of Protocol No 8 annexed to the 4th Lomé convention
        is reduced by comparison with the price applicable in the 1994/95
        delivery period or
    b.  the level of the world market price increases to the point where
        the objective of providing an incentive to supply the Community
        would be put at risk.
 ---pagebreak--- 6.  The ACP   States   shall undertake collectively    to  implement between
    themselves procedures for the allocation of the quantities under this
    special ACP quota in order to ensure the appropriate supplying of the
    refineries.
7.  Before 1 January 2001, the two parties to this agreement shall open
    discussions on its possible continuation»"*
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 above mentioned ACP States and the Community.
Please accept, sir,, the assurance of ray highest consideration.
                                For the council of the European union
                                          S
 ---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 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
 ---pagebreak---                                 A N N E X  2
in the form of an exchange of letters between the European Community and
the Republic of India on the supply of raw sugar to be refined
                                Letter N" 1
                      INDIA SPECIAL PREFERENTIAL
"The representatives of India and the European Community have agreed as
follows :
1.  For the period 1 July 1995 to 30 June 2001
    -   The European Community undertakes to open annually a special tariff
        quota for the import of raw cane sugar for refining which originate
        in India, on the basis of the needs determined by the Commission in
        accordance with paragraph 3,
                                        ^io
 ---pagebreak---         In the event of an import need being established, India undertakes
        to supply 10,000 tonnes (WSE) under this special tariff quota and
        under the conditions fixed by this agreement and by the measures
        taken by the Commission    for the application  of this   agreement
       within the framework of the management of the common organization
        of the markets in the sugar sector. Nothing in this indent should
        prevent the community offering to India the possiblility to supply
       more than 10,000 tonnes in the event of a shortfall in the total
        supplies obtained under other agreements.
2. The   European  Commission and  India  shall establish   the cooperation
   procedures necessary to enable the two parties to this agreement to
   meet the comitments entered into.
3. The import needs of raw sugar for refining under this agreement shall
   be established by marketing year on the basis of a Community forward
   estimate taking account of :
        the provisions of Council Regulation    (EC) N°   1101/95, amending
        Regulation (EEC) N° 1785/81, concerning the system of preferential
        imports, and in particular Article 37 thereof,
        the quantities which will be offered within the framework of other
        agreements with other third countries and which will actually be
        imported.
4. The special reduced rate of duty shall be fixed for the        1995/96 -
    2000/2001 marketing years at 6,9 Ecu per 100 kgs raw sugar of the
    standard quality.
                                         -/«
 ---pagebreak---     The importers and refiners which want to participate in this    special
    reduced duty system must pay a minimum purchase price which is equal to
    the guaranteed price for raw sugar reduced by the adjustment aid fixed
    for the marketing year concerned in accordance with the provisions of
    Article 36 of Regulation (EEC) N* 1785/81 mentioned under 3.
    It is agreed that if the adjustment aid is increased or reduced by
    comparison with its existing level of 1.20 Ecu per 100 kgs raw sugar a
    converse adjustment will be made in the reduced levy, GO that the
    change in the adjustment aid does not affect the net receipts of the
    India suppliers.
    It  is further agreed that the    level of the reduced    levy will  be
    reconsidered if
    (a) the level of the guaranteed price established in accordance with
        the agreement between the Community and India on raw sugar       i3
        reduced by comparison with the price applicable in the      1994/95
        delivery period or
    (b) the level of the world market price increases to the point where
        the objective of providing an incentive to supply the community
        would be put at risk.
5.  Before 1 January 2001, the two parties to this agreement shall open
    discussions on its possible continuation."
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
Government of India and the community.
Please accept, sir, the assurance of my highest consideration.
                                             For the Council of the
                                             European Union
                                   /v
 ---pagebreak---                                 Letter N° 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.
                                         \i
 ---pagebreak--- FINANCIAL STATEMENT
                                                                      I Date
1. BUDGET HEADING :   Receipts : 1000                  APPROBIATIONS    Ecu   946,5 Million
                      Expenditure : Bl-110(PDB 95)                      Ecu 1 235,0 Million
2. TITLE      Council Decision on the conclusion of an Agreement in the form of an
              exchange of letters between the European Economic Community and, on the one
              hand, Barbados, Belize, the People's Republic of the Congo, Fiji, the
              Cooperative Republic of Guyana, the Republic of Côte d'Ivoire, Jamaica, the
              Republic of Kenya, the Democratic Republic of Madagascar, the Republic of
              Malawi, Mauritius, Saint Christopher and Nevis, the Republic of Suriname,
              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, India on the supply of raw cane
              sugar for refining.
3. LEGAL BASIS        Article 113 of Treaty.
4. AIMS OF PROJECT : Granting of a reduced rate of customs duty to the ACP states and
                      India for an import quota opened for the period 1.7.1995 to
                      30.6.2001.
5. FINANCIAL IMPLICATIONS      PERIOD OF    CURRENT FINANCIAL        FOLLOWING FINANCIAL
                               12 MONTHS      YEAR (1995)              YEAR (199 5)
5.0 EXPENDITURE                                                               148,8
    - Charged to the EC budget
      (Refund)
5.1 RECEIPTS
    - onw resources or the EC                           —.                      21,1
      (levies/customs duties)
                                   1997            1998           1999              2000
5.0.1 ESTIMATED EXPENDITURE       152,0          152,0           152,0            152,0
5.1.1 ESTIMATED RECEIPTS           21,6            21,6           21,6              21,6
5.2.   METHOD OF CALCULATION
      See attached Annex
 6.0  CAN THE PROJECT BE FINANCED FROM APPROBIATIONS ENTERED IN THE RELEVANT CHAPTER OF
      THE CURRENT BUDGET ?
                                                                                       YES/Sûr
 6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?__.
                                                                                       YES/*t£
 6.2. IS A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                        *S5/NO
 6.3. WILL FUTURE BUDGET APPROBAIATIONS BE NECESSARY ?
                                                                                        YES/HB:
 OBSERVATIONS
                                           yM
 ---pagebreak---                              ANNEX TO THE FINANCIAL STATEMENT
RECEIPTS
The quantities concerned by the agreement are : 320.000 tonnes of white sugar, equal to
348.000 tonnes of raw sugar (coefficient 0,92).
aiie normal rates of customs duties are those foreseen in the URUGUAY ROUND agreement. The
reduced duty rate is 69 Ecu/t. Own resources of the Community correspond to 90 % of the
aseduced receipts.
       BUDGETARY YEAR            1996      1997      1998      1999      2000      2001
  Quantity (1000 t)               348,0     348,0     348,0     348,0     348,0    348,0
  Full rate (ECU/t)               409,8     395,7     381,5     367,3     353,2    339,0
  Reduced rate (ECU/t)             69,0      69,0      69,0      69,0      69,0     69,0
  Normal receipts(ECU million)    142,6     137,7     132,8     127,8     122,9    118,0
  Reduced receipts      *'         24,0      24,0      24,0      24,0      24,0     24,0
  Reduced own resources "          21,6      21,6      21,6      21,6      21,6     21,6
  Receipts forgone       "        106,7     102,3      97,9      93,4      89,0     84,6
The assumption has been made that the receipts will occur after a delay of 6 months from
 the date of the agreement.
 EXPENDITURE
 The imports lead to the re-exportation of an equivalent quantity of sugar (from 1996/97
 the refund rate apparing in the financial appreciation of the sugar market reform has
 been used).
       BUDGETARY YEAR            1996      1997      1998      1999      2000      2001
  Quantity (1000 t)               320,0     320,0     320,0     320,0     320,0    320,0
  Refund     (ECU/t)              465,0     475,0     475,0     475,0     475,0    475,0
  Cost (ECU million)              148,8     152,0     152,0     152,0     152,0    152,0
                                               IC
 ---pagebreak---                                                                   BSN0234-I47S
                                                            COM(95) 307 final
                                               DOCUMENTS
EN                                                                  11   03  02
                                     Catalogue number : CB-CO-95-338-EN-C
                                                             TSBN 92-77-91107-7
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