CELEX: 51974PC1571
Language: en
Date: 1974-10-03
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL extending the period of validity of Regulation (EEC) No 3576/73 on imports of the wine product exported under the label of "Cyprus Sherry", originating in and coming from Cyprus, and the introduction of subsidies for similar wine products in the Community as originally constituted and exported to Ireland the the United Kingdom. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1571
Vol. 1974/0255
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 ---pagebreak--- COMMISSION OB TUB EU&OEEAN COMMUNTII2S
                                                            COM(74)1571 final
                                                            Brussels , 3 October 1974
                  PROPOSAL POP. A REGULATION (EEC) OF THE COUNCIL
    extendiii;; the period of validity of Regulation (EEC ) No 3576/ 73 on
    imports of the wine product exported under the label of " Cyprus
    Sherry", originating in and coming from Cyprus , and the introduction
    of subsidies for similar wine products in the Community as originally
    constituted and exported to Ireland the the United Kingdom .
                   .(.submitted to the Council by the Commission)
  COM(74) 1571 final
 ---pagebreak---                                EXPLMATOPY KETiORAîïDUM
 The Association Agreement with the Republic of Cyprus meJces provision for spe­
 cial treatment , until 1 January 1975 and. thereafter in respect of the marketing
 of the 1974 harvest , of imports of the wine product exported under the label
 of " Cyprus Sherry", which is one of the country 's major exports .
 The primary aim of this arrangement , which was the subject of an exchange of
 letters annexed to the Supplement ary Protocol to the Agreement , is to avoid a
 sudden disruption of traditional exports to Ireland and the United Kingdom after
 1 February 1973 » when reference prices for wine were applied by the new Member
States .   Had the reference price been applied to that product immediately , the
effect , bearing in mind also certain problems of competition and quality , might
well have been to oust the product from the British market .    However , in order
not to perpetuate arrangoiuents which in the long term would be highly prejudi­
cial to the common organization of markets , particularly since the granting of
definitive special treatment could not fail to create a precedent , Cyprus must
take measures enabling the arrangements applicable to " Cyprus Sherry " to be
aligned as soon as possible on the general arrangements laid down by the Com­
munity provisions concerning wine products .
This is why the granting of special interim treatment was made subject to the
condition that Cyprus adopt and bring into force during the period in question
legislation on wine production corresponding to that of the Community .
In order not to affect traditional trade patterns and deliveries to Irish and
United Kingdom markets of similar wine products produced in the Community during
the period in which the export arrangements in question apply in respect of
" Cyprus Sherry", the quantity of imports coming under those arrangements has ,
as stated in the exchange of letters , been limited to the quantity actually
imported over recent years ( 200.000 hectolitres ).   Furthermore , the Council
has adopted measures which should enable similar wines of Community origin to
compete on equc.l terms with that wine on the markets in question .
By Regulations (EEC ) n° 1253/73 and 357^/73 » the Community implemented between
1 February and 31 December 1973 » a-nd later extended until 31 December 1973 "the
provisions of the Agreement as set out in the above-mentioned exchange of
letters .
 ---pagebreak---                                        - 2 -
The Republic of Cyprus , for its part , adopted on 31 August 1973 ( i*e . within
the time limit set in the exchange of letters ) new legislation on trine produc­
tion which , following the amendments made to it on 23 December 1974 » may be con­
sidered to correspond to Community legislation and which is to enter into force
on 1 January 1975 •             -                                          *
In view of the above , the arrangements introduced by Regulation (EEC ) n° 1253/73
should , as provided for in the exchange of letters ,, be extended to cover the
marketing of wines of the 1974 harvest .
 ---pagebreak---                                     Draft
                              Proposal for a
              REGULATION ( EEC) No        /74 OP THE COUNCIL
                                     of
       extending the period of validity of Regulation ( ESC) No 3576/ 73
       on imports of the wine product exported under the label of " Cyprus
       Sherry", originating in and coning from Cyprus , and the intro­
       duction of subsidies for similar wine products in the Community
       as originally constituted and exported to Ireland the the
                             United Kingdom
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof ;
Having regard to the proposal ftfom the Commission ;
Whereas Council Regulation (EEC) No 1253/73^^ °f 14 Tfey 1973 , as amended
                                   2
by Regulation ( EEC) No 3576/ 73     » introduced special arrangements for the
importation of the xiine product exported under the label of " Cyprus Shorry"
originating in and coming from Cyprus , and provided for subsidies for similar
wine products produced in the Community as originally constituted end con­
signed to Ireland and the United Kingdom ; whereas the arrangements in
question are to apply only until 31 December 1974 ;
Whereas , by the exchange of letters referred to in Article 12 of the
Protocol^ ^ laying down certain provisions relating to the Agreement
establishing an Association between the European Economic Comranii ty and
the Republic of Cyprus consequent on the Accession of new Member States
to the European Economic Community, the Community agreed to ertend the
arrangements in question to the marketing of wines of the 1974 harvest ;
Whereas on 31 August 1973 the Republic of Cyprus adopted new re relations
governing wine products ;    whereas those regulations , following x:.s amend­
ments made to them on 21 December 1973 , correspond to those of ti:e Community ;
( 1 ) OJ No L 133 , 21 Kay 1973 , p. 115?
( 2) OJ No L 359 , 28 December 1973 , p . 33 *
( 3 ) OJ No L 133 , 21 May 1973 , p. 95 .
 ---pagebreak---                                          - 2 -
Wheroas the Republic of Cyprus has undertaken to make the new regulations ap­
plicable frou 1 Januaiy 1975 }
Whereas     under the circumstances    and in view of such undertnking 6 the arran­
gements provided for in Regulation (EEC ) n° 3576/73 should be extended to
apply to the marketing of wines of the 1974 harvest ; whereas , to enable that
harvest to bo marketed , the arrangements should remain applicable until 31
Decenber 1975 ?
HAS ADOPTED THIS 3REGULATICN : ' '           "
                                    Article 1
1 . In Article 1 .of Regulation , (EEC ) n° 357^/73 the phrase '.'from 1 January to
    31 December 1974" is replaced by the phrase "from 1 Januarys to' 31 December
    1975 ".
2. In Article 4 ( l ) of Regulation (EEC) n° 3576/73 "the date "31 Decenber 1974"
    is replaced by the date " 31 December 1975 " •
                                    Article 2
This Regulation shall enter into force on 1 Januaiy 1975 •
This Regulation shall be binding in its entirety and directly applicable in
all Member States#
Done at Brussels ,                                            For the Council
                                                               The President
 ---pagebreak---                                 FDT/iTCIAL EFFECTS
 As in previous years , the " Cyprus Sherry " subsidy may from the financial point
 of view be regarded as an intervention measure within the meaning of Article
 3 ( l ) of Regulation (EEC ) n° 729/70 * A proposal for a Regulation amending the
Annex to Regulation (EEC ) n° 2324/ will bo submitted to the Council in the
ne:ct few weeks *
Expenditure incurred under the Regulation will amount to some 100.000 to
120,000 units of account ( on the optimistic assumption that the quantity of
vine in question is equivalent to the quantity of liqueur wines not having a
registered designation of origin which is exported to third countries -
4.500 hi in 1972 , multiplied by 24 u.a./hl ) for the period 1 Jmuary 1975 "to
31 December 1975 ( the subsidy will be limited to this period).
That amount will be charged against Article 69I - Intervention in respect of
v;ine - of the 1975 Budget of the European Communities .
Article 69I           Budget           Approriations             Experiiturc
                       1973                                o»T03»000 u#3»#
                       1974             37.300.000             190»000 u.a.
                                                            ( January - April 1974 )
                       1975             88.900.000          ( 1975 preliminary draft
                                                              Budget )
The funds mooilized for the purpose of the proposed measure represent only
0,1 ^ of the apprpriations for wine intervention and would have no important
effects on the utilization of appropriations provided for the 1975 Budget .