CELEX: 51997PC0114
Language: en
Date: 1997-03-21
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 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 1996/97 delivery period

COMMISSION OF THE EUROPEAN COMMUNITIES
                                               Brussels, 21.03.1997
                                               COM(97) 114 final
                                               97/ 0109 (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 1996/97 delivery period
                              (presented by the Commission)
 ---pagebreak---  ---pagebreak---                        EXPLANATORY MEMORANDUM
   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.
   For the 1996/97 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 22.9.1996.
   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 1997 budget.
                                       ci
 ---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 1996/97 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
1996/97 delivery period,
HAS DECIDED AS FOLLOWS:
(1)    OJ No L 229, 17.8.1991, p. 216.
(2)    OJ No L 190, 22.7.1975, p, 35.
                                           3
 ---pagebreak---                                          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 1996/97 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
                                         4
 ---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 1996/97 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
Community, have agreed, pursuant to the provisions of the said Protocol, on the following:
For the delivery period 1 July 1996 to 30 June 1997, 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.
Please accept, Sir, the assurance of my highest consideration.
                                                              On behalf of the Council
                                                              of the European Union
                                                fT
 ---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 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 1996 to 30 June 1997, 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
                                                  C
 ---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 THE 1996/97 DELIVERY PERIOD
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 1996 to 30 June 1997, 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
                                            1~
 ---pagebreak--- B. Letter No 2
                                                                           Brussels,
Sir,
I have the honour to acknowledge reoeipt 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 1996 to 30 June 1997, 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---        FINANCIAL STATEMENT
       BUDGET HEADING: 11                                                              APPROPRIATIONS:
                                                                                       ECU 1.833,5 million
       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 1996/97 delivery period.
       LEGAL BASIS: Article 113 of the 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
       1996/97 delivery period.
       FINANCIAL IMPLICATIONS:                                   PERIOD OF              CURRENT               FOLLOWING
                                                                 12 MONTHS             FINANCIAL               FINANCIAL
                                                                                       YEAR (97)               YEAR (98)
                                                                (ECU million)         (ECU million)           (ECU million)
5.0.   EXPENDITURE
       - CHARGED TO THE EC BUDGET                                    648,4                 616,0                   32,4
         (REFUNDS/INTERVENTION)
       - NATIONAL AUTHORITIES
       -OTHER
5.1.   REVENUE
       - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                                                  1999           2000               2001             2002
5.0.1. ESTIMATED EXPENDITURE
5.1.1. ESTIMATED REVENUE
5.2.   METHOD OF CALCULATION:
       1,3 million t x ECU 470/t (refunds)         x 1,009 (DT) = ECU 616,5 million (B)
       1,3 million t x ECU 24,2/t (refining aid)   x 1,014 (DT) = ECU 31,9 million (B)
                                                                     ECU 648,4 million (B)
       95% of the expenditure is to be charged to the 1997 financial year and 5% to the 1998 financial year.
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?                                                                                                     YES/NO
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 1997 budget.
                                                         9
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                            C0M(97) 114 final
                                              DOCUMENTS
EN                                                                       03 11
                                    Catalogue number : CB-CO-97-107-EN-C
                                                             ISBN 92-78-17167-0
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                                   /o