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 KITTS 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 SUPPLY OF RAW CANE SUGAR TO BE REFINED

(Luxembourg, Brussels - 17 July 1995)

ENTRY INTO FORCE:  01 JULY 1995 – 30 JUNE 2001

A. Letter No 1 

Luxembourg, 17 July 1995

Sir,

The representatives of the ACP States and the European Communities 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 originates 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.

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 eight 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 made for the further instalment to be covered by imports under the special ACP quota.

5. The special reduced rate of duty shall be fixed for the 1995/96 - 2000/01 marketing years at ECU 6,9 per 100 kgs raw sugar of standard quality.

The 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 paragraph 3.

It is agreed that if the adjustment aid is increased or reduced by comparison with its existing level of ECU 1,20 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 provisions of Protocol 8 annexed to the Fourth ACP-EEC 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.

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 agreements 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 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 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 originates 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.

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 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 eight 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 notify their final export potential to the Commission at the latest on 1 February, before a second regular fixing shall be made for the further instalment to be covered by imports under the special ACP quota.

5. The special reduced rate of duty shall be fixed for the 1995/96 - 2000/01 marketing years at ECU 6,9 per kgs raw sugar of standard quality.

The 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 paragraph 3.

It is agreed that if the adjustment aid is increased or reduced by comparison with its existing level of ECU 1,20 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.

(a) the level of the guaranteed price established in accordance with the provisions of Protocol 8 annexed to the Fourth ACP-EEC 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.

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 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