Explanatory Memorandum to COM(2008)622 - Conclusion of an Agreement with Barbados, Belize, Congo, Côte d'Ivoire, the Fiji Islands, Guyana, Jamaica, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Saint Kitts and Nevis, Suriname, Swaziland, Tanzania, Trinidad and Tobago, Uganda, Zambia and Zimbabwe on the guaranteed prices for cane sugar for the 2006/2007, 2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods and on the conclusion of an Agreement with India on the guaranteed prices for cane sugar for the same delivery periods

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dossier COM(2008)622 - Conclusion of an Agreement with Barbados, Belize, Congo, Côte d'Ivoire, the Fiji Islands, Guyana, Jamaica, Kenya, ...
source COM(2008)622 EN
date 09-10-2008
1. Protocol 3 on ACP sugar attached to Annex V to the ACP-EC Partnership Agreement, 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. In conformity with the guidelines for negotiations given by the Council for the 2006/2007, 2007/2008, 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods, the Commission has negotiated guaranteed prices with the ACP States and the Republic of India pursuant to Articles 5(4) of Protocol 3 on ACP sugar, referred to in point 1, as well as the agreement with India on cane sugar.

3. ACP Sugar Protocol countries expressed their agreement with the Community offers on 24 June 2008. India which had agreed previously for the preceding campaigns, expressed its agreement with the EU offer for the 2008/2009 and 1 July 2009 to 30 September 2009 delivery periods on 11 July 2008.

4. The Commission therefore proposes that the Council adopts the proposal for a decision on the conclusion of these agreements in the form of exchange of letters as set out in the Annexes.

5. Financial impact: The budgetary implications for the 2009 and 2010 budgets will depend on the sugar market situation and notably on the uptake of the sugar restructuring scheme and other management decisions (potential preventive withdrawal). Consequently, in case of an insufficient uptake of the restructuring scheme, these imports might contribute to a potential sugar surplus and hence have an impact on the 2009 and 2010 budgets. However, this impact is not quantifiable as yet.