Spicer, J.

Archive of European Integration

g1/European Communities 'l/l';.(ln)EUROPEAN PARLIAMENTWorking Documents1978 - 197930 May 1978 DOCUMENT 146178Reportdrawn up on behalf of the Committee on External Economic Relations,/on a draft Council regulation (Doc. 135/78) on the conclusion of the//Supplementary Protocol to the Agreement establishing an association between theEuropean Economic Community and the Republic of Cyprus and the protocollaying down certain provisions relating to trade in agricultural products betweenthe European Economic Community and the Republic of CyprusRapporteur: Mr J. SPICERl 17-Englbh Edition;PE 53.2361fia.By letter of 18 t'lay 1978 the President of the Council of theEuropean Communities requested the European Parliament, pursuant toArticle 238 of the EEC Treaty, to deliver an opinion on a draftCouncil regulation on the conclusion of thC Supplementary Protocolto the Agreement establishing an association between the EuropeanEconomic Community and the Republic of Cllgrus and the Protocol layingdown certain provisions relating to trade in agricultural productsbetween tte-European Economic Community and the Republic of Clprus.The President of the European Parliament referred this draftregulation to the Committee on External Economic Relations as thecommittee responsible and to the Committee on Agriculture for itsopinion.On 23 litay 1978 the Committee on External Economic Relationsappointed l"lr Spicer rapporteur.It considered this197 8.At the same meetingfor a resolution and thedraft regulation at its neeting of 23 ttay' the committee unanimously adopted the motionexplanatory statement.Present : Mr Kaspereit, chairman; t1r Martinelli, vice-chairmaniI,!r Spicer, rapporteur; I'1r Amadei, I'Ir Bersani, Lord Brimelow,lilr Brugha, Mr De C1ercq, I,Ir Didier, Mr Mont, Mr ltluller 8., Mr Radoux,Mr Vandewiele.The opinion of the Comrnittee on Agriculture is attached.- 3- PE 53.236/fin.CONTENTSA. MOTION FOR A RESOf,UIIONB. EXPI,ANATORY STATEMEMOpinion of the Comrnittee on AgrieulturePage-4- PE s3.236/fi,n.AThe Committee on External Economic Relations hereby Eubmits to theEuropean Parliament the foltowing notion for a resolution together withexplanatory statement :I,IOTION FOR A RESOLUIIONembodying the opinion of the EuroPean Parliament on a draft Councilregulation on the conclusion of the Supplenentary Protocol to theAgreement eEtabtishing an association between the European EconomicCommunity and the Republic of Clprus and the Protocol laying down certainprovisions relating Lo trade in agricultural products between theEuropean Economic conununity and the Republic of ClPrus@,- having regard to the draft Council regulation,- having been consulted by the Council pursuant to Article 238 of theEEc Treaty (Doc. L35/781,- hauing regard to the rePort Of the Committee on External EconomicRelations and the opinion of the Committee on Agriculture (Doc. 146 /7A) ,1. Expres.ees its satisfaction at the signing of the Supplementary Protocolto the Agreement establishing an association between the EuroPeanEconomic Community and the Republic of Clprus and of the Protocollaying down certain provisions relating to trade in agriculturalproducts between the European Economic Community and the Republic ofCYPrus;2. Draws attention to the fact that these two Protocols are of vitalimportance to the Clpriot economy;3. Believes that these Protocols and all other agreements with the Republicof Cyprus should take full account of the interests of all the peopleof Cyprus;4. Approves the Protocols in question.-5- PE 53.235/fLn.BEXPI,AIIATORY STATEMENT1. As is well known, the Cornnunity is linked with Cyprus through anAssociation Agreerrnnt which was signe4 under Article 238 of the EEC Treaty,on 19 December L972 and entered into force on l.fune 1973I. This AgreerrentIays down the stages for the gradual realization of the objectiues specifiedtherein.The first stage was due to end on 30 June 1977 but the Community andthe Republic of Clprus decided to extend it until 31 December L979- Thisdecision took the form of an Additional Protocol vrtrich will come into force.,on 1 June lg78'.To bridge the period from 30 June L977 to I June 1978 the Councilautonomously extended certain provisions of the first stage by issuing twoconsecutive regulationE, v!2. Regulation No. L64L/77 valid until3t Decembe r Lg773, and Regulatlon No. 2gL4/77 valid until the Additionalprotocol enteres into force4. The possibility of a legal vacuum arising wasthereby avoided.2. rn a Declaration appended to the Aseociation Agreetcnts the Communitystated that it was prepared to re-examine with the Republic of Clprus theagricultural content of the Agreement in the light of the result of work inprogress with a view to a global approach on the Conununity's Mediterraneanpolicy. The interests of Clprus would also be taken into consideration inthe course of this vprk. The initialling of the Supplementary Protocol atpresent under coneideration reans that thiE Declaration has been acted on-Since, as from I January L978, certain agricultural productsoriginating in CIE)rus would no longer be covered by preferentialarrangements in trade with the Community and since the Supplernentary Protocolhad not yet been concluded at the time, the Community, pending the entry intoforce of the Protocol, took autonomous lrnasures through Council Regulation.6No. 3OlB/77" to avoid any disruption of the trade ftow for theee products.This regulation applied until 31 l{arch 1978.I o.r2ol3o,L'oJE'oJ6o,No.No.No.No.No.No.133, 21.5.1973339, 28.L2.1977 ' p.2L83, 22.7.L977, P.634O, 29 .L2.L977L33,2L.5.1973, p.86355, 31 .L2.L977 , p.42-6- PE 53 .236/ fln.The aim of the present Supplementary Protocol is therefore to extendto the Republic of Clprus the concessions in respect of agriculturalproducts grantcd to the other l.lediterranean countries within the franeworkof the global lilediterranean policy. It will be applicable until the end ofthe first stage of the Association Agreement,.3. The second Protocol at present under consideration - which lays dor"nrcertain provisions relating to trade in agricultural products between theEuropean Economic Community and Clprus - was prompted by the fact thatcyprus would lose its preferential status on the British market on1 ilanuary 1978.This Protocol provides for temporary, 'degressive' - i.e. to bephased out gradually - preferential measures applicable to thoseagricultural products, such as new potatoes and Cyprus sherry, which in thepast have always enjoyed free access to the United Kingdom. The aim of thisProtocol is thus to cushion the transition for Cyprus'g agriculturalproducts from the profitable bilateral relationship with the United Kingdomto the Community system. It rrrill apply until 3I December L979 (even in theevent of the first stage of the Association Agreement which expires on thisdate, being extended).After the two Protocols had been initialled, the Community - to bridgethe period from 31 March 197'8 to the entry into force of the Protocols -declared them to be applicable retrospectively as from 1 April 19781. TheProtocols were signed on 11 May L978, and wiII enter into force on I July ofthis year.4. The negotiations between the Community and Clprus on these twoProtocols were rather laborious because CIT)rus was dissatisfied with theconcessions which the Community offered in the first instance. The Clpriotstook the view that these concessions failed to take sufficient account ofthe special trading position enjoyed by their country on the British market,particularly as regards potato exports to the United Kingdom.The statistics do indeed show the amounts involved are by no IIEansinconsiderable; in 1976 A7% of all Clpriot exports were made up ofagricultural products. About hatf their total agricultural exports weremade up of potatoes intended for the United Xingdom. In 1976 Clprusexported to the Community goods to a total value of t52m u.a. At the sametime, that year's imports from the Community amounted to the equivalent of222mu.a., which means that in that year Clprus'3 balance of trade with theCommunity showed a deficit of 7Om u.a.I aegutation No. 78L/78 of 17 April 1978 - OJ No. L 106 , 20.4.1978-7- PE s3 -236/fin.Given this situation it is understandable that Clprus displayed veryconsiderable anxiety at the prospect of losing its preferential position onthe British rnarket in the matter of exports, as such a developnent couldhave prompted a serious economic crisis on the island, with possible politicalconsequences. It was only reasonable to expect ttrerefore that the Conrmunitywould take due account of Clprus' intereets.This being said, it is to be deplored that the negotiating mandatefrom the Council to the Commission came late for farmers who had alreadyplanted their early potatoes for the British market. Such a way ofproceeding should be prevented in the future.5. The Supplenentary Protocol makes provision for reductiona ii ;hecommon customs Tariff varying between 4@/" and B@A for the productaspecified, whether or not subject to quota restrictions. A reference priceis also fixed for clprus sherry. The second Protocol accords to a number ofproducts - such as new potatoes - more favourable concessions than areprovided for in the Supplenentary protocol.For a complete list of the concessions granted, reference should bemade to the attached opinion of the Comnittee on Agriculture (PE 53.2L6/fLn.l .6. In view of the vital importance of these two Protocols to the Clprioteconomy, the Committee on E(ternal Economic Relations proposes that bothmeasures be approved without reservation.Hour6ver, in agreeing with the Protocols the Committee deplores thefact that they are to be retrospective in that they dear with thesituation existing as at the lst of January Lgzg- This is manifestlyunfair to c)4priot farmers who had to live with uncertainty as to theterms for this year's crop for nearly six months.-8- PE 53.236/fLn.OPINIONof the Conunittee on AgricultureDraftsman: Mr F. PISONIAt its meeting of LTAB April 1978 the Committee onAgriculture appointed !!r F. PISoNI draftsman.It considered the draft opinion at ite meeting of27 /28 April 1978 and adopted it by 12 votes to 1 wiEhI abstention.Present: Mr Kofoed, chairman; Mr Liogier and Mr LigioE,vice-chaitmeni l,tr Pigoni, draftemani Mr Albertini, I{r Andersen,lilr Brugger, Mr Dewulf, lllrs Dunwoody, Mr Fruh, Mr lloffmann,Mr Howell, Dlr IJemp and llr Tolman.-9- PEs3.z36 /fln.l- Negotiations with cyprus for the signing of a nev, protocor onagricurturar products have been cornplex and difficult because cyprusinitiauy rejected the @nsnigsion's protrrosals, considering than inadequate,while Eome community countrieE did not want to grant too many conceegions,linking them with the whole compler problern of interventions in favourof the ltediterranean regions of the corununity (the ,I*tediQerranean package')anl the poasible future enlargement of the EEG. Though the ncgotiationsonly began in December L97?, they were conclud,ed on 7 April 1aet when t,hetwo agricurturar protocole were initiarled by the tro deregationE.2. Pending their entry into force after ratification by thE variousnational parriaments, the concegeions granted to cyprus are appricd auto-'nomously by the corununity through a regulation based on Artlcle 1I3 of, theTreaty and thereforE without consultation of the European parlLamnt. Thi.eregulation is applicable from I April 1978 to 30 ,rune 197g at the latest. l3. The first protocol conpletes the association agEeement signed on19 Decembet L972, while the second lays dorrrn supplementary meaaur€E in theagricultural sector for the years I97g ahd Lg7g.The signing of this second protocol was intended to emphaaize theexcegtional nature of Clprusr situat,ion, and thus to avoid sinilar requestgfrom the other l'tediterranean countries based on the cpecial- coneesaionscontained in.the text; such requeats \dould have been forthcomlng if theseconcessions had been granted \rithin the framervork of a normal addition toan existing association agreement.The new concessionE in the agricultural field in favour of, cyprustaking effect in 1980 shourd be negotiated in the course of 1979.4. The main concessions contained, in the special protocol are ae follows:NgE_pglglggE : for 1978 a tariff reduction of G5% wtthin the rtmir of aquota of 75'000 tonnes; for r9z9 a reduction of Go% from 1 January to15 May and of 55% from 16 tlay to 30 June, with a quota of 50,O0O tonneE.The concessions for 1979 are eubject to trrrc conditiong r corunitnent bycyPrus to export this product to the United Kingdom only and adoption bythe @mmunity of a common market organization for the potato Ecctor.Carrots :Iimit oftariff reduction of GO% from I ,fanuhry toa quota of 2,500 tonnes for 1979 and 2,3OO15 May, within thetonnea for 1979.ltnit of, a quoia ofEgSS!-lSppSIgsr tariff reduction of 5@( wl.thin the300 tonnee in 1978 and 250 tonnes in,1979.f S"" R"rulation 78L/7A of L7.4.7A - OiI No. L IOO, 2O.4.7A.-10- PEs3. 216'./fin.lgEglgllgg : tariff reduction of 6U/. from I October to 30 November withinthe limit of a tariff quota of 300 tonnes in 1978 and 250 tonnes in 1979.EgElg_glgpgg_: tariff reduction of 60% within the limit, ofquotas : from l,fuly to 14.IuIy 1978, 'l ,5OO tonnes; from 8L979, 7,000 tonnest from 15,IuIy to 10 August L978, 7,5OO15 JuIy to 31 ,IuIy 1979, 7,OOO tonnes.the followingilune to 14 .IuIytonnes; from5. In addition to these special concessions, contained in the secondprotocol, other tariff reductions are listed in t,he first protocol forother products, such as citrus fruits (60%1, similar to the reductionscontained in the various agreements already signed with the other Mediter-ranean countries. Of particular importance are the concessions for'Clprus Sherry', which benefits from a tariff reduction of 7O% within thelimit of a quota of 250, OOO hI, and for ordinary wines (zb% witfr a quotaof 10,000 hl) . rt shourd be noted that a reference price has recentrybeen introduced for these products.99!slsErgE6. It is of vital importance to Clrprus to be able to continue exportingits own agricultural products to the Community. 90% of the exportsfrom this island are agrriculturaL and deetined almogt exclusivelyfor the United Kingdom because of traditional trade and political linksbetween the two countries.7. In view of this and of the serious situation in Clprus at present, theCommittee on Agriculture is bound to give a favourable opinion on the twonew agricultural protocols which have in fact already met with the approvalof all the Community delegations. Moreover, the conditions on which theseconceEsiona are granted (quotas, dates, reference prices, entryinto force of a cornmon market organization for potatoes)exclude any risk of disturbance to intraConununity trade in the productsconcerned, to thei detriment of community producers.-1I - P853. 236 ./'fin.

Report drawn up on behalf of the Committee on External Economic Relations on a draft Council regulation (Doc. 135/78) on the conclusion of the Supplementary Protocol to the Agreement establishing an association between the
European Economic Community and the Republic of Cyprus and the protocol laying down certain provisions relating to trade in agricultural products between the European Economic Community and the Republic of Cyprus. EP Working Documents 1978-79, document 146/78, 30 May 1978

http://aei.pitt.edu/95663/1/1978%2D79.78.146.pdf

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