Article 128.
Co-operation shall also be aimed at fostering the distribution in the Community Member States of the ACP States' cultural property and services which are highly representative of their cultural identities.
Part Three. The Instruments of ACP-EEC Co-operation
Title I. Trade Co-operation
Chapter 1. General Trade Arrangements
Article 129.
1. In the field of trade co-operation, the object of this Con- vention is to promote trade between the ACP States and the Community, taking account of their respective levels of development, and also between the ACP States themselves.
2. In the pursuit of this objective, particular regard shall be had to securing effective additional advantages for the ACP States' trade with the Community and to improving the conditions of access for their products to the market in order to accelerate the growth of their trade and, in particular, of the flow of their exports to the Community and to ensure a better balance in the trade of the Contracting Parties.
3. To this end, the Contracting Parties shall apply the provisions of this Title and the other appropriate measures under Title I of this Part and under Part Two of this Convention.
Article 130.
1. Products originating in the ACP States shall be imported into the Community free of customs duties and charges having equivalent effect.
2. (a) Products originating in the ACP States:
- listed in Annex II to the Treaty where they come under a common organization of the market within the meaning of Article 40 of the Treaty or
- subject, on import into the Community, to specific rules introduced as a result of the implementation of the common agricultural policy,
shall be imported into the Community, notwithstanding the general arrangements applied in respect of third countries, in accordance with the following provisions:
(i) those products shall be imported free of customs duties for which Community provisions in force at the time of import do not provide, apart from customs duties, for the application of any measure relating to their import;
(ii) for products other than those referred to under (i), the Community shall take the necessary measures to ensure more favourable treatment than that granted to third countries benefitting from the most-favoured-nation clause for the same products.
(b) If, during the application of this Convention, the ACP States request that new lines of agricultural production or agricultural products which are not the subject of specific arrangements when this Convention enters into force should benefit from such arrangements, the Community shall examine these requests in consultation with the ACP States.
(c) Notwithstanding the above, the Community shall in the context of the special relations and special nature of ACP-EEC co-operation, examine on a case-by-case basis the requests from the ACP States for preferential access for their agricultural products to the Community market and shall notify its decision on these reasoned requests within not more than six months of the date of their submission.
Within the context of the provisions of (a) (ii), the Community shall take its decisions in particular with reference to concessions granted to developing third countries. It shall take account of the possibilities offered by the off-season market.
(d) The arrangements referred to in (a) shall enter into force at the same time as this Convention and shall remain applicable for its duration.
However, if during the application of this Convention, the Community:
- subjects one or more products to common organization of the market or to specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to adapt the import treatment for those pro- ducts originating in the ACP States, following consultations within the Council of Ministers. In such cases, the provisions of (a) shall be applicable;
- modifies the common organization of the market in a particular product or the specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to modify the arrangements laid down for products originating in the ACP States, following consultations within the Council of Ministers. In such cases, the Community shall undertake to ensure that products originating in the ACP States continue to enjoy an advantage comparable to that previously enjoyed in relation to products originating in third countries benefitting from the most-favoured-nation clause.
(e) Where the Community intends to conclude a preferential agreement with third states it shall inform the ACP States thereof. Consultations shall take place where the ACP States so request in order to safeguard their interests.
Article 131.
1. The Community shall not apply to imports of products originating in the ACP States any quantitative restrictions or measures having equivalent effect.
2. However, paragraph 1 shall apply without prejudice to the import arrangements for the products referred to in the first indent of Article 130(2)(a).
The Community shall inform the ACP States when residual quantitative restrictions are eliminated in respect of any of these products.
Article 132.
1. Article 131 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archeo- logical value or the protection of industrial and commercial property.
2. Such prohibitions or restrictions shall in no case constitute a means of arbitrary discrimination or a disguised restriction on trade generally.
In cases where implementation of the measures referred to in paragraph 1 affects the interests of one or more ACP States, consultations shall be held at the request of the latter, in accordance with the second paragraph of Article 9 with a view to reaching a satisfactory solution.
Article 133.
The treatment applied to imports of products originating in the ACP States may not be more favourable than that applied to trade among the Member States of the Community.
Article 134.
Where new measures or measures stipulated in programmes adopted by the Community for the approximation of laws and regulations in order to facilitate the movement of goods are likely to affect the interests of one or more ACP States, the Community shall, prior to adopting such measures, inform the ACP States thereof through the Council of Ministers.
In order to enable the Community to take into consideration the interests of the ACP State concerned, consultations shall be held at the request of the latter in accordance with the second paragraph of Article 9 with a view to reaching a satisfactory solution.
Article 135.
1. Where existing rules or regulations of the Community adopted in order to facilitate the movement of goods affect the interest of one or more ACP States or where these interests are affected by the interpretation, application or administration of such rules or regulations, consultations shall be held at the request of the ACP States concerned with a view to reaching a satisfactory solution.
2. With a view to finding a satisfactory solution, the ACP States may also bring up within the Council of Ministers any other problems relating to the movement of goods which might result from measures taken or envisaged by the Member States.
3. The relevant institutions of the Community shall, to the greatest possible extent, inform the Council of Ministers of such measures in order to ensure effective consultations.
Article 136.
1. In view of their present development needs, the ACP States shall not be required for the duration of this Convention to assume in respect of imports of products originating in the Community, obligations corresponding to the commitments entered into by the Community under this Chapter, in respect of imports of the products originating in the ACP States.
2. (a) In their trade with the Community, the ACP States shall not discriminate among the Member States and shall grant to the Community treatment no less favourable than the most-favoured-nation treatment.
(b) The most-favoured-nation treatment referred to in (a) shall not apply in respect of trade or economic relations between ACP States or between one or more ACP States and other developing countries.
Article 137.
Unless it has already done so under earlier ACP-EEC Conventions, each Contracting Party shall communicate its customs tariff to the Council of Ministers within three months of
the entry into force of this Convention. Each Contracting Party shall also communicate any subsequent amendments to its tariff as and when they come into force.
Article 138.
1. The concept of "originating products" for the purposes of implementing this Chapter, and the methods of administrative cooperation relating thereto, are defined in Protocol 1.
2. The Council of Ministers may adopt any amendment to Protocol I.
3. Where the concept of "originating products" has not yet been defined for a given product pursuant to paragraphs 1 or 2, each Contracting Party shall continue to apply its own rules.
Article 139.
1. Should application of this Chapter result in serious disturbances in a sector of the economy of the Community or of one or more of the Member States, or jeopardize their external financial stability, or if difficulties arise which may result in a deterioration thereof, the Community may take, or may authorize the Member State concerned to take, safeguard measures. These measures, their duration and their methods of application shall be notified immediately to the Council of Ministers.
2. The Community and its Member States undertake not to use safeguard measures or other means for protectionist purposes or to hamper structural development.
3. Safeguard measures shall be restricted to those which would least disturb trade between the Contracting Parties in implementing the objectives of this Convention and must not exceed the scope of what is strictly necessary to remedy the difficulties that have arisen.
4. When applied, safeguard measures shall take account of the existing level of the ACP exports concerned to the Community and their potential for development.
Article 140.
1. Prior consultations shall take place concerning the application of the safeguard clause, both when such measures are first adopted and when they are extended. The Community shall provide the ACP States with all the information required for such consultations and shall provide the data from which to determine to what extent imports from an ACP State or ACP States of a specific product have caused the effects referred to in Article 139(1).
2. Where consultations have taken place, safeguard measures, or arrangements jointly agreed upon by the ACP States concerned and the Community, shall enter into force thereafter.
3. However, the prior consultations provided for in (1) and (2) shall not prevent any immediate decisions which the Community or its Member States, in accordance with Article 139(1), might take where special factors have necessitated such decisions.
4. In order to facilitate the examination of factors that may cause market disturbances, a mechanism shall be instituted for the statistical surveillance of certain ACP exports to the Community.
5. The Contracting Parties undertake to hold regular consultations with a view to finding satisfactory solutions to problems which might result from the application of the safeguard clause.
6. The prior consultations as well as the regular consultations and the surveillance mechanism referred to in paragraphs 1 to 5 shall be implemented in accordance with the joint declaration annexed to this Convention.
Article 141.
The Council of Ministers shall, at the request of any Contracting Party concerned, consider the economic and social effects of the application of the safeguard clause.
Article 142.
When safeguard measures are being taken, modified or removed, particular attention shall be paid to the interests of the least-developed, landlocked and island ACP States.
Article 143.
In order to ensure the effective implementation of this Convention in the field of trade co-operation, the Contracting Parties agree to inform and consult each other.
In addition to the cases for which consultations are specifically provided for in Articles 129 to 142, consultations shall also take place, at the request of the Community or of the ACP States, and in accordance with the conditions provided for in the procedural rules in Article 9, particularly in the following cases:
1) where Contracting Parties intend to take any trade measures affecting the interest of one or more Contracting Parties under this Convention, they shall inform the Council of Ministers thereof. Consultations shall take place, where the Contracting Parties concerned so request, in order to take account of their respective interests;
2) if, during the application of this Convention, the ACP States consider that agricultural products covered by Article 130(2)(a) other than those subject to special treatment should benefit from such treatment, consultations may take place within the Council of Ministers;
3) where a Contracting Party considers that obstacles to the movement of goods arise as a result of the existing rules of another Contracting Party or the interpretation, application or administration thereof;
4) where the Community or the Member States take safeguard measures in accordance with Article 139, consultations on these measures may take place within the Council of Ministers, where the Contracting Parties concerned so request, notably with a view to ensuring compliance with Article 139(3).
Chapter 2. Special Undertakings on Rum and Bananas
Article 144.
Until the entry into force of a common organization of the market in spirits and notwithstanding Article 130(1), entry into the Community of products of subheading 22.09 CI - rum, arrack, tafia - originating in the ACP States shall be governed by Protocol 5.
Article 145.
In order to permit the improvement of the conditions under which bananas originating in the ACP States are produced and marketed, the Contracting Parties hereby agree to the objectives set out in Protocol 4.
Article 146.
This Chapter and Protocols 4 and 5 shall not apply to relations between the ACP States and the French overseas departments.
Title II. Co-operation In the Field of Commodities
Chapter 1. Stabilization of Export Earnings from Agricultural Commodities
Article 147.
1. With the aim of remedying the harmful effects of the instability of export earnings and to help the ACP States overcome one of the main obstacles to the stability, profitability and sustained growth of their economies, to support their development efforts and to enable them in this way to ensure economic and social progress for their peoples by helping to safeguard their purchasing power, a system shall be operated to guarantee the stabilization of export earnings, in accordance with Article 160, derived from the ACP States' exports to the Community or other destinations, as defined in Article 150, of products on which their economies are dependent and which are affected by fluctuations in price or quantity or both these factors.
2. In order to attain these objectives, transfers shall be devoted to maintaining financial flows in the sector in question or, for the purpose of promoting diversification, directed towards other appropriate sectors and used for economic and social development.
Article 148.
The following products shall be covered:
| NIMEXE Code | |
| 1. Groundnuts, shelled or not | 12.01-31 to 12.01-35 |
| 2. Groundnut oil | 15.07-74 and 15.07-87 |
| 3. Cocoa beans | 18.01-00 |
| 4. Cocoa paste | 18.03-10 to 18.03-30 |
| 5. Cocoa butter | 18.04-00 |
| 6. Raw or roasted coffee | 09.01-ll to 09.01-17 |
| 7. Extracts, essences or concentrates of coffee | 21.02-ll to 21.02-15 |
| 8. Cotton, not carded or combed | 55.01-10 to 55.01-90 |
| 9. Cotton linters | 55.02-10 to 55.02-90 |
| 10. Coconuts | 08.01-71 to 08.01-75 |
| 11. Copra | 12.01-42 |
| 12. Coconut oil | 15.07-29, 15.07-77 and 15.07-92 |
| 13. Palm oil | 15.07-19, 15.07-61 and 15.07-63 |
| 14. Palm nut and kernel oil | 15.07-31, 15.07-78 and 15.07-93 |
| 15. Palm nuts and kernels | 12.01-44 |
| 16. Raw hides and skins | 41.01-ll to 41.01-95 |
| 17. Bovine cattle leather | 41.02-05 to 41.02-98 |
| 18. Sheep and lamb skin leather | 41.03-10 to 41.03-99 |
| 19. Goat and kid skin leather | 41.04-10 to 41.04-99 |
| 20. Wood in the rough | 44.03-20 to 44.03-99 |
| 21. Wood roughly squared or half-squared, but not further manufactured | 44.04-20 to 44.04-98 |
| 22. Wood sawn lengthwise, but not further prepared | 44.05-l 0 to 44.05-79 |
| 23. Fresh bananas | 08.01-31 |
| 24. Tea | 09.02-10 to 09.02-90 |
| 25. Raw sisal | 57.04-10 |
| 26. Vanilla | 09.05-00 |
| 27. Cloves - whole fruit, cloves and stems | 09.07-00 |
| 28. Sheep's or lambs' wool, not carded or combed | 53.01-10 to 53.01-40 |
| 29. Fine animal hair of Angora goats - mohair | 53.02-95 |
| 30. Gum arabic | 13.02-91 |
| 31. Pyrethrum - flowers, leaves, stems, peel and roots; saps and extracts from pyrethrum | 12.07-10 and 13.03-15 |
| 32. Essential oils, not terpeneless, of cloves, of niaouli and of ylang-ylang | 33.01-23 |
| 33. Sesame seed | 12.01-68 |
| 34. Cashew nuts and kernels | 08.01-77 |
| 35. Pepper | 09.04-ll and 09.04-70 |
| 36. Shrimps and prawns | 03.03-43 |
| 37. Squid | 03.03-68 |
| 38. Cotton seeds | 12.01-66 |
| 39. Oil-cake | 23.04-01 to 23.04-99 |
| 40. Rubber | 40.01-20 to 40.01-60 |
| 41. Peas | 07.01-41 to 07.01-43, 07.05-21 and 07.05-61 |
| 42. Beans | 07.01-45 to 07.01-47, 07.05-25, 07.05-65 and ex 07.05-99 |
| 43. Lentils | 07.05-30 and 07.05-70 |
| 44. Nutmeg and mace | 09.08-13; 09.08-16; 09.08-60 and 09.08-70 |
| 45. Shea nuts | 12.01-70 |
| 46. Shea nut oil | ex 15.07-82 and ex 15.07-98 |
| 47. Mangoes | ex 08.01-99 |
| 48. Dried bananas | 08.01-35II |
2. Upon presentation of each transfer request, the ACP State shall choose between the following systems:
(a) each product listed in paragraph 1 shall constitute a product within the meaning of this Chapter;
(b) product groups 1 and 2, 3 to 5, 6 and 7, 8 and 9, 10 to 12, 13 to 15, 16 to 19, 20 to 22, 23 and 48, 45 and 46 shall each constitute a product within the meaning of this Chapter.
Article 149.
If, twelve months after the entry into force of this Convention, one or more products not contained in the list in Article 148, but upon which the economies of one or more ACP States depend to a considerable extent, are affected by sharp fluctuations, the Council of Ministers shall decide, not later than six months after the presentation of a request by the ACP State or States concerned, whether or not to include the said product or products in the list, taking account of factors such as employment, deterioration of the terms of trade between the Community and the ACP State concerned and the level of development of the ACP State concerned and the conditions which characterize products originating in the Community.
Article 150.
1. The system shall apply to earnings from exports
(a) by each ACP State, to the Community, of each product listed in Article 148;
(b) by the ACP States already benefitting from the derogation referred to in paragraph 2 to the other ACP States, of each product listed in Article 148 for which such derogation has been granted;
(c) by the ACP States already benefitting from the derogation referred to in paragraph 3, to all destinations, of each product listed in Article 148.
2. If so requested by one or more ACP States in respect of one or more of the products listed in Article 148, the Council of Ministers may decide, on the basis of a report established by the Commission, in liaison with the requesting ACP State or States, and not later than six months after the presentation of the request, to apply the system to exports of the products in question from the said ACP State or States to other ACP States.
3. At the request of an ACP State which does not send the bulk of its exports to the Community, the Council of Ministers, on the basis of a report drawn up by the Commission in conjunction with the requesting ACP State, may decide, not later than six months after presentation of the request, that the system shall apply to its exports of the products in question whatever their destination.
Article 151.
Each ACP State concerned shall certify that the products to which the system applies have originated in its territory within the meaning of Article 2 of Protocol 1.
Article 152.
For the purposes specified in Article 147, the Community shall allocate to the system, for the duration of this Convention, an amount of 925 million ECU to cover all its commitments under the system. This amount shall be managed by the Commission.
Article 153.
1. The overall amount referred to in Article 152, shall be divided into a number of equal annual instalments corresponding to the number of years of application.
2. Interest earned by investment in the market, over the period from 1 April to 30 June, of the sum equivalent to half each annual instalment, minus any advances and transfers paid during that period, shall be credited to the system's resources. Interest earned by investment in the market, over the period from 1 July to 31 March, of the sum equivalent to half each second annual instalment, minus any advances and transfers paid during that second period, shall be credited to the system's resources.
3. Whatever balance remains at the end of each of the first four years of application of this Convention shall be carried forward automatically to the following year.
Article 154.
The resources available for each year of application are made up of the sum of the following:
(1) the annual instalment, minus any amounts used under Article 155(1);
(2) the sums carried forward under Article 153(3);
(3) the amounts replenished under Articles 172 to 174;
(4) any amounts made available under Article 155(1);
(5) the amount of interest earned pursuant to Article 153(2).
Article 155.
1. If the total amount of the transfer basis in a year of application, as calculated in accordance with Article 158(2), and where appropriate reduced in accordance with Article 164, exceeds the amount of resources available in the system for that year, advance use shall be made automatically, for each year except the last, of a maximum of 25% of the following year's instalment.
2. If, after the measure referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases for the same year of application, the amount of each transfer basis which exceeds 2 million ECU in the case of ACP States listed under Articles 257 and 260, and 1 million ECU in the case of ACP States listed under Article 263, shall be reduced in accordance with paragraph 3.
3. (a) Each transfer basis shall be reduced by an amount calculated by applying to the reference level in question a percentage equal to that referred to in Article 162 applicable to the ACP State concerned.
(b) If, after the reduction referred to in (a), the total amount of the transfer basis so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the percentage by which each transfer was reduced.
(c) In no case shall the reduction of each transfer basis referred to in (a) exceed:
- 30% for the ACP States listed in Articles 257 and 260,
- 40% for the other ACP States.
4. If, after the reduction referred to in paragraph 3, the total amount of the transfers which may give rise to a payment exceeds the amount of available resources, the Council of Ministers shall evaluate the situation on the basis of a Commission report on the probable development of the system and shall examine the steps to be taken to remedy that situation, within the terms of this Convention.
Article 156.
Before the expiry of the period referred to in Article 152, the Council of Ministers shall decide on the use of any balance remaining from the overall amount referred to in Article 152, including the interest referred to in Article 153(2), as well as on the conditions for future use of any amounts still to be paid by way of replenishment by the ACP States under Articles 172 to 174, following expiry of the period referred to in Article 152.
Article 157.
Every request for a transfer shall, in addition to the necessary statistical data, include substantial information on the loss of earnings and also the programmes and operations to which the ACP State has allocated or undertakes to allocate the funds, in accordance with the objectives set out in Article 147.
Such request shall be addressed to the Commission, which shall examine it in conjunction with the ACP State concerned, with a view to calculating the amount of the transfer basis and any reduction which may be made pursuant to Article 164.
Article 158.
1. In order to implement the system, a reference level and a transfer basis shall be calculated for each ACP State and for exports of each product to the Community and other destinations as defined in Article 150.
2. The difference between the reference level and actual earnings, plus 2% for statistical errors and omissions, shall constitute the basis of the transfer.
3. This reference level shall correspond to the average of export earnings in the four years preceding each year of application,
4. Where, however, an ACP State:
- begins processing a product traditionally exported in the raw state, or
- begins exporting a product which it did not traditionally produce,
the system may be put into operation on the basis of a reference level calculated over the three years preceding the year of application.
Article 159.
1. In the case of the ACP States accorded the derogation referred to in Article 150(2), the transfer basis shall be calculated by adding to the earnings from exports of the product or products concerned to the Community the earnings from exports of those products to other ACP States.
2. In the case of the ACP States accorded the derogation referred to in Article 150(3), the transfer basis shall be calculated according to the earnings from exports of the product or products concerned to all destinations.
3. In the case of the ACP States not accorded the derogation referred to in Article 150(3), the transfer bases may in no case exceed those calculated pursuant to paragraph 2 of this Article.
Article 160.
1. The export earnings for each year of the reference period and for the year of application shall be determined on the basis of the equivalent in the currency of the ACP State concerned of the earnings expressed in foreign exchange.
2. The reference level shall be calculated after the export earnings for each year of the reference period have been converted into ECUs at the average annual exchange rate for the ECU against the currency of the ACP State concerned over the years in question.
3. For the purpose of the calculation referred to in Article 158(2), the earnings for the year of application shall be converted into ECUs at the average annual exchange rate for the ECU against the currency of the ACP State concerned for the year of application.
4. If there is a fluctuation of more than 10% in the annual average exchange rate of the year of application for the currency of the ACP State concerned against the ECU in relation to the average of the average annual exchange rates for each year of the reference period, the earnings for the year of application shall be converted into ECUs, by way of derogation from paragraph 3 and without prejudice to paragraph 2, at a rate set at a level which restricts the fluctuation to 10% in relation to the said average.