The Community shalt inform the ACP States when residual quantitative restrictions are eliminated in respect of any of these products.
3. This Article shall not prejudice the treatment that the Community applies to certain products in implementation of world commodity agreements to which the Community and the ACP States concerned are signatory.
Article 4.
Nothing in this Convention shalt 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 archaeological value or the protection of industrial and commercial property.
Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade.
Article 5.
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 States concerned, consultations shall be held upon the request of the latter with a view to reaching a satisfactory solution.
Article 6.
Where existing rules or regulations of the Community adopted in order to facilitate the movement of goods or where the interpretation, application or administration thereof affect the interests of one or more ACP States, consultations shall be held at the request of the latter with a view to reaching a satisfactory solution.
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 to be taken by the Member States.
The competent institutions of the Community shall to the grea- test possible extent inform the Council of Ministers of such measures.
Article 7.
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 10 the commitments entered into by the Community in respect of imports of the products originating in the ACP States, under this Chapter.
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 subparagraph (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 8.
Each Contracting Party shall communicate its customs tariff to the Council of Ministers within a period of three months following the entry into force of this Convention. It shall also communicate any subsequent amendments to that tariff as and when. they occur.
Article 9.
1. The concept of "originating products" for the purposes of implementing this Chapter, and the methods of administrative co-operation relating thereto, are laid down in Protocol No 1.
2. The Council of Ministers may adopt any amendment to Protocol No 1.
3. Where the concept of "originating products" has not yet been defined for a given product in implementation of paragraphs 1 or 2, each Contracting Party shall continue to apply its own rules.
Article 10.
1. If, as a result of applying the provisions of this Chapter, serious disturbances occur in a sector of the economy of the Community or of one or more of its Member States, or jeopardize their external financial stability, or if difficulties arise which may result in a deterioration in a sector of the economy of a region of the Community, the latter may take, or may authorize the Member State concerned to take, the necessary safeguard measures. These measures and the methods of applying them shall be notified immediately to the Council of Ministers.
2. For the purpose of implementing paragraph 1, priority shall be given to such measures as would least disturb the trade relations between the Contracting Parties and the attainment of the objectives of the Convention. These measures shall not exceed the limits of what is strictly necessary to remedy the difficulties that have arisen.
Article 11.
In order to ensure effective implementation of the provisions of this Convention in the field of trade co-operation, the Contracting Parties agree to inform and consult each other.
Consultations shall take place, at the request of the Community or of the ACP States, in accordance with the conditions provided for in the rules of procedure in Article 74, particularly in the following cases:
1. Where Contracting Parties envisage taking 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 into account their respective interests.
2. Where the Community envisages concluding a preferential trade agreement it shall inform the ACP States thereof. Consultations shall take place, where the ACP States so request, in order to safeguard their interests.
3. Where the Community or the Member States take safeguard measures in accordance with Article 10, 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 10 (2).
4. If, during the application of this Convention, the ACP States consider that agricultural products covered by Article 2 (2) (a), other than those subject to special treatment, call for special treatment, consultations may take place within the Council of Ministers.
Chapter 2. Trade Promotion
Article 12.
With a view to attaining the objectives they have set themselves as regards trade and industrial co-operation the Contracting Parties shall carry out trade promotion activities which will be aimed at helping the ACP States to derive maximum benefit from Title I, Chapter 1 and Title III and to participate under the most favourable conditions in the Community, regional and international markets.
Article 13.
The trade promotion activities provided for in Article 12 shall include:
(a) improving the structure and working methods of organizations, departments or firms contributing to the development of the foreign trade of ACP States, or setting up such organizations, departments or firms;
(b) basic training or advanced vocational training of staff in trade promotion;
(c) participation by the ACP States in fairs, exhibitions, specialized international shows and the organization of trade events;
(d) improving co-operation between economic operators in the Member States and the ACP States and establishing links to promote such co-operation;
(e) carrying out and making use of market research and marketing studies;
(f) producing and distributing trade information in various forms within the Community and the ACP States with a view to developing trade.
Article 14.
Applications for financing of trade promotion activities shall be presented to the Community by the ACP State or ACP States concerned under the conditions laid down in Title IV.
Article 15.
The Community shall participate, under the conditions laid down in Title IV and in Protocol No 2, in financing trade promotion activities for promoting the development of exports of ACP States.
Title II. Export Earnings from Commodities
Chapter 1. Stabilization of Export Earnings
Article 16.
With the aim of remedying the harmful effects of the instability of export earnings and of thereby enabling the ACP States to achieve the stability, profitability and sustained growth of their economies, the Community shall implement a system for guaranteeing the stabilization of earnings from exports by the ACP States to the Community of certain products on which their economies are dependent and which are affected by fluctuations in price and/or quantity.
Article 17.
1. Export earnings to which the stabilization system applies shall be those accruing from the exportation by the ACP States to the Community of the products on the following list, drawn up taking ac- count of factors such as employment, deterioration of the terms of trade between the Community and the ACP State concerned, the level of development of the State concerned and the particular difficulties of the least developed, landlocked or island ACP States listed in Article 24:
a. Groundnut products
(aa) groundnuts, shelled or not
(ab) groundnut oil
(ac) groundnut oilcake
b. Cocoa products
(ba) cocoa beans
(bb) cocoa paste
(bc) cocoa butter
c. Coffee products
(ca) raw or roasted coffee
(cb) extracts, essences or concentrates of coffee
d. Cotton products
(da) cotton, not carded or combed
(db) cotton linters
e, Coconut products
(ea) coconuts
(eb) copra
(ec) coconut oil
(ed) coconut oilcake
f. Palm, palm nut and kernel products
(fa) palm oil
(fb) palm nut and kernel oi!
(fc) palm nut and kernel oilcake
(fd) palm nuts and kernels
g. Raw hides, skins and leather
(ga) raw hides and skins
(gb) bovine cattle leather
(gc) sheep and lamb skin teather
(gd) goat and kid skin leather
h. Wood preducts
(ha) wood in the rough
(hb) wood roughly squared or half-squared, but not further manu- factured
(hc) wood sawn lengthwise, but not further prepared
i. Fresh bananas
k. Tea
l. Raw sisal
m. Iron ore
Iron ores and concentrates and roasted iron pyrites.
The statistics used for implementation of the system shall be those obtained by cross-checking the statistics of the ACP States and of the Community, account being taken of the fob values.
The system shall be implemented in respect of the products listed above where they are:
(a) released for home use in the Community;
(b) brought under the inward processing arrangements there in order to be processed,
2. The system shall apply to an ACP State's export earnings from the products listed above if, during the year preceding the year of application, earnings from the export of the product or products to all destinations represented at least 7.5% of its total earnings from merchandise exports: for sisal, however, the percentage shall be 5%. For the least developed, landlocked or island ACP States listed in Article 24 the percentage shall be 2.5%.
3. Nonetheless if, not sooner than 12 months following the entry into force of this Convention, one or more products not contained in this list, 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 may decide whether the product or products should be included in the list, without prejudice to Article 18 (4).
4. For certain special cases the system shail apply to exports of the products in question irrespective of destination.
5. The ACP States concerned shall certify that the products to which the stabilization system applies have originated in their territory.
Article 18.
1. For the purposes specified in Article 16 and for the duration of this Convention, the Community shall allocate to the stabilization system a total amount of 375 million units of account to cover all its commitments under the said system. This amount shall be managed by the Commission of the European Communities (hereinafter called the "Commission".
2. This total amount shall be divided into five equal annual instalments. Every year except the last, the Council of Ministers may authorize, where required, the use in advance of a maximum of 20% of the following year's instalment.
3. Whatever balance remains at the end of each year of the first four years of the application of this Convention shall be carried forward automatically to the following year.
4. On the basis of a report submitted to it by the Commission, the Council of Ministers may reduce the amount of the transfers to be made under the stabilization system.
5. Before the expiry of this Convention, the Council of Ministers shall decide on the use to which any balance remaining from the total amount referred to in paragraph | is to be put and also on the terms to be laid down for the further use of amounts still to be paid by the ACP States, under Article 21, after the expiry of this Conven- uon.
Article 19.
1. In order to implement the stabilization system a reference level shall be calculated for each ACP State and for each: product. This reference level shall correspond to the component of export earnings during the four years preceding each year of application.
2. An ACP State shall be entitled to request a financial transfer if, on the basis of the results of a calendar year, its actual earnings, as defined in Article 17, from each of the products considered individually, are at least 7.5% below the reference level. For the least developed, landlocked or island ACP States listed in Article 24 the percentage shall be 2.5%.
3. The request from the ACP State concerned shall be addressed to the Commission, which shall examine it in the light of the volume of resources available.
The difference between the reference level and actual earnings shall constitute the basis of the transfer.
4. However,
(a) should examination of the request, to the undertaken by the Commission in conjunction with the ACP State concerned, show that the fall in earnings from exports to the Community of the products in question is the result of a trade policy measure of the ACP State concerned adversely affecting exports to the Community in particular, the request shall not be admissible;
(b) should examination of the total exports of the requesting ACP State show a significant change, consultations shall be held between the Commission and the requesting State to determine whether such changes are likely to have an effect on the amount of the transfer, and if so to what extent.
5. Except in the case referred to in paragraph 4 (a) the Commission shall, in conjunction with the requesting ACP State, draw up a draft decision to make a transfer.
6. All necessary steps shall be taken to ensure that transfers are made rapidly, for example by means of advances, normally six- monthly.
Article 20.
The recipient ACP State shall decide how the resources will be used. It shall inform the Commission annually of the use to which it has put the resources transferred.
Article 21.
1. The amounts transferred shall not bear interest.
2. The ACP States which have received transfers shall contribute, in the five years following the allocation of each transfer, towards the reconstitution of the resources made available for the system by the Community.
3. Each ACP State shall help reconstitute the resources when it is found that the trend of its export earnings will so permit.
To this effect, the Commission shalt determine, for each year and for each product, and on the conditions specified in Article 17 (1), whether
- the unit value of the exports is higher than the reference unit value;
- the quantity actually exported to the Community is at least equal to the reference quantity.
if the two conditions are met at the same time, the recipient ACP State shall pay back into the system, within the limit of the transfers it has received, an amount equal to the reference quantity multiplied by the difference between the reference unit value and the actual unit value.
4. If, on expiry of the five-year period referred to in paragraph 2, the resources have not been fully reconstituted, the Council of Ministers, taking into consideration in particular the situation of and prospects for the balance of payments, exchange reserves and foreign indebtedness of the ACP States concerned, may decide that:
- the sums outstanding are to be reconstituted wholly or partially, in one or more instalments;
- rights to repayment are to be waived.
5. Paragraphs 2, 3 and 4 shall not apply to the ACP States listed in Article 48.
Article 22.
For each transfer a "transfer agreement" shall be drawn up and concluded between the Commission and the ACP State concerned.
Article 23.
1. In order to ensure that the stabilization system functions efficiently and rapidly, statistical and customs co-operation shall be instituted between the Community and the ACP States. The detailed arrangements for such co-operation shall be established by the Council of Ministers.
2. The ACP States and the Commission shall adopt by mutual agreement any practical measures facilitating the exchange of necessary information and the submission of requests for transfers, for example by producing a form for requesting transfers.
Article 24.
The least developed, landlocked or island ACP States referred to in Article 17 (1) and (2) and Article 19 (2) are as follows:
- the Bahamas
- Malawi
- Barbados
- Mali
- Botswana
- Mauritania
- Burundi
- Mauritius
- Central African Republic
- Niger
- Chad
- Rwanda
- Dahomey
- Somalia