(c) where a single ACP State is associated with non-ACP countries, as provided for in Article 157, its request alone shall suffice;
(d) request for financing for intra-ACP regional cooperation schemes may be submitted by the ACP Council of Ministers, or, by specific delegation, by the ACP Committee of Ambassadors;
(e) regional cooperation bodies may present requests for the financing of one or more specific regional cooperation schemes on, behalf, and with the explicit agreement, of those of their members that are ACP States;
(f) each request for regional cooperation funding must include, where necessary, proposals concerning:
(i) the ownership of the goods and services to be financed as part of the operation, and the division of responsibilities for operation and maintenance;
(ii) the choice of the regional authorizing officer and the State or body authorized to sign the financing agreement on behalf of all the participating ACP States or bodies.
2. The indicative programme for each region may lay down appropriate arrangements for the submission of requests.
3. The ACP State or States or regional bodies participating in a regional operation with third countries as provided for in Article 157 may request the Community to finance that part of the operation for which they are responsible or a part in proportion to the benefits they derive from the operation.
Article 165.
1. With a view to encouraging regional cooperation between the -least-developed, landlocked and island countries, particular attention shall be paid to these countriesâ specific problems at the regional programming stage and in the implementation.
2. As regards financing, the least-developed ACP States shall be given priority in any project involving at least one ACP State in that category, while special attention shall be paid to the landlocked and island ACP States in order to overcome the obstacles holding back their development.
Article 166.
For the purposes set out in the present Title, the amount of the Community's financial assistance is provided for in Article 3 of the Financial Protocol to this Convention.
Part Three. THE INSTRUMENTS OF ACP-EEC COOPERATION
Title I. TRADE COOPERATION
Chapter 1. General Trade Arrangements
Article 167.
1. In the field of trade cooperation, the object of this Convention 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 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 III of this Part and under Part Two of this Convention.
Article 168.
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 in point (i), the Community shall take the necessary measures to ensure more favourable treatment than that granted to third countries benefiting 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 cooperation, 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 if possible within four months, and in any case not more than six months after the date of their submission.
Within the context of subparagraph (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 subparagraph (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 products originating in the ACP States, following consultations within the Council of Ministers. In such cases, the provisions of subparagraph (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 benefiting from the most-favoured-nation clause.
(ec) 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 169.
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 168 (2) (a).
The Community shall inform the ACP States when residual quantitative restrictions are eliminated in respect of any of these products.
Article 170.
1. Article 169 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 archaeological 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 of 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 12, with a view to reaching a satisfactory solution.
3. Provisions on the movement of hazardous and radioactive waste are set out in Part Two, Title I of this Convention.
Article 171.
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 172.
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 Article 12, second paragraph, with a view to reaching a satisfactory solution.
Article 173.
1. Where existing Community rules or regulations adopted in order to facilitate the movement of goods affect the interests 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 174.
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 commitment 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 most-favoured-nation treatment.
(b) Notwithstanding specific provisions of this Convention, the Community shall not discriminate between ACP States in the field of trade.
(c) 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 173.
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 176.
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 1.
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 177.
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 other means for protectionist. purposes or to hamper structural development. The Community will refrain from using safeguard measures having the same effect.
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 178.
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 177 (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 paragraphs 1 and 2 shall not prevent any immediate decisions which the Community or its Member States, in accordance with Article 177 (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 Protocol 4.
Article 179.
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 180.
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 181.
In order to ensure the effective implementation of this Convention in the field of trade and customs cooperation, the Contracting Parties agree to inform and consult each other.
In addition to the cases for which consultations are specifically provided for in Articles 167 to 180, 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 Articles 12, particularly in the following cases:
(1) where Contracting Parties intend to take any trade measures affecting the interests 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 168 (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 177, 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 177 (3).
Such consultations must be completed within three months.
Chapter 2. Special Undertakings on Rum and Bananas
Article 182.
Until the entry into force of a common organization of the market in spirits and notwithstanding Article 167 (1), entry into the Community of products of subheadings 2208 40 10, 2208 4090, 22089011 and 22089019 of the combined nomenclature - rum, arrack, taffia - originating in the ACP States shall be governed by Protocol 6.
Article 183.
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 5.
Article 184.
This Chapter and Protocols 5 and 6 shall not apply to relations between the ACP States and the French overseas departments.
Chapter 3. Trade In Services
Article 185.
1. The Contracting Parties recognize the importance of trade in services for the development of the ACP States' economies, on account of the increasing role of services in international trade and their considerable growth potential.
2. The ACP States and the Community recognize that the long-term aim in this area is a progressive liberalization of trade in services, with due respect for national policy objectives, and taking due account of the level of development of ACP States.
3. The ACP States and the Community recognize further that it will be opportune and necessary to develop cooperation in this sector when the outcome of current multilateral trade negotiations is known.
4. Therefore, the Contracting Parties will negotiate amendments or further elaboration of this Convention to take account, and to take advantage, of the outcome of the multilateral trade negotiations in the GATT.
5. Following the negotiations referred to in paragraph 4, which will take place within the framework of the Council of Ministers, the Council of Ministers may adopt any amendment to this Chapter.
Title II. COOPERATION IN THE FIELD OF COMMODITIES
Chapter 1. Stabilization of Export Earnings from Agricultural Commodities
Article 186.
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 derived from the ACP States' exports to the Community or other destinations as defined in Article 189, 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, in accordance with a framework of mutual obligations to be agreed between the ACP State concerned and the Commission in each case, either to the sector, interpreted in the widest possible sense, that recorded the loss of export earnings and be used there for the benefit of economic operators adversely affected by this loss, or, where appropriate, to diversification, either for use in other appropriate productive sectors in principle agricultural, or for the processing of agricultural products.
Article 187.
1. The following products shall be covered:
| Combined nomenclature position | |
| 1. Groundnuts in shell or shelled | 1202 |
| 2. Groundnut oil | 1508 |
| 3. Cocoa beans | 1801 |
| 4. Cocoa husks, shells and skins and other waste | 1802 |
| 5. Cocoa paste | 1803 |
| 6. Cocoa butter | 1804 |
| 7. Cocoa powder | 1805 |
| 8. Raw or roasted coffee | 0901 11 to 0901 22 |
| 9. Extracts, essences and concentrates of coffee | 2101 1011, 2101 1019 |
| 10. Cotton not carded or combed | 5201 |
| 11. Cotton linters | 1404 20 |
| 12. Coconuts | 0801 10 |
| 13. Copra | 1203 |
| 14. Coconut oil | 1513 11 151319 |
| 15. Palm oil | 1511 |
| 16. Palm kernel oil | 1513 21 1513 29 |
| 17. Palm nuts and kernels | 1207 10 |
| 18. Raw hides and skins | 4101 10 to 4101 30 4102 4103 10 |
| 19. Leather of bovine animals | 4104 10 to 4104 29 4104 31 11 4104 31:19 4104 31 30 4104 39 10 |
| 20. Sheep and lamb skin leather | 4105 |
| 21. Goat and kid skin leather | 4106 |
| 22. Wood in the rough and squared wood | 4403 |
| 23. Sawn wood | 4407 |
| 24. Fresh bananas | 0803 00 10 |
| 25. Dried bananas | 0803 00 90 |
| 26. Tea | 0902 |
| 27. Raw sisal | 5304 10 |
| 28. Vanilla | 0905 |
| 29. Cloves | 0907 |
| 30. Wool not carded or combed | 5101 |
| 31. Fine animal hair of Angora goat' Mohair | 5102 10 50 |
| 32. Gum Arabic | 1301 2000 |
| 33. Pyrethrum; saps and extracts of pyrethrum | 1211 90 10 1302 14 |
| 34. Essential oils | 3301 11 to 3301 29 |
| 35. Sesame seed | 1207 40 |
| 36. Cashew nuts and kernels | 0801 30 |
| 37. Pepper | 0904 |
| 38. Shrimps and prawns | 0306 13 0306 23 |
| 39. Squid, octopus and cuttlefish | 0307 41 0307 49 0307 51 0307 59 |
| 40. Cotton seed | 1207 20 |
| 41. Oil cake | 2305 2306 10 2306 50 2306 60 2306 90 93 |
| 42. Rubber | 4001 |
| 43. Peas | 0708 10 0713 10 0713 20 |
| 44. Beans | 0708 20 0713 31 to 0713 39 ex 0713.90 |
| 45. Lentils | 0713 40 |
| 46. Nutmeg and mace | 0908 10 0908 20 |
| 47. Shea nuts | 1207 92 |
| 48. Shea nut oil | ex 151590 40 to ex 151590 99 |
| 49. Mangoes | ex 0804 50 |
2. In all cases of application of the system, the Commission shall, in the interests of the ACP State concerned, consider as products within the meaning of this chapter:
(a) each product listed in paragraph 1;
(b) product groups 1 and 2, 3 to 7, 8 and 9, 10 and 11, 12 to 14, 15 to 17, 18 to 21, 22 and 23, 24 and 25, 47 and 48.
Article 188.
If, 12 months after the entry into force of this Convention, one or more products not contained in the list in Article 187 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 more 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, the level of development of the ACP State concerned and the conditions which characterize products originating in the Community.
Article 189.
1. The system shall apply to earnings from exports:
(a) by each ACP State to the Community of each product referred to in Article 187 (2);
(b) by the ACP States benefiting from the derogation referred to in paragraph 2 to the other ACP States of each product referred to in Article 187 (2) for which such derogation has been granted;
(c) by the ACP States benefiting from the derogation referred to in paragraph 3 to all destinations of each product referred to in Article 187 (2).
2. At the request of one or more ACP States in respect of one or more of the products referred to in Article 187 (1), the Council of Ministers may decide, after examination of a report established by the Commission on the basis of the relevant information provided by the requesting ACP State or States, and not more 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. If, on the basis of relevant data for the average of the two years preceding the application year, at least 70% of an ACP State's total export earnings from products covered by the system do not come from exports to the Community, the system shall be automatically applied to its exports of each of the products referred to in Article 187 (2), whatever the destination.
In the case of the least-developed ACP States this percentage shall be 60 %.
For each year of application and for each ACP State, the Commission shall check that these criteria have been fulfilled.
Article 190.
For the purposes stipulated in Article 186 and for the duration of the Financial Protocol annexed to this Convention, the amount provided for in that protocol shall be allocated to the system. This amount shall cover all commitments under the system. It shall be managed by the Commission.
Article 191.
1. The overall amount referred to in Article 190 shall be divided into a number of equal annual instalments corresponding to the number of years of application of the Financial Protocol.
2. Whatever balance remains at the end of each year of application of the Financial Protocol annexed to this Convention except the last shall be carried forward automatically to the following year.
Article 192.
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 the second half of each annual instalment, minus any advances and transfers paid during that second period, shall be credited to the system's resources.
Any part of an annual instalment which has not been advanced or transferred shall continue to bear interest which will be added to the system's resources until its utilization in the following year.
Article 193.
The resources available for each year of application are made up of the sum of the following:
(1) the annual instalment, plus any amounts available or less any amounts used under Article 194 (1);
(2) the sums carried forward under Article 191 (2);
(3) the amount of interest earned pursuant to Article 192.
Article 194.
1. If the total amount of the transfer bases in a year of application, calculated in accordance with Article 197, and where appropriate reduced in accordance with Articles 202 to 204, 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 operation referred to in paragraph 1, the amount of resources available is still less than the total amount of the transfer bases referred to in paragraph 1 for the same year of application, the amount of each transfer basis shall be reduced by 10 % of that amount.
3. If, after the reduction referred to in paragraph 2, the total amount of the transfers so calculated is less than the amount of resources available, the remainder shall be shared among all the transfers in proportion to the amounts by which each transfer was reduced.
4. If, after the reduction referred to in paragraph 2, 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 195.
In the case of any balance remaining from the overall amount referred to in Article 190, including the interest referred to in Article 192 after the expiry of the last year of administration of the system under the Financial Protocol annexed to this Convention:
(a) the amounts resulting from the application of the percentages referred to in Article 197 (3) and (4) shall be repaid to each ACP State in proportion to the deduction or deductions made in application of those provisions;
(b) if any balance remains after application of (a), the Council of Ministers shall decide on its use.
Article 196.
1. The system shall apply to the earnings from an ACP State's exports of the products referred to in Article 187 (2) if, during the year preceding the year of application, earnings from the export of each product to all destinations, re-exports excluded, represented at least 5 % of its total earnings from exports of all goods. The percentage shall be 4 % in the case of sisal.