2010/0059(COD)

Financing instrument for development cooperation: banana accompanying measures

Procedure completed

Activites

  • 2011/12/30 Final act published in Official Journal
  • 2011/12/13 Final act signed
  • 2011/12/13 End of procedure in Parliament
  • 2011/12/01 Text adopted by Parliament, 3rd reading
    • T7-0532/2011 summary
    • Results of vote in Parliament
  • 2011/11/30 Debate in Parliament
  • #3128
  • 2011/11/28 Council Meeting
  • 2011/11/24 Report tabled for plenary by Parliament delegation to Conciliation Committee, 3rd reading
  • 2011/10/31 Draft report by Parliament delegation to the Conciliation Committee
  • 2011/10/31 Final decision by Conciliation Committee
  • 2011/10/25 Prev Adopt in Cte
  • 2011/09/06 Formal meeting of Conciliation Committee
  • #3108
  • 2011/07/19 Council Meeting
  • 2011/04/01 Commission opinion on Parliament's position at 2nd reading
    • COM(2011)0179 summary
    • DG Development, PIEBALGS Andris
  • 2011/02/03 Text adopted by Parliament, 2nd reading
    • T7-0030/2011 summary
    • Results of vote in Parliament
  • 2011/02/03 Commission response to text adopted in plenary
  • 2011/01/28 Committee recommendation tabled for plenary, 2nd reading
  • 2011/01/26 Vote in committee, 2nd reading
  • 2011/01/17 Committee draft report
  • 2010/12/16 Committee referral announced in Parliament, 2nd reading
  • 2010/12/13 Commission communication on Council's position
    • COM(2010)0787 summary
    • DG Development, PIEBALGS Andris
  • #3057
  • 2010/12/10 Council Meeting
    • 16447/1/2010 summary
  • 2010/10/21 Text adopted by Parliament, 1st reading/single reading
    • T7-0382/2010 summary
    • Results of vote in Parliament
  • 2010/10/21 Commission response to text adopted in plenary
    • SP(2010)8657/2
    • DG Development, PIEBALGS Andris
  • 2010/10/20 Debate in Parliament
  • 2010/10/11 Committee report tabled for plenary, 1st reading/single reading
  • 2010/10/05 Vote in committee, 1st reading/single reading
  • 2010/07/26 Committee draft report
  • 2010/03/24 Committee referral announced in Parliament, 1st reading/single reading
  • 2010/03/17 EP officialisation
  • 2010/03/17 Legislative proposal
    • COM(2010)0102 summary
    • DG Development, PIEBALGS Andris

Documents

Votes

Rapport Goerens A7-0285/2010 - Résolution législative

2010/10/21
Position Total ALDE ECR EFD GUE/NGL NI PPE S&D Verts/ALE correctional
For 574 69 41 12 8 11 226 160 47 0
Against 17 0 0 8 0 9 0 0 0 0
Abstain 25 0 2 1 20 1 1 0 0 0

A7-0403/2011 - Charles Goerens - Résolution législative

2011/01/12
Position Total ALDE ECR EFD GUE/NGL NI PPE S&D Verts/ALE correctional
For 324 9 46 12 0 5 226 26 0 0
Against 178 62 1 9 24 10 3 18 51 0
Abstain 130 3 3 3 7 7 0 107 0 0
AmendmentsDossier
45 2010/0059(COD) Financing instrument for development cooperation: banana accompanying measures
2010/07/02 BUDG 5 amendments...
source: PE-443.153
2010/07/26 DEVE, DEVE 14 amendments...
source: PE-445.880
2010/09/16 DEVE 26 amendments...
source: PE-448.898

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
  • body
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    2010-03-17
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      • PURPOSE: to support the adjustment of areas dependent upon banana exports following a reduction in tariff preferences for ACP banana-supplying countries and amending Regulation (EC) No 1905/2006.

        PROPOSED ACT: Regulation of the European Parliament and of the Council.

        BACKGROUND: the Common Market Organisation (CMO) for bananas in the EU (EU) has traditionally provided a preferential trade regime in favour of African, Caribbean and Pacific (ACP) banana-exporting countries. For several ACP states, banana production for export to the EU forms an important economic activity with multiplier effects for the rest of the economy.

        The EU's banana CMO has been challenged since 1995 through the World Trade

        Organisation's (WTO) Dispute Settlement Mechanism, whose Appellate Body decisions have repeatedly ruled against it. Consequently, the EU has negotiated a trade agreement on bananas within the framework of the WTO. This supports the completion of the Doha Development Agenda's (DDA) agricultural modalities and the full Doha Round. Implementation of this agreement will lead to the reduction of the ACPs' preference margin.

        In order to promote the gradual integration of banana-exporting ACP countries into the global economy, the EU has provided assistance to the banana sectors of a number of countries through the Special System of Assistance (SSA, 1994-1999) and the Special Framework of Assistance (SFA, 1999-2008). The SFA operated in 12 banana-exporting ACP countries and expired in December 2008.

        The SFA operated in twelve banana-exporting ACP countries and expired in December 2008. The external evaluation of the SFA highlights positive results, as stated in the draft Communication on the Biennial Report on the Special Framework of Assistance for traditional ACP suppliers of bananas.

        Certain countries managed to enhance competitiveness, as reflected in ACP bananas' stable export volumes and EU market share (see COM(2010)0103). However, production costs in ACP countries generally remain higher than in Most Favoured Nation (MFN) countries. The results of measures to support diversification are less visible and will require more efforts. A reduction in tariff preferences for ACP banana-supplying countries will lead to additional adjustment requirements, building on the adaptation and restructuring processes underway. In

        view of these challenges, the Commission proposes to create an ACP Banana

        Accompanying Measures programme for the main ACP banana-supplying countries.

        IMPACT ASSESSMENT: no impact assessment was carried out.

        LEGAL BASIS: Article 209(1) of the Treaty on the Functioning of the EU. CONTENT: the Commission proposes to amend Regulation (EC) No 1905/2006 ("DCI instrument.) The Banana Accompanying Measures to be adopted aim at:

        • enhancing the competitiveness of the banana export sector, where this is sustainable, taking into account the situation of different stakeholders in the chain;
        • promoting the economic diversification of banana-dependent areas;
        • addressing broader impacts generated by the adaptation process, possibly related but not restricted to employment and social services, land use and environmental restoration, and macroeconomic stability.

        They will take into account the results of and experiences gained through the SSA and the SFA. The Banana Accompanying Measures are proposed as a temporary programme with a maximum duration of four years (2010-2013).

        The main ACP banana supplying countries are: Belize, Cameroon, Côte d'Ivoire, Dominica, Dominican Republic, Ghana, Jamaica, Saint Lucia, Saint Vincent and the Grenadines and Suriname.

        The budget for the measures is EUR 190 million. Within this amount, the Commission will fix the maximum amount available to each eligible ACP banana-supplying country for financing the actions above on the basis of a set of objective indicators. The indicators shall include trade in bananas with the EU; the importance of banana exports to the economy in the ACP country concerned; and country's level of development. The measurement of the allocation criteria shall be based on data from years preceding 2009.

        The Commission will adopt multi-annual support strategies and ensure that such strategies complement the geographic strategy papers of the countries concerned, and the temporary nature of these banana accompanying measures. The support strategies may be reviewed ad hoc, if necessary, but shall not be submitted to a mid-term review.

        BUDGETARY IMPLICATION: the budget is EUR 190 million. The programme will be financed through appropriations under the expenditure of Heading 4 ("The EU as a Global Player"). It is proposed to use part of the available margin under this heading for EUR 75.9 million. Commission services have assessed the availability of funds over the period 2010-2013 in order to ascertain redeployment possibilities because of potential underutilisation, absorption constraints and/or political circumstances. The analysis leads to a proposed redeployment of EUR 95.8 million under Heading 4. For the remainder (EUR 18.3 million) the Commission proposes the mobilisation of the Flexibility Instrument.

        Lastly, it should be noted that the total financial reference amount for the implementation of the DCI Regulation over the period 2007-2013 is now EUR 17 087 million.

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    • The Committee on Development adopted the report by Charles GOERENS (ALDE, LU) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation.

      The committee considers that the proposal for a regulation of the European Parliament and of the Council, by drastically reducing the margin under the ceiling of heading 4 of the multiannual financial framework (MFF) for 2007-2013, does not leave sufficient room for manoeuvre to face and to react adequately to a potential upcoming crisis.

      Members feel that, due to the long-standing issue concerning trade in bananas, the proposed measures could have been integrated at an earlier stage into the MFF. They reiterate their conviction that any new instrument should not be financed through redeployment as this would jeopardise the existing priorities.

      The committee recommended that the European Parliament's position at first reading under the ordinary legislative procedure (formerly known as the codecision procedure) should be to amend the Commission proposal as follows:

      Combat against poverty: the report points out that EU development aid must be used to combat poverty by improving the living standards and conditions of farmers and the people concerned, such as small business, respecting working, as well as environmental, standards, including those regarding the use and exposure to pesticides.

      Effectiveness of aid:the Commission must be extremely careful to envisage the economic diversification of banana-dependent areas only where such an option is mentioned in multi-annual national strategy papers. Members believe that the criteria for the apportioning of assistance must be transparent. They should therefore be weighted to increase the transparency of the allocation of assistance. In addition to this, the allocation should be based on countries' requirements. Resources should therefore be targeted, as a priority, at ACP countries that actually wish to retain their banana sector in view of the role it plays in the sustainable development of their country.

      Aid strategies: multiannaual support strategies for the banana accompanying measures should, in particular, include:

      • an updated environmental profile paying due attention to the country's banana sector inter alia focusing on pesticides;
      • information on the achievements of past banana support programmes;
      • indicators to assess progress in relation to disbursement conditions, when budget support will be chosen as the form of financing;
      • the expected results of the assistance;
      • a time schedule of support activities and of expected disbursements for each recipient country;
      • the ways in which progress will be achieved and monitored in meeting internationally-agreed ILO core labour standards and appropriate occupational safety and health conventions as well as relevant internationally agreed core environmental standards.

      The support strategies shall be subject to an independent ex ante review and, if necessary, an ad hoc review.

      Delegated acts: Members consider that it is vital that Parliament should be able to exercise all the powers of democratic scrutiny it currently enjoys, including the possibility opened up by the Lisbon Treaty for delegating to the Commission the power to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of the legislative act, including multi-annual strategy papers and programming documents relating to the Banana Accompanying Measures (BAMs).

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      text
      • The Council adopted its position at first reading with a view to the adoption of a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation (DCI).

        In its position, the Council recalled that this ACP Banana Accompanying Measures (BAM) programme is proposed as an amendment to Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation (DCI). The aim of the BAM programme is to assist the restructuring of the banana sectors in the ten main ACP banana-exporting countries.

        The EU's Common Market Organisation (CMO) for bananas has been challenged repeatedly in the World Trade Organisation (WTO). Consequently, the EU has negotiated in the WTO framework a trade agreement on bananas which supports the completion of the Doha Development Agenda's (DDA) agricultural modalities and the full Doha Round.

        The proposed BAM programme for the main ACP banana-supplying countries aims to support the adjustment of areas dependent upon banana exports through budget support or specific interventions. The measures are proposed as a temporary programme with a maximum duration of four years (2010-2013). They would have a budget of EUR 190 million and would be introduced through an amendment to the DCI.

        European Parliament amendments: following early and constructive discussions between the three institutions, the Council accepted 15 amendments adopted by the European Parliament at first reading. The Council considers that these amendments improve the initial proposal either by fleshing it out, mainly its preamble, or by clarifying some substantial aspects of the BAM programme. In particular, the EU's assistance now has an explicit focus on poverty eradication and the improvement of living and working conditions of small farmers and other persons concerned.

        Furthermore, the Regulation now refers to the regional environment of eligible countries under the BAM programme, specifically the proximity to outermost regions of the EU and OCTs.

        The Council also welcomed EP amendments regarding environmental protection requirements as well as social requirements based on ILO standards to be included in country support strategies. Finally it is worth noting that the text now provides for an assessment of the BAM programme eighteen months before its end, when appropriate recommendations can be made.

        The Council has not been able, however, to accept those amendments adopted by the European Parliament which introduce the application of the delegated acts procedure (Article 290 TFEU) for the adoption of multi-annual cooperation programmes and strategy papers. The Council believes that the multi-annual cooperation programmes, not being legally binding acts, do not constitute acts of general application, supplementing or amending the basic act. They constitute implementing measures within the meaning of Article 291 TFEU.

        In conclusion, with a view to reaching an early agreement on the amended Regulation, the Council has engaged in substantial negotiations with the European Parliament, facilitated by the European Commission. The negotiations have led to a large degree of consensus on the substantial elements of text which relate to the BAM programme as such.

        While the proposal of the Commission did not present substantial difficulties to the Council, the Council made a special effort to meet a number of concerns of the European Parliament related to the application of the amended Regulation.

        The Council considers that its position at first reading is a balanced compromise and calls on the European Parliament to go along with this text to allow for the entry into force of the Regulation in 2010. This would permit that the funds already inscribed in the 2010 budget are not lost.

        The Council has expressed serious concern that failure to reach agreement before the end of 2010 might jeopardise the long awaited trade agreement on bananas in the WTO.

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      text
      • In its communication to the European Parliament on the Council position on the adoption of a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation (original Commission proposal 'BAM amendments', the Commission can accept the Council position at first reading, which is the outcome of constructive negotiations between the three institutions. It is in line with the essential objectives and the underlying approach of the Commission's initial proposal and incorporates the European Parliament's amendments on the substance of the BAM provisions.

        Main characteristics of the Council position: the position reflects the following key elements in line with the European Parliament's amendments:

        • recitals: a number of recitals have been expanded and others have been added to provide further explanations in relation to the context, content and objectives of the BAM;
        • specific focus on poverty, livelihoods, small farmers and specification on the viability of strategies (Article 17a - Paragraph 1): the Union's assistance has now been explicitly established as focusing on poverty eradication and improvement of living and working conditions of small farmers and other persons concerned;
        • outermost regions of the EU and overseas countries and territories (Article 17a - Paragraph 1): the Regulation now refers to the regional environment of eligible BAM countries, specifically the proximity to outermost regions of the EU and OCTs;
        • bilateral trade agreements with Latin American countries (Article 17a - Paragraph 2): both multilateral and bilateral agreements relating to bananas concluded or in the process of being concluded are mentioned;
        • distribution of funds (Article 17a - Paragraph 2): the proposed criteria have been arranged by order of importance. Moreover, the allocation criteria will use data of a period not longer than five years before 2010, as well as a Commission study assessing the impact of the trade agreements on ACP countries;
        • requirements in Multiannual Support Strategies (Article 17a - Paragraph 3): a number of requirements (e.g. environmental profiles and ILO standards) to be included in the support strategies in each country have been specified;
        • programme assessment (Article 17a - Paragraph 3): the progress of the BAM programme will be assessed eighteen months before its end and appropriate recommendations are to be made.

        In addition, an amendment originally tabled by the Commission (COM(2009)194), see COD/2009/0060A) was introduced:

        • taxes and duties (Article 25 - Paragraph 2): the wording 'in principle' is added to the non-eligibility of taxes, duties and other charges thus signalling the possibility of exceptions, these being regulated internally by the instructions given to Authorising Officer.

        Amendments by Parliament not acceptable to Council: delegated acts (Article 290 TFEU): Parliament seeks by its first reading amendments to apply this procedure to the adoption of multiannual strategy papers by the Commission. Despite long and intensive negotiations (notably trilogues held on 2 February, 23 March and 20 October) it was not possible to reach agreement on this issue. The Council has not accepted these amendments in its positions at first reading. The Commission is ready to continue efforts to reconcile the positions of the institutions and to find ways to meet the substantive concerns behind Parliament's amendments, in particular in ensuring that Parliament can exercise appropriate oversight over the formulation of external cooperation strategies and the proper implementation of external financial instruments.

        The European Commission can accept the Council position at first reading.

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    • The Committee on Development unanimously adopted the recommendation for second reading contained in the report drafted by Charles GOERENS (ALDE, LU) on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation.

      It recommended that the European Parliament adopts its position at second reading under the ordinary legislative procedure, amending the Council position at first reading as follows:

      Delegated acts: following the entry into force of the Lisbon Treaty, the European Parliament is now fully recognised as co-legislator alongside the Council on virtually all legislation. Members consider that this should be reflected in the area of the implementation of external cooperation financial instruments.

      During the first reading in October 2010, Parliament expressed its favour for the application of the "delegated acts" procedure for the financing instruments for external assistance.

      The delegated acts procedure significantly strengthens Parliament's powers: Parliament's veto right allows it to block a draft measure it objects against, and requires the Commission to present an amended proposal.

      Faced with the rejection of the Parliament's position by the Council, Members recommend representing, at second reading, the requests formulated at first reading:

      ·        the Commission should be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union in respect of Geographic Strategy Papers, Multi-annual Indicative Programmes and Strategy Papers for thematic programmes and the accompanying measures, as they supplement Regulation (EC) No 1905/2006 and are of general application;

      ·        the annual action programmes shall be adopted by the Commission taking into account the opinions of the European Parliament and of the Council;

      ·        where the cost of such measures exceeds EUR 10 million, the Commission shall adopt them taking into account the opinions of the European Parliament and of the Council. For special measures below EUR 10 million, the Commission shall send the measures to the European Parliament and to the Council for information within one month of adopting its decision;

      ·        amendments to special measures, such as those making technical adjustments, extending the implementation period, reassigning funds within the forecast budget, or increasing or reducing the size of the budget by less than 20 % of the initial budget, provided those amendments do not affect the initial objectives set out in the Commission decision, shall be communicated within one month to the European Parliament and to the Council;

      ·        the Commission shall send its evaluation reports to the European Parliament and to the Council for information. The results shall feed back into programme design and resource allocation.

      Other amendments focus on the duration of the delegation of power, as well as the conditions to be respected by the delegations.

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      • Pursuant to Article 294(7) (c) of the Treaty on the Functioning of the European Union, the European Commission delivers an opinion on the amendments proposed by the European Parliament at second reading in relation to the Council's position regarding the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation.

        In its opinion, the Commission indicates that it is unable to accept the amendments relating to delegating actions and comitology issues. On the other hand, the Commission accepts a minor amendment introduced by the European Parliament.

        The discussions with the co-legislators shall continue after the second reading, in order to work on a consensual solution preferably giving substantive scrutiny rights to the European Parliament for the remainder of the current Multiannual Programming Period and leaving options open for the next one, including the possibility of having recourse to delegated acts while fully respecting the criteria established in Article 290 TFEU.

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    International Trade
    committee
    INTA
links added
National parliaments
European Commission
other added
  • body
    EC
    dg
    Development
    commissioner
    PIEBALGS Andris
procedure added
dossier_of_the_committee
CODE/7/05314
geographical_area
reference
2010/0059(COD)
subtype
Legislation
legal_basis
  • Treaty on the Functioning of the EU TFEU 209-p1
stage_reached
Procedure completed
summary
instrument
Regulation
title
Financing instrument for development cooperation: banana accompanying measures
type
COD - Ordinary legislative procedure (ex-codecision)
final
subject

code AGPLv3.0+, data ODBLv1.0, site-content CC-By-Sa-3.0
© European Union, 2011 – Source: European Parliament