Registros de Información

22. In order that the target price may be sufficiently independ ent of any fluctuations in and measures distorting the uorld price it will be necessary to offset the difference between world price and target price. One solution is to use for this purpose a tariff

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protection obtained by applying a customs duty, but this does not provide the flexibility required to adapt conditions rapidly, and as closely as possible, to those ruling on the world market. This requirement may be satisfied by introducing a compensatory levy fixed by the Commission on tho basis of the target price on the one hand and the most favourable buying opportunities offered by the world market on the other. This levy, which will be the

same throughout the Community, will be applied in a non-discriminatory i

manner vis-a-vis countries outside the EEC.

The levy system must also be applied to imports of flour and semolina in conditions to be determined.

The European Grain Office, being responsible for recording the most favourable prices, will collect the necessary information on each of these products.

2 3. The urgent need to stabilize the internal market, which justifies the charging of a compensatory levy when world market prices are lower than the target prices, .will in the reverse case justify reduction of the price of imported wheat (and of products after the first processing stage, i.e. flour, oatmeal, semolina)

to the level of the European price,by w a y f a r - i n s t a n c e o f c i g” -eidy

fcir'aetsrsubsidy’ to u s e r s , I n thd.£ o&ae.texportBoof'f®heat and pro*" ulcl es&sed produces would attract a levy.

A p plication of an import certificate system an d measures-'of safe­ guard

24. The effectiveness of the levy system must be kept continuotxsDy unde r supei-vision, since the methods of international trading are liable t o change. The instrument for this supervision will

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The import certificates will be issued on demand. Their validity is U n i t e d to three months. Upon the issue of the import certificates the importers will undertake to effect the import within three months and will be required to deposit a surety representing a part of the levy.

If imports increase to such an extent or occur on such a scale or in such conditions as to cause or threaten to cause serious injury to Community producers the Commission will decide, without prejudice to exceptions for certain grades, to suspend the issue of import certificates until there is no further injury or threat of injury. A case in point is where the market price roaches the level of the intervention price, when the Grain Office will be obliged to intervene on the internal market on a substantial scale.

Import system

25. For exports, the following principles should be applied:

1• In view of the fact that the system advocated envisages permanent imports, there must also be opportunities for permanent exports, so that the Community will be assured of a fair share of world trade for its products.

2. For this purpose steps will be taken to make exporting possible through refunds on exports corresponding to the charges made 011 imports.

3« The export of wheat is in principle free; nevertheless the Commission may decide, when the market situation requires, that exports should be made subject to the issue of a licence*

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1 1 1 • FQRM OF ORGANIZATION OF THE MARKET European Grain Office

2 6. A comparative analysis of the various domestic markets shows that because of the special features of their markets and because of the degree of state intervention deemed desirable,the solutions adopted by the Member States vary greatly.

In the common-market phase.- it is not possible merely to co-ordinate domestic systems which differ so widely or to adopt any one of them unchanged for application to the market as a v/hole. The aim must be to arrive at a new form of organisation, colecting its elements from the various existing forms and wherever possible enlisting the assistance of the market organizations of the various countries.

27. The creation of a European Grain Market within t he frfliDG woivc

of the provisions contained in Article 40 (2) will make it possible to employ the most appropriate instrument for the practical execu­ tion of the measures advocated above. This Office, acting in accord­ ance v/ith directives from and under the control of the Commission, v/ill have the following duties:

Any necessary intervention on the market; Fixing and collection of levies;

The issue of import certificates;

The technical measures required to fulfill obligations under the International 7/heat Agreement.

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Grain

The European Grain Office will also be instructed to v>romote all technical measurers likely to facilitate attainment of the aims referred to above. One of its principal responsi­ bilities will consequently be to propose to the competent

authorities of the Community appropriate measures for rationalizing the system of stock-piling.

Fulfilment of the aims of a common organization of the market requires the co-operation, in the form of a Consultative Connittee.for Grain-of. tho farmers', traders* and industrial organizations concerned.

Fund

28. This activity will involve a certain amount of e x p e n d i t u r e . T?.7iei n -c • from the need to take certain steps referred to

above, in particular stock-piling.

To ensure the availability of the money necessary for the organization of the market, it is clearly essential that there should be a Guidance and Guarantee Fund , as provided in Article 40 (h), This Fund will be one of the branches of the -European Guidance and Guarantee Fund , the establishment of which is the subject of a special proposal.

The Wheat Fund will draw its main income from the proceeds of the levy on imports of wheat.

In case of necessity it may be credited with sums

transferred from the other funds in accordance with the procedure 3.aid down in the chapter on the European Agricultural Guidance

and Guarantee Fund.

Should the revenue of the Fund prove insufficient, it may be increased by contributions from the producers.

t + 0 0/ # • ♦

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G r a m

E. PROPOSALS FOR A COMMON ORGANIZATION FOR THE li/HEAT MARKET PREPARATORY P HAS E

1 * APPROXIMATION OF PRICES Principle

29. The process of approximating prices will last until 30 June 1967? the time-table being as follows:

(i) Farming year 1960/61: the Member. States will avoid taking measures liable to widen the differences between domestic prices;

(ii) Farming year 1961/62: first approximation of pricos; (iii) Subsequent farming y e a r s : continuation of approximation

of prices.

It will be important to k n o w well in advance the level ■- f the target price proposed for the farming year 1967/68. A decision on this matter will in any case have to be taken before 1 July 1964.

b ) First approximation of prices

30. For the farming year 1961/62 the Member States will take the first steps in approximation of prices. The countries in w h i c h prices are highest (Germany, Luxembourg, Italy) will reduce t h e i r prices, while the countries in which prices are lowesi

(F ranee, the Netherlands) will raise theirs.

O n the baisis of current prices and forecasts of their trend for tlie farming year 1960/61, the Member States will in 1961/62 be r e q u i r e d to carry out the following increases or decroasos in srelation to their prices for the preceding farming year:

Luxembourg - 1.50 DM/100 kg.

Italy - 1.00 »

Germany - 1.00 M

Netherlands + 0„50 ” France + 1„00 "

B e l g i u m will refrain from increasing its price, ... * » */o • •

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Grain c ) F urther approximation of prices

31. At the same time as the foregoing decision is taken, the Council will decide on the principles to govern the further approximation of prices during subsequent farming years.

On a proposal of tho Commission, tho Council will fix the extent of the approximation to be carried out in the farming years 1962/63 and 1963/64.

D uring the farming years 1964/65 to 1966/67 the approximation of prices v/ill be brought to its conclusion. This final

approximation will be made after the filing of the criteria to bo used as a basis for the establishment of the estimated target price, which will itself be determined in the light of tho

experience acquired during the first approximation and also of its effects on agriculture in the various countries.

Once the estimated target price for tho first crop ye ar in the common-market phase (1967 crop) is thus fixed, each Monbor State v/ill have three years in which it can automatically and autonomously adapt its own prices to the level of this target price.

d) F i x ing of criteria

3 2. In view of the fact that the approximation of pricos • v/ill entail changes in the farmers' incomes, the criteria tvill be fixed in the light of

a) The first price approximations;

b) The analysis of the effects jjroducea by these approximations; c) Observations made at the. marketing centres.

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Grain