Commission Communication to the Council concerning an international scheme for the stabilization of export earnings COM(77) 113 final, 31 March 1977

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final

COP4(77) 113

Brvanh, ₃₁

_March

_19n

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OF TME': .

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~;,.~_:,.,EUROPEAN cxw.w.IXITIES. FOR OFFICIAL USE ONLY

COMMISSION COMMUNICATION TO THE C~UNCIL

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_

_{coneernin? an international scheme for the stabilization}

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. . !. "~ • Co!!!l'lisnion co~.micntion to the ' ·. ~ .·-; ... ,·

··..\1-~. Council

· · ·'·- -"'. An

international &ehemo for the stabiliu.tion or export

earnings

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I. Introducticm

1:

In

the

context or

an

overall approach tow:u-ds the raw materials

issue : .::

. . . ' ' . t. '

... _ . the Cocmission proposed an international scheme for the stabilization or··¥; ~ -.·.

· : · ; ' • • • . - .. ,_. -~: ,· c . • . : • . 1 ....

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~:-,: export oa.rninga in

1975 •

This proposal reappeared in: Vf!r:f

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· ' · ·· · ceneral ter=s in the l)Uidelines adopted by the Council· for the seventh ·· apecinl session or th~ Uni tcd ~TatiO!lS General Assembly and su'oseq'.lently

. ' " . 2

· for the opening o~tha CIEC • -- - - -:,_·. - . ,_,.,-!

• ' - • I o • l. ' '

:;>.?r~;·~~:~\,:-f:f·:~

·;h_is basis, the Co::l:llission's dopartcents transmitted a

worki~g

··

-~0''·~":

.-· :'.· paper containing' a number of workin,i hypotheses on the subject in }.;arch

19763•

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2.-.. In view of the long discussions a:1d negotiations on: the Intet;ra.ted

:~>E:::~·t;·.:·: Pr~fi;.8.!ND'e

within the fra:tcwork of

~:CTAD,

the accent has for BO!lle time

~!:~n-~:?~~.:.·;;·been' ~lac~d

m&inly on price stabilization (in particular. on commodity

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a.nd

1 above

all,

on the

Coc::~on

Fund).

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The trend of the discussions end nc[;otiatio:Jo on these matters, in · ·'

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·particular

at

tr.\CTAD and in the context of the C:U:C, indicates tha.t it is

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to reinsert them in the overall context of the problems of ra'lr:

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The

sta.bilization or export earnings could CO!'lplement the other efforts' .. ,

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made

to find a solution here £.::: ,r.·.c.r! of 'll1 ovcrcl.l

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-}-:-·_;:·-.-~:.;_-. II~ Cuidclines fo-:- n"'' intc!'nntionnl Pxnort e2::-:-:i~=-!' Gtr.bili~ntion f!C"rc-:Jc

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)itu'ly ~rrerant hypotheses are co:J.ccivable M rcc:;ards both the type

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o·r.

_stabili~tio:'l

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co:nprehensi ve or prod:.tct-by-product, a. "''d the products

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lt'hi.oh

it

would cover, the countriec tlhich ouc;~t to bcnefi t fro:n it a.'ld

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t~.e

moihod

or

mana~;ir~G

the scheme.

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The Cc:::::lission considers thn.t such e. sc~c:;Je ought to be rcalietic

"and-attuned to ccono~ic requirc~ontG and cevelop~ent needs and s~ould

~- --:-;:: ~ .

tako &cc~~,t or the devclo~ing countries' de.~a~ds a"ld the operation or

exi~tins international schc::~es ( I!'TF co::~pc~satory fir.a:1ci:1c f&cili ty,

-·- . ~- ~ ~ !

-Lo~~ Convention export ear!1ings stabili~ation systeo). It should

repre-sent

aid

in addition to that &lready GT~~tcd, with contributions being

cl\de by e.ll countriesp'osseocinc sufficie:1t resources, and should leave

the.:specifi~ character and autono:ny of t~c Lomc Convention Stabex syste!!l

unimpaired.

-·.- 6.

The scheme should a.ccorC.in.;ly l':ave the follo\:in~; features.

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--countries could be identified on the basis of G!lP per ~c.nita, whic~

represents a. clear and objective criterio:t. The list which could be used

ia

on.c -tb-; ic ~r-prc·:c..~ i:·rl.cu·.at::.o:::~::; :.::~ i:: :.l:c '.:!.02 for re.l::!~d

6.2.

As regards the procucts t~at would be covered, these o~cht to

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products which are of special importance fc-:- the developing

eo".lntries;

~.:!,. -~-~z.x.J.!orcover, certain other cou:-.trics could be

countr1cs a.l~ost tot~lly dcpe"ucnt on eY.po-:-ts of a sincle

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produoh which are eubjoct to aubtnc.ntic.l

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underline the politic~ and econmio i.J£portt1.:1CO cf cerl&in

proiu~o for eertc.il1 cow:.trit~& (the liru: betwecm comtriaa

and produota ia very difficult to erl&bliab)

;-the u.rat ani ac.rke~ing ctruo-t-arec for certt:.in prod~o

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(e.t;. ~rt.sin ores

am

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policy

en the prieos o! &nd. trade in the produeta COTered

by that policy.

e.~ reference ~s;;ic here, bu-t thic dooa not mel':.tl that one hAc to

cor.fino C1!:2e.olr to that lirl or tc.ke or.lr &11 the producta cc it rd~ee

they

are

not necessarily ~11 .uitc.ble for such & ceh~a.

ne Annax contains a li~ of products by wey or eU2plo.

_· 6.) _

Ls regnrd.s the export e&.-.,;.inge lrt.~biliz&tiO!l echue, there are two posclbilitiea: .

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either & IJ'il"tR for str.bilizing export ea.rni.ngll free ee.ch

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the. p~ucte ts.ken individua.lly (on the

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the dis.sd.VSllh.ge

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being aore costly overc.ll, but it b.lliu with the :

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pbil.o.oopey

the Co:am1mity baa adopted in this fiel.! in the context of the

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;:{f:.:::,,~}}:L--L;_:_~!,Con-vention eXport ea.~ings r:tabiliution acheme. It a.lao auna that.,~· ; ' ...

:<-""- :,~~:~~~.--:-:~~~"': ~-'. the· experience or the l.o&e Ste.bex •chne e&n be uaed to adva.nta.te; · _~;__- ~- ··

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a qotem for otabilhing uport eorningo fr"' the produch

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tho other ha.ni₁tha raletian&hl.p 'bc!twen the Cccacl t7• r; oo:ltrib=ticm

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or th'3 as?, contr"'..liud

~~o~ vo~d ~ pre~c..-a.blc ~ U.~

co:-:rol

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_cnr tho eyrie; &:d it iG

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to

coo~~te

rlth tho !r.P

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bG fi.Iw1od b,y

.i:;:_:.:":?;;.~~---ell COc'Wntri•t~ PQeeeaai:lG n!!icient reeoucu. ri~eir.g eoW.d tl!.b tbo torra

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tl:.ke the form or los.na c:t "'r"'S!"Y lov intaron r&ha t a.ltbo~

... e caaee for •a.aier tt!'"lla !or the poorert colr1trh••

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A.n ~~ate uUu.te or tllo oolt or ROh & •oheze io Ht out 1n tho

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III. COr.'CLUSIS'

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' 'the Ccmield= propo8otl that tb& Couaeil adopt tho pl'inoiple or c

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(for o:mmple, tho CIEC; Tho det:.ila rlll have to 'bo

wor~

out in d8pth 1n

:·>:

\{-th~

Cottrto

of tbo diacuado:111 and negotb.ticoa. 'rho \for!:ine bJ'potheeal;iftll u a

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1n thia

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ton conve:r an idea of the

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eehcoo.

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IS!lould 'bo pruan'hi u a ec:.hese that is par~lel lllX1 oa::.pl~=-ey

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~he price cto.biliution sehemee that are "b&~ dillcusm ~ nagoiiat~ under ... ;

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ttrCTLD InteGl'&tei Progr&Dl!ilo &:1d llhould be pl&oed in the ocn\ext of Ill on.r..il

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.:_~-(in puticular invo.-tmmt prcaot.ion) and trado coopera.Hcn (e.eoe~a to ruourcoa a."'1d _ ·: .. .__

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Ca:prieingt-·

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of the CO'I;ll":ry' c;; t ctr.l cx:perl) ;

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refc~co

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of

l£hich Ol'e8 C.CCOtt:lt

for

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Corl to the Coa:::uni t1

(ltUch could be

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