Agreement in the form of an Exchange of Letters relating to the provisional application of the Protocol modifying the fourth Protocol laying down the conditions relating to fishing provided for in the agreement on fisheries between the European Economic C


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22003A1230(01)
 
Agreement in the form of an Exchange of Letters relating to the
provisional application of the Protocol modifying the fourth
Protocol laying down the conditions relating to fishing provided for
in the agreement on fisheries between the European Economic
Community, on the one hand, and the Government of Denmark and the
Local Government of Greenland, on the other, for the period 1
January 2004 to 31 December 2006
 
Official Journal L 342 , 30/12/2003 P. 0038 - 0044 
 
Dates:
of document:   30/12/2003; Date of publication
of effect:   01/01/2001; Provisional application See Text
end of validity:   31/12/2006; See Text
 
Author:
European Community ; Denmark ; Greenland
 
Subject matter: External relations ; Fisheries policy
Directory code: 11401040 ; 04202000
EUROVOC descriptor: EC agreement ; fishing agreement ; Greenland ;
fishery management
 
Legal basis:
102E037-A37............... Adoption
102E300-P2L1.............. Adoption
Instruments cited:
500DC0637.................
Earlier related instruments:
203A1230(02)......Relation......Provisional application
Subsequent related instruments:
Relation...... 303D0908..........
Relation...... 503XC1231(01)..... ANN 3
 
 
 
 
Agreement in the form of an Exchange of Letters
relating to the provisional application of the Protocol modifying
the fourth Protocol laying down the conditions relating to fishing
provided for in the agreement on fisheries between the European
Economic Community, on the one hand, and the Government of Denmark
and the Local Government of Greenland, on the other, for the period
1 January 2004 to 31 December 2006
 
A. Letter of the Government of Denmark and the Home Rule Government
of Greenland
Sir,
With reference to the Protocol, initialled on 25 June 2001, setting
out the fishing opportunities and the financial contribution for the
period from 1 January 2001 to 31 December 2006, and to the Joint
Committee Meeting of 16 to 18 June 2003, I have the honour to inform
you that the Home Rule Government of Greenland is prepared to apply
the modifications to the Protocol concerning the provisions for
experimental fisheries, as set out in the Protocol annexed, on a
provisional basis with effect from 1 July 2003, pending its entry
into force, provided that the European Community is disposed to do
the same.
In order to implement the provisions for experimental fisheries, the
Greenland authorities will communicate to the European Commission
all available scientific information and data (zoning, observations,
etc.) before the 17 July 2003. The Greenland authorities will decide
before 31 July 2003 the allocation of licences and the conditions
linked. The technical conditions referred to in Annex V to the
Protocol may be modified by an administrative arrangement between
the Parties.
Greenland shall implement a structural reform of the fisheries
sector and the European Community will provide a budgetary support
programme in accordance with Article 11(6) of the Protocol annexed
and as described in the "Details of Implementation for a budgetary
support for structural policy in the fisheries sector in Greenland"
annexed to this Exchange of Letters.
The modifications to the fourth Protocol follow the guidelines set
out in the communication from the Commission to the Council and the
European Parliament on an integrated framework for fisheries
partnerships agreements with third countries (COM(2002) 637 final).
I should be obliged if you could confirm the European Community's
agreement to such provisional application.
Please accept, Sir, the assurance of my highest consideration.
 
For the Government of Denmark and the Home Rule Government of
Greenland
>PIC FILE= "L_2003342EN.003802.TIF">
 
B. Letter of the European Community
Sir,
I have the honour to acknowledge receipt of your letter of today's
date, which reads as follows:
"With reference to the Protocol, initialled on 25 June 2001, setting
out the fishing opportunities and the financial contribution for the
period from 1 January 2001 to 31 December 2006, and to the Joint
Committee Meeting of 16 to 18 June 2003, I have the honour to inform
you that the Home Rule government of Greenland is prepared to apply
the modifications to the Protocol concerning the provisions for
experimental fisheries, as set out in the Protocol annexed, on a
provisional basis with effect from 1 July 2003, pending its entry
into force, provided that the European Community is disposed to do
the same.
In order to implement the provisions for experimental fisheries, the
Greenland authorities will communicate to the European Commission
all available scientific information and data (zoning, observations,
etc.) before the 17 July 2003. The Greenland authorities will decide
before 31 July 2003 the allocation of licences and the conditions
linked. The technical conditions referred to in Annex V to the
Protocol may be modified by an administrative arrangement between
the Parties.
Greenland shall implement a structural reform of the fisheries
sector and the European Community will provide a budgetary support
programme in accordance with Article 11(6) of the Protocol annexed
and as described in the 'Details of Implementation for a budgetary
support for a structural policy in the fisheries sector in
Greenland' annexed to this Exchange of Letters.
The modifications to the fourth Protocol follow the guidelines set
out in the communication from the Commission to the Council and the
European Parliament on an integrated framework for fisheries
partnerships agreements with third countries (COM(2002) 637 final).
I should be obliged if you could confirm the European Community's
agreement to such provisional application."
I have the honour to confirm the European Community's agreement to
such provisional application.
Please accept, Sir, the assurance of my highest consideration.
 
On behalf of the Council of the European Union
>PIC FILE= "L_2003342EN.003901.TIF">
 
 
 
 
ANNEX
 
DETAILS OF IMPLEMENTATION FOR A BUDGETARY SUPPORT FOR A STRUCTURAL
POLICY IN THE FISHERIES SECTOR IN GREENLAND
When the Greenland Home Rule Government presented its paper on a
general structural action plan ("A vision for the future") to the
Parliament in the autumn of 2000, it appeared clearly that it did
not include arrangements for specific sectors of industry but rather
a description of the framework of conditions needed to develop
Greenlandic industry in general on the international front.
However, in the meantime a need for the formulation of a coherent
structural policy for the fisheries sector has arisen, partly
because the cabinet coalition agreement paper stresses that, "... it
will work for a commercial and political separation of the industry
and its companies through clearer frameworks", and "... the
fisheries sector must be made commercial/profitable", and partly
because the fisheries sector has such a fundamental importance for
the Greenland national economy. Both abovementioned statements
presuppose that a structural policy is formulated for the fisheries
sector and that it is relevant.
A structural policy for the fisheries sector will also meet the EU's
wishes in connection with the development support that the Greenland
Home Rule Government will be receiving as a result of the conclusion
of the budgetary support agreement. The agreement assumes the
existence of an overall long term, coherent policy within a
sector-specific area, in this case fisheries. Currently the Home
Rule Government has no coherent fisheries policy, so this is a good
opportunity to draw up such a policy, too.
The objective of the sustainable structural fisheries policy is to
create a framework and conditions, which will provide the best
possible conditions for industry and through this guarantee
continued growth, employment, and profits. In this regard, focus
will be on the fishing industry, but it should be seen in the
perspective that the development of other industry sectors is
equally important.
A structural policy for the fisheries sector will only define
indicators for the desired development.
The political approval, and hopefully the broadest possible
approval, is an absolute necessity for creating a successful
structural policy for the fisheries sector. It is therefore of
utmost relevance that broad and strong political approval is behind
these indicators that will emerge from the forthcoming policy. As in
all other sectors covered by the general structural policy, it is
important that the support, political as well as administrative, of
such an agreement is maintained over a long period of time in order
to guarantee proper implementation of the structural policy for the
fisheries sector.
It is therefore of absolute importance that Greenland in its
relations with the EU appears as a reliable cooperation partner with
a stable government, etc.
To sum up, the general objective of the future fisheries policy can
be formulated as follows:
"We must achieve the maximum long-term economic benefit of the
fishable resources existing in the Greenlandic waters."
The policy pursued so far has to a large degree focused on issues of
a more short-term nature, of which can be mentioned the following:
- subsidies including among others things a minimum price system,
subsidies for petrol, subsidies for the development of industry
(ESU), a special fishing industry tariff on electricity and water,
and capacity management,
- the issue of ownership which among other things includes:
- a blend of the role of ownership and the role of authority,
- limitations on ownership of quotas,
- limitations on access to licences.
One of the aims is to change the focus on the problems of the
fishing industry so that the considerations will become more
predictable and long-term oriented. In this connection, the current
problems relating to the measurement of socioeconomic values and
profits must be stressed. There is a need for an economic model for
the fisheries sector in Greenland that will contribute qualitatively
to the estimation of socioeconomic output and yields.
In accordance with the principles of good governance, the general
structural policy action plan has three focus points which alone and
together play a focus role for the long term strategy and
development of the industry:
>PIC FILE= "L_2003342EN.004101.TIF">
The problems and challenges that the formulation of a structural
policy for the fisheries sector represents are placed under the
above focus points. There is a need to create a parallel to the
general structural action plan, also to fit it in along with the
other initiatives of a structural policy nature.
Regarding the future structural policy for the fisheries sector,
there will be a continuous need for public regulation of some sort.
This will be done in accordance with the legislation in the
fisheries, tax and finance fields.
The aim is to present a proposal for a structural policy for the
fisheries sector to the Greenland Parliament for reading in the 2004
autumn session. A time schedule for the entire process is given
below. To meet this schedule all the initiatives must be described
thoroughly, one by one, in order for these initiative policies to be
implemented in the global structural policy for the fisheries
sector. Furthermore it is the intention of the Home Rule Government
that an economic model should be elaborated and drawn up at the same
time so that it can be used as an instrument to measure what
initiatives serve the society best and to show the actual situation
in the fisheries sector.
The following objectives apply to the focus points of all partial
policies and to the structural policy in general:
1. the objectives must be clear and achievable over time;
2. they must be measurable based on predefined indicators;
3. they must be controllable; and
4. initiatives implemented or carried out must be capable of
evaluation in terms of goals.
Furthermore, it must also appear clearly what the consequences will
be if the objectives are not achieved within the time limit given.
1. The focus points of a structural policy for fisheries
The elements of the individual focus points are listed below. This
listing will also be used in the formulation of the framework for
the continued policy formulation.
1.1. Renewal of societal structures
The public sector in Greenland is very dominant in the global range
of industries because of the many publicly owned companies and
because of the special geographical and economic conditions in
Greenland where the public sector handles a number of subsidies and
aids.
The public sector has to a large degree created the framework for
the development of the Greenlandic society into a modern welfare
society. The question is, however, whether the public sector should
continue to dominate the fisheries sector. The Government believes
that it is time to evaluate what the future role of the public
sector is to be in the Greenlandic fishing industry.
As regards the future fisheries policy, it is necessary to look at
the following areas:
- "logistics": the political objective is to ensure an
infrastructure that supports the basic needs of Greenlandic
business, including the fisheries,
- "ownership": the political objective is to improve the operations
and financial position of the Home Rule companies to enable them to
mature and be privatised in whole or in part,
- "subsidies": the political objective is to remove existing
subsidies entirely or to reduce them to a level which will promote
the industry's movement towards greater market orientation. This
applies to both direct and indirect subsidies including the existing
fishing industry tariffs on electricity and water, the minimum
prices of raw materials, oil grants for vessels and the existing
commercial support scheme (ESU),
- "streamlining": the political objective is to carry out the
structural adjustment both on land and at sea in such a way that
public grants and cross-subsidies are significantly reduced.
1.2. Better framework for the fishing industry
The Greenland Home Rule Government creates, through legislation and
regulation, frameworks and conditions for the fishing industry. This
applies to areas such as:
- "investment": provision of risk capital. The framework within which more risk capital can be provided for the improvement of
Greenlandic fisheries, with the ultimate aim of reducing public
financial intervention,
- "resource management": an evaluation of the existing quota system
and the technical control measures is required. The evaluation will
have to be done in order to maintain a sustainable development of
the fisheries,
- "biological advice": in the field of biological advice the
political objective is to improve the scientific knowledge of the
biomass for fish and shellfish through combined efforts,
- "development": the political objective is to find and develop new
commercial species including developing methods to utilise these new
resources. Utilisation of new species in the fisheries will be done
with respect of the principle of sustainable development.
In all areas affecting the possibilities and conditions of the
various companies, it is the task of the Government to secure good
frameworks and conditions. The aim is to ensure that the efforts in
each of these areas are coordinated to achieve a common goal.
1.3. Development of qualifications - education and labour market
The education and labour market policies play an important role for
the development of the public sector as well as the private sector
in Greenland. The ability and willingness to learn is a precondition
if the industrial political frameworks are to be achieved and
utilised in an optimal way. One of the challenges facing fisheries
is the ability to handle the necessary continuous development of
employee qualifications throughout the fishing industry in
Greenland.
The precondition "strengthened development of qualifications" is
among other things created through:
- "education and labour market": the political objective is to
ensure the appropriate use and development of the available labour
force in Greenland. Structural adjustments will create a need to
adapt the labour force to changed or new forms of production at both
land-based plants and on board fishing vessels.
2. The Cabinet's 2004 budget
The Cabinet's 2004 budget will be published before the beginning of
August 2003. The reading of the budget will take place during the
2003 autumn session of the Greenland Parliament, and the budget is
expected to be adopted on or before 15 November 2003.
The Cabinet's 2004 budget incorporates an increase in the amount
appropriated for administration in the field covered by the Ministry
of Fisheries, Hunting and Agriculture. This increase is expected to
improve the Ministry's possibilities of making the necessary
qualitative evaluations of the economic consequences of various
initiatives, for example through the establishment, follow-up,
maintenance and analysis of fisheries economy models both within
Greenland and worldwide. In addition, a strengthening of the
Ministry's legal responsibilities will improve the servicing of the
Cabinet in terms of the regulatory aspects of local, regional,
bilateral and international fisheries.
3. Time schedule.
>TABLE POSITION>