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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.

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