Commission opinion on the status of Greenland. Comission communication presented to the Council on 2 february 1983. Supplement 1/83 Bulletin of the European Communities

Bulletin OF THE EUROPEAN COMMUNITIES Supplement 1/83 Commission opinion on the status of Greenland Commission of the European Communities Supplements 1983 1183 Commission opinion on the status of Green/and Bulletin of the European Communities Supplement 1/83 Status of Greenland Commission opinion Commission communication presented to the Council on 2 February 1983 EUROPEAN COMMUNITIES Commission This publication is also available in the following languages: DA ISBN 92-825-3714-5 DE ISBN 92-825-3715-3 GR ISBN 92-825-3718-8 FR ISBN 92-825-3717-X IT ISBN 92-825-3719-6 NL ISBN 92-825-3720-X Cataloguing data can be found at the end of this publication Luxembourg: Office for Official Publications of the European Communities, 1983 ISBN 92-825-3716-1 Catalogue number: CB-NF-83-001-EN-C Articles and texts appearing in this document may be reproduced freely in whole or in part providing their source is mentioned. Printed in Belgium contents I - Memorandum 5 Danish Government proposal for the amendment of the Treaties establishing the European Communities with a view to Greenland's withdrawal from the Communities and the application to Greenland of the special association arrangements in Part Four of the EEC Treaty 6 II - Commission opinion 9 Introduction 10 Opinion 10 Annexes 13 Annex A - Factual situation 14 Annex Β - Institutional and legal analysis 38 Annex C - Draft amendments to Treaties 40 I - Danish Government memorandum of 19 May 1982 Grounds On Denmark's entry into the European Community on 1 January 1973 Greenland was included in the Community as part of Denmark. The idea of altering Greenland's association with the Community became a topical issue with the establishment of Greenland's home government system. The home government system, which is established within the framework of the Danish national community, entails the gradual transfer of certain areas of legislation and administration from Danish to home government control. The then Minister for External Economic Affairs, Ivar Nørgaard, made a statement on behalf of the government concerning Greenland to the Council on 15 July 1975. In that statement attention was drawn to the fact that a new situation would arise with regard to the question of Greenland's association with the Community in the event of a home government system being established in Greenland. It was further stressed that the government had no desire to oppose 'a possible wish on the part of Greenland for a revision of Greenland's association with the EEC, should there be a majority opinion in Greenland in favour of such a measure'. The Greenland home government system entered into force on 1 May 1979 and on 3 April 1981 the Greenland Parliament agreed to hold a consultative referendum on whether the European Community Treaties should continue to apply in Greenland. In the consultative referendum on 23 February 1982, a majority (52%) voted in favour of Greenland withdrawing from the Community, and 46.1 96 in favour of its continued membership. The outcome of the referendum was laid before the Greenland Parliament at the latter's spring session, and on 26 March 1982 it agreed that the government should be asked to open negotiations with the European Community in order that the Community's Treaties should cease to apply to Greenland and with a view to achieving Greenland's continued coverage by the Community's regulation on the overseas countries and territories (OCTs). Greenland states that its desire to change its status vis-à-vis the European Community should not be regarded as being directed against the Community. For Greenland's part, it would like the best possible relations with the Community to continue. Nevertheless, Greenland considers that home government in Greenland can best develop outside actual membership. It is desired that the amendment to Greenland's status should take place with effect from 1 January 1984. Proposal With reference to Article 96 of the Treaty establishing the European Coal and Steel Community (ECSC Treaty), Article 236 of the Treaty establishing the European Economic Community (EEC Treaty) and Article 204 of the Treaty establishing the European Atomic Energy Community (Euratom Treaty), the government hereby wishes to submit a proposal: (i) amending the provisions which define the geographical scope of the Treaties (Article 79 of the ECSC Treaty, Article 227 of the EEC Treaty and Article 198 of the Euratom Treaty), so that these Treaties and the legal acts adopted pursuant thereto do not apply in or to Greenland following the entry into force of the amending Treaty; (ii) amending the EEC Treaty, so that the provisions therein concerning the association of overseas countries and territories (Articles 131 to 136) may apply to Greenland with effect from the entry into force of the amending Treaty, and so that Greenland may at the same time be included in the list in Annex IV to the EEC Treaty concerning overseas countries and territories. The government's proposal for a Treaty is annexed hereto. Pursuant to the procedure laid down for dealing with proposals for amending the Treaties, the government will request the Council to set in train consultation of the Parliament and the Commission in order that the Council may decide in favour of calling a conference of representatives of the government's of the Member States for the purpose of determining by common accord the amendments to be made to the Treaties. Copenhagen. 19 May 1982 S. 1/83 Proposal for a Treaty between the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the French Republic, the Hellenic Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands and the United Kingdom of Great Britain and Northern Ireland, amending the Treaties establishing Anxious to maintain the economic relations between Greenland and the European Economic Community. Have decided to establish by common agreement the amendments to be made to the Treaties establishing the European Coal and Steel Community, the European Economic Community and the European Atomic Energy Community, and to this end have designated as their Plenipotentiaries: His Majesty the King of the Belgians, the European Coal and Steel Community, the European Economic Community, the European Atomic Energy Community, with a view to amending Greenland's status in the European Communities. etc. Who, having exchanged their Full Powers found in good and due form. Have agreed as follows: His Majesty the King of the Belgians, Her Majesty the Queen of Denmark, the President of the Federal Republic of Germany, the President of the French Republic, the President of the Hellenic Republic, the President of Ireland, the President of the Italian Republic, His Royal Highness the Grand Duke of Luxembourg, Her Majesty the Queen of the Netherlands, Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland, Having regard to Article 96 of the Treaty establishing the European Coal and Steel Community, Having regard to Article 236 of the Treaty establishing the European Economic Community, Having regard to Article 204 of the Treaty establishing the European Atomic Energy Community, Considering that the Kingdom of Denmark has requested that the Treaties cease to apply in respect of Greenland. Considering that the Kingdom of Denmark has requested that the special rules in Part Four of the Treaty establishing the European Economic Community should apply to Greenland, Considering that Greenland forms part of the Kingdom of Denmark, Article I The following paragraph shall be added to subparagraph (a) of the second paragraph of Article 79 of the Treaty establishing the European Coal and Steel Community: 'This Treaty shall not apply to Greenland.' Article 2 The following paragraph shall be added to Article 227(5Xa) of the Treaty establishing the European Economic Community: This Treaty shall not apply to Greenland.' Article 3 The following paragraph shall be added to subparagraph (a) of the third paragraph of Article 198 of the Treaty establishing the European Atomic Energy Community: 'This Treaty shall not apply to Greenland.' Article 4 I. Denmark shall be added to the Member States specified in the first sentence of Article 131 S. 1/83 Annex A Factual situation Greenland's position: background Geographical, demographic and economic data The harsh climate, the geographical expanse and the low population density are major constraints on most economic activities in Greenland. Unstable weather conditions particularly affect fishing, Greenland's chief economic activity (some 4096 of GDP, including fish-processing industries), the stock of the various species of fish depending on marginal changes in temperature. The fishing fleet has expanded considerably since 1977 but is perhaps not sufficiently well equipped for high-sea fishing on a large scale. Although the total fish catch has more than doubled in the last 10 years, it can fluctuate, with a considerable impact on overall economic activity, given the fishing industry's relative importance. Cattle farming is considered impracticable, but there is some sheep farming in parts of southern Greenland. Its economic value has remained low, however, because of the limited grazing land and the inadequate supply of fodder in winter. In the past, the extractive industry chiefly comprised coal (mine closed in 1972) and cryolite (exhaustion towards the end of the decade). Lead and zinc mining started in 1974, from one mine only. Exploration has started for various other minerals, petroleum and gas, but present indications do not yet justify extraction, for the high initial development cost and the difficulties in transporting products mean that fairly large deposits are required for commercial production. A preliminary estimate indicates that the extractive industry is contributing some 15 96 to GDP. The lack of statistics makes it difficult to evaluate the other sectors of the economy. According to the most recent figures available (1976), employment in manufacturing industry, construction, and the wholesale and retail trades has been relatively stagnant as a proportion of total employment since 1970. General government and services (education, health, social services) have increased their share in total employment by over one third during the same period at the expense of the primary sector.' A large part of available resources has been allocated to developing the economic and social infrastructure. The increasing drift to the towns and the drive to improve employment opportunities have necessitated a major investment effort (almost one third of GDP) which largely depends on imports. Public expenditure has grown in response to the need to improve public services and infrastructures. Private consumption has been sustained by the rapid growth of real earnings, which is partly due to the growth of exports. Average taxable income in 1980 was DKR 60 130 (7 682 ECU), or DKR 42 770 (5 464 ECU) for native Greenlanders and DKR 106 650 (13 627 ECU) for people born outside Greenland (chiefly employees from the south of Denmark). There is a wide gap between local wages and wages paid to persons born outside Greenland. Taxable income should not be used as a measure of GDP. A rough estimate produced by Commission departments shows that per capita GDP was close on two thirds of average taxable income (approximately 5 200 ECU) in 1980. On these figures, Greece, Ireland and Italy had a lower standard of living in 1980 than Greenland. One of the chief problems facing Greenland is how to create sufficient permanent job opportunities for a population whose participation rate has risen considerably.' In addition, owing to the population increases of the 1960s almost 30 96 of the population was in the 10-19 year group in 1981 and these young people will come onto the labour market in the last half of the decade. Another problem is the scope for increasing labour productivity so that real earnings can rise further. This highlights the continuing need for investment, in order to adapt and develop the economic infrastructure despite the prevailing natural handicaps, the main objective being to diversify existing activities and reduce the fluctuations caused by economic conditions. An important aspect of the problem of creating paid employment is the enhancement of human capital. Training facilities have increased considSee Table 1. page 23. 14 S. 1/83 erably in recent years, and they will need further expansion with the development of new technologies and their use in the mining and processing of primary products. Sociological, political and legal data The Eskimo population (approximately 40 000) is for the most part still employed in the traditional sectors of fishing, hunting and sheepbreeding. In an effort to preserve its separate identity by defending its language and special social structure, it considers itself as forming part of a cultural community which includes the Eskimos of Alaska and Canada. This desire to remain different explains the changing political and legal status of Greenland. Although it has formed an integral part of the Kingdom of Denmark since 1954 - when the territory ceased to have colonial status and total equality of rights was granted to the Greenlanders - Greenland has enjoyed a special status since the Home Rule Act, which was adopted by the Danish Parliament and then submitted by referendum to the local population for their approval, entered into force on 1 May 1979. Combining the principle of maintenance of the unity of the Danish State and of national sovereignty exercised by the Copenhagen authorities and the introduction of a type of self-government, home rule is based on a division of responsibilities. Thus, defence, external relations and currency matters in particular are the responsibility of the central authorities, whereas, for example, taxation, the activities of fishing, hunting, agriculture and stockfarming, employment and social affairs, the supply and transport of goods, trade legislation and the protection of the environment and of animal life are matters which the Greenland Government may alone decide. This allocation of responsibilities can, however, be changed by a subsequent decision of the central government with the agreement of the Greenland authorities. It is specifically stipulated, moreover, that measures over which the local authorities have jurisdiction must nevertheless, if they have a definite impact on international relations, be discussed with the Copenhagen authorities before they are adopted. The Home Rule Act confers on the indigenous population of Greenland 'fundamental rights over the natural resources' of the country and provides for a procedure whereby the agreement of both the central and local authorities is required before mineral resources may be prospected for and exploited. Although the fundamental provisions of the Home Rule Act in this field are essentially a declaration of principle, they can be interpreted as entitling the population, through its local representatives, to take part in determining the objectives and timetable for the implementation of a policy and to protect the environment and the traditional way of life. Lastly, the Home Rule Act contains a provision requiring the Danish Government, in consultation with that of Godthåb, to make arrangements for safeguarding Greenland's special interests within the European Communities. Effects of Greenland's membership of the Community The effects of Greenland's membership of the Community can be judged from the derogations from the provisions of Community law made necessary by the specific situation of Greenland, the aid granted by the Community to that region, the influence exerted there by certain policies, the development of commercial exchanges and the impact of Greenland's position on the Community's relations with its international partners. Derogations from the application of Community law 77ie Treaties Article 1 of Protocol No 4 to the Act of Accession makes the exercise of freedom of establishment in the case of certain commercial activities subject, for an unlimited period, to the condition of a sixmonth period of residence in Greenland, while at the same time providing for the possibility of subsequent liberalization by the Council, which has yet to be acted on. Article 101 of the Act of Accession extends to 12 sea miles, in the case of Greenland, the limit of waters within which the coastal State may restrict fishing.' 1 By the same provision, this extension applies also to the zones associated with Denmark. France. Ireland and the United Kingdom. S. 1/83 15 Secondary legislation Apart from certain measures concerning fishing, all the requests made for the exclusion of Greenland, or the adaptation of Community legislation to the specific conditions of Greenland have been granted. The exemption from the application of VAT, provided for in the Sixth Directive,1 is also of some importance. Other derogations have an impact, more limited in practice but not negligible in principle. Thus, Greenland was excluded from the scope of the European Convention for the Protection of Animals kept for Farming Purposes by Council Decision 78/923/EEC of 19 June 1978,2 from that of Directive 79/409/EEC on the conservation of wild birds3 and from that of Regulation (EEC) No 348/81 on the importation of whales or other cetacean products4 (see list of all such provisions on page 37). Limited application of certain provisions Besides these specific derogations, a number of provisions, particularly those relating to freedom of establishment and free movement of workers, appear to have largely gone unheeded for purely factual reasons owing to the lack of migrant worker movements between Greenland and Member States other than Denmark. Review of Community financial assistance given to Greenland Overall appraisal of Community aid Apart from the importance of the fishing industry, the main features of Greenland's economy are the predominance of the public sector, and its very heavy dependence on aid from outside, chiefly Denmark. The largest enterprises like the shipyards, engineering and fish-processing plants are State-controlled, and private enterprise - essentially hunters, fishing-boat owner-operators, sheep-farmers, craftsmen and traders - has received substantial support from official sources (loans, subsidies and State guarantees). Since joining the Community, Greenland has received aid from the structural funds, towards its main economic objectives of raising the general standard of living, developing infrastructures, diversifying production structures and improving vocational training for the labour force in an attack on underemployment. In the case of the main funds (European Social Fund (ESF), European Regional Development Fund (ERDF), Greenland is regarded as a priority region; projects there are therefore given priority treatment and are granted higher rates of aid. The development of the financial instruments clearly shows a growing concentration in favour of the priority regions, and particularly in favour of Greenland (see Table 8, page 28). The average aid per inhabitant (in 1981 nine times the average Community aid for the priority regions) is the highest in the Community. It is less significant for Greenland than for other regions owing to the small number of inhabitants. However, the aggregate figures are so high in relative terms (amounting in 1981 to almost a fifth of the aid granted to Northern Ireland) that it can be asserted that assistance to Greenland has been more concentrated than in any of the other priority regions. In the new Commission proposals on the Regional Fund,5 pursuant to the guidelines set out in the mandate,6 Greenland remains a priority region where ERDF efforts are to be concentrated. It may also be noted that Greenland is the only Community region which was not made subject to the ceilings on regional aid granted by Member States. European Social Fund (ESF) Greenland is one of the six Community regions given priority in the granting of ESF assistance, which, in this region, is allocated mainly to vocational training. From 1976 to 1981 the average amount of aid per person employed almost quadrupled and reached 19 100 people - about 1196 of the labour force - each year. The total aid granted from 1973 to 1981 amounts to OJL145. 13.6.1977. OJL323, 17.11.1978. OJ L 103, 25.4.1979. OJL39. 12.2.1981. Supplement 4/81 - Bull. EC. Supplement 1/81 - Bull. EC. 16 S. 1/83 approximately 30 million ECU. In 1981 it accounted for some 3096 of the aid given to Denmark (see Table 4, page 25). EAGGF Guidance Section Aid has been granted under the European Agricultural Guidance and Guarantee Fund (EAGGF), Guidance Section, for the building or purchase of fishing vessels based in or using ports in Greenland. This assistance has amounted to a little more than 2 million ECU (see Table 5, page 26) and has had a real influence on the development of Greenland's fleet (see 'Background', point (a), on pages 17 and 18). As far as indirect actions are concerned, a programme was adopted on the development of sheep farming in Greenland in accordance with Council Regulation (EEC) No 1821/80 of 24 June 1980.' An amount of 500 000 ECU has been set aside in the 1982 budget for this purpose. progress and which comprises a geophysical and aeromagnetic survey of the Continental Shelf (involving approximately 3.5 million ECU). Two uranium prospecting projects have been successfully carried out with Community assistance of some 750 000 ECU (see page 27). The various research projects carried out show that Greenland is a potential major supplier of uranium. European Investment Bank loans European Investment Bank (EIB) loans for projects in Greenland over the period 1973-81 total 52.2 million ECU and relate mainly to the modernization of the airports of Godthåb and Narssarssuaq and the ports of Frederikshaab, Narssaq and Julianeshaab, the development of telecommunications and the merchant fleet and the construction of thermal power stations (see Table 7, page 28). These loans represent some 1096 of the public investments in Greenland. European Regional Development Fund (ERDF) For ERDF purposes, Greenland is also regarded as one of the top priority regions in the Community. More than 300 projects have been adopted over the period 1975-81. All of the aid has gone to infrastructure projects ; three of these involved investments of more than 10 million ECU each, namely the construction of an airport at Godthåb (assistance given in 1976 and 1979) and the building of power stations at Godthåb (1976) and Holsteinsborg (1980). The total assistance granted has almost reached 55 million ECU, i.e. 7996 of the amounts committed in respect of Denmark (see Table 6, page 27) and 1596 of the amount of public investments in Greenland. Research and energy projects Aid for research has been channelled mainly into prospecting for mineral raw materials in Greenland, particularly through remote sensing. The total amount involved is some 2 million ECU, of which two thirds related to uranium exploration contracts and a small proportion to the exploitation of such resources (see page 27). In the case of the energy policy measures, efforts have concentrated mainly on a hydrocarbons exploration project (NAD project) which is still in Agriculture and fisheries Agriculture There has been no expenditure on sheepmeat in Denmark as a whole by the EAGGF Guarantee Section, and sheep farming is the only form of agriculture which is to any extent developed in Greenland; so we can conclude that apart from the EAGGF Guidance Section measures referred to above (see this page) expenditure in Greenland has been negligible. Fisheries Background The statistics given in Tables 11 to 16 (pages 3237) show the size of the fish stocks and the development of Greenland fisheries over the last few years. Tte largest stocks are cod, redfish and prawn and cape in for animal feedingstuffs. (a) Since 1978 Greenland's fisheries have developed very rapidly, as the local fleet, encouraged by Community assistance, has grown by 5596 in 1 OJL180. 14.7.1980. S. 1/83 17 three years (see Table 8); the prawn fishing fleet rose from 1 800 to 5 500 grt between 1978 and 1980. Over the same period Greenland landings expanded substantially, from about 35 000 t in 1973 to about 90 000 t in 1981; they consisted mainly of cod and prawns, species of high commercial value. This development has taken place in accordance with the Community's policy of reducing fishing by non-Community countries to a minimum, and giving preference to local fishing within the limits of existing resources; it has made possible a large expansion in exports from Greenland, which grew by almost 5096 between 1979 and 1980, parallel with the increase in catches (see Table 12). (b) Greenland waters border on Canadian waters on the west and Icelandic and Norwegian waters on the east; they link two areas of the ocean which are adjacent but ecologically distinct. Greenland waters act as a migration route in the biological cycle of certain bottom-dwelling stocks, as a feeding ground for young salmon during their migration to and from their home rivers, which are spread over the Community (France, Ireland and the United Kingdom) and North America (Canada and the USA), and as a breeding ground for certain marine mammals; the main living resources are thus dependent both on the coastal waters of the neighbouring non-Community countries and on their 'home States'. (c) Fishing occupies a very important place in the Greenland economy, employing a quarter of the labour force, not counting activities related to seal-hunting and the like. The bulk of the industry's output is exported after processing (filleting, deep freezing, drying and other preservation processes), and fisheries therefore generated a very large balance-of-payments surplus, three quarters of it on trade with Community Member States. The value of output, after processing and not including marine mammals, amounts to 100 million ECU, or more than 4096 of GNP. Although the total reserved for Greenland fishermen is smaller than that of other Community fishermen, the value of their catches is much higher (see Table 13). Constraints on development (a) On the production side the fishing industry is obviously dependent on the level of stocks, and on the policies followed by international organizations and, in the case of mixed stocks, by the non-Community country involved (for example, Canada in the case of prawns and halibut, and Iceland and Norway in the case of capelin). The setting of total allowable catches (TACs), on the basis of scientific advice, has been accompanied by quota proposals which also take account of Greenland fishermen's growing stake in the fisheries (see Table 15). Thus catches by Greenland fishermen for cod and prawns, the two most important species, trebled in the period between 1973 and 1981. Fishing for Greenland halibut and redfish and for salmon remained more or less unchanged, while capelin fishing fell slightly. With preference being given to local fishermen, fishing by non-Greenlanders has been reduced, with the exception of redfish in the case of the Federal Republic of Germany. In 1981 German catches of cod, by-catches for the most part, amounted to only 4596 of catches in 1973. The improvement in cod stocks means for 1982 a real improvement of the activities of Greenland fishermen on this stock. In the case of non-Community countries there has in every case been a drastic fall, in some cases to zero, from 1978 onwards (see Table 14). In the case of salmon, local fishing will be able to continue only within the limits set by international obligations, which entrust management of the fishing and conservation of stocks to the stocks' home States. Output has thus levelled off at 1 190 t per year. In accordance with the accepted international rules, the major roles played by Canada and certain EEC Member States leave no room for significant development here, but would rather tend to lead to a tightening of the technical restrictions on mesh sizes, the length of the fishing season, etc. (b) On the marketing side, production activities depend directly on outlets; and the bulk of these are outside the territory itself, with 9096 of output being exported. The Community currently takes 80 96 of exports, by weight and by value, with the major part passing via Denmark; this intra-Community trade is exempt from Common Customs Tariff duties, and benefits under the rules and mechanisms of the common organization of markets. It may be pointed out that, whilst Greenland output has so 18 S. 1/83 far scarcely derived any benefit from intervention by the EAGGF price support mechanism, the advantages of that mechanism nevertheless make themselves felt indirectly in the prices obtaining on the markets in the other regions of the Community when the products are sold. Community aid In addition to the aid covered by the various financial instruments referred to above, and especially by the EAGGF Guidance Section, it should be pointed out that as a result of the Council Decision of 1978 Denmark received in full, on behalf of Greenland, the sum of 10 million ECU determined by the Council for the surveillance of fishing zones. With this, Greenland was able to commission seven helicopters for surveillance and rescue at sea and an inshore surveillance vessel, and to modify and update two vessels already in service. Development of commercial exchanges the consequences of the possible withdrawal of Greenland from the Community on pages 22 and 23): (i) As an integral part of the Community, Greenland, covered by the OCT, benefits from Community preferential tariff arrangements (such as generalized preferences) and from Community liberalization arrangements adopted unilaterally or by treaty (for example, EFTA). (ii) Greenland's fishery resources constitute one of the factors taken into consideration in agreements concluded by the Community with certain non-member countries (Norway, the Faeroes, Sweden, Canada). (iii) Greenland's special characteristics have to a certain degree had an impact on the Community's external policy on the environment by slowing down its accession to international undertakings, short of excluding Greenland specifically from them (for example, in the case of the Bonn Convention on Migratory Species). In the period 1973-81 Greenland's exports to the Community (excluding Denmark) rose significantly. While total exports expanded during that period at an annual rate of 29 96 in value terms, exports to Denmark rose by 2696, those to the rest of the Community climbed by 49 96 and those to non-member countries by 25 96. The share of Greenland's exports going to Denmark fell from close on 6296 in 1973 to just over 5096 in 1981, while the share accounted for by the other countries of the Community rose from 8 96 to nearly 26 96, with the bulk going to the United Kingdom, the Federal Republic of Germany and France. Exports are made up almost exclusively of products of the fishing industry, hunting and sheep farming (5896 of the total) and lead and zinc ore (3896). The fishing industry and its partially processed products have enabled Greenland to run a trade surplus with the other members of the Community for a number of years (some DKR 145 million in 1981). Trade with Denmark, however, shows a huge deficit (DKR 780 million in 1981).' External relations Description of the rules applicable to the overseas countries and territories On the basis of Articles 132 and 133 of the EEC Treaty, Council Decision 80/1186/EEC of 16 December 19802 laid down the details of and the procedure for the association of the overseas countries and territories with the Community for the period 1 March 1980 to 28 February 1985; these arrangements follow almost entirely the provisions of the Lomé Convention. The principle underlying the arrangements governing trade in products is exemption from all customs duties and charges having equivalent effect for imports into the Community of products originating in the overseas countries and territories. Special provisions apply, however, to the products listed in Annex II to the Treaty which are subject to a common organization of the market The following should be noted for the record (this point is covered from the standpoint of examining 1 See Table 3. page 24. 2 OJL361. 31.12.1980. S. 1/83 19 or to specific rules under the common agricultural policy (CAP);' two situations are envisaged: (i) If no other measures, apart from customs duties, are provided for in respect of those products in the Community, the products are automatically exempt. (ii) For other products, each case is examined individually; the Community has tried to take steps to ensure more favourable treatment than is accorded to third countries enjoying most-favoured-nation status. These arrangements concern the following products: beef and veal, fishery products, fats and oils, cereals, rice, products processed from cereals and rice, fresh and processed fruit and vegetables, certain products resulting from the processing of agricultural products, raw tobacco and living plants. In certain cases (beef and veal, rice, fruit and vegetables, raw tobacco) total or partial exemption from import duties on products coming from ACP States/OCTs is subject to certain conditions, and limited to certain annual or pluriannual quantities.2 The Community has also undertaken not to apply quantitative restrictions or measures having equivalent effect. These arrangements are similar to those accorded to the ACP States and have resulted in the complete liberalization of imports of a very large proportion of agricultural products from the ACP countries, including fishery products.3 Moreover, if the application of the trade arrangements involves serious disturbances on the Community market, the Community may take, or authorize one of its Member States to take, the necessary safeguard measures (the scope of these safeguard clauses, and the procedure for giving effect to them, are defined precisely by Article 13 of the OCT Decision). The overseas countries and territories, however, may retain or introduce, in so far as the Community is concerned, any customs duties or quantitative restrictions they consider necessary for their development, subject only to: (i) the prohibition of any discrimination between Member States; (ii) the prohibition of less favourable treatment for the Member States than that accorded to third countries having the same economic structure. The rules applicable to the OCTs do not themselves contain any provision for encouraging freedom of establishment for Community citizens in the OCTs. The only obligation on the OCT is to ensure for Member States treatment identical with, or at least as favourable as, that granted to non-member States. As regards access to economic activities generally, especially fishing, the Community enjoys no preferential treatment. Thus, it may happen in practice that an OCT, or the Member State with which it is associated, grants a non-member country greater facilities than those accorded to the other Member States.4 As regards the movement of workers, on the basis of Article 135 of the EEC Treaty, any freedom depends on a unanimous decision of the Member States. The total amount of financial assistance given by the Community during the period of the OCT Decision (five years) is 109 million u.a., of which 15 million u.a. came from the European Investment Bank in the form of loans. A sum of 60 million u.a. was made available in the form of special subsidies and loans for individual projects (after deduction for regional cooperation measures, emergency aids, interestrate subsidies on EIB loans, risk capital and Stabex capital). This sum of 60 million u.a. was divided equally between the French, Dutch and British OCTs, 20 million going to each category. This decision is a compromise between the Member States and takes no account of the per capita GNP and the relative poverty of the OCTs. 1 70 % of products coming from Greenland are covered by the CAP (see Table 16. page 37). 2 Special provisions apply to rum. bananas and sugar. ' The Community has nevertheless insisted on very strict rules as regards origin in the case of fishery products. There is a special Council declaration concerning the origin of OCT fishery products. 4 See the concessions granted by France to Japan as regards fishing in New Caledonian waters. 20 S. 1/83 Effects on the Community of Greenland's withdrawal rules, at least in respect of Community workers employed in Greenland at the time of withdrawal. If Greenland ceased to be a member and withdrew from the territory of the Community, the mutual rights and obligations at present assumed by the Community and by Denmark in its capacity as Greenland's representative internationally and at Community level would automatically terminate.' However, the acquis cannot be ignored; it must be borne in mind that the Community has granted substantial aid to Greenland, regarding it as one of its least-favoured regions, with a view to facilitating its economic integration, and that a pattern of trade has been established. Transitional measures Financial aid committed or to be committed It would appear that any solution adopted must reflect both the concern that Greenland be treated in the same way as the other regions of the Community so long as it remains a part of it and the need to resolve the situation as soon as it ceases to be a member and without prejudice to the granting, in other forms, of certain aid determined by its new legal status. The de facto situation in relation to the various financial instruments and the possibility of earmarking annual tranches for most projects should preclude any significant difficulties. Retention of vested rights Provision should be made for appropriate measures to protect companies and persons who have exercised the right of establishment as well as Community workers employed in Greenland. The extremely small number of persons affected and the case-law of the Court of Justice that has already been established in favour of the retention of pension rights acquired by workers during periods of employment in a territory which has subsequently ceased to belong to the Community give no reason to suppose that there will be any major difficulties in this area, even if the future status of Greenland were to rule out the principle of free movement. It would, however, be preferable to retain the substance of the Community Guidelines to be applied in the definition of new rules Problems involved in the application of the rules governing overseas countries and territories (a) As regards the development philosophy, it is essential to bear in mind the principles governing the association with the Community of countries and territories which have a special relationship with certain Member States. Originally conceived as a means of taking into account the fact that certain Member States had colonial possessions, the rules governing overseas countries and territories have often formed a stepping-stone towards other types of relationship. The principles, set out in the preamble to the Treaty and in the Association Decision itself, are those of solidarity between the industrialized and the developing countries with a view to achieving a more just and balanced economic order. The association of overseas countries and territories with the Community falls within the general context of North-South relations and is in keeping with the spirit of the most advanced example of such relations, the Lomé Convention, as is evident from one of the recitals to the Council Decision of 16 December 1980 concerning the association: 'Whereas these provisions form part of the European Economic Community's efforts to establish, in particular by means of the Second ACP-EEC Convention, signed at Lomé on 31 October 1979 ... a new model for relations between developed and developing regions ...'. This explicit reference in the rules on overseas countries and territories to the Lomé Convention is a clear indication of the type and scope of the relations which the Community intended to establish in its association with the overseas countries and territories. 1 It must be emphasized that the case has no real precedent. The withdrawal of Algeria occurred in completely different circumstances, and its status as a part of the Community was not replaced by a fresh status. S. 1/83 21 (b) It would be extremely hazardous to predict the volume of transfers from the European Development Fund for which Greenland would be eligible, since these are not directly linked to economic considerations.' (c) Except where there are specific provisions such as those adopted in respect of imports of petroleum products from the Netherlands Antilles, there is an inherent imbalance in the rules on overseas countries and territories. Designed to promote development, they provide directly or indirectly for the almost total liberalization of trade for products from the overseas countries and territories, with no corresponding concessions for the Community. However, products from Greenland are much more competitive than those from the overseas countries and territories. (d) OCT status does not automatically provide for non-reciprocal tariff-free access to the Community. The question of what practical arrangement should apply to Greenland exports (of fisheries in particular) to the Community, after withdrawal, is to be decided in the light of all relevant considerations. relative control (subject to consultations with third countries) of mixed stocks, with the possible loss of free access to the Community market, which absorbs 90% of its production, and the loss of all or part of the financial support granted by the Community. It will be necessary to take fully into account in any eventual arrangement: (i) Community fishing patterns in Greenland waters; (ii) the question of the proper control of Greenland fishing by interception of salmon of Community origin. Raw materials and energy Greenland has considerable natural resources, although they are still difficult to evaluate and very underexploited; this situation leaves open the possibility of future opportunities for cooperation in this field. External relations The Community interests to be taken into account Common fisheries policy Special attention should be paid to the fisheries sector, which represents the most sensitive aspect of trade between the Community and Greenland and of Community access to Greenland's resources. Under the new rules, if the latter restricted Community access to Greenland's fishing waters or even included the loss of fishing rights in that area, the Community would have to review its supply requirements taking into account its own fishing fleet's operating bases and conditions, in the light of the specific requirements of coastal regions which are particularly dependent on such activities. It would also have to give special protection to additional possible sources (in particular in French Guiana and Saint Pierre and Miquelon). The possible counterbalance to this from the standpoint of Greenland would be Greenland's reverting to autonomous control of its stocks and On the basis that the CCT, the prefential tariff arrangements and the Community liberalization arrangements adopted unilaterally or by treaty would no longer be applicable under the new rules, the Danish authorities would have to negotiate, on a multilateral (GATT) and bilateral basis, a new external tariff and new liberalization arrangements for Greenland. The free trade agreements concluded by the Community with the EFTA countries, which at present enjoy exemption from customs duties and free access without quantitative restrictions to the Greenland market, would automatically cease to apply to Greenland. The question whether the Community would have to negotiate with its partners compensation for the rights and benefits which those countries would lose as a result of the 'shrinking' of the Community would not arise if the same rights and benefits were granted by Greenland. 1 As an example, the Netherlands Antilles is the most favoured country in terms of the allocation of available resources, namely 20 million ECU over a period of five years for a population five times that of Greenland. 22 S. 1/83 There is a similar but more specific problem with fisheries agreements concluded with some nonmember countries: (i) firstly with Norway and the Faeroes, which implies reciprocal fishing relations in the waters of the contracting parties, thereby including access to the waters off Greenland; (ii) secondly with Canada, which implies a relationship between access to waters and access to markets, where the balance of concessions is assessed by comparison with the preferential systems granted in respect of EFTA members, particularly Iceland. The change in the status of Greenland would certainly, to the extent that it casts doubt on the arrangements for fishing in coastal waters and on the trade system, result in an alteration in the balance in these fisheries relationships as a whole with the countries in question and give rise to revision of some fisheries agreements. Table 1 Population 1965 1970 1981 Total population Born in Greenland 39 600 46 531 50 643 88.7% 83.6% 81.9% Breakdown by sex and by age Born outside Greenland 11.3% 16.4% 18.1% (%) Ms üe Female 0-4 5-14 15-19 20-64 years years years years 65 and over 1965 51.4 48.6 19.3 26.9 7.6 43.8 2.4 1970 52.5 47.5 15.2 28.2 7.7 46.2 2.7 1981 54.4 45.6 8.6 20.0 12.5 55.3 3.6 Breakdown of population by sector of economic activity (%> 1. Fishing, hunting, sheep farming, etc. 2. Mining and quarrying 3. Manufacturing 4. Building and construction 5. Wholesale and retail trades 6. Transport 7. Administration and other services Participation 1965 1970 1976 27.5 19.2 15.1 2.3 0.8 1.8 11.7 14.3 14.9 11.7 15.1 14.5 11.6 11.3 10.1 10.0 10.2 8.6 25.2 29.1 35.3 100.0 100.0 100.0 33.4 39.2 43.1 Table 2 Danish Government current and capital transfers to Greenland (million DKR) Current transfers Capital transfers Total 1972 285 270 555 1973 311 266 577 1974 353 349 702 1975 419 317 736 1976 474 353 827 1977 536 400 936 1978 616 452 1 068 1979 660 559 1 219 1980 820 538 1 358 1981 847 585 1 432 S. 1/83 23 Table 9 (continued) Loans Mezzogiorno Ireland Northern Ireland Greenland FODs Greece Total Mezzogiorno Ireland Northern Ireland Greenland FODs Greece Total Mezzogiorno Ireland Northern Ireland Greenland FODs Greece Total 1973 5.50 7.15 - 139.3 - - 5.16 149 194 - 3 790 - - 140 11.3 2.3 - 0.7 - - 14.3 1974 12.64 15.83 3.17 107.1 - - 11.61 260 325 65 2 200 - - 238 17.5 3.9 0.4 0.4 - - 24.2 1975 16.19 12.73 - - - - 13.49 238 163 - - - - 173 15.6 2.0 - - - - 17.5 1976 1977 Per capita loans (in 14.86 18.25 - - - - 13.20 21.93 25.03 18.03 144.3 - - 20.61 1978 ECU) 35.55 36.44 - 229.7 - - 31.21 Per capita loans (EUR 10 = 100) 178 218 - - - - 156 243 277 200 1 600 - - 228 325 333 - 2 100 - - 286 Percentage of total Ioana (EUR 10) 13.3 2.7 - - - - 16.0 17.4 3.3 1.1 0.3 - - 22.1 24.3 4.1 - 0.4 - - 28.8 1979 34.21 108.20 50.23 205.3 - - 42.16 267 843 392 1 600 - - 328 19.8 10.6 2.3 0.3 - - 39.0 1980 42.54 110.29 53.03 95.91 - - 50.08 271 703 340 612 - - 320 23.0 9.2 2.0 0.1 - - 32.4 1981 63.4 101.4 6.8 138.8 - 16.4 50.0 453 724 49 991 - 117 357 33.9 9.3 0.3 0.2 - 4.2 47.8 30 S. 1/83 Table ¡O Breakdown of structural subsidies and loans to regions with highest priority (million ECU) Priority regions 1980 Mezzogiorno Ireland Northern Ireland Greenland French overs, dept. Total (five regions) 1981 Mezzogiorno Ireland Northern Ireland Greenland French overs, dept. Greece Total (six regions) EAGGF Guid., indiv. proj. 98.7 10.6 2.9 0.0 0.2 112.4 111.9 21.4 4.9 0.1 0.4 17.4 156.1 ESF 172.7 79.7 45.0 5.7 29.1 332.2 209.8 105.7 52.9 7.4 28.9 29.9 434.6 ERDF 489.7 77.8 29.6 7.8 31.3 636.2 722.0 108.9 51.7 14.3 20.7 250.2 1 167.8 EMS interestrate subsidies 102.9 67.2 170.1 91.3 66.6 157.9 Total subsidies' 864.0 235.3 77.5 13.5 60.6 1 250.9 1 135.0 302.6 109.5 21.8 50.0 297.5 1 916.4 EIB 793.8 334.4 81.5 4.7 1 214.4 879.3 325.3 10.5 6.8 159.2 1 381.1 ECSC Euratom NCI 66.7 1.0 - 41.7 1.0 - 108.4 26.6 - 383.6 10.9 - 17.3 37.5 - 400.9 Total loans 860.5 377.2 81.5 4.7 1 323.9 1 289.5 353.5 10.5 6.8 159.2 1 819.5 1 Not including EAGGF Guidance Section (indirect measures) or the ECSC budget. S. 1/83 31 Table 11 The Greenland fleet has increased fairly substantially in recent years, partly because of EAGGF finance (latines) Motor vessels - total Breakdown 549,9 grt 5099.9 grt 100149.9 grt 150499.9 grt 500999,9 grt 1 000-1 999.9 grt 2 000 grt and over 1978 Number 310 282 12 5 5 6 - — grt 11 886 4 321 820 610 1 806 4 329 - — 1979 Number 321 288 12 7 8 6 - — Total grt 12 792 4 322 820 907 2 414 4 329 - — 1980 Number 330 291 12 7 14 6 - — Total grt 14 573 4 339 826 907 4 172 4 329 - - 1981 Number 383 335 13 8 19 8 - — Total grt 18 354 4 786 893 1055 5 553 6 067 - — The table shows that the total number of vessels increased by 23.5% from 310 in 1978 to 383 in 1981. The increase is most marked as regards small coastal vessels. The number of vessels in the 150-499.9 grt category, mainly shrimpers, went up from 5 to 19. thus reflecting the substantial growth in shrimp fishing. The reason why the Greenland fleet is so important for the country's economy is that about 25 % of the active population works in fisheries. Table 12 Sales by type of product Fish and fish products - total Fresh, chilled Frozen of which: frozen filets Salted, dried, smoked Shellfish (fresh, chilled, salted, dried, frozen) Canned Meal Oil Other products 1979 Quantity (tonnes) 32 386 - 10716 7 292 7 872 9 545 1 680 1 477 86 1 010 Value ('000 DKR) 510 576 - 145 677 82 107 69 734 214 482 63 204 3213 141 14 125 1980 Quantity (tonnes) 42 760 128 11 039 7 278 8 477 18 190 2 900 1 457 - 569 Value ('000 DKR) 774 773 1864 171659 94 856 85 780 401 923 101 859 2 892 - 8 796 32 S. 1/83 Table 13 Estimate of the value of Ashing possibilities in Greenland in 1981 Species Cod Redfish Greenland halibut Halibut Shrimp Roundnose grenadier Catfish Salmon Capelin' Total % Average (ECU/t) 602 720 482' 1 5022 1 259 743 363* 6 258 743 Quota for Greenland fishermen (tonnes) ECU) 51 000 30.7 4 500 3.2 7 500 3.6 700 1.1 29 000 36.5 1000 0.1 4 000 1.5 1 190 7.5 - 84.2 55.40 Quota for other Community fishermen (tonnes) ECU) 7 000 4.2 52 800 38.0 26 000 12.5 0 0 3 200 4.0 5 400 0.4 2 000 0.7 — - 10 000 (0,7) 59.8 39.34 Quota for third countries (tonnes) ECU) 0 0 0 0 1 500 0.7 0 0 5 800 7.3 0 0 0 0 140 000 (10.3) 8.0 5.26 Grand total 152.0 100 ' 80% of the value of cod. ' 250% of the value of cod. 1 Value/tonne industrial landings in Denmark. 1977 (roundnose grenadier mainly used for industrial purposes in Greenland). 4 60% of the value of cod. 5 Excluded from economic calculations and totals for this table. S. 1/83 33 Table 14 Catches in Greenland waters Cod Halibut Shrimps Redfish Salmon Capelin 73 74 75 76 77 78 79 80 81 73 74 75 76 77 78 79 80 81 73 74 75 76 77 78 79 80 81 73 74 75 76 77 78 79 80 81 73 74 75 76 77 78 79 80 81 73 74 75 76 77 78 79 80 81 GR NAFO 1 17 715 19 932 19314 16 282 24 220 37 470 46 384 46 606 51408 3 655 4 054 3 436 3 546 6 110 5 985 5 273 5 307 4 959 8 135 10 244 9 789 9 778 14 881 13 131 20 027 24 203 26 850 1 112 2 405 1 046 2 696 1 098 671 251 1 205 533 1 585 1 162 1 171 1 175 1420 984 1 389 1 194 1 264 3 214 3 471 1034 474 322 297 261 298 - XIV 191 68 224 372 1833 1 347 2 755 1453 1442 4 2 1 1 4 6 - - - - - - - - - - - 1004 - - - 129 1 3 - - - - - - - 6 8 5 - - - 1 1 1 1 - - - - DK NAFO 1 — - - - - - - - - 5 - 2 3 - - - - - 196 308 1 142 2717 5 842 3 382 1 327 872 996 — - - - - - - - - 385 505 382 - - - - - - - - - - - - - - 555 XIV _ - - - - - - - - - - - - - - - - - - — - - — - - 711 581 — - - - - - - - - - - - - - - - - - - - - - - - - 12 574 - NAFO 1 5 944 1 681 10 842 5 842 2 069 1057 1 344 1 104 332 65 2 24 93 590 4 965 12 784 1 175 10 - - - - 31 - - - - 2 078 568 3 120 5 074 29 379 7 369 8 592 6 287 5 132 - - - - - - - - - - - - - - - - - — D XIV 9 262 2 309 1 552 7 075 3 564 3 936 1062 3 193 7 264 7 0 64 191 224 2 156 6 227 2 146 2 994 - - - - - - - - - 4 491 2 632 4 979 4 403 13 347 19 085 15 393 30 245 38 337 - - - - - - - - - - - - - - - - - — F NAFO 1 38 - - - - - 139 - - - - - - - - - - - - - - 803 924 805 353 247 556 - - - - - 4 1 - 314 - - - - - - - - - - - - - - - - - — XIV _ - - - - - - - - - - - - - - 4 - - - - - - - - - 57 353 - - - - - - 490 - - - - - - - - - - - - - - - - - - - — EC 9 (exe NAFO 1 6 475 2 947 11001 5 997 2 609 1057 1482 1 104 332 71 20 35 96 590 4 965 12 784 1 175 10 196 308 1 142 3 520 6 766 4 187 1680 1 119 1560 2 094 642 3 163 5 077 29 379 7 373 8 596 6 287 5 446 385 505 382 - - - - - - - - - - - - - - 555 GR) XIV 9 923 2 808 1 552 8 589 4 957 3 979 1062 4 646 7 264 8 1 66 196 235 2 157 6 231 2 146 2 994 - - - - - - - 768 934 4 566 2 759 5 035 4 692 13 969 19 098 15 883 30 245 38 337 - - - - - - - - - - - - - - - - 12 574 - EC 10 (ind NAFOI 24 190 22 879 30 315 22 279 26 829 38 527 47 830 47 710 51740 3 726 4 074 3 471 3 642 6 700 10 950 18 057 6 482 4 969 8 231 10 552 10 931 13 298 21647 17318 21 707 25 322 28 390 3 206 3 047 4 569 7 773 30 477 8 044 8 847 7 492 5 979 1 970 1 667 1 553 1 275 1420 984 1 389 1 194 1 264 3 214 3 471 1034 474 322 297 261 298 555 GR) XIV 10 114 2 876 1 776 8 960 6 790 5 326 3 817 3 197 8 706 12 3 67 197 239 2 163 6 231 2 146 2 994 - - - - - - - 768 1 938 4 566 2 759 5 035 4 821 14 433 19 101 15 883 30 245 38 337 - - - - 6 8 5 - - - 1 1 1 1 - - 12 574 — 34 S. 1/83 (tonnes) The Faeroes NATO 1 4 499 4911 5 355 3 460 7 346 38 _ -24 34 77 2 1 371 2 023 5 300 11 179 12612 8 070 6 867 3 554 8 - - - - 6 33 171 110 260 - - - - - — XIV 167 652 581 440 1 407 6 - - - - - - - - - -8 - 4 113 13 43 1 3 19 - - - - - - 798 - - — Norway NAFO 1 15 567 3 506 3 068 2 825 1 683 4 - 35 12 37 7 11 5 2 940 5917 8 678 11 658 7 353 8 959 4 639 2 502 56 81 45 38 44 3 200 140 217 - - - - - — XIV _ - 1 864 364 537 17 0 _ - - - 2 3 - - - -24 - 267 2 558 _ -65 5 112 2 - - - _ - 16 539 77 840 74 251 — USSF NAFO 1 120 576 214 137 1 086 - - 2913 8 650 19 775 6 944 1 389 - - 6 033 6 468 - - - - 43 192 3 982 L XIV _ - -127 16 - - 776 1 762 1 634 74 - - 101 - - - - - — 64 118 9 830 5 825 101 000 390 - - - - 39 15 - - - — 251 - - - - - - - - - — Spair NAFOI 10 235 5 897 4017 2 090 - - - _ - - - - - - 6 948 6 925 - - - — _ - - - - - - - - - - - - - — XIV _ - - - - - - _ - - - - - - - - - - - — _ - - - - - - - - _ - - - - — Portugal NAFO 1 8 331 10 166 4 940 2 495 1052 - - _ 32 41 95 - - - - - - - - - _ -33 62 - - - - - - - - - - — XIV — - - - - - - _ - - - - - - - - - - - — _ - - - - - - - - - - - - - — Iceland NAFO 1 — - - - - - - _ - - - - - - - - - - - — _ - - - - - - - — - - - - - — XIV 1 446 3 009 785 3 133 25 13 3 19 3 1 0 2 - 2 - - - - 367 519 617 2 144 9 777 5 632 7 410 81 151 89 - - 20 160 70 302 168 392 114 584 108 543 — Non-member countries NAFO 1 XIV 38 752 1638 25 056 3 679 27 594 4 149 11 007 4 066 11 167 1 985 36 3 19 3 702 12 707 9 295 28 086 19 909 19 560 7 240 76 1 812 2 1 2 4311 7 940 101 26 959 - 36 376 - 19 965 24 17 029 375 11751 783 6 646 7 318 113 3 333 277 11219 4 420 20 294 5 925 108 835 434 464 9 153 33 - 89 371 250 - 477 - 39 - 15 20 160 70 302 - 185 689 - 192 404 - 203 387 "" — S. 1/83 35 Table 15 TACs and quotas donnes) Cod Shrimps Redfish Halibut 1 1 848 EC 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 ' A total of 20 500. T^/- NAFO 1 - - - 50 000 65 000 40 000 29 500 29 500 30 000 30 000 13 000 28 000 10 000 10 000 10 000 25 000 25 000 25 000 20 000 20 000 XIV. Va _ - - 8 000 15 000 - - - 8000 5 500 80 000 70 000 65 000 85 000 42 000 20 000 15000 15 000 15 000 3 950 Quota GR NAFO 1 25 000 - 50 000 50 000 50 000 13 500 16 500 22 000 27 600 27 850 5 000 - 4 000 6 000 4 000 7 500 - 7 500 13 350 6 000 XIV. Va 3 000 - 3 000 1000 3 500 - - - - 2 000 500 — 500 - 500 - - - - 1 NAFO 1 _ - - - 3 000 5 025 I 310 400 400 - - - - - - - - MC XIV. Va _ - - - - — - 2 900 525 - - - 500 - - - 1 140 50 c NAFO 1 _ - - - 11000 - - - - 6 500 - 5 800 4 000 5 400 14 500 - 12 150 5 700 1 200 ι XIV. Va _ - - 3 000 10 000 - - - - 20 000 - 34 000 42 000 40 800 18 500 - 9 250 1 860 3 000 NAFO 1 _ - — — - 1675 ι 310 400 400 - - - - - — - - F XIV. Va _ _ _ _ - - - - 900 525 2 - - - — — - - UK NAFO 1 _ _ _ _ 1000 _ - - - 3 - _ 100 _ _ - — 50 XIV. Va _ _ _ _ I 500 _ — - - 2 — _ _ 100 _ _ 5 750 150 Non-member countries NAFO 1 _ _ _ _ - 19 500 11 182 7 880 1 600 1 350 1 497 200 500 3000 5 350 750 12 750 XIV. Va _ _ _ _ - _ exper. fishing 4 200 2 450 _ _ 30 500 42 500 500 1 500 _ 12 000 750 Κ Table 16 Community imports from Greenland Imports Total of which: Fish, crustaceans, molluscs Fish products Salt, sulphur, clay, stone, etc. Lead and zinc ores Skins and furs 1978 tonnes 151 456 8 673 3 548 53 606 82 644 49 '000 ECU 54 487 13018 17 243 1 856 16 245 1 922 1979 tonnes 154 025 16 068 4 567 45 933 84 446 72 000 ECU 80 067 26 528 24 530 2 354 20 345 2 498 1980 tonnes 191 172 21 939 5 884 67 056 92 673 86 '000 ECU 105 174 37 953 34 181 3 479 22 887 3 404 Annex A, Supplement 3 Legal instruments containing derogation with respect to Greenland Directive on manufactured tobacco Council Directive 79/32/EEC of 18 December 1978 (OJ LIO, 16.1.1979) does not apply to Greenland (Article 9(2)). Common organization of the market in fishery products Council Regulation (EEC) No 100/76 of 19 January 1976 (OJ L 20, 28.1.1976). It is recognized that by virtue of Article 2 of Protocol No 4 to the Act concerning the conditions of Denmark's accession to the European Community, the common organization of markets in the fisheries sector (in particular the regulation fixing prices) does not apply to Greenland. Labelling and presentation of foodstuffs Council Directive 79/112/EEC of 18 December 1978 (OJ L33, 8.2.1979) does not apply to Greenland (Article 25). Conservation of wild birds Council Directive 79/409/EEC of 2 April 1979 (OJ L 103, 25.4.1979) does not apply to Greenland (Article 1(3)). VA Τ directive Council Directive 77/388/EEC of 17 May 1977 (OJ L 145, 13.6.1977) does not apply to Greenland (Article 3(2)). Directive on taxes on manufactured tobacco Council Directive 77/805/EEC of 19 December 1977 (OJ L338, 28.12.1977) does not apply to Greenland (Article 4). Coordination of procedures for the award of public supply contracts Council Directive 80/767/EEC of 22 July 1980 (OJ L215, 18.8.1980), supplementing Directive 77/62/EEC, represents the European Community's follow-up as regards international arrangements to the Agreement on Government Procurement. KGH, GTO and two other institutions are listed among the procurement entities subject to the Agreement. However, footnote 1 states that S. 1/83 37 products for resale are not included in the case of Annex Β KGH. Summer time Council Directive 80/737/EEC of 22 July 1980 (OJ L205, 7.8.1980) makes a derogation for Greenland (Article 3). Protection of employees in the event of the insolvency of their employer Council Directive 80/987/EEC of 20 October 1980 (OJ L283, 28.10.1980) does not apply to Greenland since the Greenland labour market differs from that of the other parts of the Community because of the geographical situation and current job structures (Article 1(3)). Institutional and legal analysis /. The purpose of this Annex is to provide further elements for an appreciation from a legal and institutional point of view. 2. It should be recalled first of all that as the Commission was seised by the Council of a request for an opinion on the application to Greenland of OCT status, it was of necessity required, both by formal and by logical considerations, to examine first of all whether Greenland fulfils the conditions under the EEC Treaty for access to OCT status and whether the existing provisions, subject to the possibility of derogation therefrom in a manner compatible with the general system of OCT status, allowed sufficient account to be taken of the objectives laid down for the establishment of a new relationship between the Community and Greenland. 3. The substantive conditions regarding access to OCT status are limited pursuant to Article 131 of the EEC Treaty to the following factors: (i) the country or territory concerned must have special relations with a Member State; (ii) that country or territory must be nonEuropean; (iii) that country or territory must display the characteristics of a developing country. The formal condition is the amendment of the EEC Treaty under the procedure laid down in Article 236 thereof at the initiative of a Member State or of the Commission and upon a favourable opinion of the Council requiring the assent of the Member States and ratification in accordance with their respective constitutional requirements. 4. It is the Commission's opinion that the substance of the new system to be instituted with respect to Greenland as described in the opinion is not incompatible with the general system of OCT status in that it involves either provisions substantially identical to those applicable to the OCTs or specific provisions relating to problems different from those created by the situation of the present OCTs (fisheries). 38 S. 1/83 5. Furthermore, it should be emphasized that recourse to a known legal formula does in principle have the advantage of legal clarity and certainty by comparison with the solution involving the institution of an ad hoc system; in the present case, the desire to avoid the proliferation, at the level of the Treaties, of instances of special status reinforces the preference for the use of OCT status;1 subject to the considerations set out under point 2. 6. As regards the institutional mechanisms arising from the use of OCT status, it should be recalled that the implementing measures fall within the competence of the Council, acting unanimously (second paragraph of Article 136 of the EEC Treaty) on a proposal from the Commission. This is therefore an autonomous Community decision-making process.2 1 It should be noted that this line of thought coincides with considerations of a more political nature which tend to minimize the 'precedent' which the solution adopted for Greenland might constitute; the OCT formula, applied in conjunction with strictly limited special provisions, rules out its use for a European territory and restricts the possibility - which is in theory infinite if ad hoc formulas are used - for specific application which a Member State might claim for a non-European territory with which it has special relations. 2 However, the special provisions to be laid down with regard to access by Community fishermen to Greenland waters involve, whatever the legal framework, the conclusion of a bilateral agreement between the Community and the authority responsible for Greenland on the basis of Article 43 of the EEC Treaty. S. 1/83 39 European Communities - Commission Commission opinion on the status of Greenland Supplement 1/83-Bull. EC Luxembourg: Office for Official Publications of the European Communities 1983 - 43 pp. - 17.6 χ 25.0 cm DA, DE, GR, EN, FR, IT, NL ISBN 92-825-3716-1 Catalogue number: CB-NF-83-0O1-EN-C Price (excluding VAT) in Luxembourg ECU 2 BFR 90 IRL 1.50 UKL 1.20 USD 2 Following the referendum in Greenland organized by the local government in February 1982 (which showed a majority of the electorate in favour of withdrawing from the Community), the Danish Government asked that the Treaties be amended so as to bring Greenland within the provisions governing the association of overseas countries and territories. The Commission stated its views on this request in a formal opinion which is reproduced in this Supplement. 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