The proposal was amended as follows:

Text proposed by the Commission(1)   Amendments by Parliament Amendment 1 Recital 1    (1) By Decision 89/687/EEC , the Council adopted a programme of options specific to the remote and insular nature of the French overseas departments (POSEIDOM) in accordance with the Community's policy of assistance for the most remote regions. The purpose of the programme is to facilitate the economic and social development of those regions and enable them to benefit from the advantages of the single market of which they are an integral part despite the objective factors leaving them geographically and economically isolated. The programme calls for the CAP to be applied in those regions and provides for special measures to be adopted. In particular, it provides for measures to improve the conditions in which agricultural products are produced and marketed in those departments and to mitigate the effects of their exceptional geographical situation and constraints as since recognised in Article 299(2) of the Treaty.    (1) By Decision 89/687/EEC , the Council adopted a programme of options specific to the remote and insular nature of the French overseas departments (POSEIDOM) in accordance with the Community's policy of assistance for the most remote regions. The purpose of the programme is to facilitate the economic and social development of those regions and enable them to benefit from the advantages of the single market of which they are an integral part despite the objective factors leaving them geographically and economically isolated. The programme calls for the CAP to be applied in those regions and provides for special measures to be adopted. In particular, it provides for measures to improve the conditions in which agricultural products are produced and marketed in those departments and to mitigate the effects of their exceptional geographical situation and constraints as since recognised in Article 299(2) of the Treaty, when determining the conditions for the application of Community measures in the French overseas departments . Amendment 2 Recital 1 a (new) (1a) Article 299(2) of the Treaty states that the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions of application of the Treaty to the outermost regions of the European Union, in the context of, inter alia, access to the Structural Funds. Amendment 3 Recital 2    (2) The particular geographical situation of the French overseas departments imposes additional transport costs in supplying essential products for human consumption, for processing and as agricultural inputs. In addition, objective factors arising as a result of insularity impose further constraints on economic operators and producers in these islands that severely handicap their activities. This is true particularly in the case of the supply of cereals, which are not and cannot be produced in the overseas departments, rendering them dependent on external sources of supply. These handicaps can be alleviated by lowering the price of these essential products. It is therefore appropriate to introduce specific supply arrangements with a view to ensuring supply to the overseas departments from local production and to mitigating the additional costs of the remoteness and insularity of these departments.    (2) The particular geographical situation and the remoteness of the French overseas departments impose additional transport costs in supplying essential products for human consumption, for processing and as agricultural inputs. In addition, objective factors arising as a result of insularity impose further constraints on economic operators and producers in these islands that severely handicap their activities, as do other factors such as the impossibility of economies of scale, limited water and energy resources and particularly high production costs . This is true particularly in the case of the supply of cereals, which are not and cannot be produced in the overseas departments, rendering them dependent on external sources of supply. These handicaps can be alleviated by lowering the price of these essential products. It is therefore appropriate to introduce specific supply arrangements with a view to ensuring supply to the overseas departments from local production and to mitigating the additional costs of the remoteness and insularity of these departments. Amendment 4 Recital 8    (8) Traditional livestock farming activities should be supported in order to meet local consumption needs. To that end, derogations are needed from some of the provisions of the common market organisations which restrict production, to take account of the development and particular conditions of local production, which are quite different from those in the rest of the Community. This objective may also be pursued indirectly by financing genetic improvement programmes involving the purchase of pure-bred breeding animals, by purchasing commercial breeds more suited to local conditions, by supplementing the suckler cow premium and the slaughter premium, and by granting aid to develop cow's milk production.    (8) Traditional livestock farming activities should be supported in order to meet local consumption needs. To that end, derogations are needed from some of the provisions of the common market organisations which restrict production, to take account of the development and particular conditions of local production, which are quite different from those in the rest of the Community. This objective may also be pursued indirectly by financing genetic improvement programmes involving the purchase of pure-bred breeding animals, by purchasing commercial breeds more suited to local conditions, by supplementing the suckler cow premium and the slaughter premium, and by granting aid to develop cow's milk production and, where necessary, by making it possible to import from third countries male bovine animals for fattening, and to derogate from the application of the conditions governing imports of animals and animal feed provided for by Council Directive 72/462/EEC of 12 December 1972 on health and veterinary inspection problems upon importation of bovine animals and swine and fresh meat from third countries(1 ). ___________ (1 ) OJ L 302, 31.12.1972, p. 28. Amendment 5 Recital 9    (9) The Community is contributing funds to regional programmes to support the production and marketing of local products in the livestock and milk products sectors in Martinique and Réunion as a temporary measure from 1996-2000. The level of local self-sufficiency in those sectors is still low. Community support can be mobilised effectively only if the local production structures are able to implement strategies tailored to the local context for economic development, spatial organisation of production and increasing the professionalism of producers. This assistance should be continued as a temporary measure to help the production of a modern, high quality sector to pick up speed. The principle of extending this support to French Guiana and Guadeloupe has been accepted, on condition that local inter-branch organisations are set up.    (9) The Community is contributing funds to regional programmes to support the production and marketing of local products in the livestock and milk products sectors in Martinique and Réunion as a temporary measure from 1996-2000. The level of local self-sufficiency in those sectors is still low. Community support can be mobilised effectively only if the local production structures are able to implement strategies tailored to the local context for economic development, spatial organisation of production and increasing the professionalism of producers. This assistance should be continued to help the production of a modern, high-quality sector to pick up speed. The principle of extending this support to French Guiana and Guadeloupe has been accepted, on condition that local inter-branch organisations are set up. Amendment 6 Recital 9 a (new) 9a. The opportunity provided by the reform of the COM in beef and veal should be seized to protect the local livestock sectors of the French overseas departments and the other outermost regions of the European Union, as well as the consumer, from the risks arising from BSE and its social and economic impact. Amendment 7 Recital 15 a (new) (15a) The Commission should apply enterprise development policy in an effective fashion to the SMEs in the agri-food sector in the outermost regions of the European Union. Amendment 8 Recital 16    (16) The structures of certain farms and processing and marketing firms in the French overseas departments are seriously defective and face specific difficulties. It should therefore be possible to derogate for some types of investment from the provisions restricting or prohibiting the grant of some of the structural aid provided for in Council Regulation (EC) No 1257/1999.    (16) The structures of certain farms and processing and marketing firms in the French overseas departments are seriously defective and face specific difficulties. It should therefore be possible to derogate for investment by such farms or firms from the provisions restricting or prohibiting the grant of some of the structural aid provided for in Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations . Amendment 9 Recital 18 a (new) (18a) Provision should be made to adopt the transitional rules required to ease the change from the arrangements laid down in Regulation (EEC) No 3763/91 to the new arrangements laid down by this Regulation so as to avoid breaks in continuity should existing measures be extended. Amendment 10 Article 1 This Regulation lays down specific measures to remedy the difficulties caused by the remote and insular nature of the French overseas departments in respect of certain agricultural products. This Regulation lays down specific measures to remedy the difficulties caused by the remote and insular nature and other specific limitations of the French overseas departments in respect of certain agricultural products. Amendment 11 Article 3, paragraph 1, subparagraphs 1 and 2    1. No duties shall apply to direct imports into the overseas departments of products covered by the specific supply arrangements if they originate in the countries and territories listed in Annex III to Regulation (EC) No 2820/98 , within the limit of the quantities determined in the supply balance.    1. No duties shall apply to direct imports into the overseas departments of products covered by the specific supply arrangements if they originate in third countries, within the limit of the quantities determined in the supply balance. In the event of exceptional supply difficulties, exemption from duty may be extended to products originating in other third countries. The competent French authorities shall inform the Commission immediately of cases where they intend to avail themselves of this option. Amendment 12 Article 3, paragraph 2, subparagraph 2 Such aid shall be fixed to take account of the additional cost of transport to the overseas departments and the prices applied to exports to third countries and, in the case of agricultural inputs and products intended for processing, the additional costs of insularity. Such aid shall be composed of a fixed amount to take account of the additional cost of transport to the overseas departments and, in the case of agricultural inputs and products intended for processing, the additional costs of insularity and an additional fixed amount proportionate to the prices applied to exports to third countries . Amendment 13 Article 3, paragraph 3, indent 2    - traditional trade flows with the rest of the Community,    - trade flows with the rest of the Community, Amendment 14 Article 3, paragraph 3, indent 3    - the possibilities for supply from the neighbouring developing countries, Deleted Amendment 15 Article 3, paragraph 5, subparagraph 2 Where the products concerned are processed in the overseas departments, the aforesaid prohibition shall not apply to traditional exports or shipments of the processed products to the rest of the Community. In the case of traditional exports, no refund shall be granted. Where the products concerned are processed in the overseas departments, the aforesaid prohibition shall not apply to traditional exports or shipments of the processed products to the rest of the Community. In the case of traditional exports, export refunds may be granted for products manufactured in the overseas departments using raw materials imported under the specific supply arrangements and processed to a sufficient degree there . Amendment 16 Article 3, paragraph 6    6. Detailed rules for applying this Title shall be adopted in accordance with the procedure referred to in Article 19(2). These shall include, in particular:    6. Detailed rules for applying this Title shall be adopted in accordance with the procedure referred to in Article 19(2). These shall include, in particular:    - the fixing of aid for supply from the rest of the Community,    - the fixing of aid for supply from the rest of the Community,    - provisions to ensure that the advantages granted are actually passed on to the end user,    - provisions to ensure that the advantages granted are actually passed on to the end user,    - application where necessary of the second subparagraph of Article 3(1),    - introduction if necessary of a system of import or delivery licences.    - introduction if necessary of a system of import or delivery licences. The Commission shall draw up supply balances in accordance with the procedure referred to in the first subparagraph. It may revise those balances, and the list of products in Annex I, in accordance with the same procedure, in the light of changes in the overseas departments' requirements. The Commission shall draw up supply balances in accordance with the procedure referred to in the first subparagraph. It may revise those balances, and the list of products in Annex I and the aids granted , in accordance with the same procedure, in the light of changes in the overseas departments' requirements. Amendment 17 Article 3 a (new) Article 3a Within the limit of an annual quantity of 8 000 tonnes, the levy fixed pursuant to Articles 10 and 11 of Regulation (EEC) No 1766/92 shall not apply to imports into Réunion of wheat bran falling within CN code 2302 30 from the ACP States. Amendment 18 Article 4, paragraph 1, subparagraph 1    1. Community aid shall be granted for the conclusion of annual contracts concerning the disposal and marketing in Guadeloupe, Martinique and the rest of the Community of rice harvested in French Guiana, within the limit of an annual volume of 12 000 tonnes of wholly milled rice equivalent. As regards disposal and marketing in the rest of the Community, aid shall be granted for a maximum of 4 000 tonnes.    1. Community aid shall be granted for the conclusion of annual contracts concerning the disposal and marketing in Guadeloupe, Martinique and the rest of the Community of rice harvested in French Guiana, within the limit of an annual volume of 20 000 tonnes of wholly milled rice equivalent. As regards disposal and marketing in the rest of the Community, aid shall be granted for a maximum of 8 000 tonnes. Amendment 19 Article 4, paragraph 2    2. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 19(2).    2. Detailed rules for applying this Article shall be adopted in accordance with the procedure referred to in Article 19(2). Under the same procedure, the Commission may revise the volumes referred to in paragraph 1, first subparagraph. Amendment 20 Article 5, paragraph 5 a (new) 5a. The Commission shall finance a study with a view to the integrated development of the livestock sector of the French overseas departments, which shall include all aspects of the process, with the aim of improving the way it is organised . Amendment 21 Article 5 a (new) Article 5a    1. Until the local young male bovine animal population has attained a sufficient level to develop local meat production, and without exceeding the ceiling laid down in Article 6, bovine animals originating in third countries and intended for consumption in the overseas departments may be imported free of the customs duties referred to in Article 30 of Council Regulation (EC) No 1254/1999(1 ) in order to be fattened locally.    2. The numbers of animals qualifying for the exemption referred to in paragraph 1 shall be determined, where there is a proven need to import, in the light of the local production trend. The numbers and the detailed rules for implementing this Article, including in particular the minimum duration of the fattening period, shall be laid down in accordance with the procedure set out in Article 19(2). ____________ ( 1 ) OJ L 160, 26.6.1999, p.21. Amendment 22 Article 5 b (new) Article 5b The following article is hereby inserted after Article 31 in Directive 72/462/EEC : "Article 31a Without prejudice to Article 18 of Directive 97/78/EC( 1 ) or to Article 13 of Directive 91/496/EEC (2 ), the Commission may, in accordance with the procedure laid down in Article 29, derogate from this Directive with regard to imports into the French overseas departments. When the decisions provided for in the preceding paragraph are taken, the rules applicable after importation shall be laid down in accordance with the same procedure. ____________ (1 ) OJ L 24, 30.1.1998, p. 9. (2 ) OJ L 268, 24.9.1991, p. 56." Amendment 23 Article 6, paragraph 1    1. The aid provided for in (a) and (b) below shall be granted to assist traditional activities connected with beef and veal production and measures to improve product quality, within the limits of the consumption needs of the overseas departments as assessed in the context of a periodic supply balance.    1. The aid provided for in (a), (b) and (ba) below shall be granted to assist traditional activities connected with beef and veal production and measures to improve product quality, within the limits of the consumption needs of the overseas departments as assessed in the context of a periodic supply balance. The balance shall take account of breeding animals supplied under Article 5. The balance shall take account of breeding animals supplied under Article 5.    (a) A supplement to the suckler cow premium provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 50 per suckler cow held by the producer on the day on which the application is submitted.    (a) A supplement to the suckler cow premium provided for in Article 6 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of this supplement shall be EUR 100 per suckler cow held by the producer on the day on which the application is submitted.    (b) A supplement to the slaughter premium provided for in Article 11 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of the supplement shall be EUR 25 per head.    (b) A supplement to the slaughter premium provided for in Article 11 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers. The amount of the supplement shall be EUR 100 per head.    (ba) A supplement to the special premium for fattening male bovine animals provided for in Article 4 of Regulation (EC) No 1254/1999 shall be paid to beef and veal producers for each animal reaching a minimum weight to be determined by the Commission. The amount of the supplement shall be EUR 40 per head. Amendment 24 Article 7, paragraph 1, subparagraphs 3 and 4 Aid shall be paid each year within the limits of a maximum quantity of 40 000 tonnes of milk. Aid shall be paid each year within the limits of a maximum quantity of 40 000 tonnes of milk. This ceiling shall apply from the 2000/01 marketing year. Amendment 25 Article 8, paragraph 1, subparagraph 1    1. In the period 2001-05 , aid shall be granted to implement in both Martinique and Réunion a comprehensive programme to support the production and marketing of local produce in the livestock and milk products sectors.    1. In the period 2001-10 , aid shall be granted to implement in both Martinique and Réunion a comprehensive programme to support the production and marketing of local produce in the livestock and milk products sectors. This aid shall be granted with effect from 1 January 2001. Amendment 26 Article 9, paragraph 1, subparagraph 1    1. Aid shall be granted in respect of the fruits, vegetables, flowers and live plants listed in Chapters 6, 7 and 8 of the combined nomenclature, the peppers and fruits of the genus Capsicum and of the genus Pimenta falling within CN code 0904 and the spices falling within CN code 0910 harvested in the overseas departments and intended to supply their domestic market. The aid shall not be granted for bananas other than plantains falling within CN code 0803 00 11.    1. Aid shall be granted in respect of the fruits, vegetables, flowers and live plants listed in Chapters 6, 7 and 8 of the combined nomenclature, the peppers and fruits of the genus Capsicum and of the genus Pimenta falling within CN code 0904 and the spices falling within CN code 0910 harvested in the overseas departments and intended to supply their domestic market. In Guadeloupe and Martinique the aid shall not be granted for bananas other than plantains falling within CN code 0803 00 11. Amendment 27 Article 11, paragraph 1,subparagraph 2 This programme shall include incentives to improve the conditions in which pineapple is produced, marketed and processed, to restructure and improve the competitiveness of the sector, and to ensure the survival of small farms. The programme shall not qualify for aid granted under Articles 9, 10 and 12 . This programme shall include incentives to improve the conditions in which pineapple is produced, marketed and processed, to restructure and improve the competitiveness of the sector, and to ensure the survival of small farms. The programme shall not qualify for aid granted under Article 10. Amendment 28 Article 12, paragraph 5, subparagraph 2 However, in respect of melons falling within CN code ex 0807 10 90, aid may be granted in a department for a quantity exceeding 3 000 tonnes provided that the total volume eligible for aid for all the overseas departments is not exceeded. However, aid may be granted in a department for a quantity exceeding 3 000 tonnes provided that the total volume eligible for aid for all the overseas departments is not exceeded. Amendment 29 Article 13, paragraph 2 a (new) 2a. The transport aid referred to in paragraph 1 shall be granted with effect from the 2001-2002 marketing year. Amendment 30 Article 16, paragraph 1 a (new) 1a. Within the framework of Council Regulation (EC) No 2826/2000 of 19 December 2000 on information and promotion actions for agricultural products on the internal market(1 ), priority shall be accorded to promotion campaigns for the use of this graphic symbol. Additional funding may be granted up to 25% over the limit set by Article 9(2) of that Regulation. _____________ ( 1 ) OJ L 328, 23.12.2000, p. 2. Amendment 31 Article 18, paragraph 1    1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments intended in particular to encourage diversification, restructuring or a shift towards sustainable agriculture on agricultural holdings of very small economic size to be defined in the programming complement referred to in Article 19(4) of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds.    1. Notwithstanding Article 7 of Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments intended in particular to encourage diversification, restructuring or a shift towards sustainable agriculture on agricultural holdings of small economic size to be defined in the programming complement referred to in Article 19(4) of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds. Amendment 32 Article 18, paragraph 2    2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 65% for investments in small and medium-sized enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in sectors, to be defined in the programme complement referred to in Article 19(4) of Regulation (EC) No 1260/1999 .    2. Notwithstanding Article 28(2) of Regulation (EC) No 1257/1999, the total value of the aid, expressed as a percentage of the volume of eligible investments, shall not exceed 75% for investments in small and medium-sized enterprises engaged in processing and marketing agricultural products consisting mainly of local produce in all sectors. Amendment 33 Article 18, paragraph 3    3. The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to forests and wooded areas situated in the territory of the French overseas departments.    3. The restriction provided for in Article 29(3) of Regulation (EC) No 1257/1999 shall not apply to tropical forests and wooded areas situated in the territory of the French overseas departments. Amendment 34 Article 18, paragraph 3 a (new) 3a. Notwithstanding the provisions of the third indent of the second subparagraph of Article 47(2) of Regulation (EC) No 1257/1999, the Community's financial contribution to the agri-environmental measures laid down in Articles 22 to 24 of that Regulation shall be 85%. Amendment 35 Article 19, paragraph 1, subparagraph 5 For the purposes of implementing Title IV, the Commission shall be assisted by the Committee on Agricultural Structures and Rural Development established by Article 50 of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds. For the purposes of implementing Title IV, the Commission shall be assisted by the Committee on the Development and Conversion of Regions and by the Committee on Agricultural Structures and Rural Development established by Articles 48 and 50 respectively of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds. Amendment 36 Article 23, paragraph 2 a (new) 2a. In the light of the conclusions of the reports or on a detailed request by the Member State, the Commission shall submit the appropriate adjustments wherever this proves necessary. Amendment 37 Article 24, paragraph 2 Regulation (EEC) No 525/77 is hereby repealed. Regulation (EEC) No 525/88 is hereby repealed, but shall, by way of derogation, apply to the 2001-2002 marketing year. Amendment 38 Article 24 a (new) Article 24a The Commission may adopt the transitional measures required to bring about a smooth change from the arrangements in force in the year 2000 or the 2000/01 marketing year and the arrangements resulting from the provisions laid down in this Regulation. It shall ensure in particular that there are no breaks in continuity should existing measures be extended. Amendment 39 Annex I, last footnote    - Wheat bran falling within CN code 230 230(1 ). __________ (1 ) Only Réunion qualifies for the supply arrangements referred to in Articles 2 and 3, and only for products originating in the ACP States , up to an annual quantity of 8 000 tonnes.    - Wheat bran falling within CN code 230 230(1 ). ___________ (1 ) Only Réunion qualifies for the supply arrangements referred to in Articles 2 and 3, and only for products originating in third countries up to an annual quantity of 15 000 tonnes. Amendment 40 Annex I, new indents    - Lucerne    - Soya cakes CN code 2304 Amendment 41 Annex II, correlation table Article 10/Deleted Article 10(1)/Decision 90/424/EEC Article 10(2)/Article 5b

(1) OJ C 96 E, 27.3.2001, p. 289.

(Consultation procedure)

The European Parliament,

-  having regard to the Commission proposal to the Council (COM(2000) 791 ) (1) ,

-  having been consulted by the Council pursuant to Articles 36, 37, and 299(2) of the EC Treaty (C5-0744/2000 ),

-  having regard to Rule 67 of its Rules of Procedure,

-  having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Regional Policy, Transport and Tourism (A5-0000/2001 ),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4.  Asks to be consulted again if the Council intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 96 E, 27.3.2001, p. 289.