L31)2 Official Journal of the European Communities 2.2.2001 COUNCIL REGULATION (EC) No 216/2001 of 29 January 2001 amending Regulation (EEC) No 404/93 on the common organisation of the market in bananas THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parliament (%), Having regard to the opinion of the Economic and Social Committee (%), Where 1) as: There have been numerous close contacts with supplier countries and other interested parties to settle the disputes arising from the import regime established by Regulation (EEC) No 404/93 (*) and to take account of the conclusions of the special group set up under the dispute settlement system of the World Trade Organ- isation (WTO). Analysis of all the options presented by the Commission suggests that establishment in the medium term of an import system founded on the application of a customs duty at an appropriate rate and application of a prefer- ential tariff to imports from ACP countries provides the best guarantees, firstly of achieving the objectives of the common organisation of the market as regards Community production and consumer demand, secondly of complying with the rules on international trade, and thirdly of preventing further disputes. However, such a system must be introduced upon completion of negotiations with the Community's part- ners in accordance with WTO procedures, in particular Article XXVIII of the General Agreement on Tariffs and Trade (GATT). The result of these negotiations must be submitted for approval to the Council which must also, in accordance with the provisions of the Treaty, estab- lish the applicable level of the Common Customs Tariffs. Until the entry into force of that regime, the Community should be supplied under several tariff quotas open to imports from all origins and managed in line with the () O] C 177 E, 27.6.2000, p. 28. (¥ Opinion delivered on 13.12.2000 (not yet published in the Official Journal). () O] C 140, 18.5.2000, p. 6. (*) OJ L 47, 25.2.1993, p. 1. Regulation as last amended by Regulation (EQ) No 12571999 (O] L 160, 26.6.1999, p. 80). recommendations made by the dispute settlement body. The first tariff quota of 2 200 000 tonnes at a rate of EUR 75 should be bound in the WTO. A second, addi- tional tariff quota of 353 000 tonnes should be opened to cater for the increase in consumption resulting from enlargement of the Community in 1995, with the same rate applying. To ensure satisfactory supply to the Community, a third, autonomous tariff quota of 850 000 tonnes should be opened, also for all origins. Under this latter tariff quota, provision should be made for the possibility, in accordance with an appropriate procedure, of a reduction in the applicable customs duty in order to allow the effective importation of bananas originating in third countries which do not benefit from the tariff preferences granted in respect of bananas originating in ACP countries. In view of the contractual obligations towards the ACP countries and the need to guarantee them proper condi- tions of competition, application to imports of bananas originating in those countries of a tariff preference of EUR 300 per tonne would allow the trade flows in question to be maintained. This will entail in particular the application to such imports of zero duty under the three tariff quotas. The Commission should be authorised to open nego- tiations with supplier countries having a substantial interest in supplying the Community market to endeavour to achieve a negotiated allocation of the first two tariff quotas. The Commission should also be granted authority to lay down rules for the management of the tariff quotas established by this Regulation. Provision should be made for the additional tariff quota of 353000 tonnes to be modified to take account of any increased Community demand found when a supply balance is drawn up. Provision should also be made for suitable specific action to be taken in response to excep- tional circumstances liable to affect supply of the Community market. Accordingly, Regulation (EEC) No 404/93 should be amended,