# EUR-Lex - 52012PC0106 - EN

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# 52012PC0106

**Proposal for a COUNCIL DECISION on the conclusion of Agreements in form of exchanges of letters on the modification of concessions with respect to processed poultry meat between the European Union and the Federal Republic of Brazil, and between the European Union and the Kingdom of Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) /* COM/2012/0106 final - 2012/0046 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Negotiations
under Article XXVIII of GATT 1994 concluded on poultry in 2007 (OJ L138
30.5.2007) covered tariff lines on poultry meat under heading 0210 as well as
one processed poultry line, 1602 32 19 in the EC Schedule CXL: cooked
preparations containing more than 57% of poultry meat. Limiting the
negotiations to the processed poultry line 1602 32 19 was considered
to sufficiently prevent potential substitution effects. Subsequent import data, however, showed a dramatic import surge of
processed poultry meat under tariff line 1602 32 30:
preparations containing 25% or more but less than 57% by weight of poultry
meat or offal. This indicated that exporters seemed
to take advantage of a relative gap in the EU level of protection, substituting
poultry preparations containing more than 57% of poultry meat with preparations
containing less than 57%, under tariff line 1602 32 30. Comparable substitution effects were to be expected under other 1602
tariff lines in the future. In order to comprehensively
address these substitution effects affecting the EU poultry industry, the Commission requested from the Council the authorisation to
renegotiate the concessions on poultry meat under Chapter 16 of the CN.

On 25 May 2009
the Council authorised the Commission to open negotiations under
Article XXVIII of the GATT 1994 (COM proposal 8615/09 WTO 72 AGRI 166)
with a view to the renegotiation of concessions on poultry meat tariff lines
under Chapter 16 of the CN.

On 16 June 2009
the communication of the EU's intention to modify the concessions on items 1602 20 10,
1602 32 11, 1602 32 30, 1602 32 90, 1602 39 21,
1602 39 29, 1602 39 40 and 1602 39 80 included in
Schedule CXL of the European Communities was circulated to the other WTO
Members.

Negotiations
have been conducted by the Commission in consultation with the Trade Policy
Committee and within the framework of the negotiating directives issued by the
Council.

The Commission has negotiated with the
Federal Republic of Brazil and with the Kingdom of Thailand holding each principal
supplying interests and/or substantial interests in various of the tariff lines
concerned.

The negotiations have resulted in
Agreements in the form of exchanges of letters initialled with the Kingdom of
Thailand on 22 November 2011 and with the Federal Republic of Brazil on 7
December 2011.

The agreements were negotiated on the basis of the Combined
Nomenclature codes in force at the time.

In the newest version of Annex I to Council Regulation (EEC) No
2658/87 on the tariff and statistical nomenclature and on the Common Customs
Tariff as laid down in Commission Regulation (EU) No 1006/2011 published in OJ
L 282 of 28 October 2011, the tariff lines 1602 39 40 and
1602 39 80 have been merged into a new tariff line 1602 39 85.
It is therefore appropriate to reflect this new situation in the implementing
regulation.

2.           BUDGETARY IMPLICATION

See Financial Fiche in Annex.

2012/0046 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of Agreements in form of
exchanges of letters on the modification of concessions with respect to
processed poultry meat between the European Union and the Federal Republic of
Brazil, and between the European Union and the Kingdom of Thailand pursuant to
Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 207(4), first
subparagraph and 218(6)(a)(v) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the consent of the
European Parliament[1],

Whereas:

(1)       On 25 May 2009 the Council
authorised the Commission to open negotiations under Article XXVIII of the
GATT 1994 (COM proposal 8615/09 WTO 72 AGRI 166) with a view to the
renegotiation of concessions on poultry meat tariff lines under Chapter 16 of
the CN.

(2)       Those negotiations
resulted in Agreements in the form of exchanges of letters initialled with the
Federal Republic of Brazil on 7 December 2011 and with the Kingdom of Thailand
on 22 November 2011.

(3)       In accordance with Council
Decision No .../2012/EU of ...[2]
the Agreements were signed on behalf of the Union on...

(4)       The Agreements should be
approved.

HAS ADOPTED THIS DECISION:

Article 1

The Agreements in the form of exchanges of
letters between the European Union and the Federal Republic of Brazil, and
between the European Union and the Kingdom of Thailand, pursuant to Article
XXVIII of the GATT 1994 relating to the modification of concessions with
respect to processed poultry meat products of HS codes

1602 3211 "(Processed chicken meat,
uncooked, containing 57 % or more by weight of poultry meat or offal)",

1602 3230 "(Processed chicken meat, containing
25 % or more but less than 57% by weight of poultry meat or offal)",

1602 3290 "(Processed chicken meat, containing
less than 25% by weight of poultry meat or offal)",

1602 3921 "(Processed duck, geese, guinea
fowl meat, uncooked, containing 57 % or more by weight of poultry meat or offal)",

1602 3929 "(Processed duck, geese,
guinea fowl meat, cooked, containing 57 % or more by weight of poultry meat or
offal)", and

1602 3940 "(Processed duck, geese,
guinea fowl meat, containing 25 % or more but but less than 57 % by weight of
poultry meat or offal)" and

1602 3980 "(Processed duck, geese,
guinea fowl meat, containing less than 25 % by weight of poultry meat or offal)"

in the EC Schedule CXL annexed to the GATT
1994[3] are hereby approved on behalf
of the Union.

The text of the Agreements is annexed to
this Decision.

Article 2

The
President of the Council is hereby authorised to make the notifications
provided in the Agreements.

Article 3

This
Decision shall enter into force on the day following that of its adoption

Done at Brussels,

For
the Council

The
President

ANNEX

AGREEMENT IN THE FORM OF AN EXCHANGE OF
LETTERS

Between the European Union and Brazil pursuant to Article XXVIII of
the General Agreement on Tariffs and Trade (GATT) 1994 relating to the
modification of concessions with respect to processed poultry meat provided for
in the EU Schedule annexed to GATT 1994

A. Letter from the European Union

Place, date

Sir,

Following negotiations under Article XXVIII of the
General Agreement on Tariffs and Trade (GATT) 1994, relating to the
modification of EU concessions with respect to processed poultry meat, I have
the honour to propose the following:

1.           The European Union shall
incorporate in its Schedule the following modifications:

The bound rate of duty for items 1602 3211,
1602 3230 and 1602 3290 shall be 2 765 €/tonne.

For item 1602 3211 a tariff rate quota of
16 140 tonnes is opened, of which 15 800 tonnes shall be allocated to
Brazil. The in-quota rate shall be 630€/tonne.

For item 1602 3230 a tariff rate quota of 79 705
tonnes is opened, of which 62 905 tonnes shall be allocated to Brazil. The
in-quota rate shall be 10,9%.

For item 1602 3290 a tariff rate quota of 2 865
tonnes is opened, of which 295 tonnes shall be allocated to Brazil. The
in-quota rate shall be 10,9%.

2.           Imports under the tariff
rate quotas referred to in paragraph 1 shall take place on the basis of
certificates of origin issued in a non-discriminatory way by the competent
authorities in Brazil.

3.           Consultations may be held
at any time with regard to any of the above matters at the request of either
Party.

I should be obliged if you would confirm that your Government is in
agreement with the content of this letter. Should this be the case, this letter
and your confirmation shall together constitute an Agreement in the form of an
Exchange of Letters between the European Union and Brazil.

The European Union and Brazil shall notify each other the completion
of their internal procedures for the entry into force of the agreement. The
agreement shall enter into force 14 (fourteen) days after the date of
the latest notification.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the European Union

B. Letter from Brazil

Place, date

Sir,

I have the honour to acknowledge the receipt of your letter of ...,
which reads as follows:

"Following negotiations under Article XXVIII of the
General Agreement on Tariffs and Trade 1994 (GATT), relating to the
modification of EU concessions with respect to processed poultry meat, I have
the honour to propose the following:

1.           The European Union shall
incorporate in its Schedule the following modifications:

The bound rate of duty for items 1602 3211,
1602 3230 and 1602 3290 shall be 2 765 €/tonne.

For item 1602 3211 a tariff rate quota of
16 140 tonnes is opened, of which 15 800 tonnes shall be allocated to
Brazil. The in-quota rate shall be 630€/tonne.

For item 1602 3230 a tariff rate quota of 79 705
tonnes is opened, of which 62 905 tonnes shall be allocated to Brazil. The
in-quota rate shall be 10,9%.

For item 1602 3290 a tariff rate quota of 2 865
tonnes is opened, of which 295 tonnes shall be allocated to Brazil. The
in-quota rate shall be 10,9%.

2.           Imports under the tariff
rate quotas referred to in paragraph 1 shall take place on the basis of
certificates of origin issued in a non-discriminatory way by the competent
authorities in Brazil.

3.           Consultations may be held
at any time with regard to any of the above matters at the request of either
Party.

I should be obliged if you would confirm that your Government is in
agreement with the content of this letter. Should this be the case, this letter
and your confirmation shall together constitute an Agreement in the form of an
Exchange of Letters between the European Union and Brazil.

The European Union and Brazil shall notify each other the completion
of their internal procedures for the entry into force of the agreement. The
agreement shall enter into force 14 (fourteen) days after the date of
the latest notification."

I hereby have the honour to express my Government's agreement with
the above letter.

On behalf of Brazil

AGREEMENT IN THE FORM OF AN EXCHANGE OF
LETTERS

Between the European Union and Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and
Trade (GATT) 1994 relating to the modification of concessions with respect to
processed poultry meat provided for in the EU Schedule annexed to GATT 1994

A. Letter from the European Union

Place, date

Sir,

Following negotiations under Article XXVIII of the
General Agreement on Tariffs and Trade (GATT) 1994, relating to the
modification of EU concessions with respect to processed poultry meat, I have
the honour to propose the following:

1.           The European Union shall
incorporate in its Schedule the following modifications:

The bound rate of duty for items
1602 3230, 1602 3290 and 1602 39 shall be 2 765 €/tonne.

For item 1602 3230 a tariff rate quota of 79 705
tonnes is opened, of which 14 000 tonnes shall be allocated to Thailand.
The in-quota rate shall be 10,9%.

For item 1602 3290 a tariff rate quota of 2 865
tonnes is opened, of which 2 100 tonnes shall be allocated to Thailand.
The in-quota rate shall be 10,9%.

For item 1602 3921 a tariff rate quota of
10 tonnes allocated to Thailand is opened. The in-quota rate shall be
630€/tonne.

For item 1602 3929, a tariff rate quota of
13 720 tonnes is opened, of which 13 500 tonnes shall be allocated to
Thailand. The in-quota rate shall be 10,9%.

For item 1602 3940 a tariff rate quota of 748
tonnes is opened, of which 600 tonnes shall be allocated to Thailand. The
in-quota rate shall be 10,9%.

For item
1602 3980 a tariff rate quota of 725 tonnes is opened, of which 600 tonnes
shall be allocated to Thailand. The in-quota rate shall be 10,9%.

2.            Imports
under the tariff rate quotas referred to in paragraph 1 shall take place on the
basis of certificates of origin issued in a non-discriminatory way by the
competent authorities in Thailand.

3.            Consultations
may be held at any time with regard to any of the above matters at the request
of either Party.

I should be obliged if you would confirm that your Government is in
agreement with the content of this letter. Should this be the case, this letter
and your confirmation shall together constitute an Agreement in the form of an
Exchange of Letters between the European Union and Thailand.

The European Union and Thailand shall notify each other the
completion of their internal procedures for the entry into force of the
agreement. The agreement shall enter into force 14 (fourteen) days
after the date of the latest notification.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the European Union

B. Letter from Thailand

Place, date

Sir,

I have the honour to acknowledge the receipt of your letter of ...,
which reads as follows:

"Following negotiations under Article XXVIII of the
General Agreement on Tariffs and Trade (GATT) 1994, relating to the
modification of EU concessions with respect to processed poultry meat, I have
the honour to propose the following:

1.           The European Union shall
incorporate in its Schedule the following modifications:

The bound rate of duty for items
1602 3230, 1602 3290 and 1602 39 shall be 2 765 €/tonne.

For item 1602 3230 a tariff rate quota of 79 705
tonnes is opened, of which 14 000 tonnes shall be allocated to Thailand.
The in-quota rate shall be 10,9%.

For item 1602 3290 a tariff rate quota of 2 865
tonnes is opened, of which 2 100 tonnes shall be allocated to Thailand.
The in-quota rate shall be 10,9%.

For item 1602 3921 a tariff rate quota of
10 tonnes allocated to Thailand is opened. The in-quota rate shall be
630€/tonne.

For item 1602 3929, a tariff rate quota of
13 720 tonnes is opened, of which 13 500 tonnes shall be allocated to
Thailand. The in-quota rate shall be 10,9%.

For item 1602 3940 a tariff rate quota of 748
tonnes is opened, of which 600 tonnes shall be allocated to Thailand. The
in-quota rate shall be 10,9%.

For item 1602 3980 a tariff rate quota of 725
tonnes is opened, of which 600 tonnes shall be allocated to Thailand. The
in-quota rate shall be 10,9%.

2.           Imports under the tariff
rate quotas referred to in paragraph 1 shall take place on the basis of
certificates of origin issued in a non-discriminatory way by the competent
authorities in Thailand.

3.           Consultations may be held
at any time with regard to any of the above matters at the request of either
Party.

I should be obliged if you would confirm that your Government is in
agreement with the content of this letter. Should this be the case, this letter
and your confirmation shall together constitute an Agreement in the form of an
Exchange of Letters between the European Union and Thailand.

The European Union and Thailand shall notify each other the
completion of their internal procedures for the entry into force of the
agreement. The agreement shall enter into force 14 (fourteen) days
after the date of the latest notification."

I hereby have the honour to express my Government's agreement with
the above letter.

On behalf of Thailand

FINANCIAL STATEMENT || Fichefin/11/ 1163256 DDG/GM/nh 6.146.2011.1

|| DATE: 06/10/2011

1. || BUDGET HEADING: Chapter 12 – Custom duties and other duties || APPROPRIATIONS: DB2012: 19 171.2 M€

2. || TITLE: Proposal for a Council Decision on the conclusion of Agreements in form of exchanges of letters on the modification of concessions with respect to processed poultry meat between the European Union and the Federal Republic of Brazil, and between the European Union and the Kingdom of Thailand pursuant to Article XXVIII of the general Agreement on Tariffs and Trade 1994 (GATT 1994).

3. || LEGAL BASIS: Treaty on the Functioning of the European Union, and in particular Articles 207 and 218.

4. || AIMS: To conclude the Agreements between EU – Brazil and Thailand, in order to address the substitution effects of imports affecting the EU poultry industry.

5. || FINANCIAL IMPLICATIONS || 12 MONTH PERIOD (EUR million) || CURRENT FINANCIAL YEAR 2011 (EUR million) || FOLLOWING FINANCIAL YEAR 2012 (EUR million)

5.0 || EXPENDITURE -               CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTIONS) -               NATIONAL AUTHORITIES -               OTHER || - || - || -

5.1 || REVENUE -               OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) -               NATIONAL || - || - || - 1.4

|| || 2013 || 2014 || 2015

5.0.1 || ESTIMATED EXPENDITURE || || ||

5.1.1 || ESTIMATED REVENUE || - || - || -

5.2 || METHOD OF CALCULATION: -

6.0 || CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? || YES NO

6.1 || CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? || YES NO

6.2 || WILL A SUPPLEMENTARY BUDGET BE NECESSARY? || YES NO

6.3 || WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? || YES NO

OBSERVATIONS: Following negotiations under Article XXVIII of GATT 1994, started mid-2009 with Brazil and Thailand, the measure concerns the conclusion of the Agreements between EU – Brazil and Thailand, in order to address the substitution effects of imports affecting the EU poultry industry. The financial impact of the Regulation of the European Parliament and of the Council, implementing these Agreements, is indicated in its specific Financial Statement*, and can be estimated of a reduction of own resources of an approximated net amount of EUR 1.4 million, after deduction of 25% of collection costs by Member States. * Financial Statement No 1163357/2011

[1]               OJ C , , p. .

[2]               OJ C [...], [...], p. [...]

[3]               The Agreements have been published in OJ ...together
with the decision on signature.