Agreement

in the form of an Exchange of Letters between the European Community and the Kingdom of Norway concerning adjustments of trade preferences in cheese undertaken on the basis of Article 19 of the Agreement on the European Economic Area

A. Letter from the European Community

Sir,

I have the honour to refer to the consultations between the European Community and the Kingdom of Norway on adjustments of preferential concessions on cheese, held from 3 May 2006 to 7 June 2006, undertaken on the basis of Article 19(1) of the Agreement on the European Economic Area.

With the aim of improving the bilateral trade conditions for cheese, the European Community and the Kingdom of Norway have agreed to adjust the current respective preferential quotas.

I hereby confirm that the results of the consultations were as follows:

1. The Kingdom of Norway will increase the existing annual duty free tariff quota on imports into Norway of cheese originating in the European Community by 500 tonnes. The additional quantity will be allocated to existing importers on a pro rata basis (i.e. 12,5 % increase of existing quotas). The volume of the additional tariff quota will be 250 tonnes in 2006. The additional quota will be opened as soon as possible, and no later than 1 November 2006.

2. The European Community will merge the two existing annual duty free tariff quotas on imports into the European Community of cheese originating in Norway (quota numbers 09.4781 and 09.4782). The European Community will apply its normal provisions relating to the management of this merged tariff quota, under a licensing management system. The European Community will implement this merge as of 1 January 2007, at the start of the second semester ( 1 January 2007 to 30 June 2007) of the management year of this concession ( 1 July 2006 to 30 June 2007). Possible underutilisation of the existing cheese quotas during the semester 1 July 2006 to 31 December 2006 will be transferred to the semester 1 January 2007 to 30 June 2007.

3. The rules of origin for the purpose of implementing the adjustments referred to in items 1 and 2 are set out in Annex IV to the Exchange of Letters of 2 May 1992. However, paragraph 2 to Annex IV shall refer to the list in Annex II to Protocol 4 to the Agreement on the European Economic Area, to be applied according to Annex I to the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of Annex IV to the Exchange of Letters of 2 May 1992.

4. The Parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported.

This Exchange of Letters shall be approved by the Parties in accordance with their own procedures.

I have the honour to confirm that the European Community is in agreement with the content of this letter.

I should be obliged if you would confirm that the Government of the Kingdom of Norway is in agreement with the above.

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

B. Letter from the Kingdom of Norway

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

"I have the honour to refer to the consultations between the European Community and the Kingdom of Norway on adjustments of preferential concessions on cheese, held from 3 May 2006 to 7 June 2006, undertaken on the basis of Article 19(1) of the Agreement on the European Economic Area.

With the aim of improving the bilateral trade conditions for cheese, the European Community and the Kingdom of Norway have agreed to adjust the current respective preferential quotas.

I hereby confirm that the results of the consultations were as follows:

1. The Kingdom of Norway will increase the existing annual duty free tariff quota on imports into Norway of cheese originating in the European Community by 500 tonnes. The additional quantity will be allocated to existing importers on a pro rata basis (i.e. 12,5 % increase of existing quotas). The volume of the additional tariff quota will be 250 tonnes in 2006. The additional quota will be opened as soon as possible, and no later than 1 November 2006.

2. The European Community will merge the two existing annual duty free tariff quotas on imports into the European Community of cheese originating in the Kingdom of Norway (quota numbers 09.4781 and 09.4782). The European Community will apply its normal provisions relating to the management of this merged tariff quota, under a licensing management system. The European Community will implement this merge as of 1 January 2007, at the start of the second semester ( 1 January 2007 to 30 June 2007) of the management year of this concession ( 1 July 2006 to 30 June 2007). Possible underutilisation of the existing cheese quotas during the semester 1 July 2006 to 31 December 2006 will be transferred to the semester 1 January 2007 to 30 June 2007.

3. The rules of origin for the purpose of implementing the adjustments referred to in items 1 and 2 are set out in Annex IV to the Exchange of Letters of 2 May 1992. However, paragraph 2 to Annex IV shall refer to the list in Annex II to Protocol 4 to the Agreement on the European Economic Area, to be applied according to Annex I to the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of Annex IV to the Exchange of Letters of 2 May 1992.

4. The Parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported.

This Exchange of Letters shall be approved by the Parties in accordance with their own procedures.

I have the honour to confirm that the European Community is in agreement with the content of this letter.

I should be obliged if you would confirm that the Government of the Kingdom of Norway is in agreement with the above.".

I have the honour to confirm that the Government of Norway is in agreement with the content of your letter.

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

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