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AGREEMENT

in the form of an exchange of letters between the European Economic Community and the Government of the German Democratic Republic on trade in sheep and goats and sheepmeat and goatmeat

Letter No 1

Sir,

I have the honour to refer to the negotiations recently conducted between our respective delegations for the purpose of drawing up provisions concerning imports into the European Economic Community of sheepmeat and goatmeat and live sheep and goats other than pure-bred breeding animals from the German Democratic Republic.

During these negotiations both parties agreed as follows:

1. This Agreement shall relate to:

- live sheep and goats other than pure-bred breeding animals (subheading 01.04 B of the Common Customs Tariff),

- fresh or chilled mutton, lamb and goatmeat (subheading 02.01 A IV a) of the Common Customs Tariff),

- frozen mutton, lamb and goatmeat (subheading 02.01 A IV b) of the Common Customs Tariff).

2. Within this Agreement, the scope for imports of the products referred to in clause 1 shall be the following annual quantities:

- 2 400 tonnes of live animals (sheep, goats and lambs), expressed as carcase weight bone-in (1),

- 0 tonnes of fresh or chilled meat, expressed as carcase weight bone-in (2),

- 0 tonnes of frozen mutton, lamb and goatmeat expressed as carcase weight.

For this purpose, the competent authorities of the German Democratic Republic shall implement the appropriate procedures to ensure that the quantities exported do not exceed the abovementioned figures.

3. Should the Community have recourse to the safeguard clause, it undertakes that such measures shall not affect the provisions of this Agreement.

4. If imports from the German Democratic Republic in any one year exceed the quantities agreed, the Community reserves the right to suspend further imports from the German Democratic Republic for the remainder of that year. The surplus quantity shall be offset against the German Democratic Republic's export entitlement for the following year.

5. The Community undertakes to limit the levy applicable to imports of products covered by this Agreement to a maximum amount of 10 %, ad valorem.

6. At the time of the accession of a new Member State, the Community, in agreement with the Government of the German Democratic Republic, will alter the quantities set out in clause 2, in accordance with the German Democratic Republic's trade with such new Member State. The charges applicable to imports for the said new Member State shall be fixed in accordance with the rules in the Treaty of Accession, the maximum level of the levy specified in clause 5 of this Agreement being taken into account.

7. The Government of the German Democratic Republic shall ensure that this Agreement is observed, in particular by issuing export certificates covering the products referred to in clause 2 within the limits of the quantities covered by this Agreement.

For its part, the Community shall undertake to adopt all necessary provisions to make the issue of the import certificates for the products referred to above, originating in the German Democratic Republic, subject to the presentation of an export certificate, issued by the competent authority designated by the Government of the German Democratic Republic.

Detailed rules for applying this system shall be laid down in such a way as to render unnecessary the lodging of a security for the issue of the import certificate in respect of the products in question.

Such detailed rules of application shall also provide that the competent authority of the German Democratic Republic shall communicate periodically to the competent authority of the Community the quantities in respect of which export certificates are issued, broken down, where appropriate, according to destination.

It is hereby agreed that export licences will be valid for a period of three months from their date of issue. The corresponding import licences shall be valid until the date of expiry of the export licences.

Quantities delivered under an export licence shall be deducted from the quantity agreed for the year during which the export licence was issued.

8. A Consultative Committee shall be set up composed of representatives from the Community and from the Government of the German Democratic Republic. The Committee shall ensure that this Agreement is being properly applied and is functioning smoothly.

It will ensure that the proper application of this Agreement is not affected by the export of mutton-, lamb- and goatmeat-based products to the Community under customs provisions not referred to by this Agreement.

The Committee will meet at the request of either party and discuss all questions which could arise in applying this Agreement and recommend appropriate solutions to the competent authorities.

9. The annual quantities fixed in clause 2 refer to the period running from 1 January to 1 December. The quantities applicable as from the implementation of this Agreement and until 1 January of the following year will be fixed on a pro rata basis in relation to the total annual quantity.

10. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the German Democratic Republic.

11. This Agreement shall enter into force on 1 July 1987 and shall continue in force thereafter, subject to each party having the right to denounce it by giving one year's notice in writing.

I should be obliged if you would kindly confirm the agreement of your Government to the foregoing.

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

On behalf of

the Council of the European Communities

(1) 100 kg live weight shall correspond to 47 kg carcase weight (bone-in equivalent weight).

(2) Carcase weight (bone-in equivalent weight). By this term is understood the weight of bone-in meat presented as such as well as boned meat converted by a coefficient into bone-in weight. For this purpose, 55 kg of boned mutton corresponds to 100 kg of bone-in mutton and 60 kg of boned lamb corresponds to 100 kg of bone-in lamb.

Letter No 2

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 negotiations recently conducted between our respective delegations for the purpose of drawing up provisions concerning imports into the European Economic Community of sheepmeat and goatmeat and live sheep and goats other than pure-bred breeding animals from the German Democratic Republic.

During these negotiations both parties agreed as follows:

1. This Agreement shall relate to:

- live sheep and goats other than pure-bred breeding animals (subheading 01.04 B of the Common Customs Tariff),

- fresh or chilled mutton, lamb and goatmeat (subheading 02.01 A IV a) of the Common Customs Tariff),

- frozen muton, lamb and goatmeat (subheading 02.01 A IV b) of the Common Customs Tariff).

2. Within this Agreement, the scope for imports of the products referred to in clause 1 shall be the following annual quantities:

- 2 400 tonnes of live animals (sheep, goats and lambs), expressed as carcase weight bone-in (1),

- 0 tonnes of fresh or chilled meat, expressed as carcase weight bone-in (2),

- 0 tonnes of frozen mutton, lamb and goatmeat expressed as carcase weight.

For this purpose, the competent authorities of the German Democratic Republic shall implement the appropriate procedures to ensure that the quantities exported do not exceed the abovementioned figures.

3. Should the Community have recourse to the safeguard clause, it undertakes that such measures shall not affect the provisions of this Agreement.

4. If imports from the German Democratic Republic in any one year exceed the quantities agreed, the Community reserves the right to suspend further imports from the German Democratic Republic for the remainder of that year. The surplus quantity shall be offset against the German Democratic Republic's export entitlement for the following year.

5. The Community undertakes to limit the levy applicable to imports of products covered by this Agreement to a maximum amount of 10 %, ad valorem.

6. At the time of the accession of a new Member State, the Community, in agreement with the Government of the German Democratic Republic, will alter the quantities set out in clause 2, in accordance with the German Democratic Republic's trade with such new Member State. The charges applicable to imports for the said new Member State shall be fixed in accordance with the rules in the Treaty of Accession, the maximum level of the levy specified in clause 5 of this Agreement being taken into account.

7. The Government of the German Democratic Republic shall ensure that this Agreement is observed, in particular by issuing export certificates covering the products referred to in clause 2 within the limits of the quantities covered by this Agreement.

For its part, the Community shall undertake to adopt all necessary provisions to make the issue of the import certificates for the products referred to above, originating in the German Democratic Republic, subject to the presentation of an export certificate issued by the competent authority designated by the Government of the German Democratic Republic.

Detailed rules for applying this system shall be laid down in such a way as to render unnecessary the lodging of a security for the issue of the import certificate in respect of the products in question.

Such detailed rules of application shall also provide that the competent authority of the German Democratic Republic shall communicate periodically to the competent authority of the Community the quantities in respect of which export certificates are issued, broken down, where appropriate, according to destination.

It is hereby agreed that export licences will be valid for a period of three months from their date of issue. The corrresponding import licences shall be valid until the date of expiry of the export licences.

Quantities delivered under an export licence shall be deducted from the quantity agreed for the year during which the export licence was issued.

8. A Consultative Committee shall be set up composed of representatives from the Community and from the Government of the German Democratic Republic. The Committee shall ensure that this Agreement is being properly applied and is functioning smoothly.

It will ensure that the proper application of this Agreement is not affected by the export of mutton-, lamb- and goatmeat-based products to the Community under customs provisions not referred to by this Agreement.

The Committee will meet at the request of either party and discuss all questions which could arise in applying this Agreement and recommend appropriate solutions to the competent authorities.

9. The annual quantities fixed in clause 2 refer to the period running from 1 January to 1 December. The quantities applicable as from the implementation of this Agreement and until 1 January of the following year will be fixed on a pro rata basis in relation to the total annual quantity.

10. This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the German Democratic Republic.

11. This Agreement shall enter into force on 1 July 1987 and shall continue in force thereafter, subject to each party having the right to denounce it by giving one year's notice in writing.

I should be obliged if you would kindly confirm the agreement of your Government to the foregoing.'

I have the honour to confirm the agreement of my Government to the foregoing.

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

For the Government

of the German Democratic Republic

(1) 100 kg live weight shall correspond to 47 kg carcase weight (bone-in equivalent weight).

(2) Carcase weight (bone-in equivalent weight). By this term is understood the weight of bone-in meat presented as such as well as boned meat converted by a coefficient into bone-in weight. For this purpose, 55 kg of boned mutton corresponds to 100 kg of bone-in mutton and 60 kg of boned lamb corresponds to 100 kg to bone-in lamb.