Agreement in the form of an exchange of letters

between the European Community and the Kingdom of Norway concerning additional trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area

A. Letter from the Community

Brussels, 20 June 2003

Sir,

I have the honour to refer to the trade negotiations between the European Community and the Kingdom of Norway on agricultural products, held from 4 March 2002 to 18 December 2002, undertaken on the basis of Article 19 of the Agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between Parties, the Kingdom of Norway and the European Community have agreed to additional bilateral trade preferences concerning agricultural products. This arrangement comprises a consolidated arrangement for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including additional tariff quotas to existing preferences.

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

1. From 1 July 2003, Norway and the Community will increase their reciprocal trade in cheese. The text and the consolidated annual tariff quotas are set out in Annex I hereto.

2. From 1 July 2003, Norway will open for the Community the annual tariff quotas, for products originating in the Community, set out in Annex II hereto. These bilateral concessions are additional to the ones already in place(1).

3. From 1 July 2003, Norway will reduce or eliminate import duties on products originating in the Community set out in Annex III hereto. These bilateral concessions are additional to the ones already in place(2).

4. From 1 July 2003, the Community will eliminate import duties on products originating in Norway set out in Annex IV hereto. These bilateral concessions are additional to the ones already in place(3).

5. From 1 July 2003, the Community will open for Norway the annual tariff quotas for products originating in Norway set out in Annex V hereto. These bilateral concessions are additional to the ones already in place(4).

6. The Parties will take steps to ensure that the benefits which they grant each other will not be jeopardised by other import measures.

7. 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. Where necessary, tariff quotas will be opened in 2003 on a pro-rata basis.

8. The Parties agree to exchange at regular intervals information on tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of this Agreement.

9. Consultations will be held at the request of either Party on any question relating to the operation of this Agreement. In case of difficulties, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

10. The rules of origin for the purpose of implementing the concessions referred to in Annexes I to V to this Agreement 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.

11. Norway and the European Community agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years time.

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

I have the honour to confirm that the European Community is in agreement with the contents 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,

On behalf of the Council of the European Union

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ANNEX I

Trade in cheese

1. The European Community shall abolish import duties on the existing cheese quota and shall increase these quotas. The consolidated annual tariff quotas are as follows:

>TABLE>

2. Norway shall abolish import duties on the existing cheese quota and shall increase these quotas. The consolidated annual tariff quota is as follows:

>TABLE>

3. Norway will improve its current import management system based on import licences attributed on the basis of historical rights, in particular by improving the access to licences to newcomers. Norway will continue to administer a quantity of 2360 tonnes of cheeses of the consolidated annual cheese tariff quota on the basis of a cheese list, according to the Exchange of Letters of 11 April 1983. Additional quantities within the consolidated cheese tariff quotas will not be subject to this cheese list and will be imported with no condition relating to the type of cheese. However, imports of cheese for processing should be minimised, with the exception of cheeses used in the preparation of ready-made food (e.g. pizzas or cheese snacks).

4. The Community will manage the annual cheese tariff quota under the general licensing system applied in the dairy sector. The IMA1 certificate system will be abandoned.

5. These provisions shall replace previous arrangements between the European Community and the Kingdom of Norway concerning reciprocal trade in cheese.

ANNEX II

Additional tariff quotas granted by Norway

1. Norway will open the following annual tariff quotas for the following products originating in the Community(1):

>TABLE>

2. Norway will open the following annual zero-duty tariff quotas for the following products originating in the Community(2):

>TABLE>

(1) The quotas shall apply annually unless otherwise specified.

(2) The quotas shall apply annually unless otherwise specified.

ANNEX III

Additional tariff concessions granted by Norway

Norway will reduce or eliminate import duties on the following products originating in the Community(1):

>TABLE>

(1) The concessions shall apply annually unless otherwise specified.

ANNEX IV

Additional tariff concessions granted by the Community

The Community will eliminate import duties on the following products originating in Norway:

>TABLE>

ANNEX V

Additional tariff quotas granted by the Community

1. The Community will open the following annual tariff quota for the following products originating in Norway(1):

>TABLE>

2. The Community will open the following annual zero-duty tariff quotas for the following products originating in Norway(2):

>TABLE>

(1) The quotas shall apply annually unless otherwise specified.

(2) The quotas shall apply annually unless otherwise specified.

B. Letter from Norway

Brussels, 20 June 2003

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 trade negotiations between the European Community and the Kingdom of Norway on agricultural products, held from 4 March 2002 to 18 December 2002, undertaken on the basis of Article 19 of the Agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between Parties, the Kingdom of Norway and the European Community have agreed to additional bilateral trade preferences concerning agricultural products. This arrangement comprises a consolidated arrangement for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including additional tariff quotas to existing preferences.

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

1. From 1 July 2003, Norway and the Community will increase their reciprocal trade in cheese. The text and the consolidated annual tariff quotas are set out in Annex I hereto.

2. From 1 July 2003, Norway will open for the Community the annual tariff quotas for products originating in the Community set out in Annex II hereto. These bilateral concessions are additional to the ones already in place(5).

3. From 1 July 2003, Norway will reduce or eliminate import duties on products originating in the Community set out in Annex III hereto. These bilateral concessions are additional to the ones already in place(6).

4. From 1 July 2003, the Community will eliminate import duties on products originating in Norway set out in Annex IV hereto. These bilateral concessions are additional to the ones already in place(7).

5. From 1 July 2003, the Community will open for Norway the annual tariff quotas for products originating in Norway set out in Annex V hereto. These bilateral concessions are additional to the ones already in place(8).

6. The Parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other import measures.

7. 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. Where necessary, tariff quotas will be opened in 2003 on a pro-rata basis.

8. The Parties agree to exchange at regular intervals information on tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of this Agreement.

9. Consultations will be held at the request of either Party on any question relating to the operation of this Agreement. In case of difficulties, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

10. The rules of origin for the purpose of implementing the concessions referred to in Annexes I to V to this Agreement are set out in Annex IV to the Exchange of Letters of 2 May 1992. However, paragraph 2 of 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.

11. Norway and the European Community agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years time.

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

I have the honour to confirm that the European Community is in agreement with the contents of your 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 the Kingdom of Norway is in agreement with the contents of your letter.

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

For the Government of the Kingdom of Norway

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(1) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(2) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(3) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(4) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(5) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(6) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(7) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).

(8) Exchange of Letters of 2 May 1992, Council Decision 93/239/EC (OJ L 109, 1.5.1993, p. 1) and Exchange of Letters of 20 December 1995, Council Decision 95/582/EC (OJ L 327, 30.12.1995, p. 17).