Agreement in the form of an exchange of letters amending Annex A to Protocol 1 to the Agreement between the European Economic Community and the Republic of Iceland

Brussels, ...

Your Excellency,

Under the transitional arrangements provided for in Protocol 1 to the Free Trade Agreement between the European Economic Community and the Republic of Iceland signed on 22 July 1972, the United Kingdom is authorized to open each year zero-duty tariff quotas for the products listed in Annex A to Protocol 1. The quota for certain products of Chapter 49 of the Common Customs Tariff is expressed in pounds sterling because during the reference period 1968 to 1971 not all imports of these products were recorded in terms of weight. Meanwhile, inflation and exchange rate fluctuations have distorted this basis. For this reason, it has proved desirable that this quota be expressed in terms of weight. A comparison of the values and weights of UK imports during recent years has made it possible to convert the average imports of the period 1968 to 1971 into metric tons. This figure is 1 7765 metric tons.

Accordingly the Community considers that, pursuant to Article 1 (4) of Protocol 1 to the aforementioned Agreement, the initial zero-duty quota which the United Kingdom was entitled to open in 1974 for certain products of Chapter 49 and which is stated in the United Kingdom column of Annex A to the said Protocol should read 2 7144 metric tons and not 1 804 pounds sterling. Therefore, in accordance with Article 1 (4) of Protocol 1, the quota which the United Kingdom is entitled to open for 1976 is 2 7363 metric tons.

I should be grateful if you would confirm the agreement of your Government to the contents of this letter.

Please accept, Your Excellency, the assurance of my highest consideration.

On behalf of the Council of the European Communities

Brussels, ...

Sir,

I have the honour to acknowledge receipt of your letter of today worded as follows:

"Under the transitional arrangements provided for in Protocol 1 to the Free Trade Agreement between the European Economic Community and the Republic of Iceland signed on 22 July 1972, the United Kingdom is authorized to open each year zero-duty tariff quotas for the products listed in Annex A to Protocol 1. The quota for certain products of Chapter 49 of the Common Customs Tariff is expressed in pounds sterling because during the reference period 1968 to 1971 not all imports of these products were recorded in terms of weight. Meanwhile, inflation and exchange rate fluctuations have distorted this basis. For this reason, it has proved desirable that this quota be expressed in terms of weight. A comparison of the values and weights of UK imports during recent years has made it possible to convert the average imports of the period 1968 to 1971 into metric tons. This figure is 1 7765 metric tons.

Accordingly the Community considers that, pursuant to Article 1 (4) of Protocol 1 to the aforementioned Agreement, the initial zero-duty quota which the United Kingdom was entitled to open in 1974 for certain products of Chapter 49 and which is stated in the United Kingdom column of Annex A to the said Protocol should read 2 7144 metric tons and not 1 804 pounds sterling. Therefore, in accordance with Article 1 (4) of Protocol 1, the quota which the United Kingdom is entitled to open for 1976 is 2 7363 metric tons.

I should be grateful if you would confirm the agreement of your Government to the contents of this letter."

I have the honour to confirm the agreement of my Government to the contents of your letter.

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

On behalf of the Government of the Republic of Iceland