EXCHANGE OF LETTERS between the European Community and Australia for the conclusion of negotiations under Article XXIV:6

A. Letter from the European Community

Brussels, 22 December 1995

Sir

I have the honour to confirm the following understanding reached between the delegations of Australia and the European Community.

1. To settle the current GATT Article XXIV:6 negotiations on agriculture the following has been agreed and as regards the tariff rate quotas will apply with effect from 1 January 1996:

- add 2 000 tonnes to the allocation for Australia under the EC tariff rate quota for 'high quality` beef,

- add 1 150 tonnes to the allocation for Australia under the EC tariff rate quota for sheepmeat,

- add 750 tonnes to the allocation for Australia under the EC tariff rate quota for cheddar,

- tariff rate quota 63 000 tonnes of semi-milled and wholly milled rice 1006 30 00 at ECU 0/t (erga omnes) (3),

- tariff rate quota 20 000 tonnes of husked (brown) rice 1006 20 55 at ECU 88/t (erga omnes), (4),

- tariff rate quota 21 000 tonnes of oats 1004 00 50 at ECU 89/t (erga omnes).

The Australian Government accepts the basic components of the European Community's approach to adjusting the GATT obligations of the EUR 12 and those of Austria, Finland and Sweden following the recent enlargement of the Community:

- netting out of export commitments,

- netting out of tariff quotas,

- aggregation of domestic support commitments.

The appropriate legal modalities of implementation remain to be agreed.

2. Australia and the European Community agree to review in the first quarter of 1996 the particular functioning of the 'representative price` system for cereals as it affects Australian exports of high quality wheat to the EC.

3. Wine

Australian Capital City Show Awards

Both sides agreed that:

- The EC recognizes, in accordance with Article 15 of Regulation (EEC) No 3201/90, the Australian Wine Show Awards by publishing the organizations in question in the 'C` series of the Official Journal of the European Communities. This recognition excludes any use of Community names, protected by virtue of the EC/Australia Wine Agreement, as class descriptors of the awards,

- Australia shall ensure that the show organizers will amend their rules so that where a class description consisting of or containing a name listed in Article 8 of the Wine Agreement, i. e. 'Sherry class`, 'Port class`, is used to describe and/or present wines, including advertising, no reference shall be made to the fact that the award concerned has been recognized by the European Community.

Other pending issues should be addressed and resolved in the framework of the Wine Agreement without delay.

I have the honour to propose that this letter and your letter in reply will constitute an agreement between our two authorities.

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

On behalf of the Council of the European Union

B. Letter from Australia

Brussels, 22 December 1995

Sir,

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

'I have the honour to confirm the following understanding reached between the delegations of Australia and the European Community.

1. To settle the current GATT Article XXIV:6 negotiations on agriculture the following has been agreed and as regards the tariff rate quotas will apply with effect from 1 January 1996:

- add 2 000 tonnes to the allocation for Australia under the EC tariff rate quota for "high quality" beef,

- add 1 150 tonnes to the allocation for Australia under the EC tariff rate quota for sheepmeat,

- add 750 tonnes to the allocation for Australia under the EC tariff rate quota for cheddar,

- tariff rate quota 63 000 tonnes of semi-milled and wholly milled rice 1006 30 00 at ECU 0/t (erga omnes) (1),

- tariff rate quota 20 000 tonnes of husked (brown) rice 1006 20 55 at ECU 88/t (erga omnes), (1),

- tariff rate quota 21 000 tonnes of oats 1004 00 50 at ECU 89/t (erga omnes).

The Australian Government accepts the basic components of the European Community's approach to adjusting the GATT obligations of the EUR 12 and those of Austria, Finland and Sweden following the recent enlargement of the Community:

- netting out of export commitments,

- netting out of tariff quotas,

- aggregation of domestic support commitments.

The appropriate legal modalities of implementation remain to be agreed.

2. Australia and the European Community agree to review in the first quarter of 1996 the particular functioning of the "representative price" system for cereals as it affects Australian exports of high quality wheat to the EC.

3. Wine

Australian Capital City Show Awards

Both sides agreed that:

- The EC recognizes, in accordance with Article 15 of Regulation (EEC) No 3201/90, the Australian Wine Show Awards by publishing the organizations in question in the "C" series of the Official Journal of the European Communities. This recognition excludes any use of Community names, protected by virtue of the EC/Australia Wine Agreement, as class descriptors of the awards,

- Australia shall ensure that the show organizers will amend their rules so that where a class description consisting of or containing a name listed in Article 8 of the Wine Agreement, i. e. "Sherry class", "Port class", is used to describe and/or present wines, including advertising, no reference shall be made to the fact that the award concerned has been recognized by the European Community.

Other pending issues should be addressed and resolved in the framework of the Wine Agreement without delay.

I have the honour to propose that this letter and your letter in reply will constitute an agreement between our two authorities.`(1) The management of this quota will include allocation to traditional suppliers.

I have the honour to confirm that the above is acceptable to may Government and that your letter and this letter constitute an agreement in accordance with your proposal.

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

For the Government of Australia

SIDE LETTER BETWEEN THE EUROPEAN COMMUNITY AND AUSTRALIA

A. Letter from the European Community

Brussels, 22 December 1995

Sir

The European Community confirms that it does not intend to include in its new schedule live horses or sheepmeat as products that can benefit from export subsidies listed in the Agreement on Agriculture.

The European Community and Australia will resume, in the first quarter of 1996, discussions on outstanding issues under the Wine Agreement, and will work to resolve these issues as quickly as possible.

The management of the TRQ for 63 000 tonnes of milled rice and the TRQ for 20 000 tonnes of husked (brown) rice will include allocation to traditional suppliers based on their exports to Austria, Finland and Sweden.

The specifications for the TRQ for 21 000 tonnes of milling oats are as follows:

- a minimum test weight of 55 kg per hectolitre,

- a maximum moisture level of 12 %,

- a maximum admixture (foreign seeds) of 2 %.

I should be obliged if you would acknowledge receipt of this letter.

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

On behalf of the Council of the European Union

B. Letter from Australia

Brussels, 22 December 1995

Sir

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

'The European Community confirms that it does not intend to include in its new schedule live horses or sheepmeat as products that can benefit from export subsidies listed in the Agreement on Agriculture.

The European Community and Australia will resume, in the first quarter of 1996, discussions on outstanding issues under the Wine Agreement, and will work to resolve these issues as quickly as possible.

The management of the TRQ for 63 000 tonnes of milled rice and the TRQ for 20 000 tonnes of husked (brown) rice will include allocation to traditional suppliers based on their exports to Austria, Finland and Sweden.

The specifications for the TRQ for 21 000 tonnes of milling oats are as follows:

- a minimum test weight of 55 kg per hectolitre,

- a maximum moisture level of 12 %,

- a maximum admixture (foreign seeds) of 2 %.`

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

For the Government of Australia

(1) The management of this quota will include allocation to traditional suppliers.

(2) The management of this quota will include allocation to traditional suppliers.