Agreement in the form of an Exchange of Letters

between the European Community, of the one part, and the Swiss Confederation, of the other part, concerning Protocol 2 to the Agreement between the European Economic Community and the Swiss Confederation

A. Letter from the Community

Brussels, 17 March 2000

Sir,

I have the honour to confirm that the European Community is in agreement with the "Agreed minutes" attached to this letter concerning a number of changes to the import arrangements applied by the Community and the Swiss Confederation respectively to processed agricultural products, certain of which are covered by Protocol 2 to the 1972 Free Trade Agreement. These changes precede an overall revision of Protocol 2 to be initiated shortly.

I should be obliged if you would confirm that the Government of the Swiss Confederation is in agreement with the contents of this letter.

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

For the European Community

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AGREED MINUTES

I. Introduction

A number of meetings were held between European Commission officials and officials of the Swiss Confederation following a significant increase in exports of lemonade from Switzerland into the European Community.

After these meetings, it was agreed to submit for approval to their respective authorities a number of changes to the import arrangements applied by the Community and the Swiss Confederation respectively to processed agricultural products, certain of which are covered by Protocol 2 to the 1972 free trade agreement.

These changes will enter into force on 1 April 2000. As far as Switzerland is concerned, pending internal procedures for the ratification of this agreement, it will be applied provisionally from 1 April 2000.

As regards soft drinks, the two parties may decide, before the end of the second year following the entry into force of this agreement, to extend the measures laid down therein on the basis of the provisions of the Free Trade Agreement.

II. Swiss import arrangements

1. The Swiss Confederation will open the following annual tariff quotas for the European Community:

>TABLE>

2. The following year, the quotas will be increased by 10 %.

III. Community import arrangements

1. The Community will open the following annual quotas for Switzerland:

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2. The following year, the quotas will be increased by 10 %.

3. Soft drinks

- the Community will open an annual duty-exempt quota for the Swiss Confederation, for goods classified within CN Codes 2202 10 00 (waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured) and ex 2202 90 10 (other drinks containing sugar), for the following quantity: 75 million l,

- outside this quota allocation, the import duty will be 9,1 %.

- in the following years, if the quota has been used up, it will be increased by 10 % on an annual basis. If the quota has not been used up, soft drinks referred to in the first indent will again be governed by a free trade arrangement.

IV. As regards rules of origin, the provisions of Protocol 3 of the Switzerland-EC Free Trade Agreement will apply.

B. Letter from Switzerland

Brussels, 17 March 2000

Sir,

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

"I have the honour to confirm that the European Community is in agreement with the 'Agreed minutes' attached to this letter concerning a number of changes to the import arrangements applied by the Community and the Swiss Confederation respectively to processed agricultural products, certain of which are covered by Protocol 2 to the 1972 Free Trade Agreement. These changes precede an overall revision of Protocol 2 to be initiated shortly.

I should be obliged if you would confirm that the Government of the Swiss Confederation is in agreement with the contents of this letter."

I have the honour to confirm that my Government is in agreement with the contents of your letter and the proposed date of entry into force of the amendments.

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

For the Government of the Swiss Confederation

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