Agreement in the form of an Exchange of Letters between the European Community and Pakistan pursuant to Article XXVIII of the GATT 1994 relating to the modification of concessions with respect to rice provided for in EC Schedule CXL annexed to the GATT 1994

A. Letter from the European Community

Sir,

Following negotiations between the European Community (EC) and Pakistan under Article XXVIII of GATT 1994 for the modification of concessions with respect to rice provided for in EC Schedule CXL annexed to the General Agreement on Tariffs and Trade 1994 (GATT 1994), the EC agrees to the conclusions as outlined below.

Final import regime

The tariff rate for husked rice (CN code 100620) shall be EUR 65/tonne.

With respect to the import regime of husked rice (CN codes 10062017 and 10062098) of the varieties Kernel (Basmati), Basmati 370, Pusa Basmati and Super Basmati the EC's specific bound rate of duty shall be zero. To that purpose:

a Community control system based on DNA analysis at the border shall be created; Pakistan shall actively cooperate with the EC to set up such a control system and the EC shall provide the appropriate technical assistance in this matter,

it is understood that Basmati rice of the varieties described above is produced in certain geographical areas and that Pakistan will protect Basmati rice as a geographical indication. The EC would welcome an application for protection as a geographical indication of Basmati rice under Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs(1). The EC shall process any such application as expeditiously as possible. The EC shall provide any necessary technical assistance in this matter.

Transitional arrangement

As from 1 September 2004 and until the date of entry into force of the above-mentioned Community control system, the EC shall put in place a transitional regime with regard to husked rice (CN codes 10062017 and 10062098) of the varieties described above based on the following elements.

The EC's autonomous applied rate of duty shall be zero. However, if market disturbance occurs, the EC will consult with Pakistan's competent authorities to agree an appropriate solution. If no agreement is reached, the EC reserves the right to revert to the bound rate of duty of EUR 65/tonne for husked rice (CN code 100620).

General

For the purposes of this agreement:

the EC shall establish separate tariff lines for Basmati rice of the varieties indicated in the agreements with India and Pakistan,

the competent Pakistani authorities shall continue to issue the authenticity certificates prior to the issuance of import licences, meaning that the current system of administration of the certificates of authenticity shall be maintained.

The EC recognises that Pakistan has initial negotiating rights with respect to the concessions specified in the present letter.

This Agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this Agreement shall be applicable from 1 September 2004 .

I would be grateful if you could confirm the agreement of your Government to the above.

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

Hecho en Bruselas, el

V Bruselu dne

Udfærdiget i Bruxelles, den

Geschehen zu Brüssel am

Brüssel,

Έγινε στις Βρυξέλλες, στις

Done at Brussels,

Fait à Bruxelles, le

Fatto a Bruxelles, addiì

Briselÿ,

Priimta Briuselyje,

Kelt Brüsszelben,

Magÿmula fi Brussel,

Gedaan te Brussel,

Sporzÿdzono w Brukseli, dnia

Feito em Bruxelas,

V Bruseli

V Bruslju,

Tehty Brysselissä

Utfärdat i Bryssel den

>REFERENCE TO A GRAPHIC>

Por la Comunidad Europea

Za Evropské spoleèenstvί

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Eiropas Kopienas v>ISO_4>àrd>ISO_4>à

Europos bendrijos vardu

az Európai Közösség részér>ISO_2>õl

G>ISO_3>±all-Komunità Ewropea

Voor de Europese Gemeenschap

W imieniu Wspólnoty Europejskiej

Pela Comunidade Europeia

Za Európske spoloèenstvo

za Evropsko skupnost

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

>REFERENCE TO A GRAPHIC>

B. Letter from the Islamic Republic of Pakistan

Sir,

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

«Following negotiations between the European Community (EC) and Pakistan under Article XXVIII of GATT 1994 for the modification of concessions with respect to rice provided for in EC Schedule CXL annexed to the General Agreement on Tariffs and Trade 1994 (GATT 1994), the EC agrees to the conclusions as outlined below.

Final Import regime

The tariff rate for husked rice (CN code 100620) shall be EUR 65/tonne.

With respect to the import regime of husked rice (CN codes 10062017 and 10062098) of the varieties Kernel (Basmati), Basmati 370, Pusa Basmati and Super Basmati the EC's specific bound rate of duty shall be zero. To that purpose:

a Community control system based on DNA analysis at the border shall be created; Pakistan shall actively cooperate with the EC to set up such a control system and the EC shall provide the appropriate technical assistance in this matter,

it is understood that Basmati rice of the varieties described above is produced in certain geographical areas and that Pakistan will protect Basmati rice as a geographical indication. The EC would welcome an application for protection as a geographical indication of Basmati rice under Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs(2). The EC shall process any such application as expeditiously as possible. The EC shall provide any necessary technical assistance in this matter.

Transitional arrangement

As from 1 September 2004 and until the date of entry into force of the above-mentioned Community control system, the EC shall put in place a transitional regime with regard to husked rice (CN codes 10062017 and 10062098) of the varieties described above based on the following elements.

The EC's autonomous applied rate of duty shall be zero. However, if market disturbance occurs, the EC will consult with Pakistan's competent authorities to agree an appropriate solution. If no agreement is reached, the EC reserves the right to revert to the bound rate of duty of EUR 65/tonne for husked rice (CN code 100620).

General

For the purposes of this agreement:

the EC shall establish separate tariff lines for Basmati rice of the varieties indicated in the agreements with India and Pakistan,

the competent Pakistani authorities shall continue to issue the authenticity certificates prior to the issuance of import licences, meaning that the current system of administration of the certificates of authenticity shall be maintained.

The EC recognises that Pakistan has initial negotiating rights with respect to the concessions specified in the present letter.

This Agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this Agreement shall be applicable from 1 September 2004 .

I would be grateful if you could confirm the agreement of your Government to the above.»

Pakistan has the honour of confirming its agreement with the contents of this letter.

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

Done at Brussels,

Hecho en Bruselas, el

V Bruselu dne

Udfærdiget i Bruxelles, den

Geschehen zu Brüssel am

Brüssel,

Έγινε στις Βρυξέλλες, στις

Fait à Bruxelles, le

Fatto a Bruxelles, addiì

Briselÿ,

Priimta Briuselyje,

Kelt Brüsszelben,

Magÿmula fi Brussel,

Gedaan te Brussel,

Sporzÿdzono w Brukseli, dnia

Feito em Bruxelas,

V Bruseli

V Bruslju,

Tehty Brysselissä

Utfärdat i Bryssel den

>REFERENCE TO A GRAPHIC>

On behalf of Pakistan

En nombre de Pakistán

Za Pákistán

På Pakistans vegne

Im Namen Pakistans

Pakistani nimel

Εξ ονόματος του Πακιστάν

Au nom du Pakistan

Per il Pakistan

Pakist>ISO_4>ànas v>ISO_4>àrd>ISO_4>à

Pakistano vardu

Pakisztán nevében

G>ISO_3>±an-nom tal-Pakistan

Namens Pakistan

W imieniu Pakistanu

Pelo Paquistão

V mene Pakistanu

V imenu Pakistana

Pakistanin puolesta

På Pakistans vägnar

>REFERENCE TO A GRAPHIC>

(1) OJ L 208, 24.7.1992, p. 1. Regulation as last amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).

(2) OJ L 208, 24.7.1992, p. 1. Regulation as last amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).