Agreement in the form of an Exchange of Letters

between the European Community and Australia pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union

A. Letter from the European Community

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Brussels,

Sir,

Following the initiation of negotiations between the European Communities (EC) and Australia under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EC, the following is agreed between the EC and Australia with a view to concluding the negotiations opened following the EC’s notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its schedule for the customs territory of EC 25, the concessions that were included in its previous schedule.

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained in the Annex to this Agreement.

This Agreement shall enter into force on the date on which the EC receives from Australia a duly executed letter of agreement, following consideration by the parties in accordance with their own procedures. The EC shall use its best endeavours to put in place the appropriate implementing measures before 1 January 2006 and under no circumstances later than 1 July 2006.

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

On behalf of the European Community

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ANNEX

- Add 136 tonnes (carcase weight) to the allocation for Australia under the EC tariff rate quota for sheep meat; "meat of sheep or goats, fresh, chilled or frozen" (tariff item number 0204),

- a country allocated (Australia) tariff rate quota 9925 tonnes of raw cane sugar for refining (tariff item number 17011110), in quota rate EUR 98 per tonne,

- add 4003 tonnes (erga omnes) in EC tariff rate quota for "meat of bovine animals, frozen; unseparated or separated forequarters; boneless" and "edible offal of bovine animals, frozen; thick skirt and thin skirt. The meat imported shall be used for processing" (tariff item numbers 02022030, 020230, 02062991),

- add 150 tonnes (product weight) to the allocation for Australia under the EC tariff rate quota for "high quality meat of bovine animals, fresh, chilled or frozen, with or without bone; edible offal of bovine animals, fresh, chilled or frozen" (tariff item numbers ex0201, ex0202, ex02061095 and ex02062991),

- add 461 tonnes to the allocation for Australia under the EC tariff rate quota for Cheddar cheese (tariff item number ex04069021),

- add 1360 tonnes (erga omnes) in the EC tariff rate quota for butter (tariff item numbers 040510, 040590).

In quota rates of the EC 15 shall apply.

B. Letter from Australia

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Brussels,

Sir,

Reference is made to your letter stating:

"Following the initiation of negotiations between the European Communities (EC) and Australia under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EC, the following is agreed between the EC and Australia with a view to concluding the negotiations opened following the EC’s notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its schedule for the customs territory of EC 25, the concessions that were included in its previous schedule.

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained in the Annex to this Agreement.

This Agreement shall enter into force on the date on which the EC receives from Australia a duly executed letter of agreement, following consideration by the parties in accordance with their own procedures. The EC shall use its best endeavours to put in place the appropriate implementing measures before 1 January 2006 and under no circumstances later than 1 July 2006."

I hereby have the honour to express my government’s agreement.

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

On behalf of the Government of Australia

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