COUNCIL DECISION of 10 December 1979 concerning the conclusion of the Multilateral Agreements resulting from the 1973 to 1979 trade negotiations (80/271/EEC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 113 thereof,

Having regard to the recommendation from the Commission,

Whereas the multilateral trade negotiations under the GATT opened pursuant to the Ministerial Declaration adopted in Tokyo on 14 September 1973 resulted in the following Multilateral Agreements: - Geneva (1979) Protocol to the General Agreement on tariffs and trade and the Protocol supplementary to the Geneva (1979) Protocol to the General Agreement on tariffs and trade,

- Arrangement regarding bovine meat,

- International Dairy Arrangement,

- Agreement on technical barriers to trade,

- Agreement on government procurement,

- Agreement on trade in civil aircraft,

- Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on tariffs and trade,

- Agreement on implementation of Article VI of the General Agreement on tariffs and trade and the Addenda annexed thereto,

- Agreement on import licensing procedures,

- Agreement on implementation of Article VII of the General Agreement on tariffs and trade and the Protocol annexed thereto;

Whereas all the reciprocal concessions and undertakings negotiated by the Community and the countries participating in the negotiations, as embodied in the above Multilateral Agreements, constitute an acceptable result,

HAS DECIDED AS FOLLOWS:

Article 1

1. The Geneva (1979) Protocol supplementary to the General Agreement on tariffs and trade and the Protocol to the Geneva (1979) Protocol to the GATT are hereby approved on behalf of the European Economic Community.

2. The following Agreements are hereby approved on behalf of the European Economic Community: - Arrangement regarding bovine meat,

- International Dairy Arrangement,

- Agreement on technical barriers to trade,

- Agreement on government procurement,

- Agreement on trade in civil aircraft,

- Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on tariffs and trade,

- Agreement on implementation of Article VI of the General Agreement on tariffs and trade and the Addenda annexed thereto,

- Agreement on import licensing procedures,

- Agreement on implementation of Article VII of the General Agreement on tariffs and trade and the Protocol annexed thereto.

3. The texts of the Agreements referred to in this Article are annexed to this Decision.

Article 2

The President of the Council is hereby authorized to designate the person empowered to take such steps as are required by the Agreements referred to in Article 1 in order to bind the European Economic Community.

Done at Brussels, 10 December 1979.

For the Council

The President

T. HUSSEY

GENEVA (1979) PROTOCOL TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE

THE CONTRACTING PARTIES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE EUROPEAN ECONOMIC COMMUNITY which participated in the multilateral trade negotiations 1973 to 1979 (hereinafter referred to as "participants"),

HAVING carried out negotiations pursuant to Article XXVIII bis, Article XXXIII and other relevant provisions of the General Agreement on tariffs and trade (hereinafter referred to as "the General Agreement"),

HAVE, through their representatives, AGREED AS FOLLOWS:

1. The schedule of tariff concessions annexed to this Protocol relating to a participant shall become a schedule to the General Agreement relating to that participant on the day on which this Protocol enters into force for it pursuant to paragraph 5.

2. (a) The reductions agreed upon by each participant shall, except as may be otherwise specified in a participant's schedule, be implemented in equal annual rate reductions beginning 1 January 1980 and the total reduction become effective not later than 1 January 1987. A participant which begins rate reductions on 1 July 1980 or on a date between 1 January and 1 July 1980 shall, unless otherwise specified in that participant's schedule, make effective two-eighths of the total reduction to the final rate on that date followed by six equal instalments beginning 1 January 1982. The reduced rate should in each stage be rounded off to the first decimal. The provisions of this paragraph shall not prevent participants from implementing reductions in fewer stages or at earlier dates than indicated above.

(b) The implementation of the annexed schedules in accordance with paragraph 2 (a) above shall, upon request, be subject to multilateral examination by the participants having accepted this Protocol. This would be without prejudice to the rights and obligations of Contracting Parties under the General Agreement.

3. After the schedule of tariff concessions annexed to this Protocol relating to a participant has become a schedule to the General Agreement pursuant to the provisions of paragraph 1, such participant shall be free at any time to withhold or to withdraw in whole or in part the concession in such schedule with respect to any product for which the principal supplier is any other participant or any government having negotiated for accesssion during the multilateral trade negotiations, but the schedule of which, as established in the multilateral trade negotiations, has not yet become a schedule to the General Agreement. Such action can, however, only be taken after written notice of any such withholding or withdrawal of a concession has been given to the Contracting Parties and after consultations have been held, upon request, with any participant or any acceding government, the relevant schedule of tariff concessions relating to which has become a schedule to the General Agreement and which has a substantial interest in the product involved. Any concessions so withheld or withdrawn shall be applied on and after the day on which the schedule of the participant or the acceding government which has the principal supplying interest becomes a schedule to the General Agreement.

4. (a) In each case in which Article II (1) (b) and (c) of the General Agreement refers to the date of that Agreement, the applicable date in respect of each product which is the subject of a concession provided for in a schedule of tariff concessions annexed to this Protocol shall be the date of this Protocol, but without prejudice to any obligations in effect on that date.

(b) For the purpose of the reference in Article II (6) (a) of the General Agreement to the date of that Agreement, the applicable date in respect of a schedule of tariff concessions annexed to this Protocol shall be the date of this Protocol.

5. (a) This Protocol shall be open for acceptance by participants, by signature or otherwise, until 30 June 1980.

(b) This Protocol shall enter into force on 1 January 1980 for those participants which have accepted it before that date, and for participants accepting after that date, it shall enter into force on the dates of acceptance.

6. This Protocol shall be deposited with the Director-General to the Contracting Parties who shall promptly furnish a certified copy thereof and a notification of each acceptance thereof, pursuant to paragraph 5, to each Contracting Party to the General Agreement and to the European Economic Community.

7. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.

Done at Geneva this thirtieth day of June one thousand nine hundred and seventy-nine, in a single copy, in the English and French languages, both texts being authentic. The schedules annexed hereto are authentic in the English, French and Spanish language as specified in each schedule.

Note relating to the Geneva (1979) Protocol

1. The list of tariff concessions deposited by the Community in Geneva on 13 July 1979 will be published is a subsequent issue of the Official Journal of the European Communities.

2. The lists of concessions of other countries, also annexed to the Protocol, may be found in a document published by the GATT Secretariat and entitled "Geneva (1979) Protocol annexed to the General Agreement on tariffs and trade" (Volumes I to IV), and may be consulted at the GATT Secretariat in Geneva.

PROTOCOL SUPPLEMENTARY TO THE GENEVA (1979) PROTOCOL TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE

THE CONTRACTING PARTIES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE EUROPEAN ECONOMIC COMMUNITY which participated in the multilateral trade negotiations 1973 to 1979 (hereinafter referred to as "participants"),

CONSIDERING that a part of the tariff negotiations carried out in the multilateral trade negotiations have been completed subsequent to the establishment of the Geneva (1979) Protocol to the General Agreement on tariffs and trade (hereinafter referred to as "the Geneva (1979) Protocol");

HAVING agreed to put into effect the results of these negotiations which involve concessions or contributions additional to those included in the schedules annexed to the Geneva (1979) Protocol or which concern concessions or contributions made by participants not having a schedule annexed to that Protocol;

RECOGNIZING that the results of these negotiations also involve some concessions offered in negotiations leading to the establishment of schedules annexed to the Geneva (1979) Protocol;

HAVING agreed to annex to the General Agreement on tariffs and trade the schedules of concessions which it was not possible to include in the Geneva (1979) Protocol;

HAVE through their representatives AGREED AS FOLLOWS:

1. The schedule of tariff concessions annexed to this Protocol (1) relating to a participant shall become a schedule to the General Agreement on tariffs and trade (hereinafter referred to as "the General Agreement") relating to that participant on the day on which this Protocol enters into force for it pursuant to paragraph 5.

2. (a) The reductions agreed upon by each participant shall, except as may be otherwise specified in a participant's schedule, be implemented in equal annual rate reductions beginning 1 January 1980 and the total reduction become effective not later than 1 January 1987. A participant which begins rate reductions on 1 July 1980 or a date between 1 January and 1 July 1980 shall, unless otherwise specified in that participant's schedule, make effective two-eighths of the total reduction to the final rate on that date followed by six equal instalments beginning 1 January 1982. The reduced rate should in each stage be rounded off to the first decimal. The provisions of this paragraph shall not prevent participants from implementing reductions in fewer stages or at earlier dates than indicated above.

(b) The implementation of the annexed schedules in accordance with paragraph 2 (a) above shall, upon request, be subject to multilateral examination by the participants having accepted this Protocol. This would be without prejudice to the rights and obligations of Contracting Parties under the General Agreement.

3. After the schedule of tariff concessions annexed to this Protocol relating to a participant has become a schedule to the General Agreement pursuant to the provisions of paragraph 1, such participant shall be free at any time to withhold or to withdraw in whole or in part the concession in such schedule with respect to any product for which the principal supplier is any other participant or any government having negotiated for accession during the multilateral trade negotiations, but the schedule of which, as established in the multilateral trade negotiations, has not yet become a schedule to the General Agreement. Such action can, however, only be taken after written notice of any such withholding or withdrawal of a concession has been given to the Contracting Parties and after consultations have been held, upon request, with any participant or any acceding government, the relevant schedule of tariff concessions relating to which has become a schedule to the General Agreement and which has a substantial interest in the product involved. Any concessions so withheld or withdrawn shall be applied as soon as possible and not later than the 30th day following the day on which the schedule of the participant or the (1)The EEC list, annexed to this Supplementary Protocol, will be published in a subsequent issue of the Official Journal of the European Communities.

The lists of other countries, annexed to the Supplementary Protocol, may be consulted at the GATT Secretariat in Geneva.

acceding government which has the principal supplying interest becomes a schedule to the General Agreement.

4. (a) In each case in which Article II (1) (b) and (c) of the General Agreement refers to the date of that Agreement, the applicable date in respect of each product which is the subject of a concession provided for in a schedule of tariff concessions annexed to this Protocol shall be the date of this Protocol, but without prejudice to any obligations in effect on that date.

(b) For the purpose of the reference in Article II (6) (a) of the General Agreement to the date of that Agreement, the applicable date in respect of a schedule of tariff concessions annexed to this Protocol shall be the date of this Protocol.

5. (a) This Protocol shall be open for acceptance by participants, by signature or otherwise, until 30 June 1980.

(b) This Protocol shall enter into force on 1 January 1980 for those participants which have accepted it on or before that date, and for participants accepting after that date, it shall enter into force on the dates of acceptance.

6. This Protocol shall be deposited with the Director-General to the Contracting Parties who shall promptly furnish a certified copy thereof and a notification of each ecceptance thereof, pursuant to paragraph 5, to each Contracting Party to the General Agreement and to the European Economic Community.

7. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.

Done at Geneva this twenty-second day of November, one thousand nine hundred and seventy-nine in a single copy, in the English and French languages, both texts being authentic. The schedules annexed hereto are authentic in the English, French and Spanish language as specified in each Schedule.

ARRANGEMENT REGARDING BOVINE MEAT

PREAMBLE

CONVINCED that increased international cooperation should be carried out in such a way as to contribute to the achievement of greater liberalization, stability and expansion in international trade in meat and live animals;

TAKING into account the need to avoid serious disturbances in international trade in bovine meat and live animals;

RECOGNIZING the importance of production and trade in bovine meat and live animals for the economies of many countries, especially for certain developed and developing countries;

MINDFUL of their obligations to the principles and objectives of the General Agreement on tariffs and trade (hereinafter referred to as "General Agreement" or "GATT") (1);

DETERMINED, in carrying out the aims of this Arrangement to implement the principles and objectives agreed upon in the Tokyo Declaration of Ministers, dated 14 September 1973 concerning the multilateral trade negotiations, in particular as concerns special and more favourable treatment for developing countries;

THE PARTICIPANTS IN THE PRESENT ARRANGEMENT HAVE, through their representatives, AGREED AS FOLLOWS:

PART ONE GENERAL PROVISIONS

Article I

Objectives

The objectives of this Arrangement shall be: 1. to promote the expansion, ever-greater liberalization and stability of the international meat and livestock market by facilitating the progressive dismantling of obstacles and restrictions to world trade in bovine meat and live animals, including those which compartmentalize this trade, and by improving the international framework of world trade to the benefit of both consumer and producer, importer and exporter;

2. to encourage greater international cooperation in all aspects affecting the trade in bovine meat and live animals with a view in particular to greater rationalization and more efficient distribution of resources in the international meat economy;

3. to secure additional benefits for the international trade of developing countries in bovine meat and live animals through an improvement in the possibilities for these countries to participate in the expansion of world trade in these products by means of inter alia: (a) promoting long-term stability of prices in the context of an expanding world market for bovine meat and live animals ; and

(b) promoting the maintenance and improvement of the earnings of developing countries that are exporters of bovine meat and live animals;

the above with a view thus to deriving additional earnings, by means of securing long-term stability of markets for bovine meat and live animals;

4. to further expand trade on a competitive basis taking into account the traditional position of efficient producers.

Article II

Product coverage

This Arrangement applies to bovine meat. For the purpose of this Arrangement, the term "bovine meat" is considered to include: (1)This provision applies only among GATT Contracting Parties. >PIC FILE= "T0012816"> and any other product that may be added by the International Meat Council, as established under the terms of Article V of this Arrangement, in order to accomplish the objectives and provisions of this Arrangement.

Article III

Information and market monitoring

1. All participants agree to provide, regularly and promptly to the Council, the information which will permit the Council to monitor and assess the overall situation of the world market for meat and the situation of the world market for each specific meat.

2. Participating developing countries shall furnish the information available to them. In order that these countries may improve their data collection mechanisms, developed participants, and any developing participants able to do so, shall consider sympathetically any request to them for technical assistance.

3. The information that the participants undertake to provide pursuant to paragraph 1 of this Article, according to the modalities that the Council shall establish, shall include data on past performance and current situation and an assessment of the outlook regarding production (including the evolution of the composition of herds), consumption, prices, stocks of and trade in the products referred to in Article II, and any other information deemed necessary by the Council, in particular on competing products. Participants shall also provide information on their domestic policies and trade measures including bilateral and plurilateral commitments in the bovine sector, and shall notify as early as possible any changes in such policies and measures that are likely to affect international trade in live bovine animals and meat. The provisions of this paragraph shall not require any participant to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises, public or private.

4. The secretariat of the Arrangement shall monitor variations in market data, in particular herd sizes, stocks, slaughterings and domestic and international prices, so as to permit early detection of the symptoms of any serious imbalance in the supply and demand situation. The secretariat shall keep the Council apprized of significant developments on world markets, as well as prospects for production, consumption, exports and imports.

Note:

It is understood that under the provisions of this Article, the Council instructs the secretariat to draw up, and keep up to date, an inventory of all measures affecting trade in bovine meat and live animals, including commitments resulting from bilateral, plurilateral and multilateral negotiations.

Article IV

Functions of the International Meat Council and cooperation between the participants to this Arrangement

1. The Council shall meet in order to: (a) evaluate the world supply and demand situation and outlook on the basis of an interpretative analysis of the present situation and of probable developments drawn up by the secretariat of the Arrangement, on the basis of documentation provided in conformity with Article III of the present Arrangement, including that relating to the operation of domestic and trade policies and of any other information available to the secretariat;

(b) proceed to a comprehensive examination of the functioning of the present Arrangement;

(c) provide an opportunity for regular consultation on all matters affecting international trade in bovine meat.

2. If after evaluation of the world supply and demand situation referred to in paragraph 1 (a) of this Article ; or after examination of all relevant information pursuant to Article III (3), the Council finds evidence of a serious imbalance or a threat thereof in the international meat market, the Council will proceed by consensus, taking into particular account the situation in developing countries, to identify, for consideration by governments, possible solutions to remedy the situation consistent with the principles and rules of GATT.

3. Depending on whether the Council considers that the situation defined in paragraph 2 of this Article is temporary or more durable, the measures referred to in paragraph 2 of this Article could include short-, medium-, or long-term measures taken by importers as well as exporters to contribute to improve the overall situation of the world market consistent with the objectives and aims of the Arrangement, in particular the expansion, ever-greater liberalization, and stability of the international meat and livestock markets.

4. When considering the suggested measures pursuant to paragraphs 2 and 3 of this Article, due consideration shall be given to special and more favourable treatment to developing countries, where this is feasible and appropriate.

5. The participants undertake to contribute to the fullest possible extent to the implementation of the objectives of this Arrangement set forth in Article I. To this end, and consistent with the principles and rules of the General Agreement, participants shall, on a regular basis, enter into the discussions provided in Article IV (1) (c) with a view to exploring the possibilities of achieving the objectives of the present Arrangement, in particular the further dismantling of obstacles to world trade in bovine meat and live animals. Such discussions should prepare the way for subsequent consideration of possible solutions of trade problems consistent with the rules and principles of the GATT, which could be jointly accepted by all the parties concerned, in a balanced context of mutual advantages.

6. Any participant may raise before the Council any matter (1) affecting this Arrangement inter alia for the same purposes provided for in paragraph 2 of this Article. The Council shall, at the request of a participant, meet within a period of not more than 15 days to consider any matter affecting the present Arrangement.

PART TWO ADMINISTRATION OF THE ARRANGEMENT

Article V

1. International Meat Council

An International Meat Council shall be established within the framework of the GATT. The Council shall comprise representatives of all participants to the Arrangement and shall carry out all the functions which are necessary to implement the provisions of the Arrangement. The Council shall be serviced by the GATT secretariat. The Council shall establish its own rules of procedure, in particular the modalities for consultations provided for in Article IV.

2. Regular and special meetings

The Council shall normally meet at least twice each year. However, the chairman may call a special meeting of the Council either on his own initiative, or at the request of a participant to this Arrangement.

3. Decisions

The Council shall reach its decisions by consensus. The Council shall be deemed to have decided on a matter submitted for its consideration if no member of the Council formally objects to the acceptance of a proposal.

4. Cooperation with other organizations

The Council shall make whatever arrangements are appropriate for consultation or cooperation with intergovernmental and non-governmental organizations.

5. Admission of observers

(a) The Council may invite any non-participating country to be represented at any of its meetings as an observer.

(b) The Council may also invite any of the organizations referred to in paragraph 4 of this Article to attend any of its meetings as an observer.

PART THREE FINAL PROVISIONS

Article VI

1. Acceptance (2)

(a) This Arrangement is open for acceptance, by signature or otherwise, by governements members of (1)Note : It is confirmed that the term "matter" in this paragraph includes any matter which is covered by Multilateral Agreements negotiated within the framework of the multilateral trade negotiations, in particular those bearing on export and import measures. It is further confirmed that the provisions of Article IV (6), and this footnote are without prejudice to the rights and obligations of the parties to such agreements. (2)The terms "acceptance" or "accepted" as used in this Article include the completion of any domestic procedures necessary to implement the provisions of this Arrangement. the United Nations, or of one of its specialized agencies and by the European Economic Community.

(b) Any government (1) accepting this Arrangement may at the time of acceptance make a reservation with regard to its acceptance of any of the provisions in the present Arrangement. This reservation is subject to the approval of the participants.

(c) This Arrangement shall be deposited with the Director-General to the Contracting Parties to the GATT who shall promptly furnish a certified copy thereof and a notification of each acceptance thereof to each participant. The texts of this Arrangement in the English, French and Spanish languages shall all be equally authentic.

(d) The entry into force of this Arrangement shall entail the abolition of the International Meat Consultative Group.

2. Provisional application

Any government may deposit with the Director-General to the Contracting Parties to the GATT a declaration of provisional application of this Arrangement. Any government depositing such a declaration shall provisionally apply this Arrangement and be provisionally regarded as participating in this Arrangement.

3. Entry into force

This Arrangement shall enter into force, for those participants having accepted it, on 1 January 1980. For participants accepting this Arrangement after that date, it shall be effective from the date of their acceptance.

4. Validity

This Arrangement shall remain in force for three years. The duration of this Arrangement shall be extended for further periods of three years at a time, unless the Council, at least 80 days prior to each date of expiry, decides otherwise.

5. Amendment

Except where provision for modification is made elsewhere in this Arrangement the Council may recommend an amendment to the provisions of this Arrangement. The proposed amendment shall enter into force upon acceptance by the governments of all participants.

6. Relationship between the Arrangement and the GATT

Nothing in this Arrangement shall affect the rights and obligations of participants under the GATT (2).

7. Withdrawal

Any participant may withdraw from this Arrangement. Such withdrawal shall take effect upon the expiration of 60 days from the date on which written notice of withdrawal is received by the Director-General to the Contracting Parties to the GATT. (1)For the purpose of this Arrangement, the term "government" is deemed to include the competent authorities of the European Economic Community. (2)This provision applies only among GATT Contracting Parties.

INTERNATIONAL DAIRY ARRANGEMENT

PREAMBLE

RECOGNIZING the importance of milk and dairy products to the economy of many countries (1) in terms of production, trade and consumption;

RECOGNIZING the need, in the mutual interests of producers and consumers, and of exporters and importers, to avoid surpluses and shortages, and to maintain prices at an equitable level;

NOTING the diversity and interdependence of dairy products;

NOTING the situation in the dairy products market, which is characterized by very wide fluctuations and the proliferation of export and import measures;

CONSIDERING that improved cooperation in the dairy products sector contributes to the attainment of the objectives of expansion and liberalization of world trade, and the implementation of the principles and objectives concerning developing countries agreed upon in the Tokyo Declaration of Ministers dated 14 September 1973 concerning the multilateral trade negotiations;

DETERMINED to respect the principles and objectives of the General Agreement on tariffs and trade (2) (hereinafter referred to as "General Agreement" or "GATT") and, in carrying out the aims of this Arrangement, effectively to implement the principles and objectives agreed upon in the said Tokyo Declaration;

The participants to the present Arrangement have, through their representatives, agreed as follows:

PART ONE GENERAL PROVISIONS

Article I

Objectives

The objectives of this Arrangement shall be, in accordance with the principles and objectives agreed upon in the Tokyo Declaration of Ministers dated 14 September 1973 concerning the multilateral trade negotiations, - to achieve the expansion and ever-greater liberalization of world trade in dairy products under market conditions as stable as possible, on the basis of mutual benefit to exporting and importing countries;

- to further the economic and social development of developing countries.

Article II

Product coverage

1. This Arrangement applies to the dairy products sector. For the purpose of this Arrangement, the term "dairy products" is deemed to include the following products, as defined in the Customs Cooperation Council Nomenclature: >PIC FILE= "T0012817"> (1)In this Arrangement and in the Protocols annexed thereto, the term "country" is deemed to include the European Economic Community. (2)This preambular provision applies only among participants that are Contracting Parties to the GATT.

2. The International Dairy Products Council established in terms of Article VII (1) (a) of this Arrangement (hereinafter referred to as the Council) may decide that the Arrangement is to apply to other products in which dairy products referred to in paragraph 1 of this Article have been incorporated if it deems their inclusion necessary for the implementation of the objectives and provisions of this Arrangement.

Article III

Information

1. The participants agree to provide regularly and promptly to the Council the information required to permit it to monitor and assess the overall situation of the world market for dairy products and the world market situation for each individual dairy product.

2. Participating developing countries shall furnish the information available to them. In order that these participants may improve their data collection mechanisms, developed participants, and any developing participants able to do so, shall consider sympathetically any request to them for technical assistance.

3. The information that the participants undertake to provide pursuant to paragraph 1 of this Article, according to the modalities that the Council shall establish, shall include data on past performance, current situation and outlook regarding production, consumption, prices, stocks and trade, including transactions other than normal commercial transactions, in respect of the products referred to in Article II of this Arrangement, and any other information deemed necessary by the Council. Participants shall also provide information on their domestic policies and trade measures, and on their bilateral, plurilateral or multilateral commitments, in the dairy sector and shall make known, as early as possible, any changes in such policies and measures that are likely to affect international trade in dairy products. The provisions of this paragraph shall not require any participant to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises, public or private.

Note:

It is understood that under the provisions of this Article, the Council instructs the secretariat to draw up, and keep up to date, an inventory of all measures affecting trade in dairy products, including commitments resulting from bilateral, plurilateral and multilateral negotiations.

Article IV

Functions of the International Dairy Products Council and cooperation between the participants to this Arrangement

1. The Council shall meet in order to: (a) make an evaluation of the situation in and outlook for the world market for dairy products, on the basis of a status report prepared by the secretariat with the documentation furnished by participants in accordance with Article III of this Arrangement, information arising from the operation of the Protocols covered by Article VI of this Arrangement, and any other information available to it;

(b) review the functioning of this Arrangement.

2. If, after an evaluation of the world market situation and outlook referred to in paragraph 1 (a) of this Article, the Council finds that a serious market disequilibrium, or threat of such a disequilibrium, which affects or may affect international trade, is developing for dairy products in general or for one or more products, the Council will proceed to identify, taking particular account of the situation of developing countries, possible solutions for consideration by governments.

3. Depending on whether the Council considers that the situation defined in paragraph 2 of this Article is temporary or more durable, the measures referred to in paragraph 2 of this Article could include short-, medium- or long-term measures to contribute to improve the overall situation of the world market.

4. When considering measures that could be taken pursuant to paragraphs 2 and 3 of this Article, due account shall be taken of the special and more favourable treatment, to be provided for developing countries, where this is feasible and appropriate.

5. Any participant may raise before the Council any matter (1) affecting this Arrangement, inter alia, for the same purposes provided for in paragraph 2 of this Article. Each participant shall promptly afford adequate opportunity for consultation regarding such matter (1) affecting this Arrangement.

6. If the matter affects the application of the specific provisions of the Protocols annexed to this (1)It is confirmed that the term "matter" in this paragraph includes any matter which is covered by multilateral agreements negotiated within the framework of the multilateral trade negotiations, in particular those bearing on export and import measures. It is further confirmed that the provisions of Article IV (5) and this footnote are without prejudice to the rights and obligations of the parties to such agreements. Arrangement, any participant which considers that its trade interests are being seriously threatened and which is unable to reach a mutually satisfactory solution with the other participant or participants concerned, may request the chairman of the Committee for the relevant Protocol established under Article VII (2) (a) of this Arrangement, to convene a special meeting of the Committee on an urgent basis so as to determine as rapidly as possible, and within four working days if requested, any measures which may be required to meet the situation. If a satisfactory solution cannot be reached, the Council shall, at the request of the chairman of the Committee for the relevant Protocol, meet within a period of not more than 15 days to consider the matter with a view to facilitating a satisfactory solution.

Article V

Food aid and transactions other than normal commercial transactions

1. The participants agree: (a) In cooperation with FAO and other interested organizations, to foster recognition of the value of dairy products in improving nutritional levels and of ways and means through which they may be made available for the benefit of developing countries.

(b) In accordance with the objectives of this Arrangement, to furnish, within the limits of their possibilities, dairy products to developing countries by way of food aid. Participants should notify the Council in advance each year, as far as practicable, of the scale, quantities and destinations of their proposed contributions of such food aid. Participants should also give, if possible, prior notification to the Council of any proposed amendments to the notified programme. It would be understood that contributions could be made bilaterally or through joint projects or through multilateral programmes, particularly the World Food Programme.

(c) Recognizing the desirability of harmonizing their efforts in this field, as well as the need to avoid harmful interference with normal patterns of production, consumption and international trade, to exchange views in the Council on their arrangements for the supply and requirements of dairy products as food aid or on concessional terms.

2. Donated exports to developing countries, exports destined for relief purposes or welfare purposes in developing countries, and other transactions which are not normal commercial transactions shall be effected in accordance with the FAO "Principles of surplus disposal and consultative obligations". Consequently, the Council shall cooperate closely with the Consultative Subcommittee on Surplus Disposal.

3. The Council shall, in accordance with conditions and modalities that it will establish, upon request, discuss, and consult on, all transactions other than normal commercial transactions and other than those covered by the Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on tariffs and trade.

PART TWO SPECIFIC PROVISIONS

Article VI

Protocols

1. Without prejudice to the provisions of Articles I to V of this Arrangement, the products listed below shall be subject to the provisions of the Protocols annexed to this Arrangement:

Annex I : Protocol regarding certain milk powders

Milk powder and cream powder, excluding whey powder

Annex II : Protocol regarding milk fat

Milk fat

Annex III : Protocol regarding certain cheeses

Certain cheeses

PART THREE ADMINISTRATION OF THE ARRANGEMENT

Article VII

1. International Dairy Products Council (a) An International Dairy Products Council shall be established within the framework of the GATT. The Council shall comprise representatives of all participants to the Arrangement and shall carry out all the functions which are necessary to implement the provisions of the Arrangement. The Council shall be serviced by the GATT secretariat. The Council shall establish its own rules of procedure.

(b) Regular and special meetings

The Council shall normally meet at least twice each year. However, the chairman may call a special meeting of the Council either on his own initiative, at the request of the Committees established under paragraph 2 (a) of this Article, or at the request of a participant to this Arrangement.

(c) Decisions

The Council shall reach its decisions by consensus. The Council shall be deemed to have decided on a matter submitted for its consideration if no member of the Council formally objects to the acceptance of a proposal.

(d) Cooperation with other organizations

The Council shall make whatever arrangements are appropriate for consultation or cooperation with intergovernmental and non-governmental organizations.

(e) Admission of observers (i) The Council may invite any non-participating country to be represented at any meeting as an observer.

(ii) The Council may also invite any of the organizations referred to in paragraph 1 (d) of this Article to attend any meeting as an observer.

2. Committees

(a) The Council shall establish a Committee to carry out all the functions which are necessary to implement the provisions of the Protocol regarding certain milk powders, a Committee to carry out all the functions which are necessary to implement the provisions of the Protocol regarding milk fat and a Committee to carry out all the funtions which are necessary to implement the provisions of the Protocol regarding certain cheeses. Each of these Committees shall comprise representatives of all participants to the relevant Protocol. The Committees shall be serviced by the GATT secretariat. They shall report to the Council on the exercise of their functions.

(b) Examination of the market situation

The Council shall make the necessary arrangements, determining the modalities for the information to be furnished under Article III of this Arrangement, so that - the Committee of the Protocol regarding certain milk powders may keep under constant review the situation in and the evolution of the international market for the products covered by this Protocol, and the conditions under which the provisions of this Protocol are applied by participants, taking into account the evolution of prices in international trade in each of the other dairy products having implications for the trade in products covered by this Protocol,

- the Committee of the Protocol regarding milk fat may keep under constant review the situation in and the evolution of the international market for the products covered by this Protocol, and the conditions under which the provisions of this Protocol are applied by participants, taking into account the evolution of prices in international trade in each of the other dairy products having implications for the trade in products covered by this Protocol,

- the Committee of the Protocol regarding certain cheeses may keep under constant review the situation in and the evolution of the international market for the products covered by this Protocol, and the conditions under which the provisions of this Protocol are applied by participants, taking into account the evolution of prices in international trade in each of the other dairy products having implications for the trade in products covered by this Protocol.

(c) Regular and special meetings

Each Committee shall normally meet at least once each quarter. However, the chairman of each Committee may call a special meeting of the Committee on his own initiative or at the request of any participant.

(d) Decisions

Each Committee shall reach its decisions by consensus. A Committee shall be deemed to have decided on a matter submitted for its consideration if no member of the Committee formally objects to the acceptance of a proposal.

PART FOUR FINAL PROVISIONS

Article VIII

1. Acceptance (1)

(a) This Arrangement is open for acceptance, by signature or otherwise, by governments members of the United Nations, or of one of its specialized agencies and by the European Economic Community.

(b) Any government (2) accepting this Arrangement may at the time of acceptance make a reservation with regard to its acceptance of any of the Protocols annexed to the Arrangement. This reservation is subject to the approval of the participants.

(c) This Arrangement shall be deposited with the Director-General to the Contracting Parties to the GATT who shall promptly furnish a certified copy thereof and a notification of each acceptance thereof to each participant. The texts of this Arrangement in the English, French and Spanish languages shall all be equally authentic.

(d) Acceptance of this Arrangement shall carry denunciation of the Arrangement concerning certain dairy products, done at Geneva on 12 January 1970 which entered into force on 14 May 1970, for participants having accepted that Arrangement and denunciation of the Protocol relating to milk fat, done at Geneva on 2 April 1973 which entered into force on 14 May 1973, for participants having accepted that Protocol. Such denunciation shall take effect on the date of entry into force of this Arrangement.

2. Provisional application

Any government may deposit with the Director-General to the Contracting Parties to the GATT a declaration of provisional application of this Arrangement. Any government depositing such a declaration shall provisionally apply this Arrangement and be provisionally regarded as participating in this Arrangement.

3. Entry into force

(a) This Arrangement shall enter into force, for those participants having accepted it, on 1 January 1980. For participants accepting this Arrangement after that date, it shall be effective from the date of their acceptance.

(b) The validity of contracts entered into before the date of entry into force of this Arrangement is not affected by this Arrangement.

4. Validity

This Arrangement shall remain in force for three years. The duration of this Arrangement shall be extended for further periods of three years at a time, unless the Council, at least 80 days prior to each date of expiry, decides otherwise.

5. Amendment

Except where provision for modification is made elsewhere in this Arrangement the Council may recommend an amendment to the provisions of this Arrangement. The proposed amendment shall enter into force upon acceptance by the governments of all participants.

6. Relationship between the Arrangement and the Annexes

The following shall be deemed to be an integral part of this Arrangement, subject to the provisions of paragraph 1 (b) of this Article: - the Protocols mentioned in Article VI of this Arrangement and contained in its Annexes I, II and III,

- the lists of reference points mentioned in Article 2 of the Protocol regarding certain milk powders, Article 2 of the Protocol regarding milk fat, and Article 2 of the Protocol regarding certain cheeses, contained in Annexes Ia, IIa and IIIa respectively,

- the schedules of price differentials according to milk fat content mentioned in Article 3 (4), note 3 of the Protocol regarding certain milk powders and (1)The terms "acceptance" or "accepted" as used in this Article include the completion of any domestic procedures necessary to implement the provisions of this Arrangement. (2)For the purpose of this Arrangement, the term "government" is deemed to include the competent authorities of the European Economic Community. Article 3 (4), note 1, of the Protocol regarding milk fat, contained in Annexes Ib and IIb respectively,

- the register of processes and control measures referred to in Article 3 (5) of the Protocol regarding certain milk powders, contained in Annex Ic.

7. Relationship between the Arrangement and the GATT

Nothing in this Arrangement shall affect the rights and obligations of participants under the General Agreement on Tariffs and Trade (1).

8. Withdrawal

(a) Any participant may withdraw from this Arrangement. Such withdrawal shall take effect upon the expiration of 60 days from the day on which written notice of withdrawal is received by the Director-General to the Contracting Parties to the GATT.

(b) Subject to such conditions as may be agreed upon by the participants, any participant may withdraw from any of the Protocols annexed to this Arrangement. Such withdrawal shall take effect upon the expiration of 60 days from the day on which written notice of withdrawal is received by the Director-General to the Contracting Parties to the GATT. (1)This provision applies only among participants that are Contracting Parties to the GATT.

ANNEX I PROTOCOL REGARDING CERTAIN MILK POWDERS

PART ONE

Article 1

Product coverage

This Protocol applies to milk powder and cream powder falling under CCCN heading No 04.02, excluding whey powder.

PART TWO

Article 2

Pilot products

1. For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following descriptions: >PIC FILE= "T0012819"> >PIC FILE= "T0012820">

Article 3

Minimum prices

Level and observance of minimum prices

1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.

2. (a) The minimum price levels set out in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.

(b) The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at: (i) US$ 425 per tonne for the skimmed-milk powder defined in Article 2 of this Protocol;

(ii) US$ 725 per tonne for the whole milk powder defined in Article 2 of this Protocol;

(iii) US$ 425 per tonne for the buttermilk powder defined in Article 2 of this Protocol.

3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.

(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2 (b) of the present Article and the dairy support levels in the major producing participants.

Adjustment of minimum prices

4. If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions: - Milk fat content:

If the milk fat content of the milk powders described in Article 1 of the present Protocol excluding buttermilk powder (1) differs from the milk fat content of the pilot products as defined in Article 2 (1) (a) and (b) of the present Protocol, then for each full percentage point of milk fat as from 2 %, there shall be an upward adjustment of the minimum prices in proportion to the difference between the minimum prices established for the pilot products defined in Article 2 (1) (a) and (b) of the present Protocol (2).

- Packaging:

If the products are offered otherwise than in packages normally used in the trade, of a net content by weight of not less than 25 kg or 50 lbs, as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.

- Terms of sale:

If sold on terms other than fob from the exporting country or free-at-frontier exporting country (3), the minimum prices shall be calculated on the basis of the minimum fob prices specified in paragraph 2 (b) of this Article, plus the real and justified costs of the services provided ; if the terms of the sale include credit, this shall be charged for at the prevailing commercial rates in the country concerned.

Exports and imports of skimmed-milk powder and buttermilk powder for purposes of animal feed

5. By derogation from the provisions of paragraphs 1 to 4 of this Article participants may, under the conditions defined below, export or import, as the case may be, skimmed-milk powder and buttermilk powder for purposes of animal feed at prices below the minimum prices provided for in this Protocol for these products. Participants may make use of this possibility only to the extent that they subject the products exported or imported to the processes and control measures which will be applied in the country of export or destination so as to ensure that the skimmed-milk powder and buttermilk powder thus exported or imported are used exclusively for animal feed. These processes and control measures shall have been approved by the Committee and recorded in a register established by it (4). Participants wishing to make use of the provisions of this paragraph shall give advance notification of their intention to do so to the Committee which shall meet, at the request of a participant, to examine the market situation. The participants shall furnish the necessary information concerning their transactions in respect of skimmed-milk powder and (1)As defined in Article 2 (1) (c) of this Protocol. (2)See Annex Ib, "Schedule of price differentials according to milk fat content". (3)See Article 2. (4)See Annex Ic, "Register of Processes and Control Measures". It is understood that exporters would be permitted to ship skimmed-milk powder and buttermilk powder for animal feed purposes in an unaltered state to importers which have had their processes and control measures inserted in the Register. In this case, exporters would inform the Committee of their intention to ship unaltered skimmed-milk powder and/or buttermilk powder for animal feed purposes to those importers which have their processes and control measures registered. buttermilk powder for purposes of animal feed, so that the Committee may follow developments in this sector and periodically make forecasts concerning the evolution of this trade.

Special conditions of sales

6. Participants undertake within the limit of their institutional possibilities to ensure that practices such as those referred to in Article 4 of this Protocol do not have the effect of directly or indirectly bringing the export prices of the products subject to the minimum price provisions below the agreed minimum prices.

Field of application

7. For each participant, this Protocol is applicable to exports of the products specified in Article 1 of this Protocol manufactured or repacked inside its own customs territory.

Transactions other than normal commercial transactions

8. The provisions of paragraphs 1 to 7 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes or food-related development purposes or welfare purposes in developing countries.

Article 4

Provision of information

In cases where prices in international trade of the products covered by Article 1 of this Protocol are approaching the minimum prices mentioned in Article 3 (2) (b) of this Protocol, and without prejudice to the provisions of Article III of the Arrangement, participants shall notify to the Committee all the relevant elements for evaluating their own market situation and, in particular, credit or loan practices, twinning with other products, barter or three-sided transactions, refunds or rebates, exclusivity contracts, packaging costs and details of the packaging, so that the Committee can make a verification.

Article 5

Obligations of exporting participants

Exporting participants agree to use their best endeavours, in accordance with their institutional possibilities, to supply on a priority basis the normal commercial requirements of developing importing participants, especially those used for food-related development purposes and welfare purposes.

Article 6

Cooperation of importing participants

1. Participants which import products covered by Article 1 of this Protocol undertake in particular: (a) to cooperate in implementing the minimum prices objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum prices;

(b) without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;

(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Protocol.

2. Paragraph 1 of this Article shall not apply to imports of skimmed-milk powder and buttermilk powder for purposes of animal feed, provided that such imports are subject to the measures and procedures provided for in Article 3 (5) of this Protocol.

PART THREE

Article 7

Derogations

Upon request by a participant, the Committee shall have the authority to grant derogations from the provisions of Article 3 (1) to (5) of this Protocol in order to remedy difficulties which observance of minimum prices could cause certain participants. The Committee shall pronounce on such a request within three months from the date of the request.

Article 8

Emergency action

Any participant, which considers that its interests are seriously endangered by a country not bound by this Protocol, can request the chairman of the Committee to convene an emergency meeting of the Committee within two working days to determine and decide whether measures would be required to meet the situation. If such a meeting cannot be arranged within the two working days and the commercial interests of the participant concerned are likely to be materially prejudiced, that participant may take unilateral action to safeguard its position, on the condition that any other participants likely to be affected are immediately notified. The chairman of the Committee shall also be formally advised immediately of the full circumstances of the case and shall be requested to call a special meeting of the Committee at the earliest possible moment.

ANNEX Ia List of reference points

In accordance with the provisions of Article 2 of this Protocol, the following reference points are designated for the countries listed below:

Austria : Antwerp, Hamburg, Rotterdam

Finland : Antwerp, Hamburg, Rotterdam

Norway : Antwerp, Hamburg, Rotterdam

Sweden : Antwerp, Hamburg, Rotterdam

Poland : Antwerp, Hamburg, Rotterdam

ANNEX Ib Schedule of price differentials according to milk fat content

>PIC FILE= "T0012821"> >PIC FILE= "T0012822">

ANNEX Ic Register of processes and control measures

In accordance with the provisions of Article 3 (5) of this Protocol, the following processes and control measures (1) are approved for the participants listed below:

Australia

Austria

Canada

European Economic Community

Finland

Japan

New Zealand

Norway

Spain

Switzerland (1)The processes and control measures are not included here. They may be consulted in the certified text of the International Dairy Arrangement which is available in the General Secretariat of the Council of the European Communities.

ANNEX II PROTOCOL REGARDING MILK FAT

PART ONE

Article 1

Product coverage

1. This Protocol applies to milk fat falling under CCCN heading No 04.03, having a milk fat content equal to or greater than 50 % by weight.

PART TWO

Article 2

Pilot products

For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following descriptions: >PIC FILE= "T0012823">

Article 3

Minimum prices

Level and observance of minimum prices

1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.

2. (a) The minimum price levels set out in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.

(b) The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at: (i) US$ 1 100 per tonne for the anhydrous milk fat defined in Article 2 of this Protocol.

(ii) US$ 925 per tonne for the butter defined in Article 2 of this Protocol.

3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.

(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2 (b) of the present Article and the dairy support levels in the major producing participants.

Adjustment of minimum prices

4. If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions: - Milk fat content:

If the milk fat content of the product defined in Article 1 of the present Protocol differs from the milk fat content of the pilot products as defined in Article 2 of the present Protocol then, if the milk fat content is equal to or greater than 82 % or less than 80 %, the minimum price of this product shall be, for each full percentage point by which the milk fat content is more than or less than 80 %, increased or reduced in proportion to the difference between the minimum prices established for the pilot products defined in Article 2 of the present Protocol (1).

- Packaging:

If the products are offered otherwise than in packages normally used in the trade, of a net content by weight of not less than 25 kg or 50 lbs, as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.

- Terms of sale:

If sold on terms other than fob from the exporting country or free-at-frontier exporting country (2), the minimum prices shall be calculated on the basis of the minimum fob prices specified in paragraph 2 (b) of this Article, plus the real and justified costs of the services provided ; if the terms of the sale include credit, this shall be charged for at the prevailing commercial rates in the country concerned.

Special conditions of sales

5. Participants undertake within the limit of their institutional possibilities to ensure that practices such as those referred to in Article 4 of this Protocol do not have the effect of directly or indirectly bringing the export prices of the products subject to the minimum price provisions below the agreed minimum prices.

Field of application

6. For each participant, this Protocol is applicable to exports of the products specified in Article 1 of this Protocol manufactured or repacked inside its own customs territory.

Transactions other than normal commercial transactions

7. The provisions of paragraphs 1 to 6 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes or food-related development purposes or welfare purposes in developing countries.

Article 4

Provision of information

In cases where prices in international trade of the products covered by Article 1 of this Protocol are approaching the minimum prices mentioned in Article 3 (2) (b) of this Protocol, and without prejudice to the provisions of Article III of the Arrangement, participants shall notify to the Committee all the relevant elements for evaluating their own market situation and, in particular, credit or loan practices, twinning with other products, barter or three-sided transactions, refunds or rebates, exclusivity contracts, packaging costs and details of the packaging, so that the Committee can make a verification.

Article 5

Obligations of exporting participants

Exporting participants agree to use their best endeavours, in accordance with their institutional (1)See Annex IIb, "Schedule of price differentials according to milk fat content". (2)See Article 2. possibilities, to supply on a priority basis the normal commercial requirements of developing importing participants, especially those used for food-related development purposes and welfare purposes.

Article 6

Cooperation of importing participants

Participants which import products covered by Article 1 of this Protocol undertake in particular: (a) to cooperate in implementing the minimum prices objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum prices;

(b) without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;

(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Protocol.

PART THREE

Article 7

Derogations

Upon request by a participant, the Committee shall have the authority to grant derogations from the provisions of Article 3 (1) to (4) of this Protocol in order to remedy difficulties which observance of minimum prices could cause certain participants. The Committee shall pronounce on such a request within three months from the date of the request.

Article 8

Emergency action

Any participant, which considers that its interests are seriously endangered by a country not bound by this Protocol, can request the chairman of the Committee to convene an emergency meeting of the Committee within two working days to determine and decide whether measures would be required to meet the situation. If such a meeting cannot be arranged within the two working days and the commercial interests of the participant concerned are likely to be materially prejudiced, that participant may take unilateral action to safeguard its position, on the condition that any other participants likely to be affected are immediately notified. The chairman of the Committee shall also be formally advised immediately of the full circumstances of the case and shall be requested to call a special meeting of the Committee at the earliest possible moment.

ANNEX IIa List of reference points

In accordance with the provisions of Article 2 of this Protocol, the following reference points are designated for the countries listed below:

Austria : Antwerp, Hamburg, Rotterdam

Finland : Antwerp, Hamburg, Rotterdam Basle : for butter exports to Switzerland

Norway : Antwerp, Hamburg, Rotterdam

Sweden : Antwerp, Hamburg, Rotterdam Basle : for butter exports to Switzerland

ANNEX IIb Schedule of price differentials according to milk fat content

>PIC FILE= "T0012824">

ANNEX III PROTOCOL REGARDING CERTAIN CHEESES

PART ONE

Article 1

Product coverage

This Protocol applies to cheeses falling under CCCN heading No 04.04, having a fat content in dry matter, by weight, equal to or more than 45 % and a dry matter content, by weight, equal to or more than 50 %.

PART TWO

Article 2

Pilot product

1. For the purpose of this Protocol, a minimum export price shall be established for the pilot product of the following description: >PIC FILE= "T0012825">

Article 3

Minimum price

Level and observance of minimum price

1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Articles 1 and 2 of this Protocol shall not be less than the minimum price applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.

2. (a) The minimum price level set out in the present Article takes account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.

(b) The minimum price provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol is fixed at US$ 800 per tonne.

3. (a) The level of the minimum price specified in the present Article can be modified by the Committee, taking into account, on the one hand the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.

(b) The level of the minimum price specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the level of the minimum price set out in paragraph 2 (b) of the present Article and the dairy support levels in the major producing participants.

Adjustment of minimum price

4. If the products actually exported differ from the pilot product in respect of the packaging or terms of sale, the minimum price shall be adjusted so as to protect the minimum price established in this Protocol, according to the following provisions: - Packaging:

If the products are offered otherwise than in packages as specified in Article 2, the minimum price shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.

- Terms of sale:

If sold on terms other than fob from the exporting country or free-at-frontier exporting country (1), the minimum price shall be calculated on the basis of the minimum fob price specified in paragraph 2 (b) of this Article, plus the real and justified costs of the services provided ; if the terms of the sale include credit, this shall be charged for at the prevailing commercial rates in the country concerned.

Special conditions of sale

5. Participants undertake within the limit of their institutional possibilities to ensure that practices such as those referred to in Article 4 of this Protocol do not have the effect of directly or indirectly bringing the export prices of the products subject to the minimum price provisions below the agreed minimum price.

Field of application

6. For each participant, this Protocol is applicable to exports of the products specified in Article 1 of this Protocol manufactured or repacked inside its own customs territory.

Transactions other than normal commercial transactions

7. The provisions of paragraphs 1 to 6 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes or food-related development purposes or welfare purposes in developing countries.

Article 4

Provisions of information

In cases where prices in international trade of the products covered by Article 1 of this Protocol are approaching the minimum price mentioned in Article 3 (2) (b) of this Protocol and without prejudice to the provisions of Article III of the Arrangement, participants shall notify to the Committee all the relevant elements for evaluating their own market situation and, in particular, credit or loan practices, twinning with other products, barter or three-sided transactions, refunds or rebates, exclusivity contracts, packaging costs and details of the packaging, so that the Committee can make a verification.

Article 5

Obligations of exporting participants

Exporting participants agree to use their best endeavours, in accordance with their institutional possibilities, to supply on a priority basis the normal commercial requirements of developing importing participants, especially those used for food-related development purposes and welfare purposes.

Article 6

Cooperation of importing participants

Participants which import products covered by Article 1 of this Protocol undertake in particular: (a) to cooperate in implementing the minimum price objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum price;

(b) without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;

(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum price threaten the operation of this Protocol. (1)See Article 2.

PART THREE

Article 7

Derogations

1. Upon request by a participant, the Committee shall have the authority to grant derogations from the provisions of Article 3 (1) to (4) of this Protocol in order to remedy difficulties which observance of minimum prices could cause certain participants. The Committee shall pronounce on such a request within 30 days from the date of the request.

2. The provisions of Article 3 (1) to (4) shall not apply to exports, in exceptional circumstances, of small quantities of natural unprocessed cheese which would be below normal export quality as a result of deterioration or production faults. Participants exporting such cheese shall notify the GATT secretariat in advance of their intention to do so. Participants shall also notify the Committee quarterly of all sales of cheese effected under the provisions of this paragraph, specifying in respect of each transaction, the quantities, prices and destinations involved.

Article 8

Emergency action

Any participant, which considers that its interests are seriously endangered by a country not bound by this Protocol, can request the chairman of the Committee to convene an emergency meeting of the Committee within two working days to determine and decide whether measures would be required to meet the situation. If such a meeting cannot be arranged within the two working days and the commercial interests of the participant concerned are likely to be materially prejudiced, that participant may take unilateral action to safeguard its position, on the condition that any other participants likely to be affected are immediately notified. The chairman of the Committee shall also be formerly advised immediately of the full circumstances of the case and shall be requested to call a special meeting of the Committee at the earliest possible moment.

ANNEX IIIa List of reference points

In accordance with the provisions of Article 2 of this Protocol, the following reference points are designated for the countries listed below:

Austria : Antwerp, Hamburg, Rotterdam

Finland : Antwerp, Hamburg, Rotterdam

Norway : Antwerp, Hamburg, Rotterdam

Sweden : Antwerp, Hamburg, Rotterdam

Poland : Antwerp, Hamburg, Rotterdam

AGREEMENT ON TECHNICAL BARRIERS TO TRADE

PREAMBLE

HAVING REGARD to the multilateral trade negotiations, the Parties to the Agreement on Technical Barriers to trade (hereinafter referred to as "Parties" and "this Agreement");

DESIRING to further the objectives of the General Agreement on tariffs and trade (hereinafter referred to as "General Agreement" or "GATT");

RECOGNIZING the important contribution that international standards and certification systems can make in this regard by improving efficiency of production and facilitating the conduct of international trade;

DESIRING therefore to encourage the development of such international standards and certification systems;

DESIRING however to ensure that technical regulations and standards, including packaging, marking and labelling requirements, and methods for certifying conformity with technical regulations and standards do not create unnecessary obstacles to international trade;

RECOGNIZING that no country should be prevented from taking measures necessary to ensure the quality of its exports, or for the protection of human, animal or plant life or health, of the environment, or for the prevention of deceptive practices, subject to the requirement that they are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail or a disguised restriction on international trade;

RECOGNIZING that no country should be prevented from taking measures necessary for the protection of its essential security interest;

RECOGNIZING the contribution which international standardization can make to the transfer of technology from developed to developing countries;

RECOGNIZING that developing countries may encounter special difficulties in the formulation and application of technical regulations and standards and methods for certifying conformity with technical regulations and standards, and desiring to assist them in their endeavours in this regard;

HEREBY AGREE AS FOLLOWS:

Article 1

General provisions

1.1. General terms for standardization and certification shall normally have the meaning given to them by definitions adopted within the United Nations system and by international standardizing bodies taking into account their context and in the light of the object and purpose of this Agreement.

1.2. However, for the purposes of this Agreement the meaning of the terms given in Annex 1 applies.

1.3. All products, including industrial and agricultural products, shall be subject to the provisions of this Agreement.

1.4. Purchasing specifications prepared by governmental bodies for production or consumption requirements of governmental bodies are not subject to the provisions of this Agreement but are addressed in the Agreement on Government Procurement, according to its coverage.

1.5. All references in this Agreement to technical regulations, standards, methods for assuring conformity with technical regulations or standards and certification systems shall be construed to include any amendments thereto and any additions to the rules or the product coverage thereof, except amendments and additions of an insignificant nature.

TECHNICAL REGULATIONS AND STANDARDS

Article 2

Preparation, adoption and application of technical regulations and standards by central government bodies

With respect to their central government bodies: 2.1. Parties shall ensure that technical regulations and standards are not prepared, adopted or applied with a view to creating obstacles to international trade. Furthermore, products imported from the territory of any Party shall be accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country in relation to such technical regulations or standards. They shall likewise ensure that neither technical regulations nor standards themselves nor their application have the effect of creating unnecessary obstacles to international trade.

2.2. Where technical regulations or standards are required and relevant international standards exist or their completion is imminent, Parties shall use them, or the relevant parts of them, as a basis for the technical regulations or standards except where, as duly explained upon request, such international standards or relevant parts are inappropriate for the Parties concerned, for inter alia such reasons as national security requirements ; the prevention of deceptive practices ; protection for human health or safety, animal or plant life or health, or the environment ; fundamental climatic or other geographical factors ; fundamental technological problems.

2.3. With a view to harmonizing technical regulations or standards on as wide a basis as possible, Parties shall play a full part within the limits of their resources in the preparation by appropriate international standardizing bodies of international standards for products for which they either have adopted, or expect to adopt, technical regulations or standards.

2.4. Wherever appropriate, Parties shall specify technical regulations and standards in terms of performance rather than design or descriptive characteristics.

2.5. Whenever a relevant international standard does not exist or the technical content of a proposed technical regulation or standard is not substantially the same as the technical content of relevant international standards, and if the technical regulation or standard may have a significant effect on trade of other Parties, Parties shall: 2.5.1. publish a notice in a publication at an early appropriate stage, in such a manner as to enable interested parties to become acquainted with it, that they propose to introduce a particular technical regulation or standard;

2.5.2. notify other Parties through the GATT secretariat of the products to be covered by technical regulations together with a brief indication of the objective and rationale of proposed technical regulations;

2.5.3. upon request, provide without discrimination, to other Parties in regard to technical regulations and to interested parties in other Parties in regard to standards, particulars or copies of the proposed technical regulation or standard and, whenever possible, identify the parts which in substance deviate from relevant international standards;

2.5.4. in regard to technical regulations allow, without discrimination, reasonable time for other Parties to make comments in writing, discuss these comments upon request, and take these written comments and results of these discussions into account;

2.5.5. in regard to standards, allow reasonable time for interested parties in other Parties to make comments in writing, discuss these comments upon request with other Parties and take these written comments and the results of these discussions into account.

2.6. Subject to the provisions in the heading of Article 2 (5), where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Party, that Party may omit such of the steps enumerated in Article 2 (5) as it finds necessary provided that the Party, upon adoption of a technical regulation or standard, shall: 2.6.1. notify immediately other Parties through the GATT secretariat of the particular technical regulation, the products covered, with a brief indication of the objective and the rationale of the technical regulation, including the nature of the urgent problems;

2.6.2. upon request provide, without discrimination other Parties with copies of the technical regulation and interested parties in other Parties with copies of the standard;

2.6.3. allow, without discrimination, other Parties with respect to technical regulations and interested parties in other Parties with respect to standards, to present their comments in writing, upon request discuss these comments with other Parties and take the written comments and the results of any such discussion into account;

2.6.4. take also into account any action by the Committee as a result of consultations carried out in accordance with the procedures established in Article 14.

2.7. Parties shall ensure that all technical regulations and standards which have been adopted are published promptly in such a manner as to enable interested parties to become acquainted with them.

2.8. Except in those urgent circumstances referred to in Article 2 (6), Parties shall allow a reasonable interval between the publication of a technical regulation and its entry into force in order to allow time for producers in exporting countries, and particularly in developing countries, to adapt their products or methods of production to the requirements of the importing country.

2.9. Parties shall take such reasonable measures as may be available to them to ensure that regional standardizing bodies of which they are members comply with the provisions of Article 2 (1) to (8). In addition Parties shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such bodies to act in a manner inconsistent with those provisions.

2.10. Parties which are members of regional standardizing bodies shall, when adopting a regional standard as a technical regulation or standard fulfil the obligations of Article 2 (1) to (8) except to the extent that the regional standardizing bodies have fulfilled these obligations.

Article 3

Preparation, adoption and application of technical regulations and standards by local government bodies

3.1. Parties shall take such reasonable measures as may be available to them to ensure that local government bodies within their territories comply with the provisions of Article 2 with the exception of Article 2 (3), (5) subparagraph 2, (9) and (10), noting that provision of information regarding technical regulations referred to in Article 2 (5) subparagraph 3 and (6) subparagraph 2 and comment and discussion referred to in Article 2, (5) subparagraph 4 and (6) subparagraph 3 shall be through Parties. In addition, Parties shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such local government bodies to act in a manner inconsistent with any of the provisions of Article 2.

Article 4

Preparation, adoption and application of technical regulations and standards by non-governmental bodies

4.1. Parties shall take such reasonable measures as may be available to them to ensure that non-governmental bodies within their territories comply with the provisions of Article 2, with the exception of Article 2 (5) (2) and provided that comment and discussion referred to in Article 2 (5) subparagraph 4 and (6) subparagraph 3 may also be with interested parties in other Parties. In addition, Parties shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such non-governmental bodies to act in a manner inconsistent with any of the provisions of Article 2.

CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS

Article 5

Determination of conformity with technical regulations or standards by central government bodies

5.1. Parties shall ensure that, in cases where a positive assurance is required that products conform with technical regulations or standards, central government bodies apply the following provisions to products originating in the territories of other Parties: 5.1.1. imported products shall be accepted for testing under conditions no less favourable than those accorded to like domestic or imported products in a comparable situation;

5.1.2. the test methods and administrative procedures for imported products shall be no more complex and no less expeditious than the corresponding methods and procedures, in a comparable situation for like products of national origin or originating in any other country;

5.1.3. any fees imposed for testing imported products shall be equitable in relation to any fees chargeable for testing like products of national origin or originating in any other country;

5.1.4. the results of tests shall be made available to the exporter or importer or their agents, if requested, so that corrective action may be taken if necessary;

5.1.5. the siting of testing facilities and the selection of samples for testing shall not be such as to cause unnecessary inconvenience for importers, exporters or their agents;

5.1.6. the confidentiality of information about imported products arising from or supplied in connection with such tests shall be respected in the same way as for domestic products.

5.2. However, in order to facilitate the determination of conformity with technical regulations and standards where such positive assurance is required, Parties shall ensure, whenever possible, that their central government bodies accept test results, certificates or marks of conformity issued by relevant bodies in the territories of other Parties ; or rely upon self-certification by producers in the territories of other Parties ; even when the test methods differ from their own, provided they are satisfied that the methods employed in the territory of the exporting Party provide a sufficient means of determining conformity with the relevant technical regulations or standards. It is recognized that prior consultations may be necessary in order to arrive at a mutually satisfactory understanding regarding self-certification, test methods and results, and certificates or marks of conformity employed in the territory of the exporting Party, in particular in the case of perishable products or of other products which are liable to deteriorate in transit.

5.3. Parties shall ensure that test methods and administrative procedures used by central government bodies are such as to permit, so far as practicable, the implementation of the provisions in Article 5 (2).

5.4. Nothing in this Article shall prevent Parties from carrying out reasonable spot checks within their territories.

Article 6

Determination by local government bodies and non-governmental bodies of conformity with technical regulations or standards

6.1. Parties shall take such reasonable measures as may be available to them to ensure that local government bodies and non-governmental bodies within their territories comply with the provisions of Article 5. In addition, Parties shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such bodies to act in a manner inconsistent with any of the provisions of Article 5.

CERTIFICATION SYSTEMS

Article 7

Certification systems operated by central government bodies

With respect to their central government bodies: 7.1. Parties shall ensure that certification systems are not formulated or applied with a view to creating obstacles to international trade. They shall likewise ensure that neither such certification systems themselves nor their application have the effect of creating unnecessary obstacles to international trade.

7.2. Parties shall ensure that certification systems are formulated and applied so as to grant access for suppliers of like products originating in the territories of other Parties under conditions no less favourable than those accorded to suppliers of like products of national origin or originating in any other country, including the determination that such suppliers are able and willing to fulfil the requirements of the system. Access for suppliers is obtaining certification from an importing Party under the rules of the system. Access for suppliers also includes receiving the mark of the system, if any, under conditions no less favourable than those accorded to suppliers of like products of national origin or originating in any other country.

7.3. Parties shall: 7.3.1. publish a notice in a publication at an early appropriate stage, in such a manner as to enable interested parties to become acquainted with it, that they propose to introduce a certification system;

7.3.2. notify the GATT secretariat of the products to be covered by the proposed system together with a brief description of the objective of the proposed system;

7.3.3. upon request provide, without discrimination, to other Parties particulars or copies of the proposed rules of the system;

7.3.4. allow, without discrimination, reasonable time for other Parties to make comments in writing on the formulation and operation of the system, discuss the comments upon request and take them into account.

7.4. However, where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Party, that Party may omit such of the steps enumerated in Article 7 (3) as it finds necessary provided that the Party, upon adoption of the certification system, shall: 7.4.1. notify immediately the other Parties through the GATT secretariat of the particular certification system and the products covered, with a brief indication of the objective and the rationale of the certification system including the nature of the urgent problems;

7.4.2. upon request provide, without discrimination, other Parties with copies of the rules of the system;

7.4.3. allow, without discrimination, other Parties to present their comments in writing, discuss these comments upon request and take the written comments and results of any such discussion into account.

7.5. Parties shall ensure that all adopted rules of certification systems are published.

Article 8

Certification systems operated by local government and non-governmental bodies

8.1. Parties shall take such reasonable measures as may be available to them to ensure that local government bodies and non-governmental bodies within their territories when operating certification systems comply with the provisions of Article 7, except paragraph 3 (2), noting that the provision of information referred to in Article 7 (3) subparagraph 3 and (4) subparagraph 2, the notification referred to in Article 7 (4) (1), and the comment and discussion referred to in Article 7 (4) (3), shall be through Parties. In addition, Parties shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such bodies to act in a manner inconsistent with any of the provisions of Article 7.

8.2. Parties shall ensure that their central government bodies rely on certification systems operated by local government and non-governmental bodies only to the extent that these bodies and systems comply with the relevant provisions of Article 7.

Article 9

International and regional certification systems

9.1. Where a positive assurance, other than by the supplier, of conformity with a technical regulation or standard is required, Parties shall, wherever practicable, formulate international certification systems and become members thereof or participate therein.

9.2. Parties shall take such reasonable measures as may be available to them to ensure that international and regional certification systems in which relevant bodies within their territories are members or participants comply with the provisions of Article 7, with the exception of paragraph 2 having regard to the provisions of Article 9 (3). In addition, Parties shall not take any measures which have the effect of, directly or indirectly, requiring or encouraging such systems to act in a manner inconsistent with any of the provisions of Article 7.

9.3. Parties shall take such reasonable measures as may be available to them to ensure that international and regional certification systems, in which relevant bodies within their territories are members or participants, are formulated and applied so as to grant access for suppliers of like products originating in the territories of other Parties, under conditions no less favourable than those accorded to suppliers of like products originating in a member country, a participant country, or in any other country, including the determination that such suppliers are able and willing to fulfil the requirements of the system. Access for suppliers is obtaining certification from an importing Party which is a member of or participant in the system, or from a body authorized by the system to grant certification, under the rules of the system. Access for suppliers also includes receiving the mark of the system, if any, under conditions no less favourable than those accorded to suppliers of like products originating in a member country or a participant country.

9.4. Parties shall ensure that their central government bodies rely on international or regional certification systems only to the extent that the systems comply with the provisions of Articles 7 and 9 (3).

INFORMATION AND ASSISTANCE

Article 10

Information about technical regulations, standards and certification systems

10.1. Each Party shall ensure that an enquiry point exists which is able to answer all reasonable enquiries from interested parties in other Parties regarding: 10.1.1. any technical regulations adopted or proposed within its territory by central or local government bodies, by non-governmental bodies which have legal power to enforce a technical regulation, or by regional standardizing bodies of which such bodies are members or participants;

10.1.2. any standards adopted or proposed within its territory by central or local government bodies, or by regional standardizing bodies of which such bodies are members or participants;

10.1.3. any certification systems, or proposed certification systems, which are operated within its territory by central or local government bodies, or by non-governmental bodies which have legal power to enforce a technical regulation, or by regional certification bodies of which such bodies are members or participants;

10.1.4. the location of notices published pursuant to this Agreement, or the provision of information as to where such information can be obtained ; and

10.1.5. the location of the enquiry points mentioned in Article 10 (2).

10.2. Each Party shall take such reasonable measures as may be available to it to ensure that one or more enquiry points exist which are able to answer all reasonable enquiries from interested parties in other Parties regarding: 10.2.1. any standards adopted or proposed within its territory by non-governmental standardizing bodies, or by regional standardizing bodies o