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DOCUMENTS "COM"
COM(82)228
Vol.1982/0093

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COΜ(82)228 final
Brussels,5May1982
Recommendation fora
COUNCILDECISION
ontheconclusionofanAgreementintheformofanexchangeofletters
betweentheEuropeanEconomicCommunity andtheCzechoslovak Socialist
Republicontradeinthesheepmeat andgoatmeatsector
/-,
V.I-, >-v,
(submittedtotheCouncilbytheCommission )
>»
C0MC82)228final

EXPLANATORY MEMORANDUM
Following thenegotiating mandate given bytheCouncil totheCommission
on20December 1979 andpursuant toRegulation (EEC)No1837 /80onthe
common organization ofthemarket insheepmeat andgoatmeat ,voluntary
restraint agreements inrespect ofexports ofproducts inthesector in
question have been made with ,thefollowing non-member countries :
Argentina ,Australia ,Austria ,Bulgaria ,Hungary ,Iceland ,NewZealand ,Poland ,
Rumania ,Uruguay andYougoslavia .
Although Czechoslovakia was thefirst non-member country toagree to
theprinciple ofvoluntary restraint forexports ofsheepmeat andgoatmeat
totheCommunity ,negotiations onaformal and final agreement between
the Community and Czechoslovakia were not concluded until the end of .
t
March 1982 .
Since theprovisions ofthe draft agreement finally accepted bythe
competent Czechoslovak authorities are the same asthose contained in
thevoluntary restraint agreements already concluded between the Community
and the non-member countries listed above ,itisproposed that the
proposal foraDecisiorj /on ,theconclusion with Czechoslovakia ofa
voluntary restraint agreement inrespect ofits exports tothe Community
inthe sheepmeat and goatmeat sector beapproved . .
Inapplication ofthis agreement ,theCommunity undertakes toobserve
a10%advalorem ceiling ontherelevant levy charged andCzechoslovakia
undertakes tolimit itsexports to800tonnes offresh orchilled meat
peryear .This quantity is'thesame asthat accepted forimport into the
Community in1981 andcorresponds totheamount envisaged bytheCommunity
inthe context ofapossible agreement .
Itshould bepointed outthat ,since atthetime adecision should have been
taken onthearrangements toapply toCzechoslovakia in1982 that country
hadnotyetagreed toconcl'ude anagreement ,theCouncil -onaproposal
from theCommission -decided tolimit thequantity benefiting from a10$
advalorem ceiling onthelevy to600tonnes in1982 pending theentry into
effect ofavoluntary restraint agreement .

/i>;VtRECOMMENDATION FORA
COUNCILDECISION
ontheconclusionofanAgreementintheformofanexchangeoflettersbetweentk*
EuropeanEconomicCommunityandtheCzechoslovak SocialistKepublicon
tradeinthesheepmeataridgoatmeatsector-'
Wi-
THECOUNCILOFTHEEUROPEAN
COMMUNIT4ES , ,
Havtngxegardto-the.TreatyestablishingtheEuro:
peanEconomicCommunity,andinparticular
Article113thereof,^ ,
pavingregardtoth6recommendation fromthe
Commission --
•conducted
whereastheCommissionhasnegotiations
withnon-membercountrieswhichsupplysheep-
meatandgoatmeatorlivesheepandgoats,witha
viewtoreachingagreementforvoluntaryrestraint
ontheirexportstotheCommunity;
WhereastheCommissionhasreachedagreement
with.Czechoslovakia ;
Whereasthesaidagreementallowstradetobecar­
riedoninamannercompatiblewiththecommon
organizationofthemarketinthesectorinquestion,theCzechoslovak Socialist'Hepubli <
tradeinthesheepmeatandgoatmeatsectoris
herebyapprovedonbehalfoftheCommunity .
ThetextoftheAgreementisrattachedtothisDeci­
sion. - -•
Article2s
ThePresidentoftheCouncilisherebyauthorizedto
designatethepersonempoweredtosigntheAgree­
ment,inordertobindtheCommunity .
HASDECIDED ASFOLLOWS : Doneat
Article1
TheAgreementintheformofanexpl&ngeofletters
betweentheEuropeanEconomicCommunityandycfe?ngiFortheCouncil
ThePresident

DRAFT
EXCHANGE OFLETTERS
BETWEEN
THEEUROPEAN ECONOMIC COMMUNITY
ANDTHECZECHOSLOVAK SOCIALIST REPUBLIC
ONTRADEINSHEEPMEAT AND60ATMEET

Ihavethehonourtorefertothenegotiations undertaken betweenour
respective delegations forthepurposeofdrawingupprovisions concerning
importsintotheEuropeanEconomicCommunityfromCzechoslovakia ofmutton,
lamband--goatmeat,andoflivesheepandgoatsotherthanpure-bredbreeding
animals,inconnection withimplementation bytheCommunityofthecommon
organization ofthemarketinsheepmeat andgoatmeat.
Duringthesenegotiations ,thetwopartiestowhichareparticipants inGATT,
ourdelegations agreedasfollows:
1.ThisArrangement covers:
livesheepandgoatsotherthanpure-bredbreedinganimals(subheading
01.04BoftheCommonCustomsTariff);
freshorchilledmutton,lambandgoatmeat(subheading 02.01AIVa
oftheCommonCustomsTariff);
frozenmutton,lambandgoatmeat(subheading 02.01AIVboftheCommon
CustomsTariff).

2.WithinthetermsofthisArrangement,thecompetentCzechoslovak
authorities undertaketoensurethatexportstotheCommunityofthe
productsreferredtoinpoint1donotexceedthefollowingannual-
quantity :
800.tonnesoffreshorchilledmeat,expressedascarcaseweight
bone-in(1).
Forthispurpose,theappropriate procedureswillbeimplemented bythe
competentCzechoslovak authorities .
3.ProvidedthatCzechoslovak exportsdonotexceedthequantities given
inpoint2theCommunitywillnotapplyanyquantitative -restriction or
measurehavingequivalenteffect. *
IftheCommunityweretoinvoketheprotective clause,theprovisionsof
theArrangement wouldnotbeaffected. v
4.IfimportsforCzechoslovakia exceedtheagreedquantities,theCommunity
reservestherighttosuspendfurtherimportsfromthatcountryuntilthe
endofthecurrentyear.
Inanycase,however,quantities exceedingtheagreedquantityforthe
currentyearwillbedeductedfromthequantities agreedforthefollowing
year.
5.TheCommunityundertakes,inrespectofimportsofproductscoveredby
thisArrangement ;,torestrictthechargesleviedtotheadvaloremlevel
of10%formeatandforliveanimals.
TheCommunity ,willnotcharge,apartfromtheleviessetoutabove,customs
dutiesorchargeshavingequivalenteffecttoleviesortocustomsduties.
(1)Carcaseweight(bone-inequivalentweight).Bythistermisunderstoodthe
weightofbone-inmeatpresentedassuchaswellasbonedmeatconvertedby
acoefficient intobone-inweight.Forthispurpose55kgofbonedmutton
correspondsto100kgofbone-inmuttonand60kgofbonedlambcorresponds
to100kgofbone-inlamb.

WhenanewMemberStateaccedestotheCommunity andifthepatternof
tradebetweenCzechoslovakia andsuchMemberStatejustifiesit,the
Communityshallagreetoconsultations betweenthetwopartieswitha
viewtopossibleadaptationofthequantities giveninpoint2.
Thequantities giveninpoint2shallnotbereduced.
ThechargesapplicabletoimportsforthesaidnewMemberStatesshallbe
fixedinaccordance withtherulesinthetreatyofaccession;the
maximumlevelofthelevyspecifiedinpoint5ofthisArrangement being
takenintoaccount.
■I
Thecompetent Czechoslovak authorities shallensurecompliance withthe
termsofthisArrangement,inparticular bymeansoftheissue,bya
Czechoslovak bodydesignatedforthepurpose,ofexportlicencescovering
theproductslistedinpoint1,withinthelimitsofthequantities agreed.
ForitsparttheCommunityundertakes toadoptallthenecessary measures
toensurethattheautomaticissueofanimportlicencefortheabove-
mentionedproductsoriginating inCzechoslovakia shallbesubjectto
productionofanexportlicenceissuedbythecompetentCzechoslovak
authority.
Detailedrulesfortheimplementation ofthissystemshallbedrawnup
insuchawaythat£ner,eisnorequirement forasecurityforissueof
importlicencesinrespectoftheproductsinquestion.Thesedetailed
rulesshallalsoprovidethatthecompetentCzechoslovak authorities
andthecompetent Communityauthorities shallundertakeperiodical ex­
changesofinformation onthequantitiesinrespectofwhichexportand
importlicenceshavebeenissued,brokendown,asappropriate,according
todestination .
Itisherebyagreedthatexportlicenceswillbevalidforaperiodof
threemonthsfromtheirdateofissue.Thecorresponding importlicences
shallbevaliduntil'.thedateofexpiryoftheexportlicences.
Quantitiesdeliveredunderanexportlicenceshallbedeductedfromthe
quantityagreedfortheyearduringwhichtheexportlicencewasissued.

-4-
8.Thetwopartiesagreethatstepsshould betakentoensurethatthe
smoothoperationoftheArrangement isnotdisturbed bydeliveries
ofsheepmeat andgoatmeatproductsfallingundertariffheadingsnot
coveredbythisArrangement .
•■ i
9.InordertoensurethesmoothoperationofthisArrangement,thetwo
partiesagreetoremaininclosecontactandtobereadytoundertake
consultations onanyquestionwhichmightariseinthecourseofappli­
cationofthisArrangement .Thesaidconsultations mustbecommenced
withinamaximumperiodof14daysfollowingrequestbyoneofthe
parties.
10.Theprovisions ofthisArrangement shallbeacceptedwithoutprejudice
totherightsandobligations ofthepartiesunderGATT.
11.Theannualquantityfixedinpoint2shallcovertheperiod1Januaryto
31December.
Thequantityapplicable from1January1984to31March1984shallbe
fixedbymeansoftheconsultations referredtoinpoint9inproportion
totheoverallannualquantity.
12.Thisarrangementshallapply,ontheonehand,totheteritoriesinwhich
theTreatyestablishing theEuropeanEconomicCommunityisappliedand
undertheconditions laiddowninthatTreatyand,ontheotherhand,
totheterritoryofthe'Czechoslovak SocialistRepublic.

-5-
13.ThisArrangement shallenterintoforceon1January1982.Itshall
applyuntil.31March1984and,subsequently ,forperiodsoftwoyears,
subjecttotherightofeitherofthepartiestoterminateitbygiving
noticeinwritingsixmonthsbeforethedateofexpiryofanyoneofthe
saidperiods.Inthecaseoftermination,theArrangement shallcometo
anendatthedateofexpiryoftheperiodinquestion.Inanyevent,
theprovisions ofthisArrangement shallbereviewedbythetwoparties
duringthesixmonthspreceding 1April1984,sothatanyadaptations
whichmightbenecessary canbemadetoit\
Ishouldbegratefultoyouifyouwouldconfirmtomethattheabovesets
outcorrectlythesubstanceoftheagreement betweenourtwodelegations .
Formalending.
I

DRAFT
EXCHANGE OFLETTERS
CONCERNING POINT2OFTHEEXCHANGE OFLETTERS
BETWEEN THEEUROPEAN ECONOMIC COMMUNITY AND
THECZECHOSLOVAK SOCIALIST REPUBLIC
ONTRADEINSHEEPMEAT ANDGOATMEAT

IhavethehonourtorefertbtheexchangeofLettersbetweenthe
EuropeanEconomicCommunity andtheCzechoslovak SocialistRepublic
ontradeinsheepmeat andgoatmeat.
Furthertothisexchangeoflettersandinresponsetoyourrequest,
IwouldaskyoutonotethatthecompetentCzechoslovak authorities
willensurethatthereisnochangeintraditional exportflowsas
regardssheepmeat,goatmeatandlivesheepandgoatsbetweenthe
Czechoslovak SocialistRepublicandCommunitymarketsconsideredto
besensitive,fortheperiodfrom1January1982to31March1984.
Thecompetentauthorities oftheCzechoslovak SocialistRepublicwill
introducethenecessarymeasurestothisend.
-V

DRAFT
EXCHANGE OFLETTERS
CONCERNING THECONSULTATIONS PROVIDED FORINPOINT9
OFTHEEXCHANGE OFLETTERS BETWEEN
•THEEUROPEAN ECONOMIC COMMUNITY ANDTHE
CZECHOSLOVAK SOCIALIST REPUBLIC
ONTRADEINSHEEPMEAT ANDGOATMEET

With reference tocertain specific questions raised during thenegotiations
forthis Arrangement ,Ihave thehonour topoint out that itwasagreed
during these negotiations that ,within the context ofthis Arrangement ,
ifCzechoslovakia were toraise anyconcrete problems ,they could be
covered bytheconsultations provided for inpoint 9without prejudice
tothegeneral provisions ofthat point .These problems include :
1.supply oflive animals within thequantity agreed formeat ;
2.thepossibility ofadvance use,during the current year ,ofalimited
proportion ofthequantity agreed forthefollowing year ;
3.thepossibi lity ofallowing imports ofquantities over andabove those
fixed inpoint 2oftheArrangement iftheCommunity market situation
nopermits .
Foritspart ,theCommunity would beprepared toundertake the said consul­
tations inaspirit ofcooperation inrespect ofany requests putforward
byCzechoslovakia . ,
Formal ending .

FINANCIAL STATEMENT
Date :5April 19&2
I.BUDGET HEADING :100 (revenue ) APPROBATIONS S1899.1 MECU
f.TJTi-g •flrnftCouncil Decision ontheconclusion ofa.nAgreement intheform
ofanexchange ofletters between the EEC and the Czechoslovak Socialist
He-nublic ontrade "inthe shee -omeat "and eoatneat sector
3.LEGAL BASIS :Article 113 ofthe'^SC Treaty •
4.AIMS OFPROJECTConclusion *ofavoluntary restraint agreement between the SEC
•and Czechoslovakia
5.FINANCIAL IMPLICATIONS
5.0 EXPEN3ITURE
-CHARGED TOTHE ECBUDGET
CREFUNDS /INTERVENTIONS )
-NATIONAL ADMINISTRATION
-OTHER
5.1 RECEIPTS
-OWN RESOURCES OFTHE EC
(LEVIEl!aScT30*S!Cîi«J#:3t >
-NATIONALPERIOD Of12MONTHS
r-O.V mECUCURRENT FINANCIAL YEAR
( R5 5
-0.1 mECUFOLLOWING FINANCIAL YEAR
Î£3 1
O.k mECU
1984
J.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED RECEIPTS-0.1 mECU
*'£.2METHOD OFCALCULATION •' .•V
.:'.i « * " •' ' ' ' } '
'■Th6Agreement covers atotal of800tonnes ofmeat ^,ofwhich 600tonnes
have already been approved for1982 ..
*.Normal levy atpresent V '700 -ECU/t ' , •
Reduced levy (10^advalorem )"264ECU/t
.Loss mrevenue ECU/tx800 t=-0.35m 'ECU .
4-o
6.2 ISASUPPLEMENTARY BUDGET BENECESSARY ?
Xffi /NO
6.3WILL FUTURE BUDGET APPRQBIATiONS BENECESSARY ?
IYES/LJFFLC
OBSERVATIONS î -j"upto31Mar.ch 198^
1