Proposal for a COUNCIL DECISION concerning the conclusion of an Agreement in the form of an Exchange of Letters between the European Community, of the one part, and the Kingdom of Norway, of the other part, on Protocol 2 to the bilateral Free Trade Agreement between the European Economic Community and the Kingdom of Norway

(presented by the Commission)

EXPLANATORY MEMORANDUM

The trade arrangements applicable to processed agricultural products between the European Community and the Kingdom of Norway are governed by Protocol 2 to the bilateral free trade agreement of the one part and by Protocol 3 of the European Economic Area Agreement of the other part.

Pursuant to articles 76, 102 and 128 of the Act of Accession, Austria, Finland and Sweden had to apply, with effect from 1 January 1995, the provisions of the preferential agreements concluded by the Community with certain third countries (Switzerland and Norway), it being understood that all the amendments required as a result of enlargement would be the subject of additional protocols to be negotiated with the countries in question.

The above articles stipulate that, if the protocols have not been concluded by 1 January 1995, the Community had to take the necessary steps to regulate the situation.

Therefore, Council regulation (EC) n° 1416/95 of 19 June 1995 [1] establishing concessions in the form of Community tariff quotas for 1995 for certain processed agricultural products opened tariff quotas for 1995 in favour of Norway and Switzerland.

[1] OJ L 141, 24.6.1995, p. 1.

In 2000, the autonomous measures concerning Switzerland have been taken up in the framework of an agreement in the form of an exchange of letters between the Community and Switzerland.

As far as Norway was concerned, Council regulation (EC) n° 1416/95 was renewed for 1996, 1997, 1998, 1999, 2000, 2001 and 2002 [2]. These measures were adopted on the condition that the third country concerned takes the equivalent reciprocal autonomous measures in favour of the European Community.

[2] OJ L 46, 16.2.2002, p. 1.

In 1999, the possibility of having the existing bilateral tariff quotas included in Protocol 3 of the European Economic Area was considered. However, due to the fact that it was impossible to maintain bilateral tariff quotas following their inclusion in Protocol 3, the European Community and Norway agreed to keep the quotas in bilateral arrangements outside the EEA Agreement and to have an agreement in the form of an exchange of letters so as to make these quotas permanent.

The enclosed proposal reflects the above objective and it is proposed that the Council adopts this Decision.

2002/0166 (ACC)

Proposal for a COUNCIL DECISION concerning the conclusion of an Agreement in the form of an Exchange of Letters between the European Community, of the one part, and the Kingdom of Norway, of the other part, on Protocol 2 to the bilateral Free Trade Agreement between the European Economic Community and the Kingdom of Norway

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the first sentence of Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) An agreement in the form of an exchange of letters between the European Community, of the one part, and the Kingdom of Norway, of the other part, concerning certain processed agricultural products covered by Protocol 2 to the bilateral Free Trade Agreement between the European Economic Community and the Kingdom of Norway [3], has been negotiated on a reciprocal basis in order to improve the trading arrangements and solve certain related problems.

[3] OJ L 171, 27.6.1973, p. 1.

(2) Since the measures necessary for implementing this Decision are management measures within the meaning of Article 2 of Council Decision 1999/468/EEC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [4] they should be adopted by the management procedure laid down in Article 4 of that Decision.

[4] OJ L 184, 17.7.1999, p. 23.

(3) The Agreement should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of Letters between the European Community, of the one part, and the Kingdom of Norway, of the other part, concerning Protocol 2 to the bilateral Free Trade Agreement between the European Economic Community and the Kingdom of Norway is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Decision.

Article 2

Rules for the application of this Decision shall be adopted by the Commission, assisted by the management committee on horizontal questions concerning trade in processed agricultural products referred to in Article 16 of Council Regulation (EC) No 3448/93 [5]. Article 4 of Decision 1999/468/EC shall apply: the period provided for in Article 4(3) of that Decision shall be set at one month.

[5] OJ L 318, 20.12.1993, p. 18. Regulation last amended by Regulation (EC) No 2580/2000 (OJ L 298, 25.11.2000, p. 5).

Article 3

The President of the Council is hereby authorised to designate the person empowered to sign the Agreement referred to in Article 1 in order to bind the Community.

Article 4

This Decision shall enter into force on the first day of the second month following that of its adoption.

Done at Brussels,

For the Council

The President

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community, of the one part, and the Kingdom of Norway, of the other part, concerning Protocol N° 2 to the bilateral Free Trade Agreement between the European Economic Community and the Kingdom of Norway.

A. Letter from the Community

Brussels,

Sir,

I have the honour to confirm that the European Community is in agreement with the "Agreed minutes" attached to this letter concerning a number of changes to the import arrangements applied by the Community and the Kingdom of Norway respectively to processed agricultural products, certain of which are covered by Protocol N° 2 to the bilateral free trade agreement.

I should be obliged if you would confirm that the Government of the Kingdom of Norway is in agreement with the content of this letter.

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

For the European Community

B. Letter from Norway

Brussels,

Sir,

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

"I have the honour to confirm that the European Community is in agreement with the "agreed minutes" attached to this letter concerning a number of changes to the import arrangements applied by the Community and the Kingdom of Norway respectively to processed agricultural products, certain of which are covered by Protocol N° 2 to the bilateral free trade agreement."

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

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

For the Government of the Kingdom of Norway

Agreed minutes

I - Introduction

A number of meetings were held between European Commission officials and officials of the Kingdom of Norway on the autonomous measures adopted following the accession of Austria, Finland and Sweden to the EU in 1995.

After these meetings, it was agreed to submit for approval to their respective authorities a number of changes to the import arrangements applied by the Community and the Kingdom of Norway respectively to certain processed agricultural products, which are covered by Protocol No 2 to the bilateral free trade agreement.

These changes will apply from [1st January 2003].

II - Norwegian import arrangements

1. The Kingdom of Norway will open the following annual tariff quotas for the European Community:

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III - Community import arrangements

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

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The tariff quotas specified under II and III shall be granted to originating products in accordance with the rules of origin laid down in Protocol N° 3 to the EC/ Norway Free Trade Agreement.

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