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COM(81)45
Vol.1981/0010

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)45 final.
Brussels.11thFebruary1981
!I/ >■
VV,-
COMMISSION REPORTTOTHECOUNCIL
ontheoutcomeoftheconsultations withAustriaconcerning certain
typesofcheeseundertheEEC-Austria Agreementof20September 1977
onpriceobservance andthearrangements forimportsintoAustria
PROPOSAL FORACOUNCILREGULATION (EEC)
amendingtheAgreement onpriceobservance andimportarrangements
annexedtotheAgrementof20September 1977betweenAustriaand
theEuropeanEconomicCommunityconcerningcertain
typesofcheesenegotiated underArticleXXVIIIofGATT
(presentedbytheCommissiontotheCouncil)
C0M(81)45final

CONSULTATIONS' WITH AUSTRIA CONCERNING CERTAIN TYPES OFCHiiESE
*UNDER THE EEC-AUSTRIA AGREEMENT OF20SEPTEMBER 1977 ON
PRICE OBSERVANCE' ANDIMPORT ARRANGEMENTS
(Commission Communication tothe Council )
TheCommission hereby presents tothe Council :
1.Areport ontheoutcome oftheconsultations with Austria (Annex I).
2.A proposal for aCouncil regulation amending theAgreement on
price observance and import arrangements annexed totheAgreement of
20September 1977 between Austria andtheEuropean Economic Community
concerning certain types ofcheese negotiated under Article XXVIII of
GATT (Annex II).
On15th January 1981 ,theArticle 113Committee delivered afavourable
opinion ontheoutcome oftheconsultations .
TheCommission proposes that theCouncil approve theabovementioned
regulation .

Annex I
REPORT
ontheoutcome oftheconsultations with Austria concerning certain types
ofcheese under theEEC-Austria Agreement of20September 1977 onprice
observance and thearrangements for imports into Austria .
The following conclusions may bedrawn from theconsultations between
Austria andtheCommunity provided forintheir Agreement onprice
observance andthearrangements fortheimportation ofcertan types of
cheese into Austria ,which were held atAustria 'srequest : <
i)Thebasis forcalculating thevarious free-at-Austrian -frontier
minimum prices should bereviewed sothat greater account canbetaken
oftheactual market situation ;
ii)Inorder totake account ofincreases incheese production costs in
Austria ,increases intheex-dairy price ofmilk should bereflected
intheminimum prices ofthe types ofcheese concerned .
Subject toapproval bytheir respective authorities ,thedelegations agreed
onthefollowing : ,
I. Change inthe free-at-Austrian -frontier prices
From ,the free-at-Austrian -frontier prices tobeobserved by
theEuropean Economic Community shall ,bycommon accord ,beas
r
follows :

-2-
Description ofgoodsFree -at-Austrian -
frontier price tob=
obsprvpH Srh/innkg
1.Processed cheese ofafatcontent ,by
weight ,inthedrymatter :
a)Ofless than 26% 4301
b)Of26% ormore but less than 46% 4832
c)Of46% ormore but less than 56% 5227
d)Of56% ormore 5785 . ,
2.Emmentaler andGruyère 5Q61
3.Blue-veined cheese%
4181
4.Danbo ,Edam ,Elbo ,Fynbo ,Fontal ,Gouda ,
Havarti ,Malbo ,Maribo ,Mimolette ,Samstf ,
TiIsit ,Tylo 4258
5.Butterkäse ,Esrom ,Italico ,Kernheim ,
St-Nectaire ,St-Paulin ,Taleggio 3793
6.Cheddar andothér types ofcheese not
mentioned above 4682
Theabove free-at-frontier prices shall replace those given in
paragraph 2oftheAgreement of20September 1977 .
II.Adjustments inline with theprice ofmilk inAustria
The free-at-frontier prices given inthepreceding paragraph shall be
increased orreduced byasumequal totheproduct ofthe increase or
-reduction intheex-dairy price of3.5% fatmilk inAustria expressed
inschillings per100kgmultiplied bythefollowing coefficients for
each ofthetypes ofcheese covered bytheAgreement :

-3-
Description ofgoods •Coefficient
1.Processed cheese ofafatcontent ,byweight ,
inthedrymatter :,->
a)Ofless than 26% 8
b)Of26% ormore but less than 46% 10
c)Of46% ofmore but less than 56%.11
-d)Of56% ormore 13
2.Emmentaler andGruyère 14
3.Blue-veined cheese 12 .
4.Danbo ,Edam ,Elbo ,Fynbo ,Fontal ,Souda ,
Havarti ,Halbo.Maribo ,Mimolette ,Samstf ,
TiIsit ,Tybo 12
5.Butterkäse ,Esrom ,Italico ,Kernheim ,
St-Nectaire ,St-Paulin ,Taleggio 11
6.9
Cheddar andother types ofcheese not
mentioned above 13
Inorder that thefree -at-frontier prices maybeobserved ,theAustrian
authorities shall keep theCommission oftheEuropean Communities informed
ofincreases intheex-dairy price ofmilk inAustria .Onreceipt ofthis
.information theCommission oftheEuropean Communities and theAustrian
authorities fortheir ownsphere ofjuridiction shall adopt appropriate
measures assoon aspossible topermit thesimultaneous entry into force
ofthenew free-at-frontier prices . c
III .Consultation clause
Thechanqes infree-at-frontier prices referred toinparagraph 2shall ,
however ,bemade inaccordance with thefollowing provisions :
The twoparties undertake toinitiate consultations toexamine the
situation and,ifnecessary ,take appropriate action should the '
provisions ofthis exchange ofletters fail topermit theharmonious
development oftrade inthetypes ofcheese covered bytheAgreement .

4
Inparticular ,consultations shall take place ifthere isareduction
innormal export flows from the Community toAustria .Inthat event­
\
anychange intheminimum prices ofall orsome ofthe types ofcheese
covered bytheAgreement asaresult ofanincrease inthe Austrian
milk price may take place only asaresult ofagreement during the
above consultations . -
Consultations may also take place ifallorsome ofthetypes ofcheese
covered bytheAgreement are imported into Austria from the Community
insuch increased quantities astocause serious disturbances onthe
Austrian market .Inthat case ,anexceptional increase intheminimum
prices ofallorsome ofthetypes ofcheese covered bytheAgreement ,
may beconsidered only ifagreement isreached during theabove
consultations .
.IV.Amendment ofthe Agreement of20September 1977 .
Thedelegations have agreed topropose that the"Agreement of20Septem­
ber1977 beamended inorder totake theabove changes into account .
Itwasagreed that adraft text ,inthe form ofanexchange ofletters ,
should besubmitted totherespective authorities assoon aspossible .

AnnexII
V ,
PROPOSAI.
for
COUNCILREGULATION (EEC)
amencfingtheAgreementonpriceobservance andimportarrangements annexed
totheAgreementof20September1977betweenAustriaandtheEuropean .
EconomicCommunityconcerningcertaintypesofcheesenegotiated under
ArticleXXVIIIofGATTY
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereof,
ν
Havingregardtotheproposal fromtheCommission,
Whereasatthenegotiations underArticleXXVIIIofGATTonthewithdrawal
oftheconcessions madebyAustriaforproductsfallingwithinsubheading
04.04AoftheAustrianCustomsTariff,AustriaandtheEuropeanEconomic
(1)Communityconcluded anAgreement onpriceobservance andimportarrangements
Whereasinorderfortheobjectives oftheAgreementtobeattained,itis
necessarytomakecertainamendments thereto;
Whereastheconsultations providedforintheAgreement haveenabled
AustriaandtheEuropeanEconomiccommunitytoreachagreement onthe
necessary amendments;whereasthatagreementisconsideredtobesatisfactory ,
(1)0JNoL237,16.9.1977,p.4

-2-
HASADOPTEDTHISREGULATION :
Article 1
TheagreementintheformofanexchangeoflettersbetweenAustriaandthe
CommunityamendingtheAgreementonpriceobservance andimportarrangements
annexedtotheAgreementof20September 1977betweenAustriaandthe
EuropeanEconomicCommunityconcerningcertaintypesofcheesenegotiated
underArticleXXVIIIof6ATTisherebyapprovedonbehalfoftheCommunity.
%
ThetextofthesaidagreementisattachedtothisRegulation .*
Art>cle2
ThePresidentoftheCouncilisherebyauthorized todesignatetheperson
empoweredtosigntheagreementinordertobindtheCommunity.
Article3
ThisRegulationshallenterintoforceonthedayfollowingthatofits
publication intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
allMemberStates.
DoneatBrussels,1981
FortheCounciI
ThePresident

AGREEMENT
INTHEFORMOFANEXCHANGE OFLETTERSAMENDING THEAGREEMENT OF
20SEPTEMBER 1977ONPRICEOBSERVANCE ANDTHEARRANGEMENTS FORTHE
IMPORTATION OFCERTAIN TYPESOFCHEESE
Sir,
IhavethehonourtorefertotheAgreement onpriceobservance andimport
i »
arrangements annexedtotheAgreementof20September 1977betweenAustria
andtheEuropeanEconomicCommunityconcerningcertaintypesofcheese
negotiated underArticleXXVIIIofGATT,andinparticular inparagraphs 4
and5thereof,whichprovideforconsultations betweenthetwopartieson
anyquestionwhichmayariseinconnection withtheapplication ofthe
Ag$ement.
Accordingly,AustriaandtheEuropeanEconomicCommunity haveheld
consultations asaresultof.whichthefollowingprovisions havebeendrawn
up:
1.From ,thefree-at-Austrian-frontierpricetobeobserved
bytheeuropeanEconomicCommunityshallbefixedbycommonaccordas
follows:
Description ofgoodsFree-at-Austrian-
frontierpriceto
beobserved
Sch/100kg
1.Processed cheeseofafatcontent,by
weight,inthedrymatter:
a)Oflessthan26% 4301
b)Of26%ormorebutlessthan46% 4832.
c)Of46%ormorebutlessthan56%
ν
\5227

-2-
d)Of56%ormore 5785
2.Emmentaler andGruyère 5061
3.Blue-veined cheese 4181
4.Danbo,Edam,Elbo,Fynbo,Fontal,Gouda,
Havarti,Malbo,Maribo,Mimolette,Samsd,
TiIsit,Tybo 4258
5.Butterkäse,Esrom,Italico,Kernheim,
St-Nectaire,St-Paulin,Taleggio\ 3793
6.Cheddarandothertypesofcheesenot
mentioned above 4682
«
Theabovefree-at-frontierpricesshallreplacethosegivenin
paragraph 2oftheAgreementof20September 1977.
2.Thefree-at-frontferpricesgivenintheprecedingparagraphshallbe
increasedorreducedbyasumequaltotheproductoftheincreaseor
•reductionintheex-dairypriceof3.5%fatmilkinAustriaexpressed
inschillings per100kgmultiplied bythefollowingcoefficients for
eachofthetypesofcheesecoveredbytheAgreement :
Description ofgoods Coefficient
1.Processed cheeseofafatcontent,byweight,
inthedrymatter:-
a)Oflessthan26% 8
b)Of26%ormorebutlessthan46% 10
c)Of46%ormorebutlessthan56% 11
d)Of56%ormore 13
2.Emmentaler andGruyère 14
3.Blue-veined cheese 12
4.Danbo,Edam,Elbo,Fynbo,-Fontal,Gouda,
Havarti,Malbo,Maribo,Mimolette,Samsd,
Tilsit,Tybo 12

-3-
5.Butterkäse ,Esrom >Italico ,Kernheim ,
St-Nectaire ,St-PauUn ,Taleggio 11
6.Cheddar andother types ofcheese not
mentioned above 13
3.Inorder that the free -at-frontier prices may beobserved ,,theAustrian
authorities shall keep theCommission oftheEuropean Communities infor­
medofTicreases intheex-dairy price ofmilk inAustria .Onreceipt of
this information theCommission ofthe European Communities and the
Austrian authorities fortheir own sphere ofiuridiction sJiall adopt
%
appropriate measures assoon aspossible tdpermit thesimultaneous
entry into force ofthenew free-at-frontier prices .
t
4.Thechanges infree -at-frontier prices referred toinparagraph 2shall ,
however ,bemade inaccordance with the following provisions :
( -
The twoparties undertake toinitiate consultations toexamine the
situation and,where necessary ,take appropriate action should the
provisions ofthis exchange ofletters fail topermit theharmonious
development oftrade inthe types ofcheese covered bytheAgreement .
Inparticular ,consultations shall take place ifthere isareduction in
normal export flows from theCommunity toAustria .Inthat event ,any
change intheminimum prices ofall orsome ofthe types ofcheese cove­
red bytheAgreement asaresult ofanincrease intheAustrian milk
price may take place only asaresult ofagreement during theabove
.consultations . -
Consultations mayalso take place ifall orsome ofthe types ofcheese
covered bytheAgreement are imported into Austria from the Community in
such increased quantities astocause serious disturbances onthe Aus­
trian markets 'Inthat case ,anexceptional increase intheminimum prices
ofallorsome ofthetypes ofcheese covered bytheAgreement maybecon­
sidered only ifagreement isreached during theabove consultations .
./...

Ishouldbegratefulifyouwouldconfirmwhetheryouareinagreementwith
theabove.
Pleaseaccept.Sir,theassuranceofmyhighestconsideration .
OnbehalfoftheCouncil
oftheEuropeanCommunities

Letter No2
Sir-
Ihave thehonour toacknowledge receipt ofyour letter oftoday 'sdate ,which
reads asfollows :
"lhave thehonour torefer totheAgreement onprice observance andimport
arrangements annexed totheAgreement of20September 1977 between Austria
andtheEuropean Economic Community concerning certain types ofcheese
negotiated under Article XXVIII ofGATT ,and inparticular inparagraphs 4
and 5thereof ,which provide forconsultations between thetwoparties on
anyquestion which mayarise inconnection with theapplication ofthe
»
Ag&ement .
Accordingly ,Austria andtheEuropean Economic Community have held
consultations asaresult ofwhich thefollowing provisions have been drawn
UP:
1.From ,the free-at-Austrian~f rontier price tobeobserved
bytheEuropean Economic Community shall befixed bycommon accord as
follows :
Description ofgoodsFree-at-Aust rian-
frontier price to '
beobserved
Sch/100 kg
1.Processed cheese ofafat content ,by
weight ,inthedry matter :
a)Ofless than 26% 4301
b)Of26% ormore but less than 46% 4832
c)Of46% ormore but less than 56% 5227
d)Of56% ormore 5785
2.Emmentaler andGruyère
•·5061

3.Blue-veined cheese 4181
4.Danbo ,Edam ,Elbo ,Fynbo ,Fontal ,Gouda ,
Havarti ,Malbo,Maribo ,Mimolette ,Sams«6 ,
Tilsit ,Tybo 4258
5.Butterkäse ,Esrom ,Italico ,Kernheim ,
St-Nactaire ,St-Paulin ,Taleggio .3793 .
6.Cheddar andother types ofcheese not
mentioned above 4682
Theabove free-at –frontier prices shall replace those giv^n in
paragraph 2oftheAgreement of20September 1977 .
The free-at-frontier prices given inthepreceding paragraph shall be
increased orreduced byasumequal totheproduct ofthe increase or
reduction intheex-dairy price of3.5%fatmilk inAustria expressed
inschillings per100 kgmultiplied bythefollowing coefficients for
each ofthetypes ofcheese covered bythe Agreement :
Description ofgoods Coefficient
1.Processed cheese ofafatcontent ,byweight ,
inthedrymatter :
a)Ofless than 26% 8
b)Of26% ormore but less than 46% ' . 10
c)Of46% ormore but less than 56% 11
d)Of56% ormore 13
2.Emmentaler andGruyère 14
3.Blue-veined cheese 12
4.Danbo ,Edam ,Elbo ,Fynbo ,Fontal ,Gouda ,
Havarti ,Malbo ,Maribo ,Mimolette ,Samsd ,
Tilsit ,Tybo 12
5.Butterkäse ,Esrom ,Italico ,Kernheim ,
St-Nectaire >St-Paulin ,Taleggio 11
6.Cheddar andother types ofcheese not
mentioned above 13

-3-
3.Inorder that the free -at-frontier prices maybeobserved ,theAustrian
authorities shall keep theCommission oftheEuropean Communities infor­
medofincreases intheex-dairy price ofmilk inAustria .Onreceipt
ofthis information theCommission oftheEuropean Communities andthe
Austrian authorities fortheir ownsphere ofjuridiction shall adopt
appropriate measures assoon aspossible topermit thesimultaneous
entry into force oft(ienew free -at-frontier prices .
.4.Thechanges infree-at-frontier prices referred toinparagraph 2shall ,
«
however ,bemade inaccordance with thefollowing provisions :
/
The two parties undertake totiitiate consultations toexamine the situa­
tion and,where necessary ,take appropriate action should theprovisions
ofthis exchange ofletters fail topermit theharmonious development of
trade inthetypes ofcheese covered bytheAgreement .
Inparticular ,consultations shall take place ifthere isareduction in
normal export flows from the Community toAustria .Inthat event ,any
change intheminimum prices ofall orsome ofthe types ofcheese cove­
redbytheAgreement asaresult ofanincrease intheAustrian milk price
maytake place only asaresult ofagreement during theabove consultations .
Consultations mayalso take place ifallorsome ofthe types ofcheese
covered bytheAgreement are imported into Austria from the -Community in
such increased quantities astocause serious disturbances ontheAustrian
market .Inthat case ,anexceptional increase intheminimum prices of
allorsome ofthe types ofcheese covered bytheAgreement may beconsi­
dered only ifagreement isreached during theabove consultations .
Ishould begrateful ifyouwould confirm whether youareinagreement with
the abov& "
Ihave thehonour toconfirm ,onbehalf ofAustria ,myagreement with the
contents ofyour letter .
Please accept ,Sir,theassurance ofmyhighest consideration .
Onbehalf ofthe Austrian
Government