Proposal for a COUNCIL DECISION on the conclusion of the agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning certain agricultural products

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Article 19 of the Agreement on the European Economic Area states that Parties undertake to continue their efforts with a view to achieving progressive liberalisation of agricultural trade and that Parties will decide, within the framework of this agreement, on a preferential, bilateral or multilateral, reciprocal and mutually beneficial basis, on further reductions of any type of barriers to trade in the agricultural sector.

2. The agreement in the form of an exchange of letters between the Kingdom of Norway and the European Community, is the result of the bilateral trade negotiations in agriculture, which took place from 4 March to 18 December 2002.

3. This arrangement comprises a consolidated arrangement for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including tariff quotas, which are additional to existing preferences [1]. The entry into force of these bilateral concessions is foreseen on 1 July 2003.

[1] Council Decision 93/239/EC of 2 May 1992 (OJ L 109, 1.5.1993, p. 1) and Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

4. The Commission therefore proposes that the Council adopt the proposal for a decision on the conclusion of these agreements in the form of an exchange of letters as set out in the Annex.

5. Financial impact: the loss of custom revenues is estimated at EUR 1.6 million.

2003/0108 (ACC)

Proposal for a COUNCIL DECISION on the conclusion of the agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning certain agricultural products

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regards to the proposal from the Commission,

Whereas:

(1) Article 19 of the Agreement on the European Economic Area (EEA) foresees that the contracting parties undertake to continue their efforts with a view to achieving progressive liberalisation of agricultural trade between them.

(2) The Kingdom of Norway and the European Community held bilateral trade negotiations in agriculture in 2002, on the basis of Article 19 of the EEA, which were concluded satisfactorily on 18 December 2002.

(3) The Agreement in question, in the form of an exchange of letters, should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway, concerning certain agricultural products, is hereby approved on behalf of the Community.

The texts of the Agreement are attached to this Decision.

Article 2

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

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT

in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning additional trade preferences in agricultural products undertaken on the basis of Article 19 of the agreement on the European Economic Area

A. Letter from the Community

Brussels, .......... 2003

Sir,

I have the honour to refer to the trade negotiations between the European Community and the Kingdom of Norway on agricultural products, held from 4 March 2002 to 18 December 2002, undertaken on the basis of Article 19 of the agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between parties, the Kingdom of Norway and the European Community have agreed to additional bilateral trade preferences concerning agricultural products. This arrangement comprises a consolidated arrangement for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including additional tariff quotas to existing preferences.

I hereby confirm that the results of the negotiations were as follows:

1. From 1 July 2003, Norway and the Community will increase their reciprocal trade in cheese. The text and the consolidated annual tariff quotas are set out in Annex I hereto.

2. From 1 July 2003, Norway will open for the Community the annual tariff quotas, for products originating in the Community, set out in Annex II hereto. These bilateral concessions are additional to the ones already in place [2].

[2] Council Decision 93/239/EC of 2 May 1992 (OJ L 109, 1.5.1993, p. 1) and Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

3. From 1 July 2003, Norway will reduce or eliminate import duties on products, originating in the Community, set out in Annex III hereto. These bilateral concessions are additional to the ones already in place1.

4. From 1 July 2003, the Community will eliminate import duties on products, originating in Norway, set out in Annex IV hereto. These bilateral concessions are additional to the ones already in place1.

5. From 1 July 2003, the Community will open for Norway the annual tariff quotas, for products originating in Norway, set out in Annex V hereto. These bilateral concessions are additional to the ones already in place1.

6. The parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other import measures.

7. The parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported. Where necessary, tariff quotas will be opened in 2003 on a pro-rata basis.

8. The parties agree to exchange at regular interval information on tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of this agreement.

9. Consultations will be held at the request of either party on any question relating to the operation of this agreement. In case of difficulties, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

10. The rules of origin for the purpose of implementing the concessions referred to in Annexes I to V of this agreement are set out in Annex IV of the exchange of letters of 2 May 1992. However, paragraph 2 of Annex IV shall refer to the list in Annex II of Protocol 4 to the Agreement on the European Economic Area, to be applied according to Annex I of the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of Annex IV of the exchange of letters of 2 May 1992.

11. Norway and the European Community agree to resume bilateral negotiations in the framework of Article 19 of the agreement on the European Economic Area in two years time.

This exchange of letters shall be approved by the contracting parties in accordance with their own procedures.

I have the honour to confirm that the European Community is in agreement with the content of this letter.

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 On behalf of the Council of the EU

B. Letter from Norway

Brussels, .......... 2003

Sir,

I have the honour to refer to your letter dated XXX which reads as follows:

"I have the honour to refer to the trade negotiations between the European Community and the Kingdom of Norway on agricultural products, held from 4 March 2002 to 18 December 2002, undertaken on the basis of Article 19 of the agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between parties, the Kingdom of Norway and the European Community have agreed to additional bilateral trade preferences concerning agricultural products. This arrangement comprises a consolidated arrangement for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including additional tariff quotas to existing preferences.

I hereby confirm that the results of the negotiations were as follows:

1. From 1 July 2003, Norway and the Community will increase their reciprocal trade in cheese. The text and the consolidated annual tariff quotas are set out in Annex I hereto.

2. From 1 July 2003, Norway will open for the Community the annual tariff quotas, for products originating in the Community, set out in Annex II hereto. These bilateral concessions are additional to the ones already in place [3].

[3] Council Decision 93/239/EC of 2 May 1992 (OJ L 109, 1.5.1993, p. 1) and Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

3. From 1 July 2003, Norway will reduce or eliminate import duties on products, originating in the Community, set out in Annex III hereto. These bilateral concessions are additional to the ones already in place1.

4. From 1 July 2003, the Community will eliminate import duties on products, originating in Norway, set out in Annex IV hereto. These bilateral concessions are additional to the ones already in place1.

5. From 1 July 2003, the Community will open for Norway the annual tariff quotas, for products originating in Norway, set out in Annex V hereto. These bilateral concessions are additional to the ones already in place1.

6. The parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other import measures.

7. The parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported. Where necessary, tariff quotas will be opened in 2003 on a pro-rata basis.

8. The parties agree to exchange at regular interval information on tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of this agreement.

9. Consultations will be held at the request of either party on any question relating to the operation of this agreement. In case of difficulties, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

10. The rules of origin for the purpose of implementing the concessions referred to in Annexes I to V of this agreement are set out in Annex IV of the exchange of letters of 2 May 1992. However, paragraph 2 of Annex IV shall refer to the list in Annex II of Protocol 4 to the Agreement on the European Economic Area, to be applied according to Annex I of the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of Annex IV of the exchange of letters of 2 May 1992.

11. Norway and the European Community agree to resume bilateral negotiations in the framework of Article 19 of the agreement on the European Economic Area in two years time.

This exchange of letters shall be approved by the contracting parties in accordance with their own procedures.

I have the honour to confirm that the European Community is in agreement with the content of this letter.

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."

I have the honour to 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 Government of the Kingdom of Norway

ANNEX I Trade in cheese

1. The European Community shall abolish import duties on the existing cheese quota and shall increase these quotas. The consolidated annual tariff quotas are as follows:

>TABLE POSITION>

2. Norway shall abolish import duties on the existing cheese quota and shall increase these quotas. The consolidated annual tariff quota is as follows:

>TABLE POSITION>

3. Norway will improve its current import management system based on import licences attributed on the basis of historical rights, in particular by improving the access to licences to newcomers. Norway will continue to administer a quantity of 2 360 tons of cheeses of the consolidated annual cheese tariff quota on the basis of a cheese list, according to the exchange of letters of 11 April 1983. Additional quantities within the consolidated cheese tariff quotas will not be subject to this cheese list and will be imported with no condition relating to the type of cheese. However, imports of cheese for processing should be minimised, with the exception to cheeses used in the preparation of ready-made food (e.g. pizzas or cheese-snacks).

4. The Community will manage the annual cheese tariff quota under the general licensing system applied in the dairy sector. The IMA1 certificate system will be abandoned.

5. These provisions shall replace previous arrangements between the European Community and the Kingdom of Norway concerning reciprocal trade in cheese.

ANNEX II Additional tariff quotas granted by Norway

1. Norway will open the following annual tariff quotas for the following products originating in the Community *:

>TABLE POSITION>

2. Norway will open the following annual zero-duty tariff quotas for the following products originating in the Community *:

>TABLE POSITION>

ANNEX III Additional tariff concessions granted by Norway

Norway will reduce or eliminate import duties on the following products originating in the Community *:

>TABLE POSITION>

ANNEX IV Additional tariff concessions granted by the Community

The Community will eliminate import duties on the following products originating in Norway:

>TABLE POSITION>

ANNEX V Additional tariff quotas granted by the Community

1. The Community will open the following annual tariff quota for the following products originating in Norway *:

>TABLE POSITION>

2. The Community will open the following annual zero-duty tariff quotas for the following products originating in Norway *:

>TABLE POSITION>

* The quotas shall apply annually unless otherwise indicated.

>TABLE POSITION>