EN

Brussels, 5.10.2006

COM(2006) 580 final

2006/0185 (ACC)

Proposal for a

COUNCIL DECISION

relating to the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Republic of Iceland concerning trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area

(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 agriculture 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 European Community and the Republic of Iceland is the result of the bilateral trade negotiations in agriculture, which took place from 6 March 2005 to 18 November 2005.

(3) This arrangement consolidates concessions already in place [1] with new concessions for a variety of agricultural products. The entry into force of these bilateral concessions is foreseen on 1 January 2007.

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

Financial impact: the loss of the custom revenues is estimated at EUR 0,2 million per year.

2006/0185 (ACC)

Proposal for a

COUNCIL DECISION

relating to the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Republic of Iceland concerning trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard 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 European Community and the Republic of Iceland held bilateral trade negotiations in agriculture in 2005, on the basis of Article 19 of the Agreement on the European Economic Area, which were concluded satisfactorily on 18 November 2005.

(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 Republic of Iceland concerning additional trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area, is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) 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 Republic of Iceland 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 European Community

Sir,

I have the honour to refer to the trade negotiations between the European Community and the Republic of Iceland on agricultural products, held from 6 March 2005 to 18 November 2005, 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 European Community and the Republic of Iceland have agreed to additional bilateral trade preferences concerning agricultural products, with due consideration to the respective agricultural policies and circumstances, including the evolution of the bilateral trade and trade with other partners.

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

1. From 1 January 2007, the European Community and the Republic of Iceland will reciprocally consolidate at bilateral level the existing zero duty lines, be it applied duties or existing concessions, and, if not already at zero level, to reciprocally eliminate duties on bilateral imports, for all products originating in the parties, which are listed in Annex I.

2. From 1 January 2007, the European Community will provide tariff quotas on imports into the Community of products originating in Iceland, which are listed in Annex II.

3. From 1 January 2007, the Republic of Iceland will provide tariff quotas on imports into Iceland of products originating in the Community, which are listed in Annex III.

These bilateral concessions replace and consolidate all existing bilateral concessions in agricultural products that are currently in force, in application of Article 19 of the Agreement on the European Economic Area [2].

4. The Republic of Iceland agrees to end its unilateral and temporary erga omnes reductions in applied tariffs on agricultural products put in place in 2002 and prolonged so far on a yearly basis.

5. The provisions of Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland [3] concerning the definition of the concept of “originating products” and methods of co-operation shall apply mutatis mutandis to the products mentioned in Annexes I, II and III.

6. The Parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other restrictive 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. The Parties will manage the tariff quotas listed in Annexes II and III on a first come first served basis or by using other equivalent methods.

8. The Parties agree to strive for promoting trade of eco-friendly products and products with a geographical indication. The Parties agree to engage into further bilateral discussion with a view to better understand respective legislation and registration procedures, in order to identify ways to enhance the protection of geographical indications in the territories of both Parties.

9. The Parties agree to exchange at regular interval information on traded products, tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of the results of these negotiations.

10. Consultations will be held at the request of either party on any question relating to the implementation of the results of these negotiations. In case of difficulty in the implementation of the results of these negotiations, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

11. The first consultations relating to the results of these negotiations will be held before that implementing arrangements are put in place, with a view to facilitate the smooth implementation of these negotiations.

12. The results of these negotiations will be implemented as from 1 January 2007. Where necessary, tariff quotas will be opened on a pro-rata basis.

13. The Parties agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years time, with particular consideration to the outcome of the WTO negotiation process in agriculture.

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

I should be obliged if you would confirm that the Government of the Republic of Iceland is in agreement with the above.

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

Done at Brussels,

On behalf of the Council of the European Union

B. Letter from the Republic of Iceland

Sir,

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

'I have the honour to refer to the trade negotiations between the Republic of Iceland and the European Community on agricultural products, held from 6 March 2005 to 18 November 2005, 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 Republic of Iceland and the European Community have agreed to additional bilateral trade preferences concerning agricultural products, with due consideration to the respective agricultural policies and circumstances, including the evolution of the bilateral trade and trade with other partners.

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

1. From 1 January 2007, the European Community and the Republic of Iceland will reciprocally consolidate at bilateral level the existing zero duty lines, be it applied duties or existing concessions, and, if not already at zero level, to reciprocally eliminate duties on bilateral imports, for all products originating in the parties, which are listed in Annex I.

2. From 1 January 2007, the European Community will provide tariff quotas on imports into the Community of products originating in Iceland, which are listed in Annex II.

3. From 1 January 2007, the Republic of Iceland will provide tariff quotas on imports into Iceland of products originating in the Community, which are listed in Annex III.

These bilateral concessions replace and consolidate all existing bilateral concessions in agricultural products that are currently in force, in application of Article 19 of the Agreement on the European Economic Area [4].

4. The Republic of Iceland agrees to end its unilateral and temporary erga omnes reductions in applied tariffs on agricultural products put in place in 2002 and prolonged so far on a yearly basis.

5. The provisions of Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland [5] concerning the definition of the concept of “originating products” and methods of co-operation shall apply mutatis mutandis to the products mentioned in Annexes I, II and III.

6. The Parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other restrictive 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. The Parties will manage the tariff quotas listed in Annexes II and III on a first come first served basis or by using other equivalent methods.

8. The Parties agree to strive for promoting trade of eco-friendly products and products with a geographical indication. The Parties agree to engage into further bilateral discussion with a view to better understand respective legislation and registration procedures, in order to identify ways to enhance the protection of geographical indications in the territories of both Parties.

9. The Parties agree to exchange at regular interval information on traded products, tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of the results of these negotiations.

10. Consultations will be held at the request of either party on any question relating to the implementation of the results of these negotiations. In case of difficulty in the implementation of the results of these negotiations, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

11. The first consultations relating to the results of these negotiations will be held before that implementing arrangements are put in place, with a view to facilitate the smooth implementation of these negotiations.

12. The results of these negotiations will be implemented as from 1 January 2007. Where necessary, tariff quotas will be opened on a pro-rata basis.

13. The Parties agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years time, with particular consideration to the outcome of the WTO negotiation process in agriculture.

I have the honour to confirm that the Government of the Republic of Iceland is in agreement with the content of your letter.'

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

Done at Reykjavik

For the Government of the Republic of Iceland

ANNEX I

Bilateral trade in products of the following chapters or parts of chapters is freed:

ex Chapter 1, Live animals: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

0101 | Live horses, asses, mules and hinnies | 0101 | Live horses, asses, mules and hinnies |

ex Chapter 2, Meat and edible meat offal: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

ex 0208.9008 | carcasses and half-carcasses of reindeer meat, frozen | ex 0208 90 60 | carcasses and half-carcasses of reindeer meat, frozen |

ex Chapter 4, Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

0409 | Natural honey | 0409 00 00 | Natural honey |

0410 | Edible products of animal origin, not elsewhere specified or included | 0410 00 00 | Edible products of animal origin, not elsewhere specified or included |

Chapter 5 [6], Products of animal origin, not elsewhere specified or included |

ex Chapter 6, Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

0601 | Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of heading 1212 | 0601 | Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of heading 1212 |

ex 0602 | Other live plants (including their roots), cuttings and slips; mushroom spawn: | ex 0602 | Other live plants (including their roots), cuttings and slips; mushroom spawn: |

| - Other than other potted indoor plants not exceeding 1 m in height (tariff heading 0602.9095) | ex 0602 90 91 ex 0602 90 99 | Other indoor plants, other than cacti and thickleaves, potted plants of the genus Bromelia, the plants Erica gracilis and calluna, orchids and other potted plants not exceeding 1 m in height |

ex 0603 | Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared: | ex 0603 | Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared: |

0603.1001 | -- Imported from 1 December to 30 April | ex 0603 10 20 | Carnations, fresh, other than imported from 1 May – 30 November |

0603.1003 | - Of the genera Protea, Banksis, Leucadendron and Brunia | 0603 10 30 ex 0603 10 80 | OrchidsFresh flowers of the genera Protea, Banksia, Leucadendron, Brunia and Forsythia |

0603.1004 | - Cut branches with berries or fruit on, not edible, of the genera: Ligustrum, Callicarpa, Gossypium, Hypericum, Ilex or Symphoricarpos | | |

0603.1005 | - Flowers of Orchids | | |

0603.1006 | - Forsythia | | |

0603.9000 | - Other | 0603 90 00 | Other |

0604 | Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dries, dyed, bleached, impregnated or otherwise prepared | 0604 | Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared |

ex Chapter 7, Edible vegetables and certain roots and tubers: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

0702 | Tomatoes, fresh or chilled | 0702 00 00 | Tomatoes, fresh or chilled |

ex 0703 | Onions, shallots, garlic and other alliaceous vegetables, fresh or chilled | ex 0703 | Onions, shallots, garlic and other alliaceous vegetables, fresh or chilled |

ex 0704 | Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled: | ex 0704 | Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled: |

0704.2000 | - Brussels sprouts | 0704 20 00 | Brussels sprouts |

0704.9005 | -- Curly kale (brassica oleracea acepjala) | ex 0704 90 90 | Other, excluding Chinese cabbage |

0704.9009 | -- Other | | |

0705 | Lettuce(lactuca sativa) and chicory (Cichorium spp.), fresh or chilled | 0705 | Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled |

ex 0706 | Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled: | ex 0706 | Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled: |

0706.9009 | - Other | 0706 90 | Other |

0707 | Cucumbers and gherkins, fresh or chilled | 0707 | Cucumbers and gherkins, fresh or chilled |

0708 | Leguminous vegetables, shelled or unshelled, fresh or chilled | 0708 | Leguminous vegetables, shelled or unshelled, fresh or chilled |

ex 0709 | Other vegetables, fresh or chilled: | ex 0709 | Other vegetables, fresh or chilled: |

0709.10 | - Globe artichokes, fresh or chilled | 0709 10 00 | Globe artichokes |

0709.20 | - Asparagus, fresh or chilled | 0709 20 00 | Asparagus |

0709.30 | - Aubergines (eggplants) | 0709 30 00 | Aubergines (eggplants) |

0709.52 | -- Truffles, fresh or chilled | 0709 52 00 | Truffles |

0709.60 | - Fruits of the genus Capsicum or of the genus Pimenta | 0709 60 | Fruits of the genus Capsicum or of the genus Pimenta |

0709.70 | - Spinach, N-Z spinach and orache spinach garden spinach), fresh or chilled | 0709 70 00 | Spinach, New Zealand spinach and orache spinach (garden spinach) |

0709.9001 | -- Sweet corn | 0709 90 60 | Sweet corn |

0709.9002 | -- Courgettes | 0709 90 70 | Courgettes |

0709.9003 | -- Olives | | Olives: |

| | 0709 90 31 | − For uses other than the production of oil |

| | 0709 90 39 | − Other |

0709.9004 | -- Parsley (percille) | 0709 90 90 | Other |

0709.9009 | -- Other | | |

ex 0710 [7] | Vegetables (uncooked or cooked y steaming or boiling in water), frozen: | ex 0710 [8] | Vegetables (uncooked or cooked by steaming or boiling in water), frozen: |

| Other than potatoes | 0710 21 00 | Peas (Pisum sativum) |

| | 0710 22 00 | Beans (Vigna spp., Phaseolus spp.) |

| | 0710 29 00 | Other |

| | 0710 30 00 | Spinach, New Zealand spinach and orache spinach (garden spinach) |

| | 0710 40 00 | Sweetcorn |

| | 0710 80 | Other vegetables |

| | 0710 90 00 | Mixtures of vegetables |

0711 [9] | Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption | 0711 [10] | Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption |

0712 | Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared | 0712 | Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared |

0713 | Dried leguminous vegetables, shelled, whether or not skinned or split | 0713 | Dried leguminous vegetables, shelled, whether or not skinned or split |

0714 | Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith | 0714 | Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith |

Chapter 8, Edible fruit and nuts; peel of citrus fruit or melons |

Chapter 9 [11], Coffee, tea, maté and spices |

Chapter 10 [12], Cereals |

Chapter 11 [13], Products of the milling industry; malt; starches; inulin; wheat gluten |

Chapter 12 [14], Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder |

Chapter 13 [15], Lac; gums, resins and other vegetable saps and extracts |

Chapter 14 [16], Vegetable plaiting materials; vegetable products not elsewhere specified or included |

Chapter 15 [17] [18], Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes |

ex Chapter 18 [19], Cocoa and cocoa preparations: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

1801 | Cocoa beans, whole or broken, raw or roasted | 1801 | Cocoa beans, whole or broken, raw or roasted |

1802 | Cocoa shells, husks, skins and other cocoa waste | 1802 | Cocoa shells, husks, skins and other cocoa waste |

ex Chapter 20, Preparations of vegetables, fruit, nuts or other parts of plants: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

ex 2001 [20] | Vegetable, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: | ex 2001 [21] | Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: |

2001.1000 | - Cucumbers and gherkins | 2001 10 00 | Cucumbers and gherkins |

| - Other | 2001 90 | Other |

2001.9005 | -- Onion | 2001 90 93 | Onions |

2001.9009 | -- Other | 2001 90 99 | Other, excluding potatoes and products thereof |

2002 | Tomatoes prepared or preserved otherwise than by vinegar or acetic acid | 2002 | Tomatoes prepared or preserved otherwise than by vinegar or acetic acid |

2003 | Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid | 2003 | Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid |

2004 [22] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen: | 2004 [23] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006: |

2004.9002 | -- Globe artichokes | ex 2004 90 98 | Globe artichokes. |

2004.9003 | -- Green or black olives | ex 2004 90 30 | Green or black olives |

2004.9004 | -- Green peas and beans | 2004 90 50 | Peas (Pisum sativum) and immature beans of the species Phaseolus spp., in pod |

2004.9005 | -- Preparations with a basis of flours of leguminous plants | ex 2004 90 98 | Preparations with a basis of flours of leguminous plants |

2004.9009 | -- Other | ex 2004 90 98 | Other, excluding products containing meat in a proportion of 3% up to and including 20% by weight |

2005 [24] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen: | 2005 [25] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006: |

2005.1000 | - Homogenised vegetables | 2005 10 00 | Homogenised vegetables |

2005.4000 | - Peas (Pisum sativum) | 2005 40 00 | Peas (Pisum sativum) |

| - Beans (Vigna spp., Phaseolus spp.): | | Beans (Vigna spp., Phaseolus spp.): |

2005.5100 | - Beans, shelled | 2005 51 00 | Beans, shelled |

2005.5900 | -- Other | 2005 59 00 | Other |

2005.6000 | - Asparagus | 2005 60 00 | Asparagus |

2005.7000 | - Olives | 2005 70 | Olives |

| - Other vegetables and mixtures of vegetables: | 2005 90 | Other vegetables and mixtures of vegetables: |

2005.9009 | - Other | ex 2005 90 80 | Other, excluding products containing meat in a proportion of 3% up to and including 20% by weight |

2008 [26] | Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included | 2008 [27] | Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included |

2009 | Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter | 2009 | Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter |

ex Chapter 22, Beverages, spirits and vinegar: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

2201 | Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow | 2201 | Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow |

2204 | Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 | 2204 | Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 |

ex chapter 23, Residues and waste from the food industries; prepared animal fodder: |

Icelandic code | Icelandic description of products | EC code | EC description of products |

ex 2309 | Preparations of a kind used in animal feeding: | ex 2309 | Preparations of a kind used in animal feeding: |

ex 2309.1000 | Dog or cat food, put up for retail sale, containing no starch or containing not more than 30% by weight of starch and containing no milk products or containing less than 10% by weight of such products | 2309 10 112309 10 31 | Dog or cat food, put up for retail sale, containing no starch or containing not more than 30% by weight of starch and containing no milk products or containing less than 10% by weight of such products |

Chapter 24 [28], Tobacco and manufactured tobacco substitutes |

ANNEX II

Tariff quotas granted by the European Community

The EC will open the following annual tariff quota for the following products originating in Iceland (*)

EC custom tariff heading | Description of products | Annual quantity | Rate of duty |

ex 0204 | meat of sheep, fresh, chilled or frozen | 1850 tons (net weight) | 0 |

ex 0405 | natural butter | 20 tons (net weight) | 0 |

ex 1601 | sausages | 15 tons (net weight) | 0 |

* the quotas shall apply annually unless otherwise specified. |

ANNEX III

Tariff quotas granted by Iceland

Iceland will open the following annual tariff quotas for the following products originating in the European Community (*)

Icelandic custom tariff heading | Description of products | Annual quantity | Rate of duty |

0208.9003 | ptarmigans, frozen | 15 tons (net weight) | 0 |

ex 0406 | cheese with protected designation of origin or protection geographical indication (**) | 20 tons (net drained weight) | 0 |

0701.9001 | potatoes, fresh or chilled, with a minimal length of 65 mm | 25 tons (net weight) | 0 |

ex 1601 | sausages | 15 tons (net weight) | 0 |

* the quotas shall apply annually unless otherwise specified.** registered under Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin of agricultural products and foodstuffs (OJ L 93, 31.3.2006, p. 12). |

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE

1. NAME OF THE PROPOSAL

Proposal for a Council Decision relating to the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and Republic of Iceland concerning trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area

2. BUDGET LINES

Chapter 10 – Article 1000: Agricultural duties.

Amount estimated for the year 2007: EUR 1 486,9 million (APB 2007).

3. FINANCIAL IMPACT

(...) Proposal has no financial impact on expenditure but has a financial impact on revenue – the effect is as follows (€ million to one decimal place):

Budget line | Revenue [29] | 12 month period, starting 1.1.2007, and the following years |

Article 100-1000 | Impact on own resources | – 0,2 |

Article | Impact on own resources | – |

Situation following action (*) |

| 2007 | 2008 | 2009 | 2010 |

Article 100-1000 | | | | |

Article … | – | – | – | – |

4. ANTI-FRAUD MEASURES

5. OTHER REMARKS

(*) The agreement includes new concessions on imports from Iceland for certain agricultural products. With respect to the budgetary income, it is estimated that the measure implies an impact of a possible loss of around –0,2 Mio €, on the forecasts established for 2007 and following years.

With respect to the expenditure, it can be considered that the measure has no financial impact.

[1] Council Decision 81/359/EEC of 28 April 1981 (OJ L 137, 23.5.1981, p. 8),

- Council Decision 93/239/EEC of 15 March 1993 (OJ L 109, 1.5.1993, p. 1),

- Council Decision 93/736/EC of 13 December 1993 (OJ L 346, 31.12.1993, p. 16),

- Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

[2] Council Decision 81/359/EEC of 28 April 1981 (OJ L 137, 23.5.1981, p. 8)

- Council Decision 93/239/EEC of 15 March 1993 (OJ L 109, 1.5.1993, p. 1)

- Council Decision 93/736/EC of 13 December 1993 (OJ L 346, 31.12.1993, p. 16)

- Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

[3] Decision No 2/2005 of the EC/Iceland Joint Committee of 22 December 2005 (OJ L 131, 18.5.2006, p. 1).

[4] Council Decision 81/359/EEC of 28 April 1981 (OJ L 137, 23.5.1981, p. 8),

- Council Decision 93/239/EEC of 15 March 1993 (OJ L 109, 1.5.1993, p. 1),

- Council Decision 93/736/EC of 13 December 1993 (OJ L 346, 31.12.1993, p. 16),

- Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

[5] Decision No 2/2005 of the EC/Iceland Joint Committee of 22 December 2005 (OJ L 131, 18.5.2006, p. 1).

[6] Other than products covered by Protocol 3 of the European Economic Area agreement.

[7] Other than products covered by Protocol 3 of the European Economic Area agreement.

[8] Other than products covered by Protocol 3 of the European Economic Area agreement.

[9] Other than products covered by Protocol 3 of the European Economic Area agreement.

[10] Other than products covered by Protocol 3 of the European Economic Area agreement.

[11] Other than products covered by Protocol 3 of the European Economic Area agreement.

[12] Other than for animal feeding.

[13] Other than for animal feeding.

[14] Other than for animal feeding.

[15] Other than products covered by Protocol 3 of the European Economic Area agreement.

[16] Other than products covered by Protocol 3 of the European Economic Area agreement.

[17] Other than products covered by Protocol 3 of the European Economic Area agreement.

[18] Other than fish product.

[19] Other than products covered by Protocol 3 of the European Economic Area agreement.

[20] Other than products covered by Protocol 3 of the European Economic Area agreement.

[21] Other than products covered by Protocol 3 of the European Economic Area agreement.

[22] Other than products covered by Protocol 3 of the European Economic Area agreement.

[23] Other than products covered by Protocol 3 of the European Economic Area agreement.

[24] Other than products covered by Protocol 3 of the European Economic Area agreement.

[25] Other than products covered by Protocol 3 of the European Economic Area agreement.

[26] Other than products covered by Protocol 3 of the European Economic Area agreement.

[27] Other than products covered by Protocol 3 of the European Economic Area agreement.

[28] Other than products covered by Protocol 3 of the European Economic Area agreement.

[29] Amounts indicated are net amounts, i.e. gross amounts after deduction of 25 % of collection costs.

--------------------------------------------------