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DOCUMENTS "COM"
COM(81)619
Vol.1981/0188

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COMMISSION OFTHE EUROPEAN COMMUNITIES
COM(81)619 final
Brussels .22October 1981
Recommendation for a
COUNCIL _DECISION
.«-Ά
•- ?
•,-•
concerning the conclusion ofanAgreement resulting from
thenegotiations andconsultations between Finland and
the European Economic' Community concerning trade in
;various agricultural products
(submitted tothe Council bythe Commission )
C0MC81 )619 final

EXPLANATORY MEMORANDUM
Inaccordance withthemandateitreceivedfromtheCouncil
on16December1980,theCommissionconductednegotiations with
Finlandconcerningtheirreciprocaltradeincheese.Atthe
sametime,followingGreece'saccessiontotheCommunities,the
Commissionheldnegotiations withFinlandunderArticleXXIV(6)
oftheGATT.
Thenegotiations haveresultedinasatisfactory overallagree­
ment.

CONCLUSION Of AN AGREEMENT RESULTING FROM THE NEGOTIATIONS AND
CONSULTATIONS BETWEEN FINLAND AND "THE "COMMUNITY ONTRADE IN
VARIOUS AGRICULTURAL PRODUCTS
\
(Commission Communication tothe Council )
The Commission hereby transmits tothe Council :
i.areport onthe outcome ofthenegotiations andconsultations
between Finland and the Community ontrade invarious agricul­
tural products (Annex A);
ii.adraft agreement including anagreed minute and .atemporary
arrangement (Annex B).
The Commission recommends that the Council approve this Agreement .
Tothat' enditpresents adraft decision ontheconclusion ofthe
Agreement (Annex C).

Annex Apage 1
Report onthe outcome ofthe ■
NEGOTIATIONS AND CONSULTATIONS BETWEEN FINLAND AND THE
COMMUNITY ON TRADE INVARIOUS AGRICULTURAL PRODUCTS
1.Inaccordance with the mandate itreceived from the Council on16De­
cember 1980 and following Finland 'srequest ,the Commission held con­
sultations with Finland onthesituation regarding the reciprocal trade
incheese . ' ' ' -
Atthese consultations ,both parties noted ,each foritspart,that-the
.situation wasunsatisfactory .The conclusion reached byboth delegations
was that some features ofthe import systems inforce inFinland and the
Community did not correspond tothe present market circumstances and that
they should bebrought into line with the real situation .Itproved pre­
ferable toadopt aprovisional practical solution rather than toseek a
4
definitive adjustment ,which would have been difficult toachieve inthe
present economic circumstances .
The negotiations resulted inathree-year temporary arrangement (see
Annex I)the main features ofwhich are thestabilization ofimports into
the Community from Finland atacertain quantitative level (average of
1978,1979 and 1980 imports ),theprogressive opening ofthe Finnish mar --.
kettoCommunity exports and theestablishment ,with reciprocal guarantees
ofasatisfactory competitive situation based onthesetting upofacon­
*
certed discipline mechanism . '
Following Greece 'saccession tothe European Communities ,the Community
isobliged tohold negotiations under Article XXIV (6)ofthe GATT in
order tocompensate its GATT partners for theinjury caused them bythe
substitution of CCT duties for Greek customs duties bound under GATT .
Inaletter of11June 1981,Finland requested theopening ofthose nego­
tiations with the Community .

2.
•Thenegotiations ,-whichtookplaceatthesametimeasthenegotiations
oncheese,resultedinanagreementunderwhichtheCommunitywillgrant
Finlandtariffconcessions ihthecheesesectorascompensation forthe-
withdrawalofthetariffconcessions boundbyGreece(inparticularfor
certaincheeses).-. ." -
Finlandstatedthatitwasprepared,withoutbindingunderGATT,toin­
cludetheseconcessions inthetemporaryarrangement forcheese(see
exchangeoflettersinAnnexII). ■ >■: .
3.Bothdelegations feelthattheyhavereachedabalancedoverallagreement
whichissatisfactory tobothparties.Anagreedminute(seeAnnexB)
wasinitialledinHelsinkion31August1981andisbeingsubmittedfor
the-approvaloftheirrespectiveauthorities .Theagreedmirutecompri--
sesanoverallagreementorithefollowingpoints:
(i)TemporaryarrangementforaconcerteddisciplinebetweenFinland
andtheEuropeanEconomicCommunityconcerningreciprocal ,tradein,
,cheese; '
(ii)Exchangeoflettersconcerningtheoutcomeofthenegotiations
betweenFinlandandtheEuropeanEconomicCommunityunderArticle
XXIV(6)oftheGATTfollowingthe.accessionofGreecetotheEuropean
Communities .
! • ,■ . .- .v ;
••, - W•

AGREED MINLiTE
Negotiations and consultations between the Finnish Delegation
and the Delegation of .the Commission ofthe European Communities
concerning trade invarious agricultural products
The Finnish Delegation and the Delegation ofthe Commission ofthe European
Communities have reached anoverall agreement covering thefollowing points :
(i)Temporary arrangement for aconcerted discipline between Finland and
the European Economic Community concerning reciprocal trade incheese
(Annex I);
Cii)Exchange ofletters concerning the outcome ofthe negotiations between
Finland and the European Economic Community under Article XXIV (6)of
the GATT following the accession ofGreece tothe European Communities
.(Annex II).
delegations have agreed tosubmit this overall agreement totheir res­
pective authorities for approval .
Done atHelsinki ,31August 1981
For the Finnish DelegationFor the Delegation of
the Commission ofthe
European Communities ,

AnnexI,page1
» Ρ
f
l'
TEMPORARY ARRANGEMENT FORACONCERTED DISCIPLINE BETWEEN
FINLANDANDTHEEUROPEAN ECONOMIC COMMUNITY CONCERNING
RECIPROCAL TRADEINCHEESE.
I.TheEuropeanEconomicCommunityandFinlandhaveheldconsultations
concerningtheirreciprocaltradeincheese.' .
Duringtheseconsultations ,bothpartiesnoted,eachforitspart,
■.thatthedevelopment ,ofreciprocalimportsandexportsofcheesewas
notsatisfactory,andthatcertainimportarrangements,agreedbetween
them,nolongercorresponded tothesituationonthemarketincheese.
Theyconcluded,bycommonaccord,thatthetradearrangements forcheese
.shouldbeadaptedtotherequirements oftheirrespectivemarkets,account
alsobeingtakenoftheaccessionofGreecetotheCommunity.
Theyconsideredthat,underthepresentcircumstances ,itwouldbeprefe­
rabletoseekapracticalsolutionforalimitedperiodratherthanto
adaptthesearrangements onadefinitivebasis. -
i ^ • •'v: .'
II.FinlandandtheCommunityhaveagreedto--concludeatemporaryarrangement,
theprovisionsofwhichareasfollows: ,
1.FinlandandtheCommunityshalltemporarily suspend,foraninitial
periodofthreeyearsfrom1January1982to31December1984,the
followingprovisionsofthearrangements fortheimportationofcheeses
intotheCommunity :- '

Annex I,page 2
thevalue Limits included inthebinding under 6ATT (Schedule LXXII -EEC
ofthefollowing CCTtariff ,lines :
\
04.04 AIa)ex 1
04.04 AIb)1exaa);
the value limits included inthe Community 'sautonomous concession for
Tilsit and Butterkase falling within CCT subheading 04.04 EIb)2;
the value limits included inthe Community 'sautonomous concession .for
processed cheese falling within CCT subheading 04.04 DI.
Finland and the Community will establish for the same period asthe suspen­
sions mentioned inparagraph 1above thefollowing trade arrangements .
For the period from 1January 1982 to31December 1984,for the cheeses lis­
ted below ,thequantities traded each year and theduties tobelevied on
importation may not exceed thefollowing levels :
a)ONIMPORTATION INTO THE COMMUNITY : . '
Cheese falling within CCT headihg No04.04 originating inand coming from
Finland /accompanied byanapproved certificate :
- Quantity Import duty
-Finlandia ,ofaminimum fatcontent (
of45 %byweight ,inthedrymatter ,!
matured foratleast'100 days,in t
rectangular blocks ,ofanetweight ,i
ofnotless than 30kg,falling I
within CCT subheading 04.04 EIb)5£5850t,inclu-
-Emmentaler ,.Gruyere ,Sbrinz andBerg-).- onna^1rJUm '18,13 ECU/100kg ... . . iof 2900 tfor ,
,kase,not -grated orpowdered ,ofa J_.,.... ,f ^^,,co,t Finlandiaminimum fat content of45 AbyweightJ
inthedrymatter ,matured forat | _least three months ,falling within 1
CCT subheading 04.04 AIorII: I
.whole cheeses - t
..pieces packed in.vacuum orininert . .
gas with rind onatleast one side ,
ofanet weight ofnot less than
1kgbut less than 5kg 1350t 18,13 ECU/100 kg

ANNEX I,page 3
Quantity
V
-Processed cheese ,not grated or
•powdered ,inthe ,blending ofwhich .,
only Emmentaler ,Gruyere and Appen­
zell have been used and which may
contain ,asanaddition ,Glarus
,herb cheese (known asSchabziger ),
put upforretail sale,ofafat
content ,byweight ,inthe dry
imatter ,notexceeding 56 %,falling
within CCT subheading 04.04 DIor
DII a)1 "
-Other t"500 t
'0tImport duty
36.27 ECU/100 kg
b)ON IMPORTATION INTO FINLAND
Cheese falling within heading n°04.04 ofthe Finnish Cu-stom ^Tariff ,
originating inand coming from the Community ,and accompanied byan
approved certificate ofquality andorigin
Quantity Import duty
04.04.150 fresh cheese ,curd
200 processed cheese
. * ■
3.00 whey cheese
4U0 mould-cured cheese
901 Emmentaler –type
■cheeses
902 Edam-type cheeses
909 other cheesesJoverall quanti ty
îof .
400 tfor 1982
500 tfor 1983
600 tfor 19842/3ofthe levy
1/3ofthe levy
2/3ofthe levy
' ^
1/3ofthe levy
full levy
with norestrictions
astotype orquality
full levy '
1/3ofthe levy

ANNEXI,page4
3.Finlandundertakestotakethenecessarymeasurestoensurethat:
i.thequantitiesithasagreedtoexporttotheCommunity (see2.(a))
willnotbeexceeded;
ii.importLicenceswillbegrantedregularlyandinsuchawaythatthe
quantitiesithasagreedtoimportfromtheCommunity (see2.(b))
'canbereached. 1 -.
TheCommunityandFinlandwilltakestempstoensurethatthebenefits
whichtheygranteachotherwillnotbejeopardized byotherimportmeasures.
4.FinlandandtheCommunityundertake,eachonitsownbehalf,toensurethat
thepriceschargedbytheirexportersarenotsuchastocreatedifficul­
tiesontheimportingcountry'smarket.
Theyagree,inthisconnection,tosetupthesystemforcooperation and
theexchangeofinformationdescribedintheAnnextothisArrangement .
■•/ '
Ifdifficulties ariseconcerningthepricescharged,consultations willbe
heldattherequestofeitherparty,aspromptlyaspossible,withaview
totheadoptionofappropriate correctivemeasures.
5.Thetwopartiesmayconsulteachotheratanystageconcerningtheopera­
tionofthisArrangement andmay,bycommonaccord,alteritifnecessary
byreferenceinparticular "tothetrendofmarketprices,production,mar­
ketingorconsumption ofhome-produced andimportedcheeses.
6.Inordertoensureconstantcooperation intheday-to-dayrunningofexport
andimportoperations,theFinnishGovernmentandtheCommunityshalleach
appointaDelegate.TheseDelegateswillexchangeinformation onthede­
velopmentoftradeasregardspricesandquantitiesmarketed.

AnnexI,page5
f
7.Duringthefirsthalfof1984,consultations willbeheldinorderto
decidewhetherthisArrangement shouldbeextended,andifso,onwhat,
terms..
8.AlltheprovisionscontainedinthisArrangementwillenterintoforce
onthesamedate.
Doneat
FortheGovernment ,ofthe
RepublicofFinlandOnbenalfoftheCouncil
oftheEuropeanCommunities

Annex1,page6
ArX
Withaviewtopreventingthepriceschargedbyexportersfrombeing
suc.hastocreatedifficulties ontheimportingcountry'smarket,the
followinginformation andcooperation systemhasbeensetup:
1)FinlandwillprovidetheCommissionoftheEuropeanCommunities with
thefollowinginformation oneachcategoryofcheesecoveredbythe
Arrangement :
-twoweeksbeforethebeginningofeachquarter,prospective Finnish
exportstotheCommunityforthenextquarter(anticipatedquantities,
free-at-Finnish-frontierprices,probablemarkets);
»
-threeweeksfollowingtheendofeachquarter,actualFinnishexports
totheCommunityduringthepastquarter(quantities andfree-at-
Finnish-frontier prices,importingmembercountries).
2)TheCommissionoftheEuropeanCommunities willatregularintervals
providepricequotations andanyotherusefulinformation concerning
themarketinhome-produced andimportedcheeses.

DELEGATION OF THE COMMISSION
OF THE
EUROPEAN COMMUNITIESAnnex II,page 1
Sir,
Ihave the honour torefer ,tothe note which the "Finnish Perma­
nent Mission inGeneva addressed tothe Permanent Representative ofthe
Commission ofthe European Communities inGeneva on :11;June 1981 concer­
ning Finland 'srequest fortheinitiation ofnegotiations .with the
Community under Article XXIV <6)ofthe GATT ,following -the accession bf
Greece tothe European Communities .
Inoted Finland 'sclaim that,for the'following tariff headings ,
listed inSchedule XXV-Greece ,.which has :been ^withdrawn ,itwas
Greece 'smain supplier outside the Community : * .
-04.04 B5"Dutch cheeses "
-04.04 B9Other prepared cheeses .
Asaresult ofthenegotiations held onthis subject between our
.delegations during theconsultations concerning cheese ,concessions were
•included inthe"Temporary arrangement .for .■a..concerted discipline onre­
ciprocal ,trade incheese "ascompensation ifor therights ,which Finland .
has under Article XXIV <6). ''
The Community gives anundertaking toenter into .consultations
with Finland ,should this temporary Arrangement expire ,inorder togive
itcompensation equivalent .toitsrights under Article XXIV (6). *
i
Ishould begrateful ifyou would confirm whether you are in
agreement with the above . .
Please accept ,Sir,-the assurance ofmy;hig.hest consideration .

FINNISH DELEGATIONAnnex II-page 2
Sir,
Ihave the honour toconfirm myagreement tothecontent ofyour
Letter of ,which reads asfollows :
"Ihave the honour torefer tothe note which the Finnish Perma­
nent Mission inGeneva addressed tothe Permanent Representative ofthe
Commission ofthe European Communities inGeneva on11June 1981 concer­
ning Finland 'srequest for theinitiation ofnegotiations -with the
Community under Article XXIV (6)ofthe GATT ,following theaccession of
Greece tothe European Communities .
/Inoted Finland 'sclaim that,for thefollowing tariff headings ,
listed inSchedule XXV-Greece ,which has been withdrawn ,itwas
Greece 'smain supplier outside the Community :
'I.• * ••,
-04.04 B5Dutch cheeses
-04.04 B9Other prepared cheeses .
Asaresult ofthenegotiations held onthis subject between our
delegations during theconsultations concerning cheese ,concessions were
included inthe "Temporary arrangement for aconcerted discipline onre­
ciprocal trade incheese "ascompensation for therights which Finland
has under Article XXIV (6).
The Community gives anundertaking toenter into consultations
with Finland ,shoufd this temporary Arrangement expire ,inorder togive
itcompensation equivalent toitsrights under Article XXIV (6).
Ishould begrateful ifyou would confirm whether you arein
agreement with the above ".
Please accept ,Sir,the assurance ofmyhighest consideration .

ANNEXCpage1
RECOMMENDATION FORACOUNCILDECISION
concerningtheconclusionofanAgreementresultingfromthenegotiations and
consultations betweenFinlandandtheEuropeanEconomicCommunity
concerningtradeinvariousagricultural products
THECOUNCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
aridinparticularArticle113thereof, '
Havingregardtotherecommendation fromtheCommission,
Whereas,inaccordance withthemandatewhichitreceivedfromtheCouncil
on16December1980,theCommissionhasheldconsultations withFinlandon
reciprocaltradeincheeseandhasreachedasatisfactory agree­
mentwiththatcountryinaspiritofreciprocity ;
'.which
Whereas,inaccordancewiththeauthorization' itreceivedfromtheCouncilon
28April1981,theCommissioninitiatednegotiations withFinlandunderAr­
ticleXXIV(6)oftheGATTfollowingtheaccessionofGreecetotheEuropean
Communities andhasreachedanacceptable agreement,
HASDECIDED ASFOLLOWS
Article 1
TheAgreementbetween'FinlandandtheEuropeanEconomicCommunitycompri­
sing:
-atemporaryarrangement foraconcerteddisciplinebetweenFinlandand
theEuropeanEconomicCommunityconcerningreciprocaltradeincheese;

ANNEX C,page 2
-anexchange ofLetters concerning the outcome ofthe negotiations between
Finland and the European Economic ~immunity under Article XXIV (6)ofthe
GATT following theaccession ofGreece totheeuropean Communities ;
ishereby approved onbehalf ofthe Community .
V , • V
Thetext ofthe Agreement isattached tothis Decision .
Article 2
The President ofthe Council ishereby authorized todesignate the person
empowered tosign the Agreement inorder tobind the Community ..
Done atBrussels ,
For the Counci I
The President