ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)568
Vol.1973/0113

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)568 final
Brussels ,11April 1973
DRAFT FOR A
COUNCIL DECISION
providing foraccession toProtocol concerning Milk Fats negotiated
inG.A.T.T.
(submitted totheCouncil "bytheCommission )
COM(73 )568final

7I/1139/T3-E
Orig.î F
1.Byitsdecision of30and31October last ,theCouncil authorized
theCommission tonegotiate within theframework oftheG.A.T.T. Working
Group onMilk Products ,thetext ofaninternational agreement onmilk fats .
2.Themembers oftheG.A.T.T. Group agreed onthe2ndofApril 1973 *
tosubmit ,with arecommendation foritsapproval ,thetext oftheProtocol
concerning Milk Pats totheir respective national authorities .
3«Thepriorities oftheProtocol being inaccordance wit'i theinte­
rests oftheCommunity ,compatible with theCommon Agricultural Policy and
inconformity with theinstructions given for thenegotiations ,the
Commission proposes totheCouncil that theCommunity should accede the
Protocol annexed inthis report .For this purpose itsubmits th«Irs .ft
decision annexed hereto .

\VI/1139/73-E
Orig .;F
DRAFT PDR A
COUNCIL DECISION
providing foraccession toProtocol concerning Milk Pats
negotiated inG.A.T.T.
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
having refard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 113 ,114 »and223thereof ;
having regard tothereport from theCommission ;
Whereas theG.A.T.T. Group onMilk Products hasagreed upon aProtocol
concerning Milk Pats ;
Whereas this Protocol generally seems topromote international co-operation
andcontribute totheachievement ofCommunity aims asregards milk pro­
ducts under theCommon Agricultural andCommercial Policies ;
Whereas thelast date forthedepositing oftheinstructions offinal
acceptance oftheProtocol isthe14th ofMay1973 •
HAS DECIDED ASFOLLOWS :
Article 1
TheEuropean Economic Community shall accede totheProtocol concerning
Milk Fats negotiated inG.A.T.T. ,thetext ofwhich isannexed tothis
Decision .
ι
Article 2
ThePresident oftheCouncil esempowered toappoint theperson authorized
tosign onbehalf oftheCommunity ,theProtocol referred toinArticle 1.
Done atBrussels , For theCouncil ,
The President .

-1-
ANNEXE
PROTOCOL RELATING TOMILK FAT
Theparticipants tothepresent Protocol ,
Having considered that paragraph 1ofArticle IoftheArrangement Concerning
Certain Dairy Products ,done atGeneva on12January 1970 ,provides that thesaid
Arrangement applies toskimmed milk powder andtosuch other products asmaybe
added atalater date ,
Have ,through their representative ?,agreed asfollows :
Article I-Product Coverage
1.This Protocol applies to:
-anhydrous milk fat,anhydrous .butteroil oranhydrous butterfat,having a
fatcontent' ofnotless than .99.8 percent byweight ;-
-ghee ,having amilk fatcontent ofnotless than 99 percent byweight ; •
-butteroil and''butterfat,having afatcontent ofnotless than 99.3 percent
byweight .
Article II-Pilot Product
1.Forthepurpose ofthis Protocol aminimum export price shall beestablished :
forthepilot product «fthefollowing description .
Designation :butteroil orbutterfat .
Fatcontent :99*3 percent byweight .
Packaging : inpackaged normally used inthetrade ofanetcontent byweight
ofnotless than 25,kgs .or50lb.,asappropriate .
Terms of f.o.b .from theexporting countryer ,foraland-locked country ,
.sale : f.o.b .from onemaritime port ofitschoice tobedesignated at
thetime itsignifies itsacceptance ;orfree atfrontier
exporting country .*Prompt payment against documents .

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Article III -Minimum Price
Level and observance ofminimum -price
1.Participants undertake totake thesteps necessary to .ensure that theexport
price oftheproduct defined inArticle IIshall notbeless than theminimum
price applicable under thepresent Protocol .Theparticipants shall take the
steps necessary toavoid thecircumvention oftheprice provisions ofthis .
Protocol iftheproduct isexported intheform ofgoods inwhich ithasbeen
incorporated ,orifbecause ofitsquality orfatcontent itdiffers from the
pilot product defined inArticle II.
2.Theminimum price-provided forinparagraph 1ofthepresent Article
applicable atthedate ofentry into force ofthis Protocol isfixed at
US$68 per100kgs . : ........
3.Thelevel oftheminimum price specified inthe "present Article canbe ■
modified bytheManagement Committee established interms ofArticle VII .However ,
anysuch modification maybedecid'ed upon only atthetime when thequestion of
extension oftheduration ofthis Protocol isbeing considered interms of*
paragraph 2ofArticle VIII ,.or,atother times ,only when anemergency situation
isdeemed toexist . .,.
Adiustment ofminimum nrice
A. Iftheproduct actually exported differs from thepilot product type with
regard topackaging orterms ofsale asspecified inArticle II,theminimum price
shall beadjusted soastoprotect theminimum price established inthis Protocol ,
fortheproduct specified inArticle 'IIaccording tothefollowing provisions :
Packaging : iftheproduct isoffered otherwise than inpackages normally
used inthetrade ofanetcontent byweight ofnotless than
25kgs.,cr50lb,,asappropriate ,theapplication ofthe
minimum price shall beadjusted soastoreflect thedifference
• ' intheco^t ofpackaging from thetype ofpackage specified above .
Terms of .••'•ifsold onterms other than f.o.b .from the'exporting country
sale * or,foraland-locked country ,f.o.b .from themaritime port
ofitschoice orfree -atfrontier exporting country ,the
minimum price shall becalculated onthebasis oftheminimum
f.o.b .price specified inparagraph 2above plus thereal and
justified costs oftheservices provided ;iftheterms ofthe
sale include credit ,this shall becharged forattheprevailing
commercial rate .Packaging :
Terms of
saler

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Spécial conditions ofsaj.cs
5.Participants undertake within thelimit of "their institutional possibilities
toensure that practices such assales inassociation with sales ofother products
special rebates ordiscounts ,donothave theeffec /tofdirectly orindirectly
bringing theexport price oftheproducts subject totheminimum price provisions
below theagreed xaininuiii price .
Field ofarrolication
6.Foreach participant this Protocol isapplicable toexports oftheproducts
specified inArticle Imanufactured orrepacked inside itsowncustoms -territory ,
whether thedestination istemporary orfinal .
\
Transactions other than normal commercial transactions
7.Theprovisions ofparagraphs 1to6ofthis Article shall notberegarded
asapplying todonated exports todeveloping countries ortoexports destined
forrelief purposes orwelfare purposes indeveloping countries .Such exports ,
andother transactions which arenotnormal commercial transactions ,shall be
effected inaccordance with theFAOPrinciples ofSurplus Disposal andshall be
subject totheprocedures fornotification ,consultation andestablishment of
usual marketing requirements agreed upon inFAO .
Article IV-Provision of'Information
1.Allparticipants agree toprovide regularly andpromptly totheManagement
Committee established interms ofArticle VIIofthis Protocol details ofexports
andimports oftheproducts covered bythis Protocol ,andanyother information
theCommittee requires inorder toassess thefunctioning ofthis Protocol and
.Jh.esituation inandtheevolution oftheinternational market . ...
Article V-Co-operation ofImporting Countries .
1.Participants which import theproducts covered bythis Protocol undertake
inparticular : -
.(a)toco-operate inimplementing theminimum price objective ofthis
Protocol andtoensure asfaraspossible "that theproducts covered by
this Protocol arenotimported atless than theappropriate customs
valuation equivalent totheprescribed minimum price ;and
(b)tosupply information concerning imports oftheproducts covered bythis
Protocol from non-participants jand
(c)toconsider sympathetically proposals forappropriate remedial action
ifimports atprices inconsistent with theminiT.Tnmprice threaten the
functioning ofthis Protocol .

Article VI-Food Aid
Theparticipants agree :
1.Inco-operation with FAOandother interested organizations ,tofoster
recognition ofthevalue ofdairy products inimproving nutritional levels and
ofways andmeans through which they maybemade available forthebenefit -of
developing countries .
2.Where possible andappropriate ,toincorporate thedonation orsale on
concessional terms ofdairy products orrelated equipment intheir respective aid
programmes .Participants should notify theCommittee inadvance each year ofthe
scale oftheir proposed contributions ofsuch food aid .Itwould beunderstood
that contributions could bemade bilaterally 'orthrough joint projects orthrough
theWorld Food Programme .
3.Recognizing thedesirability ofharmonizing their efforts inthis field ,
aswell astheneed toavoid harmful interference with normal patterns of
production andinternational trade ,toexchange views intheManagement Committee
established interms ofArticle VIIontheir arrangements forthesupply ofdairy
products asfood aidoronconcessional terms .
Article VII -Administration ofthis Protocol ,
Management Corrmittee
1.AManagement Committee shall beestablished within theframework ofthe
General Agreement onTariffs andTrade .TheCommittee shall comprise represen -
tees ofallparticipants tothis Protocol andshall carry outallthefunctions
which arenecessary toimplement theprovisions ofthis Protocol .TheCommittee
shall beserviced bytheGATT secretariat .
Review ofmarket
2.TheCommittee shall keep under constant review thesituation inandthe
evolution oftheinternational market fortheproducts covered bythis Protocol
andtheconditions under which theprovisions ofthis Protocol areapplied by
participants ,taking into account theevolution ofprices ininternational trade
ineach oftheother dairy products having implications forthetrade inproducts
covered bythis Protocol .
Regular and special meetings
3.TheCommittee shall normally meet atleast once each quarter .However ,the
Chairman maycall aspecial meeting oftheCommittee .onhisowninitiative .Any
participant which considers that itscommercial interests arebeing seriously
threatened andwhich isunable toreach amutually satisfactory solution with the

-5-
other participant orparticipants concerned ,mayrequest theChairman toconvene
aspecial iaecting oftheCommittee onanurgent ,basis so -astodetermine as
rapidly aspossible ,and -within four working days ifrequested ,anymeasures which
mayberequired tomeet thesituation .
Emergency action
4.Anyparticipant ,which ,.considers that -itsinterests areseriously endangered
byacountry notbound by •this' Protocol ,can -request theChairman toconvene an
emergency meeting oftheCommittee within twoworking days todetermine and
decide whether measures would berequired tomeet thesituation .Ifsuch a
meeting 'cannot -bearranged within ,-thetw©working .days andthecommercial interests
oftheparticipant concerned arelikely tobematerially prejudiced ,that
participant maytake unilateral action tosafeguard theposition ,-onthecondition
that anyother participants likely tobeaffected areimmediately notified .The
Chairman oftheCommittee shall also beformally advised immediately ofthefull
circumstances ofthecase andshall berequested tocall aspecial meeting ofthe
Committee attheearliest possible moment .
Article VIII -Other Provisions
1.Entry into force
(a)This Protocol shall enter into force' ,forthose participants having
accepted it,on14May 1973 .Forparticipants accepting this ;
Protocol after that date ,itshall beeffective from thedate oftheir
acceptance .
(b)Thevalidity ofcontracts entered into before thedate ofentry into
force ofthis Protocol isnotaffected bythis Protocol .
2. Duration
This Protocol shall rem ininforce foroneyear .Theduration ofthis
Protocol shall beextended forfuther periods ofoneyear atatime ,unless the
Management Committee ,atleast eighty days prior toeach date ofexpiry ,decides
otherwise .
«
3.Aner.dnent
Theprovisions ofthis Protocol maybeamended bytheManagement Committee
established interms ofArticle VII .
>
L.rAcceptance
(a)This Protocol isopen foracceptance ,bysignature orotherwise ,to
governments (including thecompetent authorities oftheEuropean
Communities )members oftheUnited Nations orofoneofitsspecialized
agencies . '

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(b)ThisProtocolshallbedepositedwiththeDirector-General tothe
CQNTRACTINGPARTIESvihoshallpromptlyfurnishacertifiedcopy
thereofandanotification ofeachacceptancethereoftoeach
participanttotheProtocol.
5.Withdrawal
Anygovernment (includingthecompetentauthoritiesoftheEuropean
Communities )maywithdrawfromthisProtocolupontheexpirationofsixtydays
fromthedayonwhichwrittennoticeofsuchwithdrawalisreceivedbythe
Director-General totheCONTRACTING PARTIES.
DONEatGenevathissecond'dayofAprilonethousandninehundredandseventy-three ,sinasinglecopy,intheEnglishandFrenchlanguages,both
textsbeingauthentic.