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COM (84) 3 41 
 
 
 
Vol. 1984/0 150 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the open ing to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
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file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 341 final 
Brussels, 20 June 1984
REPORT OF THE COMMISSION TO THE COUNCIL
ON THE SITUATION ON THE CHEDDAR CHEESE MARKET
C O M (84) 3 4 1  final

REPORT OP THE COMMISSION TO THE COUNCIL 
OW THE SITUATION ON THE CHBDDAR CHEESE MARKET
Contents :
I. Introduction
II. Developments on the Community Cheddar cheese market:
1. Production
2. Imports
3. Disappearance
4. Exports
5. Prices
III. Conclusions and suggestions

-  1 - (VIPD1-21)
X. INTRODUCTION
X. At the meeting of the Special Agricultural Committee on 23/24 January
1984 the Commission was requested to submit an analysis of the situation 
on the Cheddar cheese market in the Community.  This request was made in 
the context of difficulties being experienced with the application of 
minimum import prices on imports of this type of cheese from New Zealand 
and Australia under bilateral arrangements resulting from the 
multilateral trade negotiations 1973—1979 (M.T.N.s).
2. Under these arrangements the Community undertook to establish a tariff 
quota for :
_ Cheddar for direct consumption for a global annual quantity of
9.000 tonnes of which 6.500 tonnes will be reserved for New Zealand 
and 2.500 tonnes for Australia,
- aged Cheddar for an annual quantity of 2.750 tonnes reserved for 
Canada,
_ cheese for processing for a global annual quota of 3.500 tonnes of
which 3.000 tonnes will be reserved for New Zealand and 500 tonnes for 
Australia.
The exporting countries undertook to ensure that in so far as the 
cheeses exported under these arrangements to the Community are 
concerned, a minimum import price will be respected at the CIF stage and 
that all consignments will be accompanied by a certificate of 
authenticity guaranteeing the nature and origin of the product. The 
special levy for the imports of cheese respecting the conditions of 
these arrangements was fixed at 10 u.a./lOO kg, corresponding to 
12,09 ECU/100 kg.
The minimum import prices were initially fixed as follows:
Origin Cheddar for direct consumption Cheddar and other cheeses
for processing
Canada 170 u.a./lOO kg ~
New Zealand
and Australia 165 u.a./lOO kg 145 u.a./lOO kg

-  2 -
It was agreed that the minimum import prices shall be automatically  
adjusted in line with changes in the threshold price for Cheddar in the  
Community.
Annexes IA, IB, IC and II contain the text of the arrangements with 
Australia, New Zealand and Canada as well as an outline of the 
development of the level of minimum import prices, threshold prices and 
levies (special and normal).
Furthermore, as part of the arrangements the Community for its part 
undertook to adjust the minimum price so as to ensure that the global 
annual quantity admitted for importation from each exporting country can 
be effectively marketed each year as regularly as possible.
3. New Zealand on 7 January and 25 May 1983 and Australia on 7 March and 
23 June 1983,submitted to the Commission Verbal Notes pointing out that 
their obligation to respect the minimum import prices for their cheeses 
made it very difficult, if not impossible, for them to sell on the 
Community market because of the depressed price level for Community 
Cheddar cheese resulting from high stocks.
The Council, on the basis of a proposal from the Commission decided on 
26 September 1983, by way of derogation, that in order to respect the 
arrangements between the Community and New Zealand and the Community and 
Australia, the minimum import prices should be temporarily reduced. 
Consequently, the minimum import prices were reduced on 2 October 1983 
by 19,24 ECU/100 kg for Cheddar for direct consumption and 
26,33 ECU/100 kg for cheese for processing.
Initially the reduced minimum import prices were valid until 31 December 
1983. However, because the market situation for Cheddar in the 
Community did not improve, the derogation was extended on 9 January 1984 
to the end of January 1984, on 31 January 1984 to the end of April 1984 
and more recently on 7 May 1984 until 30 June 1984.

- 3 -
During the discussions on the prolongation of the reduced minimum 
import prices, the Council requested the Commission to consider if a 
mnrp permanent solution could be found which would avoid the necessity 
for on-going discussions and decisions in the Council on this matter.
4. The objective of this report, therefore, is to outline what the 
r ^ - i o n  regards as the best way in which the existing problems can 
he resolved,  having due regard to both the interests of the Community 
and the interests of the exporting countries and in the light of 
commitments entered into during the M.T.N.s.
5. Since specific statistical information on Cheddar is not always 
available nor comparable, estimates have been made, where necessary, by 
the Commission Services.
XX.  developments  on the community  market
1. Production
Out of a t-nhal cheese production in the Community of around 4 million 
tonnes, approximately 7,5% is produced in the form of Cheddar-type 
cheese.  Whereas total cheese production shows a continuous upward 
tendency. Cheddar cheese production reached its peak level of almost
310.000 tonnes in 1981, after which it declined to almost
280.000 tonnes in 1983 (see Annex III).
The main cheddar-oroducin* countries in the Community are the United 
tH ngdom.  Ireland and Germany, who. in 1983, accounted for 58%. 17% and 
16% respectively of total Community production or together about 91% of 
total Community production.
in the Community it is estimated that about 60% of the total quantity 
of Cheddar cheese produced is destined for direct consumption. Of this 
proportion the major part is produced in the United Kingdom and 
Ireland. The production of Cheddar for processing takes place mainly 
in Germany and the other continental Member States.

- 4 -
2. Imports
Total imports of Cheddar cheese into the Community were as follows:
1980 :  16.230 tonnes
1981 :  19.181 tonnes
1982 :  18.063 tonnes
1983 :  19.494 tonnes (approximately 7% of total Community
Cheddar production)
These quantities include both cheese imported under the inward 
processing arrangements and those imported under the M.T.N. 
arrangements. However, specific figures for imports under inward 
processing arrangements are not known.
The main supplying countries are New Zealand, Australia and Canada,  
from which the following quantities of Cheddar cheese were imported:
Tonnes
Origin 1980 1M1 1282 1^3
New Zealand 11.213 12.690 10.993 12.195
Australia 3.063 3.292 3.374 3.105
Canada 1-«1 3.093 3.258 2.874
A breakdown of imports under the M.T.N. arrangements into Cheddar for 
direct consumption and other cheeses for processing from New Zealand, 
Australia and Canada is only available for 1983 and 1984 to date. In 
practice those imports were destined mainly to the United Kingdom (for 
direct consumption) and Germany (for processing).
These imports were (tonnes)
New Zealand origin 
Imported in United Kingdom 
· ·  · ·  Germany
TOTAL
Australian origin 
Imported in United Kingdom 
· ·  · ·  Germany
TOTAL1983
6.793,0
790.4
7.583,4
1.011.5
1.011.51 January—15 April 1984
3.567.0
60S.0
4.172.0
Canadian origin
Imported in United Kingdom (total) 2.379,0725 ,0

- 5 -
The abovementioned statistics would appear to indicate that, during 
1983, over 8.000 tonnes of Cheddar cheese has been imported for inward 
processing.  (The Council has decided to prohibit the inward processing 
of all dairy products as from 8 April 1984 for a period of two years.)
A major proportion of the internal Community trade goes to the United 
Kingdom (about 70%); in 1983 the United Kingdom imported 65.535 tonnes 
of Cheddar cheese from other Member States, of which 41.061 t from 
Ireland.  8.995 t from Germany.  6.940 t from the Netherlands and the 
rest from Denmark.  France and Belgium.  On the other hand other Member 
States imported more than 9.000 tonnes of Cheddar from the United 
Kingdom (in 1983). Also between other Member States there exists a 
varying trade in this cheese (see Annex IV).
3. Disappearance
Specific details on the consumption of Cheddar cheese in the different 
Member States is not readily available. However, one could reasonably 
presume that the quantity of Cheddar cheese used for direct consumption 
in Member States other than the United Kingdom and Ireland is 
negligible.
In the United Kingdom total disappearance of Cheddar cheese in 1983 is 
estimated to be in the order of 230.000 tonnes and remained stable 
compared to the previous years. Of this quantity an estimated 80% was 
used for direct consumption. The sale of so-called "territorial 
cheeses” showed continuous increase (in 1983: + 3,6%).
United Kingdom stocks of Cheddar during the last three years were close 
to 90.000 tonnes and still remain at about that level.
Irish consumption of Cheddar is estimated in 1983 to be in the order of 
5.560 tonnes (+■ 6% on 1982).
The calculated utilisation of Cheddar/Chester in Germany (production + 
import - export) was in 1983: 25.895 tonnes (- 19.6% on 1982), mainly

-  6 -
destined for the production of processed cheese. In the other Member 
States specific data is not available. *
Given the decrease in production and the relative stability in imports, 
exports and stocks, it would appear that the demand for Cheddar in the 
Community is declining.
4. Exports
Total Community exports of Cheddar cheese to third countries amounted 
to :
1980 :  5.088 tonnes
1981 :  12.302
1982 :  21.665
1983 :  15.329 " (about 5,5% of total Community production)
The main exporting member countries in 1983 were the United Kingdom 
(9.421 t) ,  the Netherlands (2.385 t) and Germany (2.2A2 t).
The most important countries of destination in 1983 were.
Japan with 
Trinidad * '
Egypt ”
Venezuela "
Barbados "
(See Annex V).
An important part of the world market trade in Cheddar cheese is 
transacted by tendering procedure. Competition is keen and the level 
of prices is relatively low.
5. Prices
The most important issue in this report is the situation with regard to 
the development of market prices for Cheddar cheese in the Community.:  3658t(1982 5.830t)
:  2781t(1982 3.663t)
:  1196t(1982 1.797t)
964t(1982 1.338t)
828t(1982 1.169t)

- 7 -
Even though the total production of Cheddar cheese in the Community 
went down by about 15.000 tonnes during each of the years 1982 and 
1983, the situation on the market has not improved and is still 
characterised by high stock levels and low prices.
It is expected that the suspension of the inward processing facilities 
will have a positive effect on the utilisation of Community-produced 
Cheddar. However these effects can only be limited given the small 
quantity involved.
The export market shows no immediate prospects for increased outlets. 
Therefore there seems Btill to be a need for a further reduction in 
production in the Community.
On the major Cheddar market in the Community, the United Kingdom,  the 
so-called "list prices" do not represent the real selling prices. In 
practice the level of discounts create quite a gap between the 
effective selling prices and the list prices.
On the basis of information received from different sources, the 
effective selling prices for Cheddar for direct consumption have not 
improved since the beginning of 1982. Variations from £1.770 to £1.840 
did occur, but the present level is still around £1.780/tonne for 
British Cheddar, notwithstanding increases In the intervention prices 
in 1982 and 1983.
Article 9 of Regulation (EEC) No 1422/78 of 20 June 1978 (O.J. No L 171 
of 28 June 1978) permits, subject to certain conditions, the Milk 
Marketing Boards in the United Kingdom to differentiate the level of 
selling prices for milk for manufacturing according to the product for 
which the milk is used. The Milk Marketing Boards, in agreement with 
the industry and in the framework of the joint committees, have availed 
themselves of this authorization to fix prices for milk for 
manufacturing of the different dairy products. These prices result 
from an analysis by manufacturers of what returns they can get from the 
market having due regard to competition from imported products.

-  8 -
In March 1984 the final minimum selling price of milk for cheddar/
manufacturing was about 17% below the intervention milk price 
equivalent for the Community of 25,96 ECU/100 kg, while the price of 
milk for butter and skimmed-milk powder manufacturing was about 18% 
below the intervention price equivalent.
In so far as milk for manufacturing of territorial cheeses is 
concerned, the final minimum prices in March 1984 ranged from 11% to 
14% below the intervention price equivalent but milk for Stilton, blue 
cheeses and speciality cheeses had a price which was 7% to 12% higher 
than the intervention price equivalent.
According to information received from the New Zealand Dairy Board the 
latest effective selling prices for Cheddar on the United Kingdom 
market showed a further decline:
Engl1sh
Danish
Dutch
Australian 
Irish 
German 
New ZealandFebruary 1984
1.730
1.730 
1.695 
1.700 
1.750 
1.650 
1.760April 1984
1.700 
1.715 
1.695
1.700 
1.735 
1.650 
1.815(£/tonne)
The prices are to be compared with a minimum (reduced) import price 
C.I.F. plus levy of £1.686/tonne and £1.820/tonne if the derogation is 
discontinued.
Despite some optimism in United Kingdom trade circles at the end of the 
last year that prices would begin to rise, this has not happened and 
the market remains weak. Apart from the official "list prices" no 
quotations exist for real selling prices. Even the above-indicated 
selling prices represent an average with certain sales being made at 
prices even below that level.

- 9 -
The present price level for domestic Cheddar for processing in the 
United Kingdom is said to be of the order of £1.400/tonne.
The information received about the Irish Cheddar market is limited. 
However in Ireland it is estimated that during the years 1981 and 1982 
Cheddar production was more profitable than the production of butter 
and skimmed-milk powder by IR£ 65/tonne and IR£ 37/tonne respectively, 
in 1983 and 1984, on the other hand, the production of cheddar was 
IR£ 217/tonne and IR£ 192/tonne less profitable than the production of 
butter and skimmed-milk powder.
The effective selling price (after discount) for Irish Cheddar for 
direct consumption on the UK market during the first quarter of 1984 
was about £St 1.770, according to the Irish Department of Agriculture. 
However projected "net final position” prices on the United Kingdom 
market indicated by the Irish traders were as follows :  <£St/tonne>
April 1984 :  1.740 
May 1984 :  1.760
June 1984 :  1.760
An important market in the context of imports under the arrangements 
with New Zealand and Australia is the German market.
As indicated before, the amount of Cheddar cheese (in Germany mainly 
called Chester) used for direct consumption is rather limited, most of 
the home-produced and imported Cheddar being used for processing. 
However there is Cheddar for consumption exported from Germany to the 
United Kingdom. The internal ex factory price for this Cheddar is 
DM 6,55 per kg, which is said to be DM 0,30 - DM 0,35/kg below 
intervention level. This price gap is attributed to competition on the 
United Kingdom market.

-  10  -
The level of prices for Cheddar destined to be processed is DM 6,25 
DM 6,30 per kg ex factory, which is also regarded by the trade as 30 
35 Pfennig per kg too low due to competition from imported Cheddar for 
processing (including inward processing). German trade sources 
indicate that the Cheddar for processing imported from New Zealand and 
Australia is selling at DM 6,15 - DM 6,17/kg. This should be compared 
to a minimum price for New Zealand and Australia of DM 6,136/kg.
Further information on prices on the German market is not available.
In the Netherlands there is an official quotation for Cheddar 3 months 
old (for direct consumption) and 3 weeks old mainly for processing.
Average prices ex factory were (fl/100 kg):
1980 :  650 (3 months old) 620 (3 weeks old)
1981 :  650-725 " 620-678
1982 :  727-734 " 678-685
1983 :  735-690 ” 685-695
During 1984 the ex factory prices for Cheddar 3 weeks old stayed at 
fl.695/100 kg to be increased on 11 April to fl.700. Three-month old 
Cheddar remained at fl.734/100 kg until 11 April 1984 but then went 
down to f1.700/100 kg.
In 1983 of the total quantity of Cheddar available from production 
<9.948 tonnes) and imports (4.046 tonnes including inward processing), 
11.737 tonnes were exported, leaving 2.257 tonnes for processing and 
direct consumption. 6.940 tonnes were exported to the United Kingdom 
to be sold in competition with Cheddar from other origins. Notably 
because of the depressed market for Cheddar in the United Kingdom the 
ex factory price for Dutch Cheddar (for consumption) has been reduced. 
The intervention price equivalent in the Netherlands is about fl.779 ex 
factory for 3-month old Cheddar and f1.739 for 3 week old. In the

- XX -
Netherlands a voluntary limitation of the production of cheese is  
applied for Gouda and Edam-type cheese but not for Cheddar. In order  
to cover fixed costs cheese producers are making Cheddar even at a loss  
so as to minimize as far as possible under-utilisation of existing
capacity.
Production and marketing of Cheddar cheese in the other member  
countries is not significant. Production in France, Belgium and  
Denmark in 1983 represents only 5% of the total EEC production, of  
which about 60% in total was exported to the United Kingdom. Almost  
13.000 tonnes of Cheddar was imported into those three countries,  
mainly from other Member States and used for processing.
in France the sharp drop in production (- 55% from 1981 to 1983)  
prevented a reduction of prices in national currency. The average  
price level of Cheddar destined for processing was:  
in 1981 FF 17,40/kg  
in 1982 FF 19,10/kg  
in 1983 FF 20,80/kg
However, over time the value of the French franc has depreciated.  
Official quotations are not available in France.
in Belgium also production ha. reduced substantially over the last 3  
years. Ex factory prices quoted were rather stable at
Bfr 11.400/100 kg during the first 8 month, of 1983 to be increased to  
Bfr 11.800 in November 1983 and to Bfr 12.150/100 kg on 18 April 1984.

-  12 -
III.  CONCLUSIONS AND SUGGESTIONS
The reduction in Community production of Cheddar from the peak year  
1981 to 1983 of almost 10% in combination with higher sales on the  
world market over the same period (especially in 1982) did not improve  
the market situation in the Community. In fact there is still an  
oversupply and an overcapacity in Cheddar.  As a result market prices  
for this product are depressed.
This depression is even more pronounced on the United Kingdom market  
where the price policy of the Milk Marketing Board seems to have a  
negative impact not only on that market, but — because of the  
traditional dependency of other Member States on the United Kingdom as  
an outlet - throughout the Community.
A further consequence of this situation in the Community is the  
difficulty experienced by New Zealand and Australia in respecting  
minimum import price levels.
A revival of consumption in the Community in the short term appears  
unlikely and the outlook for increased export possibilities on the  
world market is limited. The only scope for additional disposal may be  
found in the processing end of the market as a result of the suspension  
of the inward processing arrangements.
-  In the circumstances and given the Community’s obligation under the  
M.T.N. arrangements with New Zealand and Australia to "adjust the  
minimum price so as to ensure that the global annual quantity admitted  
for importation from each exporting country can be effectively marketed  
each year as regularly as possible", it is likely that the Council will  
constantly be faced with the necessity of adjusting the minimum import  
prices in line with price developments on the Community market.

- 13 -
Since past experience has shown that repeated adjustment of the minimum  
import price levels are unsatisfactory for both parties, the Commission  
is of the opinion that a more lasting solution could be found by  
suspending the minimum import prices temporarily for a couple of years  
after which a review of the system would be envisaged.
Because these minimum prices, together with the special levy applied on  
these imports, represent a protective element for the Community market  
the elimination of a minimum import price would require a certain  
adjustment of the special levy. However, given the fact that the  
annual quantities admitted are limited, and that it is in the interest  
of the exporting countries to obtain as high a return as possible, such  
an adjustment could be of a limited nature.
-  Preliminary discussions between the Commissions services and
representatives from New Zealand and Australia indicate that these  
countries are prepared to give serious consideration to the suggested  
amendments mentioned above.
_ i„ order to pursue this idea further the Commission is requesting the  
Council for a mandate to enter into formal negotiations with New  
Zealand and Australia.

ANNEX I A
Content of Arrangement between Australia and the Community concerning cheese
I. Community undertaking to import Cheddar for direct consumption
1. The Community undertakes to open a reduced levy quota for Cheddar for direct 
consumption to enable a total quantity of 9 000 tonnes to be imported under specific 
conditions. This quota will be included in the Community’s schedule of concessions 
annexed to the GATT.
2. Of the above quota a quantity of 2 500 tonnes will be reserved for Australia. The 
definition of the arrangements applying to the imports of this cheese, the details of the 
cheese covered by them and the conditions for the granting of these special arrangements 
are contained in Appendix 1  to this Arrangement.
3. Australia undertakes to adopt all such measures as are necessary to ensure that the 
quantities of Cheddar for direct consumption exported to the Community under this 
Arrangement do not exceed 2 500 tonnes per annum. In addition, Australia undertakes 
that ,/ports of such Cheddar to the Community are accompanied by documentation 
issued by the Department of Primary Industry certifying the nature and origin of the 
product.
4. Australia undertakes to ensure that the minimum price for cheese exported to the 
Community under this Arrangement is observed at the cif stage. The Community for its 
part undertakes that, in consultation with Australia, the minimum price will be adjusted 
as necessary to ensure that Australia’s total annual import quota can be filled in the 
most regular way possible.
5. Should prices applied by Australia be such as to cause serious difficulties in the cheese 
market of a Member State of the Community, Australia, in consultation with the 
Community, undertakes to implement what price measures might be necessary to relieve 
the situation in that market.
II. Community undertaking to import other cheeses for processing
1. The Community undertakes to open a reduced levy quota for other cheeses for 
processing to enable a total quantity of 3 500 tonnes to be imported under specific 
conditions. This quota will be included in the Community’s schedule of concessions in 
the GATT.
2. Of the above quota a quantity of 500 tonnes will be reserved for Australia. The 
definition of these Arrangements, the details of the cheese covered by them and the 
conditions for the granting of these special arrangements are contained m Appendix II to 
this Arrangement.
3. Australia undertakes to adopt all such measures as are necessary to ensure that the 
quantities of cheese for processing exported to the Community under this Arrangement 
do not exceed 500 tonnes per annum. In addition, Australia undertakes that exports of 
such cheese to the Community are accompanied by documentation issued by the 
Department of Primary Industry certifying the nature and origin of the product.

2. AMEX  I A  (cont.)
4 Australia undertakes to ensure that the minimum pnee for cheese exported to the 
Community under this Arrangement is observed at the a f stage. The Community for its 
part undertakes that, in consultation with Australia, the minimum pnee will be adjusted 
as necessary to ensure that Australia’s total annual import quota can be filled in the 
most regular way possible.
5 Should prices applied by Australia be such as to cause serious difficulties in the cheese 
market of a Member State of the Community, Australia, in consultation with the 
Community, undertakes to implement what price measures might be necessary to relieve 
the situation in that market.
Administrative cooperation
1. The Community and Australia undertake to establish administrative cooperation 
procedures for the purpose of applying this Arrangement, covering notably exchanges of 
information on prices and quantities exported and any other relevant matters.
2. With respect to provisions made under this Arrangement for consultations on specific 
aspects, it is understood by both Australia and the Community that these consultations 
will be entered into as soon as practicable with a view to reaching a prompt decision.
3 The Community undertakes that exports of cheese to Australia will be accompanied by 
documentation issued by the relevant Community authorities certifying the nature and 
origin of the product.

AMEX I B
Content of Joint Discipline Arrangement between New Zealand and the Community
concerning cheese
1 . Undertaking by the Community on imports o f Cheddar for direct consumption
1. The Community undertakes to establish a tariff quota for Cheddar for direct 
consumption, as provided for under defined conditions of importation, for a global 
annual quantity of 9 000 tonnes of which 6 500 tonnes will be reserved for New 
Zealand.
The details of this system, the specification of the cheese which may benefit from it, and 
the conditions under which this special regime will be operated are set out in Appendix 1  
to this Arrangement.
2. New Zealand undertakes to take all the necessary measures so that the quantity of 
Cheddar for direct consumption, exported to the Community, does not exceed 
6 500 tonnes per year and that sales of this quantity will be as regular as possible. It also 
undertakes that such Cheddar exported to the Community shall be accompanied by a 
certificate of authenticity, delivered by the New Zealand Dairy Board, guaranteeing the 
nature and origin of the product.
New Zealand undertakes to ensure that for cheese exported to the Community as a 
result of this Arrangement, the minimum price will be respected at the cif stage.
The Community, for its part, undertakes, as necessary, to adjust the minimum price so 
as to ensure that New Zealand’s share of the global annual quantity admitted for 
importation can be effectively marketed each year as regularly as possible.
3. In the event that New Zealand’s prices create serious difficulties in the cheese market of 
a Member State of the Community, consultations will take place, without delay, with a 
view to seeking a mutual!/ satisfactory solution for remedying the situation.
II. Undertaking by the Community on imports o f other cheese for processing
1. The Community undertakes to establish a tariff quota for other cheese for processing, as 
provided for under defined conditions of importation, for a global annual quantity of 
3 500 tonnes, of which 3 000 tonnes will be reserved for New Zealand.
The details of this system, the specification of the cheese which may benefit from it, and 
the conditions under which this special regime will be operated are set out in Appendix 
II to this Arrangement.
2. New Zealand undertakes to take all the necessary measures so that the quantity of other 
cheese for processing exported to the Community does not exceed 3 000 tonnes per year 
and that sales of this quantity will be as regular as possible. It also undertakes that such 
cheese exported to the Community shall be accompanied by a certificate of authenticity, 
delivered by the New Zealand Dairy Board, guaranteeing the nature and origin of the 
product.

2. AMEX  I B  (cont.)
New Zealand undertakes to ensure that for cheese exported to the Community as a 
result of this Arrangement the minimum price will be respected at the df. stage.
The Community, for its part, undertakes, as necessary, to adjust the minimum price so 
as to ensure that New Zealand’s share of the global annual quantity admitted for 
importation can be effectively marketed each year as regularly as possible.
3. In the event that New Zealand’s prices create serious difficulties in the cheese market of 
a Member State of the Community, consultations will take place, without delay, with a 
view to seeking a mutually satisfactory solution for remedying the situation.
HI. Administrative cooperation
The Community and New Zealand undertake to establish administrative cooperation for the 
application of -the present Arrangement, concerning in particular the exchange of 
information on prices and quantities exported, and all other relevant matters.

M U SI  I B (c o n t.)
Appendix I
Text of concession on EEC Cheddar cheese
CCT
heading
No
04.04 Cheese and curd:DescriptionRate of
c o n v e n tio n a l
duty
F.. O th e r:
1 . Not grated or powdered, of a fat content, by weight, not 
exceeding 40 % and a water content, calculated by weight 
of the non-fatty matter: 
b) Exceeding 47 % but not exceeding 72 %:
1 . Cheddar:
(bb) Other:
— Whole chcddar cheese (a) of a minimum 
fat content of 50 % by weight, in the dry 
matter, matured for at least three months 
and of a frec-at-frontier value of not less 
than 165 u.a. (b) per 100 kg net weight 
(c) 1. id)
(■) The r\prc%smo '»hole chcoa-N', jv uvrd m subheading lM.04 fc  I  h; I  (bb, shall be taken to appl) ,o:
— »hole iheeses of the conventional flat cylindrical shape of ·  net weight of not leas than JJ kg but not more than 44 kg,
—  cubit block» of cber»e of a nrf weight of not le*a than 10 kg,
(b) The value limits are automatically adjusted by reference to changes to the factors determining the formation of the price of Cheddar in  
the Community. This adjustment it made on the b e »  of an inereaae or a reduction equal to diet of the thrtahold price of Cheddar in
the Community.
(c) Entry under this subheading tt subject to  cond itio n »  to  be determined by the competent authorities.
(d) 10 u. a per 100 kg net weight within the limits of an annual tariff quota of 9 000 tonnes to be granted by the competent authorittaof  
the European Communities.
Appendix II
Text of EEC concession on other cheeses destined for processing
CCT
heading
NoDeKriptfcmRate of 
m s d o i 
duty
04.04 Cheese and curd:
E. O th e r:
Not grated or powdered, of a fat content, by weight, not 
exceeding 40 % and a water content calculated by weight 
of the non-fatty matter:
b) Exceeding 47 % but not exceeding 72 %:
1. Cheddar:
(bb) Other:
— Cheddar for processing (a), of a 
free-at-frontier value of not less than 145 
u. a. (b) per 100 kg net weight (c)
5. Other:
— For processing (a), of a free-at-frontier value of 
not less than 145 u. a. (b) per 100 kg net 
weight (c)L (d )
(a) Checks on the utilisation ft* this specific purpose are undertaken through the application of the Community pnntMons l.uJ down m  
this matter.
(b) The value limit» are automatically adjusted by reference to changes to the facto« determining the formation of the price of Cheddar in
the Community. This adjustment is made on the basis of an increase or a reduction equal eo that of the threshold ;.ricc of Cheddar m  
the Community. ·
(c) Entry under this auhheadmg is subject to conditions to be determined by the competent authorities.
(d) 10 u. a. per 100 kg net weight within the limits of an annual tariff quota of J 500 tomes to be granted by the competent authorities of  
the European Communities.
4 ·

AMEX I C
Content of Agreement between Canada and the European Economic Community concerning
cheese
I. Community undertaking with respect to the importation o f aged Canadian Cheddar
1. The Community undertakes to establish a tariff quota for aged Cheddar, setting down 
specific conditions for the import of an annual total quantity ot 2 750 tonnes reserved 
for Canada. The definition of the system, the specifications of the cheese eligible for it 
and the conditions of eligibility for the special system are set out in the Annex to this 
Arrangement. Canada undertakes that the Cheddar shipped to the Community will be 
accompanied by a certificate of authenticity issued by the Canadian Dairy Commission, 
certifying the nature and the origin of the product.
2. Canada undertakes to ensure that, for cheese exported to the Community under this 
Arrangement, the minimum prices specified in the Annex to this Arrangement will be 
respected at the cif stage. The Community for its part, undertakes that, to the extent 
necessary, the minimum prices will be ad|usted to ensure that the annual total quantity 
allowed to be imported from Canada can be achieved, taking into account competitive 
supply and demand conditions on the cheese markets of the Member States of the 
Community. The Community will also ensure that the advantage thus granted to 
Canada is not compromised by other import measures.
3. In the event that Canadian prices arc such as to cause serious difficulties on the cheese 
market of a Member State of the Community, consultations will be opened without 
delay with a view to taking the necessary measures.
4. It is understood that monetary compensatory amounts or any other similar monetary 
measure which could affect the marketing of aged Canadian Cheddar in the Community 
will not be applied so as to discriminate between third country suppliers.
5. This undertaking replaces the arrangement of 28 February 1975.

AMEX I C (cont.)
If. Ca^adun -Atid'.rtJiirr^ w zh respect 1 0 m pcrts
1. Canada undertakes to open quotas for all cheeses for a global volume of not less than 
45 million pounds per year. Within this volume of 45 million pounds, an unallocated 
reserve of one million pounds will be set aside for Cheddar; it is understood that the 
Community will be treated no less favourably than other Cheddar suppliers. The quota 
allocated to the European Economic Community will not, in any case, be less than 60 % 
of this volume of 45 million pounds, that is, 27 million pounds.
2. Canada undertakes to implement all the necessary measures to ensure that the 
administration of the quotas by the Canadian authorities will be such as to allow for 
their maximum utilization.
Canada will ensure that the advantage thus granted to the Community is not 
compromised by other import measures.
J. The Community undertakes to ensure that the restitutions it grants will be such that the 
prices, ex-quay duty paid Canadian port, of cheeses from Community sources on the 
Canadian market do not undercut the prices, ex factory, of the same domestic cheeses or 
of similar cheeses made in Canada, inasmuch as Canada attempts to obtain a similar 
undertaking from other suppliers.
The monitoring of prices on the Canadian market will be done on the basis of a 
common agreement between the Community and Canada and presupposes the 
introdnction in Canada of an information system on ex factory prices.
In the event that Community prices are such as to cause serious difficulties on the cheese 
markets in Canada, consultations will be opened without delay with a view to taking the 
necessary measures.
III. Reciprocal undertakings
1 . The Community and Canada undertake to hold consultations on the implementation of 
this Arrangement on an annual basis and, if necessary, upon request of either party.
2. This Arrangement will be re-examined in 1982, in particular with respect to the 
possibility of increasing the quotas which have been fixed reciprocally and also with 
respect to their binding within the GATT.

3 .
ANNEX  I C  (cont.)
ANNEX
Description of the EEC concession on aged Cheddar
R ite  of duty
C C T
heading D e*cnption Autonomous %
No or levy (L)
!04.04 Cheese and curd:
j E. Other:
1 . Not grated or powdered, of a fat content, by weight, not  
exceeding 40 'V i, and a water content, calculated by weight  
1 of the non-fatty matter:
b) Exceeding 47 "/o  but not exceeding 72 % : :
I. Cheddar:
!  (aa) Cheddar made from unpasteurired milk, of .1
minimum fat content of 50 % by weight, in  
the dry matter, matured for at least nine  
I months (a):
1  (11) In standard whole sir.es (bj and ol a
frcc-at-ironncr value of not less than  
170 ti.a. (c) per 100 kg net weight l. (d)
i (22) Others of a net weight of:
I (aaa) N ot less than 500 g and of a
I (rec-at-frontier value of not less
j than 185 u.a. per 100 kg net
j weight ' L (d)
■ (bbb) Less than 500 g and of a ·
I free-nt-fronricr value o f not less
!  than 195 u.a. (c) per 100 kg net I
j weight |  L (d)
___________ 1 ----------------------------------------------------------------------------------------------- 1 -------------------
|a
) Entry ufuirr this subheading i* subject to sondm ons to be determines] by the competent authorities.
(b) The expression ’standard whole sires' in relation to subheading 04.04 E I  b) I (aa) ( I I ) »hall be taken tn apply i»i?
—  rounds of a net weight of between ^  and 44 kg inclusive*, ·
— lubu. blocks or rounds of a nei weight of not less than 10 kg.
(c) The minimum values shall be automatically adjusted to take account of changes in the factors determining the formation of Cheddar 
pnees in the Community. This adjustment shall be by way of an increase or decrease equal to that of the C.ommunify threshold price 
for ( heddjf.
(d) Itj n.a. per 100 kg net * n g h r within a 2 tonnes annual tariff quota to be allocated by the competent authorities of the European
Communities.

ANNEX II
1.1.80 :  1.6.80 :  6.4.81 :  20.5.82: 23.5.83 2.4.84 Annual Import Quotas
Threshold prices
Minimum Import Prices  
Canada
— Whole cheeses
— Cheeses of net weight  
of not less than 500 gra
— Cheeses of a net weight  
less than S00 gm
Australia and New Zealand
— Cheddar for consumption
— Cheeses for processing
Special Reduced Import  
Prices Australia and  
New Zealand since _______267,
07276,12 309,17 339,51 347,34 350,57
205,52
223,66
235,75
199,48
175,30214,57
232,71
244,80
208,53
184,35247,62
265,76
277,85
241,58
217,40277,96
296,10
308,19
271,92
247,74285,79
303,93
316,02
279,75
255,57
Consumption 260,51  
Processing 229,24
29.9.1983
Special Levy
Average Normal Levy12,09
187,7212,09
187,7812,09
182,9112,09 12,09289,02
307,16
319,25
282,98
258,80
260,51
229,24
12,09)
) Canada 2.750 tonnes  
)
)
Australia New Zealand Total  
2.500t 6.500t 19.000t
500t 3.000t 3.500t
>  Valid until 30 June 1984
187,60 :  190,17 :  202,22

ANNEX I I I
Cheddar Cheese Production in the Community
1980 1981 1982 198:
Quantity (m.t.) -Jo of total Quantity (m.t.) /o of total Quantity (m.t.) '■jo of total Quantity (m.t.) jo of total
United Kingdom 163 000 5 5 ,5 168 900 5 4 ,5 161 200 5 4 ,6 162 600 5 8 ,1
Ireland 47 741 1 6 ,2 49 343 1 5 ,9 49 806 1 6 ,9 47 605 1 7 ,0
Germany 51 479 1 7 ,5 53 025 1 7 ,1 50 025 1 6 ,9 45 496 1 6 ,3
Netherlands 8 108 2,8 10 700 3 ,5 12 448 4 ,2 9 948 3 ,6
Denmark 8 230 2,8 9 450 3 ,0 7 833 2 ,7 4 924 1 ,8
Prance 10 632 3 ,6 13 238 4 ,3 8 846 3 ,0 5 900 2,1
Belgium 4  700 1,6 5 227 1 ,7 4 879 1 ,7 3 244 1 ,2
TOTAL 293 890 100 309 883 100 295 039 100 279 717 100

ANNEX IY
C O M M O N  ITT IM PORTS OP C H EDD AR  CHEESE 1980 -  19&3
C O U N T R Y  0?  
ORIGINfea r D PRId
ITip o r tim
NLcount
B/LUX.n.----------
u r IR
L DX p REECE TOTAL
Total tra d e 1980
1981
1982
19835318
5009
4895
61173880
4976
3686
50005743
6022
8433
80671602
3609
3359
40465279
5513
5872
637871331
90099
79141
781491260
2352
2158
19802828
2015
1766
21270
6 1  
69 ' 1
44 197241
19661
09379
11908
Intra-Community
trade1980
1981
1982
19831408
701
956
14473817
4704
3624
46585691
5890
8186
80671306
3456
3318
33265279
5513
5871
637560481  
76546  
65976  
!  65535  
------------ L12
60
2352
2156
19801769
1223
1161
9830
6 ]  
69 
4481011
00481
91317
92415
T otal im ports from  
Third C ou n tries1980
1981
1982
19833910
4368
3939
467063
273
63
34252
42
246
0296
153
42
7210 i  10650  
0 !  13553  
0 ;  13165 I  
3 j  126140
0
2
01059  
792 
606 
11440
0
0
016230
19181
18063
19494
member  STATES
Irela n d 1980
1981
1982  
19831
10
99
10
32
16
220
0
0
00
34
167
110 i  29871  
15 !  38561  
0 37266  
0 1  410610
0
0
570
0
0
229872
38652
37548
41154
Germany 1980
1981
1982
19832845
2982
2436
24974766
4383
5412
5819210
930
612
10734454 i  7881  
4738 !  11664  
4263 7093  
4577 i  89950
6
0
7241
424
173
1030
1
20
2120197
25128
20009
23157
U n ited  Kingdom 1980
1981
1982
19831324
642
588
1250513
908
937
17541
33
2
491668
1892
1639
1732755 j
730 i  
1002  
13821242
2345
2156
1898
!1681
782
966
7110
2
1
76184
7333
7291
9224
N etherlands 1980
1981
1982
19832
2
178
19422
782
235
385903
1514
2642
1676170
1
303 !  
3866311 ‘  0  
8022 0  
6825 0  
6940 |  0
i47
17
20
1080
0
43
77755
10338
10246
9521
Denmark 1980
1981
1982
198346
35
73
16015
0
0
01
42
126
6339
36
21
1110
2
27
217619
8315
7646
498318
0
0
60
3
5
3
1  —7738
8433
7898
5347
Prance 1980
1981
1982
198334
12
18
920
8
4
180
22
56
124
27
276
96716
7112
4354
18080
1
0
00
0
2
41  0  
0
i  0
!  46974
7182
4710
1853
Belgium /  
Luxembourg1980
1981
1982
19831
0
0
822
0
0
0
10
0
0
0389
542
833
3982083
2873
2793
17490
0
0
40
0
0
00
0
0
02495
3415
3626
2159

AMEX IV (cont.)
CO JNTK T O F  
ORIGINIm p o rtin (f cou n try
TearD FR IT NL b/lux.u r IRL nr GREECETO T A L
TKIRD COUNTRIES  
New Zealand 1980 3265 0 0 54 0 6838 0 1056 0 11213
1981 4125 168 42 101 0 7563 0 691 0 12690
1982 3398 40 246 24 0 6969 0 316 0 10993
1983 3513 338 0 43 0 7308 0 993 0 12195
A u s tr a lia 1980 206 63 52 242 0 2500 0 0 0 1063
1981 226 104 0 52 0 2810 0 100 0 3292
1982 326 0 0 18 0 2793 0 237 0 3374
1983 1107 0 0 73 0 1894 0 31 0 3105
Canada 1980 0 0 0 0 0 1451 0 0 0 14511981 0 0 0 0 0 3093 0 0 0 3093
1982 0 0 0 0 0 3258 0 0 0 3258
1983 0 0 0 0 0 2874 0 0 0 2874
Other T hird 1980 439 0 0 0 0 61 030 503C ou n tries 1981 17 1 0 0 0 87 0 1 0 106
1982 215 23 0 0 0 145 0 53 0 438
1983 5 0 4 0 605 3 538 0 120 0 1320

ANNEX T
C O M M O N  P H  EXPORTS 0? C H EDDAR GKEfiSE 1980 -  1983
DESTINATION fea r D FR IT NL b/lux. ux IRL dx G reece PO T A L
T o ta l tra d e 1980
1981
1982
198320422
26605
22688
256987060
7997
4223
30560
0 ]  
0
247977  
L1362  
L2813 !  
L17372082
3959
3917
205610581
16728
25746
1970834075
38844
37601
419018232
8918 ;
8606 j  
5908 10
0
°o !90429
114414
115594
110097
E xports to  
o th er
Member S t a te s1980
1981
1982
198320330
25647
20423
234556683
7259
3886
22780
0
0
247915
L0472
10611
93522076
3885
3775
20566407
7620
9598
1028733994
38760
37567
418097937
8467
8070
54970
0
0
085342
102110
93930
94767
E xports to
T hird
C ou n tries1980
1981
1982
198392
958
2265
2242378
738
338
7790
0
0
063
890
2202
23855
74
142
04174
9107
16148
942181
84
34
91295
451
536
4110
0
0
05 088  
12302  
21665  
15329
Japan 1980
1981
1982
198318
835
2137
18640
389
0
410
0
0
00
597
543
6890
1
0
024
2742
2988
10640
65
0
00
3
162
00
0
0
042
4632
5830
3658
T rin id a d
Tobago1980
1981
1982  
19830
0
0
00
0
0
00
0
0
00
186
1013
6610
0
0
01219
1836
2650
21020
0
0
00
0
0
180
0
0
01219
2022
3663
2781
A lg e r ia 1980
1981
1982
19830
0
0
00
0
0
420
0
0
00
0
0
00
0
0
00
900
2000
00
0
0
00
0
0
00
0
0
00
900
2000
42
Egypt 1980
1981
1982
19831
0
0
00
1
0
6000
0
0
00
0
206
2870
0
125
01156
488
1400
2150
0
0
049
41
60
940
0
0
01206
532
1797
1196
V en ezu ela 1980
1981
1982
19830
0
0
00
0
0
00
0
0
00
0
270
600
0
0
02
252
1068
9040
0
0
00
0
0
00
0
0
02
252
1338
964
Barbados 1980
1981
1982
19830
0
0
00
0
0
00
0
0
00
0
0
00
0
0
0546
986
1168
8240
0
0
40
0
1
00
0
0
0546
986
1169
828

ANNEX Y ( c o n t .)2
DESTINATION Year D PR IT NL b/ujx. u t IRL1
DI |( 3REECE 1 'CTAL
M alta 1980 0 0 0 0 0 0 0 0 0 0
1981 20 0 0 0 0 111 0 0 0 131
1982 1 0 0 0 0 188 0 0 0 189
1983 0 0 0 542 0 0 0 0 0 !
1
---------- d-54
2
Panama 1980 0 0 0 0 0 0 0 0 0 0
611981 0 0 0 0 0 0 0 61 0 5
1982 0 0 0 0 0 412 0 00 i412
1983 0 0 0 1 0 561 0 0 0 { 562
A u s tr a lia 1980 0 0 0 0 0 5 0 0 0 5
1981 0 0 0 0 0 92 0 0 0 92
1982 0 0 0 0 0 43 0 0 0 43
1983 37 0 0 0 0 490 0 0 0 527
Jam aica 1980
19810
00
00
00
00
033
1110
00
00
033
111
1982 0 0 0 0 0 664 0 0 0 664
1983 78 0 0 0 0 357 0 0 0 435
Turkey 1980
19810
00
00
00
00
00
00
00
00
00
0
1982 0 0 0 0 0 52 0 0 0 52
1983 0 0 0 0 0 306 0 0 0 306
P h ilip p in e s 1980 0 0 0 0 0 0 0 s 0 2
1981 0 0 0 0 0 0 0 3 0 3
1982 0 0 0 0 0 0 0 1 0 1
1983 0 1 0 0 0 303 0 1 0 305
Cyprus 1980
19810
00
00
00
00
033
670
00
200
033
89
1982 10 0 0 0 0 205 i  00 0 215
1983 5 0 0 0 0 300 !  12  
J_______0 0 31
7
U n ited  S ta te s 1980 0 0 0 0 0 1701
0 0 0 170
1981 0 3 0 0 0 235 0 0 0 238
1982 0 0 0 0 16 186 16 1 0 219
1983 0 0 0 0 0 295 17 0 0 312
Saudi A rabia 1980 42 13 0 0 0 73 0 71 0 199
4821981 20 7 0 0 0 414 0 41 0
1982 42 0 0 0 0 657 0 109 0 614
1983 53 3 0 7 0 289 0 83 0 435
Grenada 1980
19810
00
00
00
00
0111
820
00
00
0111
82
1982 0 0 0 0 0 180 0 0 0 18 0
1983 0 0 0 0 0 126 0 0 0 126
1

ANNEE T ( c o n t . )3 .
DESTINATION T e a r FR IT KLb/lüx. u e IRL DE GREECE TOTAL
D o B in io a 1980
1981
1982
19830
0
0
00
0
0
00
0
0
00
0
0
00
0
0
042
49
83
126a
0
0
00
0
0
00
0
0
042
49
83
126
B aham as 1980
1981  
1982  
19830
0
0
00
0
0
00
0
0
00
0
61
760
0
0
0142
73
194
12462
0
0
210
0
5
210
0
0
0204 
73 
260 
242
G i b r a l t a r
O th e r1980
1981
1982
1983
1980
1981
1982
19830
0
0
0
31
83
75
2050
0
0
0
365
338
338
920
0
0
0
0
0
0
00
0
0
0
63
107
109
620
0
0
0
5
0
1
073
86
109
101
545
583
1901
93419
19
18
370
0
0
0
175
282
191
1950
0
0
0
0
0
0
073
86
109
101
1201
1481
2627
1524