Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Argentina pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. On 2 May 2000, the Council authorised the Commission to notify the WTO that the European Community intended to modify the bound tariff for garlic under the heading 0703 20 00 and was prepared to enter into negotiations and consultations with WTO Members under Article XXVIII of GATT 1994.

2. Negotiations have been conducted by the Commission in consultation with the 133 Committee and within the framework of the negotiating directives issued by the Council.

3. Negotiations with the Republic of Argentina, the only WTO Member having a principal supplying interest, have been successfully concluded in the form of an exchange of letters.

4. This proposal asks the Council to approve the agreement in the form of an exchange of letters between the European Community and the Republic of Argentina.

2001/aaaa (ACC)

Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Argentina pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission [1],

[1] OJ C ..., ..., p. ...

Whereas:

(1) On 2 May 2000, the Council authorised the Commission to enter into negotiations and consultations with WTO Members under Article XXVIII of GATT 1994 with a view to modify the bound tariff for garlic.

(2) Negotiations have been conducted by the Commission in consultation with the 133 Committee and within the framework of the negotiating directives issued by the Council.

(3) Negotiations with the Republic of Argentina, the only WTO Member having a principal supplying interest, have been successfully concluded.

(4) The agreement in the form of an exchange of letters between the European Community and the Republic of Argentina should therefore be approved.

(5) As the measures needed to implement this Decision are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [2], they should be adopted in accordance with the management procedure laid down in Article 46 of Council Regulation (EC) No 2200/96 [3].

[2] OJ L 184, 17.7.1999, p. 23.

[3] OJ L 297, 21.11.1996, p. 1. Regulation last amended by Regulation (EC) No 2826/2000 (OJ L 328, 23.12.2000, p. 2).

HAS DECIDED AS FOLLOWS:

Article 1

The agreement in the form of exchange of letters between the European Community and the Republic of Argentina on garlic, negotiated in the framework of Article XXVIII of the General Agreement on Tariffs and Trade, is hereby approved on behalf of the Community.

The text of the agreement is attached to this Decision.

Article 2

The Commission, assisted by the Committee established by Article 45 of Regulation (EC) No 2200/96, shall adopt the necessary measures for managing the tariff quotas provided in the agreement in accordance with the procedure provided in Article 46 of the said Regulation and in conformity with the procedure set down by Decision 1999/468/EC.

Article 3

The President of the Council is hereby authorised to designate the person empowered to sign the agreement in order to bind the Community [4].

[4] The date of entry into force of the agreement will be published in the Official Journal of the European Communities.

Article 4

This Decision shall be published in the Official Journal of the European Communities.

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 Argentina pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT

Letter No 1

Letter from the European Community

Brussels, ...............

Sir,

Following negotiations between the European Community (EC) and the Republic of Argentina under Article XXVIII of GATT 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT, the EC agrees to the conclusions as outlined below and in the Annex.

1. The EC establishes a tariff quota for garlic where the quota quantity is equal to 38 370 tons and the in-quota tariff rate is equal to 9.6%. The out-of-quota rate of duty is set at EUR 1200/t + 9.6% ad valorem.

2. The tariff quota is allocated among supplying countries as follows:

- Argentina: 19 147 t,

- China: 13 200 t,

- Other countries: 6 023 t.

3. The tariff quota opens on 1st June each year and is managed through subdivision in four trimestrial sub-quotas as set out in the Annex.

4. The tariff quota is managed using the historical/newcomers system, the shares being 70% for historical importers and 30% for newcomers.

This agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 June 2001.

I would be grateful if you could confirm the agreement of your Government to the above.

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

On behalf of the European Community

Letter No 2

Letter from the Republic of Argentina

Brussels, ...............

Sir,

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

"Following negotiations between the European Community (EC) and the Republic of Argentina under Article XXVIII of GATT 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT, the EC agrees to the conclusions as outlined below and in the Annex.

1. The EC establishes a tariff quota for garlic where the quota quantity is equal to 38 370 tons and the in-quota tariff rate is equal to 9.6%. The out-of-quota rate of duty is set at EUR 1200/t + 9.6% ad valorem.

2. The tariff quota is allocated among supplying countries as follows:

- Argentina: 19 147 t,

- China: 13 200 t,

- Other countries: 6 023 t.

3. The tariff quota opens on 1st June each year and is managed through subdivision in four trimestrial sub-quotas as set out in the Annex.

4. The tariff quota is managed using the historical/newcomers system, the shares being 70% for historical importers and 30% for newcomers.

This agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 June 2001.

I would be grateful if you could confirm the agreement of your Government to the above."

The Republic of Argentina has the honour of confirming its agreement with the contents of this letter.

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

For the Republic of Argentina

ANNEX

>TABLE POSITION>

>TABLE POSITION>