ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)151
Vol.1975/0062

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COMMISSION OFTHEEUROEHANCOMMUNITÏES
COM(75)151final
Brussels,10April1975
REPORTFROMTHECOMMISSION TOTHECOUNCIL
ThisreportdealswiththemannerinwhichtheprovisionsofProtocolNo18
annexedtotheActattachedtotheTreatyconcerningtheaccession
ofthenewMemberStatestotheEuropeanEconomicCommunity
andtotheEuropeanAtomicEnergyCommunity
wereappliedduring1974
COÏl(75)151final

I/52/75-E
I. INTRODUCTION . ..._ ■' _
TheCommission hasbeen instructed "bythe .Council .„ .tosubmit ,
before 1April each year ,areport onthemanner inwhich the
provisions ofProtocol No18annexed totheActattached tothe
Treaty ofAccession have been applied .Thefirst report ,which
dealt with theyear 1973 ,wassubmitted totheCouncil on1April
21974 * Thepresent report deals with themanner inwhich the
protocol wasapplied during 1974 *I"tisrecalled that this report
ismore than asimple statement offacts and includes areasoned
assessment ofthemanner inwhich theprovisions oftheProtocol
have been applied .
*Regulation (EEC)No226/73oftheCouncil of31January 1973–
OJL27of 1February 1973 .
2Document R/920/74(Agri251)(FIN218)

ï/52/75-E
UNITED KINGDOM IITPORT ARRESTMENTS '■■■
A. Situation asregards quantities
Pursuant toArticle 1ofProtocol No18andontheterms 'specified
therein ,theUnited Kingdom wasauthorized toimport from NewZealand
during 1974s
153902m.t.of "butter(156392LT) '
60960nut.ofcheese (59997LT). '
On 1January 1974 United Kingdom stocks ofNewZealand "butter and
cheese amounted to:
28932m.t.of "butter (28524LT)
9145nut.ofcheese (9001LT)
In 1974thetotal quantity ofNewZealand "butter andcheese imported
into theUnited Kingdom was :
117358m.t.ofbutter 1(115505LT)
17509m.t.ofcheese(17232LT)
(SeeAnnex I)
Thetotal quantity ofFewZealand butter andcheese available for •
sale intheUnited Kingdom in1974 was ,therefore :
146340m.t .ofbutter (144929LT)
26654m.t.ofcheese (26233LT)
Sales cfNewZealand produce intheUnited Kingdom in1974 amounted to
.109943m.t.ofbutter(108207LT)
16954m.t.ofcheese(16686LT)
United Kingdom stocks ofNewZealand produce carried forward on
31Deeember 1974 amounted tos ,
36397m.t.ofbutter (35822LT) •
9700m.t.ofcheese (9547LT.)
1long ton (LT)=1.016047 metric tons

-3- 1/52/75-E
Thesupply oftheUnited Kingdom market in197-4 »ascompared with
1973 funderwent some considerable changes .Imports ofNewZealand
products fell "byabout 13500n.t .for "butter and28000m*t.for
cheese ;these figures represent '71$ ofthetotal exports ofNew
Zealand "butter and32%ofthetotal exports ofNewZealand cheese ,
asagainst 83$and71$respectively inthepreceding year .
United Kingdom "butter production fell "by44-000 m.t.,while cheese
production rose "byabout 35»000 nut .
United Kingdom consumption rose «bar«the1973 level by42000m.t ,
forbutter and4000nut .forcheese ,mainly asaresult ofthehigher
prices ofvegetable fats andthesubsidies granted toconsumers .
These subsidies amounted to:
forbutter (including imported ):
from 14.5.73 to31.3.74 :10u.a./lOOkg(£46.94 /LT)
from 1.4.74 to6.10.74 :27u.a./lOOkg(C.126.75 /LT)
from 7.10.74 to :36.50 u.a./lOOkg(£184.30 /LT)
fornatural cheeses (including imported ):
from 6.5.74 to10.11.74' :£105/LT(22.37 u.a./lOOkg)
from 11.11.74 to :£188/LT(37.10 u.a./lOOkg)
These subsidies made possible aconsiderable increase inUnited
"t
Kingdom imports from theother Member States .Forbutter this
increase amounted t.o135000m.t .andforcheese to19000
m.t .more than in1973 (seeAnnex II). * "*
Thereduced imports ofNewZealand products were the coriaequence
-ofthecontinuing drought affecting production inNewZealand and the
greater opportunities forexports tothe USA ,forwhich New
..Zealand .hasbeen able toobtain arelatively favourable price .
following theopening ofanadditional import quota forthe 1974
trading year ,alarge share ofwhich (25000m.t.)wasallocated
toNew Zealand ;for cheese

-4- V5-/75rS
I . <v" ?'
r :&
Asm 1973 }themarket situation hasdeveloped satisfactorily .
Theapplication -oftheprovisions oftheProtocol during 1974 allowed
thequantities ofNewZealand "butter and ;cheese imported into "the
United Kingdom to "bemarketed without prejudicing themarketing
V '••
ofCommunity products .
Situation asregards prices andthefixing ofspecial levies
Inaccordance with Article 2(2)thespecial levies applied in1974
xvere fixed onthe "basis ofthecifprices of76.96 u.a./lOOkg
forbutter and66.45u.a./lOOkgforcheese andonthe "basis ofthe
market price ofNewZealand products intheUnited Kingdom ata
level such astoallow thequantities imported into theUnited Kingdom
to "beeffectively marketed without prejudicing themarketing of
Community "butter and cheese .
Inview ofthedevelopment ofmarket prices intheUnited Kingdom
forCommunity products ,andinparticular theretail prices of
butter andhome–produced Cheddar ,thespecial levies were fi::ed
atthefollowing levels *
(u.a./100kg)
■Butter Cheese
Until 6.1.74 6.80 29.80
7.1.74-31.1*74 6.80 38.32
1.2.74-31.3.74 20.-"' 48.-"' •
1.4.74-S.7.74 '...23.3755.53 5
10.7.74-14.10.74 ' '27.6355.53
from 15.10.74 31.96 /69.03 "
Asalready pointed outinthereport dealing with 1973 ,theincrease
inthespecial levy oncheese on7January 1974 wasduetoarise
of£37/LTinthemarket prices forhome-produced Cheddar ,followed
byanincrease of£40/LTintheprice ofNewZealand Cheddar .■.In
view ofthe stocks ofHew Zealand butter and cheese available in
theUnited Kingdom ,thespecial levies were increased on
1February 1974 inorder totake account oftheprobable ,rise in
prices atthebeginning ofthe1974/1975milk year .Thespecial
levies were adjusted on1April 1974 onthebasis ofthepricing
decisions actually taken forthis milk year .

-5- I/52/75-E
On10July1974■thespeciallevyon"butter ,wagadjustedtotakeaccountofa
jriseinthemarketpriceofNewZealandbutter.On15October1974"the
speciallevieshadto"berevisedtotakeaccountof"boththeCouncildecision
>toalterprices(targetpriceandinterventionprice)duringthe1974/75
marketingyearandthedepreciation ofthepoundsterling.
On23December1974aRegulationwasadoptedbytheCommission(published
intheOfficialJournalof28December1974)fixingthespeciallevies
applicabletoNewZealandbutterandcheeseimportedintotheUnited-
Kingdomasfrom1January1975totakeaccountoftheCouncilDecisionto
increase,asofthatdate,thecifpricesto90,81u.a./lOOkg(£460.12/LT)
forbutterand78.41u.a./l00kg(£397.29/LT)forcheese(Eegulatlon(EEC)
No3145/74,OJNoL334,page7).
Whenthesespeciallevieswerefixedats
50.05u.a„/l00kgforbutterand
75*38u.a./lOOkgforcheese,
*ν
thepriceincreasesproposedbytheCommissiontotheCouncilfor.the1975/76
milkyearduetobeginon1,February1975werealsotakenintoaccount.
In1974marketpricesintheUnitedKingdomrosefairlysharply(see,'
AnnexIII).t-■•...... ...
Thepriceofhome-producedbutterinbulkincreasedfrom£420/LT(89.47u.a./lOO
;to£58o/LT(ll4.*47a./100kg)andthat,ofbutterinpacketsfrom
'£485.5/LT(103.42u.a./lOOkg)to.£660.65/LT(130.39u.a./l00kg).
ThepriceofNewZealandbutterinpaoketsiiiocrea£ed.roffli^i49.40/LT.7,...."
<55.73':u^/TO0ik^)•tofc-^13,.60/L,T.(121.10u.a./lOOkg)......
ThepriceofCheddarincreasedasfollows: ■..,-
homeproduced:from£500/LT(106.51u.a.)to£765/LT(150.98u.a/).00kg).
NewZealand:from£520/LT(110.77u.a.)to£715/LT(141.11u.a/iOOkg)..
Asalreadypointedout,however,theadjustmentof'thesubsidylargely
preventedtheincreaseinmarketpricesft^mgb^ing^aesed^oft'to theconsumer.

-6- 1/52/75-E
c.Provisionsralatinotothespecial r3ferredJ:o.,inJ^e
Protocol .... , „
OnmanyoccasionstheNewZealandGovernmenthasoomplainddofthedifficulties
causedbythelevelsofthespecialcifpricesappliedsincethe
Protocolcameintoforce,asaresultoftheconsiderablechangeswhichhave
occurredinthestructureofpricessincetheywereoriginallyfixed.
...... .1InaccordanceWiththeconclusionssetforthinitsfirstannualreport,
theCommissionlry>broughtuptodatethebasicdatafromwhichthespecial
cifpriceshadbeencalculated.Afterexaminingthesedata,the
■Commissionwasof•theopinionthatthelevelsapplicablesince1February1973
shouldbealteredinthelightofthechangesintheoriginalsituation <
followingtheexceptionalincreaseinproductioncosts,mainlyasaresult
oftheenergycrisis.
TheCouncil,actingonaproposalfromtheConnnission'6)^raisedthese
pricestothefollowinglevels:
90.81u.a./lOOkgforbutter(£460.12/LT
_s\(*\)78.41u.a./lQ0kgforcheese(£397.29/LT)
Since,thesenewpricesoarneintoforceonlyon1January1975,itisno"b
yetpossibletoassessthefulleffectsofthismeasureintermsofan
increaseinthequantitieslikelytobeactuailyshippedthe
UnitedKingdomwithinthequantitativelimitsspecifiedintheProtocol.
onNewZealandearninge,the
toitsreprésentativerateare
fluctuationsrftheP»^themonetarycompensatoryamounts,
compensatedfor»asm>thypt
dollar,« inSeptemher1974-«evie„s
thedevaluationofthe*-^requirenofurther
previouslyexpressedonthismattertoy
comment.■-•.■-•
|î Eecemberl974':

-vp- 1/52/75-E
III.DIV3RSI?TCATIOÏT
TheUnitedKingdomisetillthelargestmarketforNewZealandexports
of"butterand,toalesserdegree,ofcheese.
Underthepolicyofdiversification whichHewZealandispursuing,the
year1974"asmarkednotonly"byareductioninquantitiesimported
intotheUnitedKingdomhutalso"byareductionintheUnitedKingdom
shareofNewZealandexports,particularly cheese.Thestatistics
available^showthefollowingpercentagesfortheyear1973/1974('2)
71$(93290metrictonnes)for"butter(asagainst8yfoin1972/73)
32^(l8365metrictonnes)forcheese(asagainst71$in1972/73)
Thisistheresultofthecontinuedpolicyofdiversification andof
poorclimaticconditionswhichwerethemaincausesofthoreductioiP^
inthetotalquantitiesavailableforexport.
Thepositiveeffectsofthediversification policystemmedlargely
fromgrowingdemandontheworldmarketandtheimportpoliciesof
non-membercountries.Inthisconnection,mentionmayoncemore"be
madeoftheconsequences forNewZealandoftheopeningofanadditional
quota "bytheUnitedStatesforthefirstquarterof1974#
Onothermarkets,suchasJapan,exportsofNewZealand "butterand
cheeseareadvancingslowly "butsurely.Asregards milk-fat
saleslevelsofpreviousyearshavebeenmaintained,withoutanynew
progress,however,becauseofthecompetition fromvegetableoilsand
thedropintheproductionofbutterforereport.
frewZealandGovernment©ep^t.mentiQli .Statistics^heannualstatisticsforNewZealandtradearecalculatedovertheperiod
1July/30June.^2000tforbutterand16000tforcheese.

IV.IÎTTSRMATIOÏÏAL AGR^LfclNTS
AsstatedinpointVoftheprecedingreport,theCommissionisin
favourofaninternational ,agreement ,beingconcludedonmilkproducts,
sothattheconditionsobtainingontheworldmarketmaybeimproved.
Atapracticallevelthe-Commission,-bothbyitspolicyoforderly
'andconcertedmanagementandbytheclosecontactswhichit.
maintainswithitstradingpartnersandwithHewZealandin
■"'■particular,hasdemonstratedIts-interestin,andmadeanactive
contribution towards,th.egradualachievementoftheeconomic
conditionsfavourabletotheeventualimplementation ofsuchan
international arrangement .

9.-:. .I/52/T5-E
'-ve*4ï »,•* '-v
CONCLUSIONS "V. -- ^
Asin1973j"thequantitiesofFewZealand "butterandcheeseimported
intotheUnitedKingdomduringthe1974calendaryearwereless,than
thoseorovidedforintheProtocol.Thiscan"beexplainedbythe
continuation of"badweatherconditionsinNewZealandanduytne
1
advantageousopemngeforthes«~mi3;k-'pt#du«ts-3.rio^ev-yimpst'^ing ■■
countries,particularly theUnitedStates.Theseopportunities ,'
fordiversification ,however,willdependstrictlyontheimport
policiesoftheimportingcountriesin1975*Moreover,-th^export
policiesofotherexportingcountriesandoftheCommunitywilXplay
'• , , '*theirpartinanysuchdevelopments . i.'<.
s■.Y•'.)à
TheCommissionconsidersthatthelevieshavebeenfixed ,atlevels -
whichallowtheProtocoltobeproperlyimplemented .''
InNew"Zealandthereisstillgreat'concertoverthefixingof
pricesandoverearningsfronsalestotheUnitedKingdom.-The
■CatnmiBsian <c®ns.ia@rsttodt /dafta?-iailfceSssfee'efefnentof
ftteriftgr.19^4iaMcflhif&yisicI^-tlSS'aS^tment on
rl$fcfe^uajryi;1975 -©£'•special^icif.-^^iosjifi'xMooti' thV-eftctiyinto
forceofthePrbtocBB'l^.^hDttld tbs'reviewed vi^wto
bringingthiemupto-date,takingiTx.t'd';acc6luit''ln'^airticStlar thelevel
ofandthemovementsinpricesinNewZealandandintheCommunity,:i.'o-.'/y;;•-
includingintervention prices,inproductioncostsinNewZealandandin-frei?
infreightcosts.InthelightoftHisreview,theCommissionwill
submit,asnecessary,appropriateproposalstotheCouncil..\
f

MMK1
±97AImportsintotheUnitedKingdomfromNewZealand
(longtons)1.ii<rn ■. M9)
Duvier.Cheese
y-y/Arrivaiscleared
throughoustomsArrivalsnot
cleared
throughcus­
tomsTotal
Frrivals»
Sales •Arrivalscleared
throughcustomsArrivalsnot
cleared
through .cus­
tomsTotal
arrivaisSales
I
I
1/1-12/1
13/1-26/1
27/1-9/2
10/2-23/2
24/2-9/3
10/3-23/3
24/3-6/4
7/4-20/4
21/4-4/5
5/5-18/5
19/5-1/6
2/6-15/6
15/6-29/6
30/6-13/7lj/7-27/7
23/7-10/8
11/8-24/8
25/3-7/9
8/9-21/9
22/9-5/10
6/10-19/10
20/10-2/11
3/11-16/11
17/11-30/11l/l2*>14/12
15/l2-?2^/l2
29/12-31/12
m/vn\r7.340
8.118
4.002
9
6.47121.580*
"5.659
1.722.
978
131
506
980
1.004
1.746
692
4.661
1.148
5-545
3.473-
1.500
4.535
12.06916.327
5.344 'I
5.173
4.377
12.025
33
2.705
659
12.°30
i7.340
8.118
9.180,4.353(+)
12.025
6.469(+)
5.659
1.712(+)
973
131
506
980
1.004
1.746
692
4.651
1.148
5.578
6.183
2.159
;17.465
!12.069
!5.3443.797
5.049
5.267
4.082
.3.669
3.530
3.264 •
3.944
3.954
4.283
3.843
4.304
3.924
4.179
4.019
4.139
4.433
4.383
4.928
4.053
4.810
3.738
4.344
4.047
4.OO7
2.894
1.213«.
975
I.I64
285*
.59
.221
438
•161
293
835
2.820
188' 1
317
1.094
17 -
102.
9
3.1004.039*
1.115226
59
I
1.626
1.253
559
601975
1.164
226
59
59
221
433
161
293
835
2.820
188
317
I.094
17
1.723
1.253
568
601
3.100
1.115h–
973
1.133
1.100
933
776
530
490
422
548
561
461
542
595
552
562
348
496
394
831
1.303
1.031
'846
447
473
213
43
23
»njiAjj jL I IjICo.207 jΓ ■
f
k 17.232 4hî086
broughtoutofbond(+)Reviseddownwardstocompensateforpreviousshortlandings.

1/52/75-E
ANNEXII
Developmentofproduction,consumption "andtrade
,3■.Μ*·.■.
#
■1.000metrictons---–·ρ–■–■
1971.1972 ..1973,'1974UD
M-îir.cproduction ''~13,13413,999I14,24113,811I
JMilkdeliveries12.60013,'14513,70513,290
Deliveriesasf>.ofproduction 95.9 9696.;2;
j■".96.2.
IButter(b) ■!~!!
IΊ
I'Production '*-' !96 <97>' 53
ITotalimports 39335»L-339,-440;
Iôfwhich:
-EEC 148139,187 327;
INewZealand 147118'132 117
ITotalexports , 5417 4,
Domesticdisappearance (c)/'457 j404427469.
1
.i–i
IGheese ? Π
IProduction ,163184-183218
ITotalimports 168 151''137125
Iofwhich:..i'.
EEC 66 6683102
INewZealand71 64.4718<
Totalexports 3 4 ;612
Domesticdisappearance (c) -315 303326334,
(a)Provisionaldata
(0)Includingbutter to;Includingbutterequivalentofbutteroil
^c).Estimatedaftertalcingaccountofstockchanges
Source:^.A.P.P.Statistics.*,
)

1/52/75-E
ANNEXIII
HOVELSNTSOPBUTTERANDCHEDDARCHEESEPRICESIN1974
LondonandNationalProvisionatExchange)
t/longton
/■?.>•-
1974ButtermPackets
SaltedCheddarRindless
SelectWhilse40lbs
JUnitedKingdomINewZealand UnitedKingdom NewZealand
1
IJanuary3485 448 500 !431 .
.10II II537.I520
17II .1»' Η
:24.fl tt
31ι> II520-:
IFebruary 7?» 468II
14:II II II II
21h h
28 520
I"larch...7!485 508II541
14Γ■"*t•-il."540 ■
2119
IH
|28«
^ *M II541:
IApril 4562 530 600
11» h537,»:
18n ii ii
,25h ii II
I*îay2»» II II
•'9If642 ■ti
16M ff II
23n ti n
•30n n
1June 6II II IIM
-13«
20n »î tt
27ff554II
JJuly4•t II If
:11 «; ιι Ii
18n " i n
25II f! tt
IAugust'.1ft n
8;il III600
15If II II
22n n.600
29n «t n tt
ISeptember 5Ifl n ft
12Vf II 682
'19I*f* n-"– n^-646
26n it
I
IOctober3In m In
10655 614 ..646-659 1
17645-656n n 646
24« n n"
3111 ft ft715
INovember7Itf ff ff II
14;656-684II765
21ft ft «I
28tt tt1
1
IDecember 5ff ft tf I
J12π tt
19tt w
I
26II III