COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 01.02 1996 
COM(%) V) final 
96/0036 (ACC) 
Proposal for a 
COUNCIL DECISION 
Concerning the conclusion of the results of negotiations with certain third 
countries under GATT Article XXIV:6 and other related matters 
(Republic of Argentina) 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
The Commission has now concluded negotiations with Argentina under GATT Article 
XXIV.6. The results of the negotiations are contained in the Proposal for a Council 
Decision concerning the conclusion of the results of negotiations with Argentina under 
GATT Article XXIV:6 and other related matters. 
The agreement covers agricultural issues and includes commitments on tariffs, tariff 
quotas, export commitments and domestic support. The phasing in of the duty reductions 
foreseen in the agreement needs to be specified. 
As regards the EC's import regime for cereals, an exchange of letters has been negotiated 
under which Argentina agrees not to request GATT consultations provided the terms of 
the agreement are respected. 
Proposal for a Council Decision 
Concerning the conclusion of the results of negotiations with certain third 
countries under GATT Article XXIV:6 and other related matters 
The Council of the European Union, 
having regard to the Treaty establishing the European Community, and in particular 
Article 113, in conjunction with Article 228 (2), first sentence thereof, 
having regard to the proposal from the Commission, 
whereas the Community has entered into negotiations under GATT Article XXIV:6; 
whereas these negotiations have resulted in an agreement with Argentina. 
whereas the phasing in of the duty reductions foreseen in the agreement should be 
specified, 
whereas the Community has entered into discussions with Argentina relating to the 
Community's import regime for cereals. Whereas the result of these discussions are 
contained in an agreement in the form of an exchange of letters, 
whereas it is in the interest of the Community to approve these agreements, 
has decided as follows : 
Article 1 
1. The following agreements are hereby approved on behalf of the Community: 
Agreement for the conclusion of negotiations between Argentina and the European 
Community under Article XXIV:6 of the GATT 1994 (Annex I). 
Exchange of letters between Argentina and the European Community on cereals 
(Annex II). 
2. The texts of the agreements referred to in this Article are attached to this Decision. 
3. The President of the Council is hereby authorised to designate the person empowered 
to sign the agreements in order to bind the Community. 
4. The phasing in of the duty reductions foreseen in the Agreement is laid down in 
Annex III. 
Done at Brussels, 
For the Council 
The President 
J 
Annex I 
AGREEMENT 
FOR THE CONCLUSION OF NEGOTIATIONS BEI WEEN 
THE REPUBLIC OF ARGENTINA AND THE EUROPEAN COMMUNITY 
UNDER ARTICLE XXIV:6 
The Republic of Argentina and the European Community, 
desiring to bring their GATT Article XXIV:6 negotiations, following the enlargement 
of the European Community which took place on 1 January 1995, to conclusion on 
the basis of a reasonable and mutually satisfactory compromise, and 
further desiring to strengthen the close partnership in commercial and economic 
matters between the European Community and the Republic of Argentina, 
agree to the following provisions: 
A. The European Community shall incorporate in its new Schedule CXL, for the customs 
territory of the EC-15, the concessions that were included in the previous Schedule 
LXXX as modified by the European Community Schedule annexed to the Marrakech 
Protocol to the General Agreement, 1994 (dated 15 April 1994) and additions thereto 
as set out in document G/SP/2 (dated 3 August 1994). 
B. To settle the current GATT Article XXIV:6 negotiations on agriculture the following 
has been agreed and will apply with effect from 1 January 1996 : 
08081093 Fresh Apples (1/1-31/3) : 
two additional steps (10%, 12%) before the full tariff equivalent is applied 
in the period 15/2-31/3. 
08081099 Fresh apples (1/4-31/7) : 
- reduction of the final tariff rate from 3% to 0%. 
- one additional step (14%) before the full tariff equivalent is applied in the 
period 1/4-30/6. 
- three additional steps (10%, 12%, 14 %) before the full tariff equivalent 
is applied in the period 1-15/7. 
08082031 Fresh Pears (1/1-31/3) : 
reduction of the final tariff rate from 8% to 5% for pears respecting the 
entry price for the period 1/2 - 31/3. 
08082033 Fresh pears (1/4-30/4 and 1-15/7) : 
- reduction of the final tariff rate from 2.5% to 0%. 
- one additional step (14%) before the full tariff equivalent is applied in the 
period 1/4-30/4. 
- three additional steps (10%, 12%, 14 %) before the full tariff equivalent 
is applied in the period 1-15/7. 
2 
08053010 Lemons : 
- four additional steps (10%, 12%, 14 %, 16 %) before the full tariff 
equivalent is applied in the period 1/5 - 31/7. 
- three additional steps (10 %, 12 %, 14 %) before the full tariff equivalent 
is applied in the period 1 - 15/8. 
Grape juice and grape must. Tariff rate quota for 14.000 t (erga omnes). 
See Annex 1. This tariff rate quota will apply with effect from 1 September 
1996 '. 
15081010 Ground-nut oil, crude : reduction of the final tariff rate (3.2%) to 
zero. 
The Republic of Argentina accepts the basic components of the European 
Community's approach to adjusting the GATT obligations of EC 12 and those of 
Austria, Sweden and Finland, following the recent enlargement of the Community : 
netting out of export commitments 
netting out of tariff quotas 
aggregation of domestic support commitments. 
The appropriate legal modalities of implementation remain to be agreed. 
C. Final provisions: 
This Agreement shall enter into force on the date of signature. 
Consultations will be held with regard to the matters in this Agreement at any time 
at the request of either party. 
Signed at this day of in the year one thousand nine 
hundred and ninety-six. 
For the Republic of Argentina 
For the Council of the European Union 
In accordance with present EC regulations imports for inward processing will not be 
counted against the TRQ. Taking into account the fact that in the past imports of 
products covered by the TRQ were sometimes higher than 14 000 t the European 
Community is prepared to open up, on an autonomous basis, additional import 
opportunities if it emerges, after assessing relevant data (domestic supply and 
demand situation including market assessment by operators), that the internal market 
situation in the European Community necessitates additional import of grape juice 
and grape must used for the production of grape juice and/or non-wine sector 
products. 
4-
Tariff quota for grape juice and grape must 
i/i Description of product 
Grape juice (including grape must) : 
- Of a density exceeding 1.33 g/cm3 at 20° C : 
- - Of a value not exceeding 22 ECU per 100 kg 
net weight 
- - Other 
- Of a density not exceeding 1.33 g/cm3 
at 20° C : 
- - Of a value exceeding 18 ECU/100 kg net 
weight : 
- Concentrated 
- - Of a value not exceeding 18 ECU/100 kg 
net weight : 
- - - Other Tariff item 
number 
2009 6011 
2009 6019 
2009 60 51 
2009 60 90 Initial quota 
quantity and in-quota 
tariff rate 
14.0001 
46.7 % + 
24.0 ECU/100 kg/net 
46.7 % 
26.1 % 
26.1 % Final quota 
quantity and in-quota 
tariff rate 
14.0001 
The initial in-quota 
tariff rates shall be 
reduced as committed 
in the Uruguay Round 
for out-quota rates Other terms and 
conditions 
The products imported will be used for 
the production of grape juice and/or 
non-wine sector products such as vinegar, 
non-alcoholic drinks, jams and sauces. 
Qualification for the quota is subject to 
conditions laid down in the relevant 
Commmunity provisions. 
Annex II 
Exchange of letters 
I have the honour to confirm the following understanding reached between the delegations 
of the Republic of Argentina and the European Community: 
The European Community agrees to make the following adustment to its import rules for 
"flint maize" (within tariff line 10059000) from 1 January to 30 June 1996: 
The abatement for flint maize (within tariff line 10059000) will be increased 
from 8 ECU/tonne to 14 ECU/tonne. 
Flint maize will be certified by the Instituto Argentino de Sanidad y Calidad Vegetal as 
being in conformity with the specifications for "maiz Colorado o plata". 
The two parties will enter into consultations before 1 March 1996 with a view to 
determining whether the level of the abatement is reflecting prevailing market conditions. 
It is agreed that the two parties will enter into discussions in the first half of 1996 with 
a view to examing what measures might be necessary in view of the European 
Community commitments, under Schedule LXXX, for subsequent marketing years. If the 
outcome of those consultations is mutually satisfactory, its results may be implemented 
starting 1 July 1996. 
Subject to the foregoing being implemented, the Republic of Argentina will not request 
consultations under Article XXII or XXIII of the GATT 1994 on this issue. 
(a 
o ««au fjLs&wzmm Hiinex in 
Summary description 
UR Code 
1 CN Code 
1996 
Fresh apples. 1 April - 31 July 
0808 10 99 
Fresh pears. 1 February - 31 March 
ex 0808 20 31 
Fresh^pMrs. 1 - 30 April aM 1-15 July 
ex 0808 20 33 1/4-30/6 
0808 10 61 
63 
69 
1:31/7 
0808 10 71 
73 
79 
ex 0808 20 31 
0808 20 37 
1 -15/7 
0808 20 47 Rate of duty to be applied 
in 1996 and in later 
years indicated 
3' " 
1996 
1997 
1998 
1999 
2000 
2001 
1996 
1997 
1998 
1999 
2000 
1996 
1907 
1996 
1999 
2000 
2001 
1996 
1997 
1998 
1999 
2000 
2001 
1996 
1997 
1998 
1999 
2000 5.0 % 
4.0 % 
3.0 % 
2.0 % 
1.0% 
0.0 % 
4.0 % 
3.0 % 
2.0 % 
1.0% 
0.0% 
9.2% 
6.3% 
7.5% 
6.7% 
5.8% 
5.0% 
4.2 % 
3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 
3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 
Ground nut oil, crude 
11508 10 10 1508 10 10 1/1/1996 
1/7/1996 
1/7/1997 
1/7/1998 
1/7/1999 
1/7/2000 4.2 % 
3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 
1-
FINANCIAL STATEMENT 
Section 1. Financial Implications 
1. Proposal for a Council Regulation providing for offers of compensation made in 
the Article XXIV.6 Negotiations to be implemented from 1 January 1996. 
2. Budget heading: (loss of revenue: not known) 
3. Legal basis: Article 113 
4. Description: The application of the Common External Tariff duty rates by the 
three new Member States from 1 January 1995 has resulted in increases in duty 
payments on imports from third countries beyond levels previously in force. 
The proposed regulation is intended to implement the compensation offered for 
the adverse effects experienced by third countries as a result of changed duty rates 
in the three new Member States. 
5. Type of revenue: Loss of revenue for duties paid on third country imports. 
6. Change in level of revenue: 
It is estimated that the maximum loss of revenue will be in the order of 6 MECU 
in the period 1996 until final UR rates are reached. 
<* 

ISSN 0254-1475 
COM(96) 39 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-96-051-EN-C 
ISBN 92-78-00192-9 
Office for Official Publications of the European Communities 
L-298S Luxembourg