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DOCUMENTS "COM"
COM(82)630
Vol.1982/0196

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(82)630 final
Brussels,8October1982
FOROFFICIAL USEONLY
NEGOTIATIONS FORTHEACCESSION OPSPAIN
EXTERNALRELATIONS
(CommissionCommunicationtotheCouncil)
COM(82)630final

CONTENTS
Page
INTRODUCTION 1
PARTONE:GENERALCONSIDERATIONS 3
I.GuidelinesgoverningtheproposalsinthisCommunication 3
II.EffectsontheSpanisheconomyoftheapplication ofthe
acquiscommunautaire mtheexternalrelationsfield 5
III.Maximumperiodofapplication ofthetransitional
arrangements 9
IV.Liberalization ofimports 12
V.Textileproductsandgarments 14
VI.TheCommunity'spreferential agreementswiththird
countries 15
PARTTWO:SPECIFICPROPOSALS 19
I.TheCommuniionsaui^onomous^comercial £oliç£ 19
A.Commonrulesforimports 19
1.ImportsfromGATTcountriesandcountries
accordedliketreatment
a.Generalquestions 19
b.Spécifiequestions:Japan 22
2.Importsfromstate-trading countries 26
3.Surveillance andsafeguardmeasures 30
4.Generalaspectsofimplementation vis–&-vis
allthirdcountries 31
5.Usedandinferiorqualityproducts 32
B.Communitysystemofgeneralizedpreferences 38
II.TheCommunitycontractual _cornnercial_p <olic£ 41
A.TheCommunity'spreferential agreements 41
1.EFTAcountries 41
2.Mediterranean countries 46
3»LoméConventioncountries 49

(Contents –cont'd )
B.TheCommunity ^financial cooperation policy
1.Question oftheFifth EDF
ι
2.Volume ofaidenvisaged
III.Other c^uesjti^ns
A.Application ofArticle 115oftheEECTreaty
and free circulation
B. Andorra
Annexes

INTRODUCTION
1.ThisCommunication isconcernedwiththeimplementation bySpain
oftheacquiscommunautaire intheexternalrelationsfield.-The
scopeoftheseproposalsreflectsthedefinitionofthescope^ofthe
externalrelationschapterassetoutindocumentCONF–E/.../82of
21June1982.
ThespecificproposalsputforwardbytheCommissionarebasedtoa
largeextent,butnotexclusively ,ontheSpanishrequestsfor
transitional arrangements inthisfield.
2.PartOneoftheCommission Communication reiteratescertain
generalpointsconcerningtheeconomicjustification fortransitional
arrangements inthechapterinquestion.IntheCommission'sview,
itiscertainthat,ingeneralterms,transitional measuresor
temporaryderogationswillhavetobeenvisagedinmostofthemain
areasinwhichSpainhasproposedsucharrangements .
3.InPartTwotheCommissionformulatesspecificproposalsrelating
toeachoftheSpanishorCommunityrequests.Thoseproposalsare
basedontheCommunitypositionsasalreadymadeknowninits
2statementsconcerningexternalrelations.Theyaretheresultof
anin-depthexamination ofthepositionssuccessively putforwardand
2clarifiedbytheSpanishDelegationinitsvariousstatements,of
certainsupportingdocumentsproducedbySpainandofevaluations
carriedoutbytheCommissiondepartmentsduringthetechnical
discussions withtheSpanishexperts.
2Annex1.Annex2.

EventhoughtheproposalsprovideapositiveresponsetoSpain's
requestsinareascoveredbythoserequests,theCommissiondoesnot
feelthattheCommunitycanacceptalltheSpanishproposalsas
formulates .,oilierinthefieldofnon-tariffbarriers,notablyae
regardsquantitative jnportrestrictions ,orinthatoftariff
preferences.
ThennproposalstakeaccoxurfcoftheCommissionproposalsinthefield
1oftradeinindustrialproductswithintheenlargedCommunity •In
manycases,whatwasproposedunderthatheadinghasservedasa
parameter 111thepresentproposals.
24.AnnexIofdocumentCOJ^?–E,..„/82of21June1982indicated,with
regardtothischapter,thepointsonwhichtheConferencecould
recordanagreement.Thisdocumentwillnotthereforecoverthose
pointsagainbutwillsetouttheCommission *sopinioaontheother
points(pointsstillIcingexamined)listedinAnnexIItothesaid
document.
5.Thecaseofthespecificcustomsarrangement sapplicabletothe
CanaryIslands,Ceutaana.Melillaanatnespecialeconomicandtax
arrangements (Lav/ofJuly)infavouroftheCanaryInlands
isnotdealtwithinthosepr-^osalr,since.Spainhasstillnotmade
knownitspositiononthissubject.
1co:7^?)-,7if5nals
'"Cf.Annex3.

PART ONE-GENERAL CONSIDERATIONS
I.
Ι
CUIHSLINES GOVERNING THE PROPOSALS INTHIS COMMUNICATION
Thedirect consequence oftheadoption ofasector –"by–sector
negotiating formula isthat theproposals setoutinPart 'J'WOofthis
Communication areconcerned solely with theexternal i-elalionu chapter
1asdefined bytheConference .
The external aspects ofthe chapters excluded from this Covanunication
have been orwill bedealt with inthe context ofthose chapters .
This Communication hasbeen drawn upinthelight ofthe "acquis "as
itstands inthe external relations field .Theproposals which it
contains aretherefore without prejudice tothedevelopment ofthat
acquis .
Theproposals inthis Communication have been formulated !■>reply to
Spain fsrequests concerning theapplication oftransitional measures
ortemporary derogations intheareas covered bythis chapter .■
Consequently !Spain would beobliged inallother cases toapply as
from accession ,onthesame basis astheother Member Stat' s,the
acquis communautaire inthis chapter asitstands atthat >iate .
Accordingly ,this Communication pays nofurther attention othe
various aspects ofthe "acquis "which Spain hasstated itsreadiness
toapply asfrom thedate ofitsaccession ;those points arelisted
intheCommunity statement C0NF-E /.../82of21June 1982 uiider the
headings-points onwhich theConference could record anagreement .
CONP-E /.../82.

-4-
Theproposalsputforwardatthecurrentstageofthenegotiations in
thevariousspecificsectors,andnotablyinthesectorofindustrial
tradewiththirdcountries,mustnecessarily –againatthisstagein
thenegotiations –respectcertaincharacteristics .
Firstofall,asstressedbytheCommunityattheMinisterial meeting
openingthenegotiations on5February 1979ycertaingeneral
considerations canbeconfirmedconcerningthenatureofthe
transitional measurestobedefined.Thosemeasuresmustin
principleincludeprecisetimetables andtheirdurationcouldvary
accordingtotheareasinvolved.

II.
EFFECTSONTHESPANISHECONOMYOFTHEAPPLICATION OFTHEACQUISCOMMUNAUTAIRE
INTHEEXTERNALRELATIONS FIELD
1.The1970Agreement ,betweentheEuropeanEconomic Cc,nmunityandSpain
doesnotimposeaivrobligations onSpainasregardstheconductofits
commercialpolicyinrespectofthirdcountries.NordoestheAgreement
commitSpaintoanyefforttograduallyharmonizeitscustomstariffon
theCommunity'scommoncustomstariff.
Inrecentyears,Communitypolicyintheexternalrelationsfieldhas
evolvedveryrapidly.ThatiswhytheCommunityacquisinthisfieldis
todayverysubstantial.Therehasbeenaconsiderable development ofthe
commoncommercialpolicyinthesenseofageneralliberalization of
tradeandinadditiontheCommunityhasconcluded20orsopreferential
agreementswiththirdcountriesandhasestablishedtheGoaiuunity
ofgeneralizedpreferences.Thisdevelopment obviouslyposer,acertain
numberofeconomically importantandtechnically compleyproblemsinthis
fieldwhichmustbeexaminedinthenegotiations betweerSpainandthe
Communityandinmanycasessubsequently resolvedbymeansofnegotiations
conductedbetweentheCommunityandthethirdcountriesconcerned.
AlthoughSpainhasmadesomeprogresstowardsopeniigupitsoarketto
*theCommunitypursuanttothe197^Agreement,itstillmaintains
appreciabletradebarriersinrespectofallthirdcountries,comprising
forexampleanaveragecustomstariffofsome15$(comparedwith
approximately £%undertheCCT),quantitativerestrictions onnumerous
productsvis-a-vismostthirdcountriesandspecialprotectioninthe
formofquotaswithregardtoJapan.
* «r™.AndtotheEFTAcountriesonthebasisofitsfree-tradeagreementwith
thosecountries.

-6-
Theadoptionoftheacquiscommunautaireasitstandswilloblige
Spaintoundertakeaconsiderable liberalization effortontopofthat
requiredtoattainthecustomsunionwiththeCommunity.Itwillbe
necessaryinparticularforSpaintoremovenumerousquantitative
restrictions withregardtoboththeGATTcountriesandthe
state-trading countries.Itwillalsohavetograntthezeroorreduced
customsdutiesprovidedforintheCommunity'spreferential agreements
andunilateralpreferential arrangements .
NorshouldwelosesightofthefactthattheCommunity'scommercial
policyhasbeenshapedbyeconomieswithahigherdegreeof
industrialization thanSpainandthatbyvirtueoftheCommunity's
preferential agreementsSpainwillbeobligedtoapplypreferences
which,inmanycases,arenotaccompanied byreciprocalconcessions.
3.TotalSpanishimports-84$ofwhichwereofanindustrialnature
in1980-presentedthefollowingapproximatestructurebetween1978
and1980:

DEVELOPMENT OFSPAIN 'SIMPORTS
Origin1978-80 (in%»000)
World
EUR 10
Middle East
USA
Africa
Latin America
EFTA
State –trad .coun ,
Japan
Portugal
Maghreb-Mashreq
Otner1978
AILproducts
A.n*000
187':n FJ
518
773
479
691
5''S
945
4-7
5:;
çs
Λ3591
349
?13
7U8
?"0
LH9
ï',7
122
50.'-
581
415 226Θ.%
100,0
34.9
20.2
13-3
9.0
8.1
5,0
2,4
2.3
0.3
2.2Industrial ]
XofA
79.2
91.5
99.9
52.9
72.3
27.2
.6
79.2
98,1
66.6
81,01CC/J
Ailproducts
A.i*000 F
34083 (,72 10'.",;
10
7
4
3
3
15<;1
435
405
6?3
377
4C3
890
.842
162759
018
989
P8*
564
£/,3
785
776
743
966%15
362 290.f
10,6
9.9
4,4
2.5
0.i
2,8
1-1Industrial
ZofA
84 .1
fc.?,7
Source :SITC data -UN-Geneva .
Theabove table shows that :
(i)therelative proportions accounted forbytheUnited States andthe
Community fell during theperiod1978-80,from 13.3# to12.9# forthe
USAandfrom 34*9# to30.9# fortheCommunity ;this ismainly the
result oftheincrease intheprice ofoil ,asreflected mthe
relative proportion accounted forbytheMiddle Eiast which increased
ever thesame .period ;
(ii)invalue terms ,onacurrent price basis ,although allSpain 's
trading partners benefited from theincrease intotal Spanish imports ,
imports from Latin America more "than doubled while theindustrial
proportion ofthose imports increased from27.2# in1978 to52.9# in
1980;
(iii)theimports from theCommunity aremainly industrial innature
(91»3# in1980),while those from theUnited States andLatin
America aretoalarge extent agricultural (respectively 42%and
47%in1980 ).

4.Thepresent level ofSpanish tariff protection isstill fairly
high and ,ifthe role played bynon-tariff barriers isalso included ,
thereduction inthe level ofprotection will beconsiderable .This
transition unquestionably constitutes achallenge ,this being ontop
1ofthe need toestablish the customs union •
5.Inthese circumstances ,theCommission feels that itcannot exclude
thepossibility ofdifficulties onSpain *spart asregards acceptance
oftheacquis communautaire .Accordingly ,theCommission isready to
envisage aseries oftransitional arrangements ,provided that Spain
provides adequate specific economic arguments tojustify them .
Seethefigures indocument SEC(79)l635 of15October 1979 *

-9-
III .
À
PERIOD OFAPPLICATION OFTHE TRANSITIONAL ARRATCGEMEEITS
1.Onageneral basis ,Spain hasindicated ?that itconsiders tnat the
transitional measures andtemporary derogations inthis chapter will
1have tobeapplied foraperiod ofaround tenyears •
2.Indrawing upthedetailed proposals concerning thecustoms union
forindustrial products ,theCommission hadproposed aduration offive
years forthetariff transitional measures andaduration ofthree years
asregards thetransitional measures inrespect ofquantitative
restrictions (cf.COM(82)271 final ,pp.8and13).
3.Ingeneral terms ,theCommunity hadmade itclear initsstatement
CONF-E /63/8Othat "these transitional measures ortemporary derogations
must notresult inthegranting "bySpain tothird countries ofmore
favourable treatment than that given totheCommunity ,possibly subject
toexceptions which would bejointly agreed onduring xhe nefeOtiatxci -^
onbehalf ofdeveloping countries " (CONF-E /63/8O,]/*3)•
4*Asthe external relations chapter istied upwith the industrial
customs union chapter ,theCommission proposes tomake thefollowing
points :
(i)Adoption oftheCommunity *spreferential tariff ai -i-atigcuisnta
Kfr'l'A countries (+Faroe Islands )
Onpage 23ofitsstatement CONF-E /3/82,theCommunity "therefore
proposes tostipulate that theperiod ofapplication ofthetransitional
measures inquestion andthetimetable fortariff dismantling must be
the same asthose laid down inthe context ofcustoms unxon and ir^e
movement ofgoods intheindustrial sector "(CONF-E /3/32,p.Z->and
cf.C0NF-E /.../82of21June 1982).

-10-
Inview ofthe fact that the Commission hasproposed that transitional
measures with aduration offive years beenvisaged forthe elimination
ofcustoms duties onimports between Spain andtheCommunity ,the
Commission proposes that areminder begiven that itwill also be
necessary toprovide forfive-year transitional measures forthe
elimination ofimport duties bySpain inthe context ofthepresent
chapter .
This proposal isbased onthehypothesis that the duration ofthe
transitional measures ofatariff nature inthe customs union chapter
will beset atfive years .Iftheposition adopted bythe Community in
itsstatement of21June 1982 (CONF–E/.•,/82)–proposing aduration of
only three years -were tobeadopted ,itwould also benecessary to
envisage athree-year period inthis chapter .
Mediterranean countries ,ACPcountries (+OCT)andtheGSP
Thefollowing appears onpage 18ofstatement CONF-E /63/8O:
"The Community clarifies itsposition that asfrom accession Spain will
have toapply fully both theMediterranean agreements andtheLom€
Convention (together with theOCTarrangements )." (CONF-E /63/8O,p.18).
The Community hasadopted thesame position with regard totheGSP
(CONF-E /29/82,p.13).
While maintaining this position ,theCommission considers that inview
oftheabove economic analysis theCommunity should propose that Spain
apply even tothedeveloping countries therule whereby thetransitional
measures ortemporary derogations must notresult inthegranting by
Spain tothird countries ofmore favourable treatment than that given to
the Community .
(ii)Adoption oftheCommunity arrangements concerning quantitative
restrictions :
a. Initial Community position
1.With regard totheEFTA countries ,theCommunity "adopts theprinciple
that theother provisions ofthese agreements ,particularly those regarding
quantitative restrictions onimports andmeasures having equivalent effect ,
will have toapply toSpain uponaccession "(CONF-E /3/82,p.24)*

-11-
2.FortheMediterranean countriesandtheACPcountries,theCommunity's
positionisthesame(cf.CONF-E/63/8O,p.18).
3.Asregardstheadoptionofthecommonliberalization arrangements
vis-a-visboththenon-preferential thirdcountriesbelongingtoGATT
andthestate-trading countries,theCommunityhasnotadoptedanyposition
asregardsthedurationofanytransitional measures,
b.Supplementary Commissionproposal
1.OnthebasisoftheCommissionproposal,C0M(82)271final,the
transitional measuresconcerningquantitative restrictions ,boththose
vis-a-visthepreferential agreementpartnercountriesandthose
concerningthecommonliberalization arrangements ,shouldhavea
1durationofthreeyears•
2.Inmaintainingthisposition,theCommissionconsidersthat,inview
oftheaboveeconomicanalysis,theCommunityshouldproposethatSpain
applyevenwithregardtothedevelopingcountriestherulewherebythe
transitional measuresortemporaryderogations mustnotresultinthe
grantingbySpaintothirdcountriesofmorefavourabletreatmentthan
thatgiventotheCommunity,
3.ThevariousaspectswillbedealtwithindetailinPartTwo.
1Forthepreferential countries,thisthree-yearperiod,whichis
identicaltothatenvisagedinthecustomsunion,isinanycase
thefigurearrivedat,inaccordancewiththeCommissionproposal,
fromtheapplicationofthe"butoir"rule.

-12-
IV.
LIBERALIZATION OFIMPORTS
SpainhasagreedtoadoptasfromaccessiontheRegulationsrelating
totheoommonimportarrangements subjecttotheapplication of
transitional measuresforalimitednumberofhighlysensitive
productsunderthecommonliberalization arrangements comingfrom
theGATTcountries(withtheexceptionofthepreferential
partners)(Regulation No288/92),thestate-trading countries
(RegulationNo1765/82),China(Regulation No1766/82)andRomania
(Regulation No3449/80asamendedbyRegulationNo3799/81)•
Spainhasrequestedtheapplication ofadditionaltransitional
measuresforcertainadditionalproductsfromJapan.The
Commission'sspecificproposalsconcerningthoserequestsareset
outinPartTwo.
Stepsmustbetakentoensurethatthetransitional arrangements
requestedfortheproductlistsofthecommonliberalization
arrangements arenot"morefavourable"tothirdcountriesthanto
theCommunityasconstitutedatpresent.Stepsmustalsobetaken
toensurethatthetransitional arrangements requestedforthe
liberalizationlistsofRegulations Nos1765/82,1766/82and3449/80
donotinprinciplegivethestate-trading countriesmorefavourable
arrangements thanthoselaiddownforthethirdcountriescoveredby
Regulation No288/82.
Generalprocedure
Toensurethatthetransitional arrangements ortemporaryderogations
fromtheTreatiesandsecondaryCommunitylegislation haveaprecise
legalfoundation,thesaidarrangements orderogations mustbeset
outintheaccessiondocuments.

-13-
Thatiswhy,intheeventoftheintroduction-astheCommission
proposesinPartTwo-ofmeasuressuchastheopeningofquotas
whichwouldbeprogressively increasedduringtheperiodof
applicationofthetransitional measures,itwouldbenecessary
forthelistofproductsinquestion,thevolumeofthebasic
quota,thepercentageincreasesandthedateoffullliberalization
foreachproducttobelaiddownintheaccessiondocuments.

-14-
V.
TEXTILEPRODUCTS ANDGARMENTS
TheCommunityhasnotedthatintheSpanishstatementof4June1982^
concerningexternalrelationsanumberoftextileproductswere
inoludedinthevariouslistsofproductsinrespectofwhichSpain
hasrequestedtransitional quantitativerestrictions vis-4-vib
thirdcountries.InviewofthefactthattheMaltifibre
Arrangement hasrecentlybeenrenegotiated andthatthebilateral
textileagreementsstillhavetoberenewedorrenegotiated ,the
CommissionconsidersthattheSpanishrequestsconcerning
quantitative restrictions fortextileproductsfromthirdcountries
withwhichtheCommunitymaintainscontractualrelations*inthis
fieldwillhavetobedealtwithseparatelyatalaterstageinthe
negotiations assoonastheresultsofthenewarrangements are
known.
ThisCommunication does,however,dealwiththeSpanishrequests
concerningimportsoftextileproductsfromthirdcountriesin
respectofwhichunilateralarrangements areappliedinthe
Community.
Inaddition,Spainwillbekeptinformedofthedevelopments in
theacquisconmmnautaire inthetextilesectorasregardsbothtrade
andrestructuring .
CONP-E/39/82,
*Agreementsorarrangements .

-15-
VI.
THECOMMUNITY'SPREFERENTIAL AGREEMENTS WITHTHIRDCOUNTRIES
Atagenerallevel,theComnunityshouldreiteratethatBinceSpain
willbenefitfromtransitional measureswithregardtotheCommunity
inboththetariffandnon-tarifffieldsandwillnotbeallowedto
givethirdcountriesmorefavourabletreatmentthanitgivestothe
Community,transitional measureswillinanyeventhavetobe
envisagedwithregardtotheCommunity'spreferential partners,
whetherornotSpainhaspresentedspecificrequeststothatend.
Inthesecircumstances ,protocolswillhavetobeconcludedwith
theco-contracting thirdcountriesinordertotakeaccountofthe
saidtransitional measures.
WithregardtotherequestspresentedbySpainforadditional
transitional measureswithregardtocertainpreferential partners,
thoserequestswillbeexaminedlaterinPartTwo.
1.Procedureforthenegotiation oftheprotocolstobeconoluded
(a)Anyprotocolofadaptationshouldbeconcludedbetweenthedate
ofsigningoftheinstruments ofaccessionandthedateoftheir
entryintoforce.Shouldsuchprotocolsnotbeconcluded,Spain
willbeobligedtoapplyasfromthedateofaccessionthepreferential
agreementsor,inthecaseofmixedtypeagreements,thoseprovisions
relatingtoareasofCommunityresponsibility .
IfforreasonsbeyondthecontroloftheCommunityorSpain,the
protocolshadnotbeenconcludedatthetimeofSpain'saccession,
theCommunitywouldadoptthemeasuresnecessarytoremedythat
situationafteraccession.

-16-
Inanyevent ,moet-f avoured-nation treatment will beapplied bySpain as
from thedate ofaccession sothat theapplication from that date ofthe
acquis comaunautaire inother sectors covered bythis chapter would not
involve Spain granting other third countries more favourable treatment
than that given totheCommunity 'spreferential orassociated partners .
Assurances onthis subject ,onthelines ofthose embodied inArticle 119
oftheTreaty ofAccession ofGreece ^,should beincluded inthe
instruments ofaccession *
(b)Theconclusion oftheprotocols will involve theCommunity inaseries
ofimportant negotiations with thepartners with which ithas concluded
preferential agreements .
TheCommunity should draw the Spanish Delegation 'sattention tothefact
that those negotiations will have tobeconcluded before thedate ofSpain 's
accession inorder that theprotocols canenter into force asfrom
accession .TheCommission will have toundertake exploratory talks with
all thepreferential countries during theaccession negotiations with Spain
orinanyevent before thesigning oftheinstruments ofaccession .Those
talks will have tobefollowed bynegotiations leading tothe !conclusion of
protocols during theinterim period .
Inthose circumstances ,theprocedure tobefollowed forthese negotiations
should comprise thefollowing three successive phases which should be
initiated stifficiently farinadvance ofSpain 'saccession toensure the
conclusion oftheprotocols during theinterim period :
(i)During theaccession negotiations with Spain ,theCommission will
hold exploratory talks atanappropriate moment with allthecountries
that have concluded preferential agreements with theCommunity .
Article 119oftheTreaty ofAccession ofGreece :
"IftheProtocols referred toinArticle 118(1 )arenot ,forreasons
outside thecontrol oftheCommunity ortheHellenic Republic ,concluded
on 1January 1981 theCommunity shall take thenecessary measures to
deal with this situation after accession .
Inanycase ,most-favoured -nation treatment shall beapplied asfrom
1January 1981 bytheHellenic Republic tothecountries listed in
Article 120 ."

-17-
(ii)Following those exploratory talks andonthebasis ofCommission
recommendations ,thenegotiating directives tobegiven totheCommission
will befinalized bytheCouncil ,inaccordance with theprocedure
applicable during theinterim period ,after thesigning oftheinstruments
ofaccession andbefore Spain *saccession .
(iii)Theadoption ofthenegotiating directives will befollowed bythe
negotiations proper between theCommunity andeach ofthecountries
concerned ,which will lead totheconclusion ofprotocols ofadaptation
during theinterim period .
Representatives ofSpain –tobeclosely involved inthis work -will be
present asobservers alongside therepresentatives oftheMember States
inthe negotiations .
2. Content ofthe directives for the negotiations with the preferential
countries
(a)Thenegotiating directives will have tocover alltheaspects
involved intherespective preferential agreements inrespect ofwhich
transitional measures andtechnical adaptations areenvisaged .
Consequently ,itwill notbepossible validly tobegin theexploratory
talks until thequestion ofthetransitional measures concerning trade in
1industrial andagricultural products andthequestion ofthe
non-commercial provisions -where they exist intheassociation and
cooperation agreements -have been thesubject ofanagreement between
theCommunity andSpain .
Itisonly ataLater stage ofthenegotiations that itwill bepossible
toconsider thebalance ofthetransitory measures tobeproposed forthedifferent
components ofthese Agreements (trade inboth industrial andagricultural
products ,noncommercial measures )toeach ofthepreferential countries .
Separate directives will have tobeadopted topermit theconclusion of
separate protocols fortheECSCagreements withthird countries ^.
1This problem iswithin thescope oftheAgricultural Chapter and will be
treated inthat context .
2This question belongs tothe ECSC Chapter and will bedealt with inthat
context .

-18-
(b)Stepswillhavetobetakentoguaranteethat:
-thetransitional measuresapplicabletothepreferential countries
willnotresultinthosecountriesbeingaccordedmorefavourable
treatment-inwhatsoeverfield-thanthatgiventotheCommunity
asconstitutedatpresent;
-thetransitional measuresapplicabletothepreferential countries
willnotbe"lessfavourable"-apartfromcertainspecific
arrangements atCommunitylevel-thanthoseenvisagedforother
thirdcountries.Inparticular,itisnotpossibletoenvisage
theapplication ,topreferential countries,asfromthedateof
accessionoftransitional measuresconcerningquantitative
restrictions inrespectofproductsthatarenotsubjecttosuch
restrictions whenimportedintoSpainfromotherthirdcountries#
(c)Lastly,theCommunityshoulddrawtheSpanishDelegation's
attentiontothefollowingpoints:
-thetransitional measiires,andtheirduration,tobeagreedbetween
theCommunityandSpainwithregardtothearrangements tobeapplied
bySpaintothethirdcountriesthathaveconcludedpreferential
agreementswiththeCommunitywillhavetobenegotiatedwiththose
countriessubsequently inaccordancewiththearrangements specified
above;
-ajointdeclaration bytheCommunityandSpainwillbeincludedin
theinstruments ofaccessionstatingthattheCommunity,inthe
negotiations ontheprotocolstobeconcludedwiththeabovementioned
thirdcountries,willtakeasitsbasisfornegotiation thetransitional
measuresagreedinthematterintheaccessionnegotiations concerning
thischapterandrecordedinthesummaryofconclusions ofthe
negotiating Conference.

-19-.
PARTTWO:SPECIFIC PROPOSALS
I.THECOMMUNITY'SAUTONOMOUS COMMERCIAL POLICY
A.COMMONRULESFORIMPORTS
1.ImportsfromthemembercountriesofGATTandcountriesaccordedLike
treatment (hereinafter referredtoas"GATTcountries")otherthan
1.2preferential partnersandstate-trading countries
(a)Generalquestions
Communityposition
(i)TheCommunityhasstatedonanumberofoccasionsthattheacquiscommunautaire
inthisfieldwaslaiddowninCouncilRegulationNo288/82of5February1982^
oncommonrulesforimports.
TheCommunitystartsfromtheprinciplethatSpainwillhavetoapplythis
Regulationimmediately uponaccession.Itdoesnot,however,ruleoutthe
possibility ofentering,wherethisprovesnecessary,alimitednumberofvery
sensitiveproductsonlistsofexceptions onatransitional basisinaccordance
withdetailedarrangements tobelaiddownduringthenegotiations .Insuch
acase,theseexceptionsshouldtaketheformofannualquotaswhichwouldbe
graduallyincreaseduntiltheproductistotallyliberalized^."
(ii)"TheCommunityreaffirmsitsposition,statedonanumberofoccasions,
thatitconsidersitnecessaryfortheSpanishDelegationtoforwardtoitas
soonaspossiblethelistofproductsliberalized underRegulation (EEC)No288/82
1CouncilRegulation (EEC)No288/82of5February1982oncommonrulesfor
^imports.Theproductstobeliberalized withregardtoGATTwillalsohavetobe
liberalized withregardtotheEast-European membersofGATTinaccordance
withtheprotocolsofaccessionofthosecountries.
Regulation No288/82replacesRegulation No926/79referredtointheinitial
^Communitystatements.Notablyonpages8and9ofdocumentCONF-E/3/82.

-20-
forwhichitwishestoobtaintemporaryderogations fromLiberalization ,
togetherwithdetailedeconomicgroundstherefore.Thislistshouldcontain,
interalia,theCCTreferenceforeachproductand,ifnecessary,thecurrent
NIMEXEreference^.
"TheCommunityagainstressedthatonlywhenithasthisinformation -i.e.
thelistofexceptions accompanied bydetailedeconomicgroundsinrespectof
eachproductconcerned-willitbeabletotakeadecision,afterexamining
thematter,onthepossibleinclusionofalimitednumberofverysensitive
productsonalistofexceptions onatransitional basisandaccordingto
1rulestobelaiddownduringthenegotiations .
Posit_ion_o_fSpjn
"Followingthelateststatements onexternalrelations,CouncilRegulation (EEC)
No288/82oncommonrulesforimportswaspublished on5February1982.
TheSpanishDelegation acceptsapplication asfromaccessionofthecommonrules
forimportsoriginating inthirdcountriesingeneral,bothasregardsliberalized
productsandasregardsprocedural questions,subjecttothetemporaryderogations
andtransitional measurestobeagreeduponbetweenthetwoparties.
TheSpanishDelegation considersthatitisnecessarytomaintain,duringthe
transitional period,exceptionsforanumberofsensitiveproducts;atthe
momenttheproductslistedinAnnexIj_totheSpanishstatementof4June1982_/
areconsideredassensitiveproducts^.
1Pages8and9ofdocumentCONF-E/3/82.
^Page7ofdocumentCONF-E/39/82.
/

-21-
Spain isalso able toinform theCommunity that theSpanish rules applicable
toimport arrangements are currently being updated onthebasis ofthe
1
criteria laid down inCouncil Regulation (EEC )No288/82
Commission proposals 2
(i)With regard tothe 50orsoproducts forwhich Spain isrequesting
transitional quantitative restrictions inrespect oftheGATT countries and
countries accorded like treatment byway oftemporary derogation from the
common arrangements for the liberalization ofimports contained inCouncil
Regulation No288/82,theCommission isnot yet inaposition toconsider
these requests since the Spanish Delegation has still not provided specific
economic grounds insupport ofitscase foreach ofthe 50products inquestion .
(ii)Itisalready possible atthepresent stage tomake the following points :
after receiving theeconomic grounds from Spain ,theCommission will present
totheCouncil itsproposals onthenumber ofproducts inrespect ofwhich
agreement can begiven ,provided those products are liberalized atCommunity
level vis-a-vis the GATT countries .
(iii)Fortheproducts thus adopted ,theCommission proposes that the
transitional measures should take theform ofannual quotas tobeincreased
progressively byafixed percentage and that thearrangements governing them
should beasfollows :
-thebasic quotas would befixed ,asageneral rule ,involume terms or,
failing that ,invalue terms expressed inEuropean units ofaccount (ECU);
cf.CONF-E /39/82,p.8.
Inconformity with theprovision n°VIoftheAnnex IIoftheActof
Accession 1972 ,Gibraltar is-asconcernes theCommunity 'simport
liberalisation system -inthesame position asthecountries and
territories towhich theRegulation (EEC )N°288/82applies .Some Spanish
measures currently inforce would pose problems inthis respect .

-22-
-thebasicquotastobewrittenintotheActofAccession wouldbecalculated
onthebasisoftheaverageSpanishimportsofeachproductinquestionfrom
theGATTcountriesduringthelastthreeyearspriortothesigningofthe
TreatyofAccessionofSpain;forproductsrepresenting averysmallor
negligible volumeoftrade,theCommission proposesthatthebasicquotas
forthefirstyearfollowingaccession besetataround3%ofSpanishproduction
ofthesesameproducts;
-theminimumannualrateofincreasetobeadoptedforthesequotaswould
be20%forthequotasexpressedinvolumetermsand25%forthequotasexpressed
inECU;thisrateofincreasewouldapplytothepreviousquotasasupdated;
-if,duringtheperiodofapplication ofthesetransitional measures,the
importseffectedduringtwosuccessive yearswerelessthan90%ofthequota
opened,Spainwouldhavetoabolishthequotasfortheproductsinquestion;
-theperiodofapplication ofthesetransitional measuresshouldbeassessed
inthelightoftherelevanteconomicjustification ;accordingly,theduration
ofthemeasureswouldnotnecessarily havetobeaslongasthatenvisagedfor
thetransitional measuresofatariffnature;attheendoftheperiodof
application ofthetransitional measuresinquestion,importsoftheproducts
concerned mustbecompletelyliberalized .
(b)Spécifiequestions
Japan
TheCommLHTi_t^jdosit_ions_
TheCommunityhasstateditspositiononthissubjectonanumberofoccasions,
thatpositionbeingreiteratedinitsstatement CONF-E/3/82of28January1982
inthefollowingterms:

-23-
"Asregardsthearrangements toapplytoJapan,theCommunityhasnotedthe
Spanishpositionwhereby"theSpanishDelegationwillindicatetheproducts
forwhichquantitative restrictions willbemaintainedvis-a-visJapan""
(CONF-E/57/81,p.8).
TheCommunityreaffirmsthepositionitvoicedonthissubjectinitsstatement
of25November1980,whichremainsperfectlyrelevant:
"Withregardtothequestionofthearrangements tobeappliedtoJapan,the
Communityfullyupholdsitspositionasgiveninitsstatementof22April1980
onthischapterandsetoutinC0NF-E/19/80,pages11and12.Itagaindraws
theattentionoftheSpanishDelegationtotheimportanceofbeinginformed
withoutdelayofanyspecialarrangements whichcurrentlyexistwithregard
toJapanandoftheimportanceofSpainpresentinganyspecificrequests,backed
upbysupportingarguments,whichitfeelsitneedstoputforward"(C0NF-E/63/80,
p.7).
Positionof^Sp£in
Initsstatement CONF-E/39/82of4June1982theSpanishDelegationreplied
asfollowsonthispoint:
"Withrespecttothearrangements tobeappliedtoJapan,theSpanishDelegation
wouldliketorespondtotheCommunity'srequestforinformation ontheexistence
ofspecialarrangements withregardtoJapan.Itwouldpointoutthatlimited
importarrangements arecurrentlyappliedtoJapanforasetofproductsfewer
innumberthanthosegiveninlistsAandBtothe1966Agreementbetween
SpainandJapan.Thisstateofaffairswillbereflectedintheupdatingofthe
Spanishrulesreferredtoinpoint13.

-24-
InAnnex2hereto,theSpanishDelegationsetsoutListsAandBincluding
therestrictions currentlyappliedonimportsofJapaneseproductsinto
Spain."
Ccmirrn_ss_ionpnoposa^
Asregardsthe100orsoproducts(sometimescoveringanumberoftariff
headings)forwhichSpainislikelytorequestadditionalquantitative
restrictions inrespectofJapanalonebywayoftemporaryderogationfrom
thecommonarrangements fortheliberalization ofimportscontainedin
CouncilRegulation No288/82,theCommissionwishestomakethefollowing
remarks:
(a)theonlyprecedentforSpain'srequestisthatraisedinthecontextof
Portugal'saccession;giventhebackgroundofthesystem-theexistenceof
a1966bilateralagreementbetweenthesetwocountries-currentlyappliedby
SpaintoimportsfromJapan,theCommission hasnotheldsuchanideatobe
unacceptable inprinciple;
(b)inAnnex2toitsstatement CONF-E/39/82SpainhasputforwardlistsA
andBwhichincludetherestrictions thatSpainappliestoJapan:ListAsets
outtheproducts(92productsreferredtobyname,towhichmustbeadded
thewholeofChapter73)inrespectofwhichSpaingrantsimportlicences
providedthesaidimportsdonotcauseinjurytoSpanishproducers;ListB
containssome17productsforwhichSpaindoesnotgrantimportlicences;
(c)theSpanishDelegationhasnotdefinedtheproductsactuallycoveredby
restrictions vis-a-visJapan;Spainmustthereforeclarifyforwhichofthese
productsitisrequestingtransitional quantitative restrictions,withthe
provisothatthelistcannotunderanycircumstances gobeyondthelistof
productscurrentlysubjecttorestrictions inSpainwithregardtoJapan;

-25-
(d)theSpanishrequests,whichcouldconcernuptosome170products,of
whichapproximately 130areliberalizedatCommunitylevel,cannotyetbe
considered bytheCommissionatthisstagesincetheSpanishDelegation has
stillnotprovidedspecificeconomicgroundswithregardtoeachofthe
productsinquestionorclarification concerningthelistofproductstobe
included.Thegroundstobeputforwardmustmoreovershowtheconnection
betweentheimportsfromJapanandtheconsequences resultingtherefromfor
production andemploymentinthevarioussectors;
(e)afterreceivingandanalysingthespecificSpanishgroundsfortheproducts
actuallysubjecttorestrictions vis-a-visJapan,theCommissionwillbeable
topresenttotheCouncilitsproposalsonthenumberofproductsthatcanbe
included,providedthatthoseproductsareliberalizedatCommunitylevelwith
regardtoJapan.Giventhedifficulties indefendingsuchrestrictions before
GATT,itwillbenecessarytolimitthemtoareasonable number.

-26-
1.22•Importsfromthestate–tradingcountries'
Communityposition
(i)TheCommunityhasstatedonanumberofoccasionsthatthe
acquiscomxnunautaireinthisfieldislaiddownbytheCouncilRegulations ,
indicatedinfootnote2,concerningthecommonarrangements applicableto
importsfromthestate-tradingcountries'''.
"TheCommunitystartsfromtheprinciplethatSpamwillhavetoapplythis
Regulationimmediately uponaccession.Itdoesnot,however,ruleoutthe
possibility ofenteringwherethisprovesnecessaryalimitednumberofvery
sensitiveproductsonlistsofexceptions onatransitional basisinaccordance
withdetailedarrangements tobelaiddownduringthenegotiations .Insuch
acase,theseexceptionsshouldtaketheformofannualquotaswhichwouldbe
graduallyincreaseduntiltheproductistotallyliberalized."
(li)"TheCommunityreaffirmsitsviewsthatitisnecessaryforthe
SpanishDelegationtoforwardtoitassoonaspossiblethelistofproducts
inRegulation (EEC,)No925/T9»Regulation(EEC)No2532/78(andtheamendments
thereto)andRegulation (EEC)No3449/80(andamendmentsthereto)forwhich
itwishestoobtaintemporaryderogations fromliberalization (andthe
economicgroundstherefore);theselistsshouldcontain,interalia,the
CCTreferenceforeachproductand,ifnecessary,thecurrentNIMEXEreference"^."
"TheCommunityagainstressesthat"onlywhenithasthisinformationwillit
beabletotakeadecision,afterexaminingthematter,onthepossibleinclusion
ofalimitednumberofverysensitiveproductsonthelistsofexceptions ona
IncludingChinaandRomania.
2CouncilRegulation (EEC)No1765/82forthestate–tradingcountries;
RegulationNo1766/82forChina;RegulationNo3449/80,asamendedby
No3799/81,forRomania.
3cf.CONF-E/19/79;CONF-E/29/8I,p.6andC0NF-E/3/82,pp.12-13.

-27-
transitional basisandaccordingtorulestobelaiddownduringthe
negotiations *"
(iii)"TheCommunitydoesnotintendtotakeupthesuggestionbythe
SpanishDelegationandomittheSpanishrequestsforderogationfromany
comparisonbetweenSpain'snationalist ofproductsliberalizedvis-&-vi8
state-trading countriesandthelistsofproductsgiveninRegulations (EEC)
NOB925/79AND2532/78(andamendmentsthereto)."
(iv)"Inthisconnection,theCommunitywoulddrawtheSpanishDelegation's
attentiontothefactthatRegulationsNos925/79and2532/78areduetobe
revisedbefore30June1982.TheCommunitythereforereservestherightto
returntothequestionsraisedbytheseRegulations •"
Position_ofSpain
"TheCommunityDelegationhasexpressedtheintentionofrevising
Regulations (EEC)No925/79andNo2532/78byreplaoingthembefore30June1982
withnewRegulationssimilarinstructuretoRegulation(EEC)No288/82*
Spainisintheprocessofupdatingthegeneralrulesonimportarrangements
whichwillalsoincludethoseapplicabletoState-trading countries.
TheSpanishDelegationconfirmsinanyeventthatitagreestoapplyasfrom
accessionthecommonrulesforimportsforproductsoriginatinginState-Grading
countriesastheserulesexistatthetimeofaccession,subjecttothe
temporaryderogations andtransitional measurestobeagreedupon.
Inthisoonnection,theSpanishDelegationconsidersthatitisneoessaryto
retain,duringthetransitional period,alistofexceptions,vis-&-vis
State-Grading countries,foranumberofsensitiveproduotsliberalizedat
of.op.cit.CONP-E/3/82,pp.12and13.

-28-
Communitylevelfadistinction beingn?adeb^twesnthoseconcerning
Regulation (EEC)No2532/78(andtheamendmentsthereto)andthosein
Regulation (EEC)No925/79»whichRegulationsarecurrentlyinforceon
thismatter.TheSpanishDelegationwillshortlybesubmittingsucha
11?tandwillindicatethequantitative liiaitsapplicablebilaterally to
Litate–tradingcountriesasfromthetimeofaccessionandtheproducts
forwhichimportrestrictionswillberetainedonapermanentbasis'''."
Cornaussionproposal
(ijWithregardtotheproductsinrespectofwhichSpainproposesto
requesttransitional qiiantitative restrictions vis-&™vistheState-trading
countriesbywayoft«mpsraryderogation fromthecowmenarrangements for
theliberalization ofimportssetoutintheRegulations referredtoin
footnote2topage26,theCommissionwillnotbeabletoconsiderthose
requestsuntiltheSpanishDelegationprovidesthelistofexceptions
referredtoonpage10ofitsdocumentCONF-E/39/82and.thespecific
economicgroundsinrespectofeachoftheproductsinquestion.
If,whenthelist•fproductsandeconomicgroundsarereceivedfromSpain,
certainofthosejustifications appearconvincingtotheCommissiondepartments ,
theCommissionwillpresenttotheCouncilitsproposalsonthenumberof
productsthatmaybeincluded,providedthatthesaidproductsareliberalized
atCommunitylevelvis–3i-vistheState-trading countries.
(ii)Fortheproductsthusidentified,theCo»saiiESicnproposesadopting
thesamearrangements asithasproposedfortheCJ/JTsusubercountriesin
general,withtheprovisothat,whereSpanishimportsfromtheState-trading
countriesareminimalornegligible,theC'PMi.issionproposestoeetthebasic
quotasforthefirstyearfollowingaccessionataround1/6ofSpanishdomestic
production.
CQNF-^/39/82,pp.9and10.

-29-
(iii)TheCommunityshoulddrawtheSpanishDelegation'sattentionto
thefactthatSpainwouldhavetomaintainthequantitative restriction
arrangements whichitcurrentlyapplieswithregardtothestate-trading
countriesforalltheproductswhichwillcontinueafteraccessiontobe
coveredbyquantitativerestrictions appliedbySpainvis-A-vistheGATT
countriesingeneralandJapaninparticular.Thosequantitative restrictions ,
whichwillremaininforoeforaperiodatleastaslongasthattobe
agreedforthetransitional measureswithregardtoalltheGATTcountries
andJapan,shouldbeappliedinaccordancewiththefollowingarrangements :
-thetransitional arrangements setoutabovewouldapplytoalltheproducts
which,afteraccession,arethesubjeotofquantitativerestrictions applied
bySpainvis-&~vistheOATToountriesingeneralandJapaninparticularand
whicharealreadyliberalized bytheCommunityvis-&-visthestate-trading
oountries ;
-forthoseproductswhicharenotliberalized .bytheCommunityvis–Jir-vis
thestate-trading countries,Spainwillnot,however,beobligedtoincrease
progressively thebasicquotasnortoliberalizethemvis-i-visthesaid
countriesattheendoftheperiodofapplication ofthetransitional
1measures •
(iv)TheCommissionwouldmakeclearinthiscontextthatSpainisnot
obligedtoreintroducerestrictions vis-i-visthestate-trading countriesfor
theproductsalreadyliberalizedinrespeotofthemwhicharestillsubject
torestrictions vis–visJapanalone*
Withtheexceptionoftheproductswhich,sinoetheymustbeliberalized
vis–S.–visOATT,willalsohavetobeliberalizedvis–&–vistheEast-European
countriesthataremembersofGATTinaccordance withthosecountries'
protocolsofaccessiontotheGATT*

-30-
3•Surveillance andsafeguard oarr*s
Positi£n_ofSpain
AccordingtoitsstatementCONF–E/39/82,theSpanishDelegationisin
agreementwiththepositionexpressedbytheCommunityDelegationinits
lateststatementof29January1982''"totheeffectthatasfromaccession
SpainicajinvoketheprovisionsofRegulation (EEC)No?38/82inthematter
ofsurveillanceandsafeguards^.
"TheSpanishDelegationconsidersthat,overtheinterimperiod,ananalysis
shouldbemadeofthesurveillance orsafeguardmeasuresappliedbySpain
beforeaccessionwithaviewtodetermining hewtheyaretobeappliedafter
accessioninaccordancewithCoaupunityru].es;thiswouldallowsmooth
uioptionoftheCommunityrulesandrendersuperfluous theadoptionof
emergencymeasureswiththeinevitabledisruptioninthenecessarycontinuity
2oftraderelations
£ocimis_si£n_pr0£0_sals^
TheSpanishrequert .thatthesurveillance andsafeguardmeasuresappliedby
Spambeforeacces-ionshouldbeexaminedduringtheinterimperiodmeritBa
favourable Communityresponse.
Indeed,theCommissionfeelsthat,ifSpainagrees,theexamination ofthe
basisofSpain'srequestcantakeplacebeforeaccession,subjecthoweverto
thefollowingremarks:
–thatexamination canundernocircumstances taKietheplaceoftheinformation
andconsultationproceduresprovidedforinCouncilRegulations (EEC)Nos288/82
and1765/82,whichmusttakeplacebeforetueintroductionofaijysurveillance
orsafeguardmeasures.
1cf.CONFMC/3/82,p.9(b)(i).
2cf.CONF-E/39/82,p.8,para.14.
13measureappliesbothtotheGATTcountriesandthestate-trading countries.

-31-
-inanyevent,theCommissionwouldrecallthattheRegulationin
questionintroducedtheprinciplewherebyaninvestigation atCommunity
levelmustprecedetheadoptionofsurveillance orsafeguardmeasures*
Inprinciple,itwillnotbeuntilafteraccessionthattheCommission
willhavethenecessarypowers,asregardstheSpanishpartiesconcerned,
toconductsuchaninvestigation *
4*Generalaspectsofimplementation vis–k-visallthirdcountries
(a)ItisnecessarytodrawtheSpanishDelegation'sattentiontothe
possibility,duringtheinterimperiod,ofanextensionofthecommon
liberalization arrangements *TheCommunitywouldmakeclearinthisconnection
thatifsuchwerethecaseitwouldbepreparedtoenterintoconsultations
withSpain*Withoutbeingabletogiveanyundertaking whatsoeverastothe
resultsofsuchconsultations ,theCommunityshouldassuretheSpanishDelegation
thatinordertobeinapositiontomakedueallowanceforanyproblems
facingSpain,itintendstoexaminecarefullywithSpainwhethertheinclusion
inthecommonliberalization arrangements ofaproductthatisnotliberalized ,
inSpainisliabletocauseseriousdifficulties toanysectorofSpanish
industryorinparticularregionsofSpain*
TheCommissionwouldmakethefurtherpointthatiftheCommunitywereto
decideonanextensionofthecommonliberalization arrangements beforethe
signingoftheinstrumentsofaccessionSpainwouldstillbeable,uptothat
date,toputforwardinthecontextoftheConferenceanyrequestsfor
transitional measureswhichitdeemednecessary.

-32-
(b)TheCommissionalsowishestostressthatalltheproductsinrespeot
ofwhichSpainwouldbeauthorizedtomaintainrestrictive measuresvis-&p-vis
theCommunityonatransitional basismustcontinuetobethesubjectof
similarmeasuresvis-Si-visthirdoountriesatleastaslongasthesaid
measuresapplytotheCommunity *Itwouldalsostatethatiftheproducts
concernedwereliberalizedneitherinSpainnorintheCommunity,Spain
wouldnothaveanyobligationvis–&,-visthirdcountriestoincreasethe
quotasortoliberalizetheproductsinquestionupontheexpiryofthe
periodofapplication ofthetransitional measuresappliedtotheCommunity.
5*Usedandinferiorqualityproducts
£0£itic)n
InitsstatementCONP-E/3/82of29January1982,theCommunitymadethe
followingstatementonthissubject:
(a)TheCommunityhascarefullystudiedtheSpanishDelegation'sstatement
of27April1981(CONF-E/30/81)thatit"feelsthereisaneedforatemporary
derogationunderwhich,duringthetransitional period,Spaincouldcontinue
toapplytheprovisionsofthelegislation "mentionedinitsstatement
"onimportsofusedandinferior–qualityproducts#Thatderogationwould
begivengeneralapplication "*
(b)Followingthisexamination,theCommunitynotesthattheSpanishrequest
istwofoldanditspositionisasfollows:

-33-
(i)TheCommunitynotesingeneralthatthedefinitionofthis
typeofproductgivenbytheSpanishlegislation (goodsthatareused,
reconditioned ,fromsurplusorliquidationstock,ordevaluedfor
whateverreason,aswellashatchesofgoodsthatarenotclassified
orareofinferiorquality)isparticularly wideandbecauseofthis
imprecision-whichismoreoverdifficulttoavoid-cangiveriseto
veryextensiveinterpretations *
(ii)Specifically :
(l)firstly,theSpanishrequestseekstoobtaina
generalderogation-onatransitional basisandfor
alimitedperiod-enablingSpainnottoapplythe
importliberalization arrangements toeveryproduct
whioh,whennew,iseligibleforsuchliberalization
arrangement s.
TheCommunityoonsidersthatitwouldbeinappropriate
toprovideforsuchageneralandpriorderogation
because,ontheonehand,oftheabovementioned
difficultyindefiningproduotsand,ontheother,of
thefactthatCommunitylegislationisfullycapable
ofsolvinganyproblemthatmightariseinthis
context,inparticularviatheintroduction of
surveillanoe orsafeguardmeasuresforanyusedor
inferiorqualityproduct,pursuanttoRegulation926/79
ortheRegulationreplacingit*

-34-
The Community feels that ifanytemporary derogations
were envisaged they could cover only alimited number of
products identifiable asused orofinferior quality *
Requests forderogations should beaccompanied by
detailed economic grounds .
(2)Inthesecond place theSpanish request isfor
"arrangements similar tothese provided forin
Article 16(2 )(f)ofCouncil Regulation 926/79of
8May1979"(C0NF-E /30/8l,p.3)foranumber of
products (this list ofwhioh isannexed tothe
Spanish statement )considered apriori asbeing
sensitive .
The Community would make thepreliminary remark that
certain oftheproducts inquestion arecovered by
theECSC Treaty (Chapter 73oftheCOT).They
should therefore beexamined inthespecific context
ofthat sector ;the Community will therefore discuss
Spain 'srequest concerning those products intheECSC
chapter atalater stage and itreserves itsposition
entirely .
With regard totheother products included inthe
Spanish request )theCommunity considers itessential
that theSpanish Belegation forward detailed economic
grounds fortherequest inthe course oftechnical
contaots between Commission experts andSpanish experts .
Only when ithasexamined the outcome ofthese contacts
will theCommunity beinaposition toexpress anopinion ,
when thetime comes ,astowhether itisreally essential
tohave aderogation foravery small list ofproducts -
identifiable asused orofinferior quality -inaccordance
with theprovisions ofRegulation No926/79orthe
Regulation replacing it."
/

-35-
Posijtiori–Of Spain
According tostatement CONP-E /39/82"theSpanish Delegation notes thecontent
oftheCommunity 'slatest statement CONF-E /3/82_7onused andinferior
quality products inresponse totheSpanish statement of27April 1981 onthe
same subject £C0NF-E /30/8l_7.Inaneffort tonarrow thegapbetween the
twodelegations' positions asmuch aspossible ,Spain submits below anew
version ofitsreouest andclarification regarding the latest Community
statement .
TheSpanish definition ofusedandinferior quality products *tends tobe
descriptive inasmuch asitgives thegreatest possible number ofdetails
onsuch products anddoes notclaim toprovide anextensive intepretation
whereby this concept could include whatever product thecompetent authorities
thought should besubject tochecking atthetime ofimportation .Moreover ,
neither dotheprevious Community Regulation (ifo926/79)andthenew
Reflation (No288/82)which replaces itprecisely define theconcept ofused
product s.
TheSpanish Delegation reiterates itsconcern ,already expressed inprevious
statements ,andinparticular that of27April 1981 ,regarding theeffects
ofasudden change intheimport arrangements for such products .This
concern isalso duetotheover-valuation ofused goods ontheSpanish market
ascompared with theCommunity market andtothedifferences intechnology
which exist between the Spanish production system andthe Community system ,
which might give rise toconsiderable disturbances onthe Spanish market .
Such disturbances may arise both inintra-Community trade andwith imports
originating inthird countries .
Goods which areused ,reconditioned ,from surplus orliquidation stock ,
ordevalued forwhatever reason ,aswell asbatches ofgoods that arenot
classified orareofinferior quality .

-36-
Asfarasimportsfromthirdcountriesareconcerned,inanefforttolimit
itsrequestonthispointasmuchaspossible,theSpanishDelegation
considersitnecessarytomaintainonapermanentbasis^theprovisions
adoptedbySpainwhereby-inaccordancewiththeMinisterial Resolutionof
12December1972-importsofobjects,machinesandequipmentwhichare
eitherused,ornewbutbadlymaintainedorofinferiorquality,orof
materialswhicharenotclassifiedfortradepurposesandfallwithinthe
followingheadingsandchapters,aresubjecttospecialauthorization :
A.Uaed_or_new_butJbadl.ymaintained_g oodg:
-HeadingNo:40.11.80.2 ;40.11.80.3
-HeadingNo:63.01
-HeadingNo:73.12.63?73.13.41
-HeadingNo:73.24
-Chapters:84,85,86and87
-HeadingNo:89.01;89.02;89.03
-HeadingNo:90.17
-Chapter:93
-HeadingNo:97.01;97.02;97.03
B.Inferiorqualityproductsormaterialsnotclassifiedfortradepurposes:
-HeadingNo:40.11.21
-HeadingNo:51.01;51.02;51.03;51.04
-HeadingNo:56.OI;56.02;56.03?56.04
TheSpanishDelegationisattheCommunitydelegation'sdisposalforan
analysisofanyproblemswhichmightariseinthisareaandtosupply
furtherdetailsregardingthejustification oftheSpanishrequestin
technicaltalksbetweenexpertsoftheCommissiondepartments andthe
SpanishDe1egation."
CorrespondingtothecontentsofArt.19(2)(f)ofRegulation(EEC)No288/82.

-37-
Commission proposai
(i)TheCommission hasnoted thegrounds putforward bySpain insupport of
itscontention that itbeauthorized tomaintain after accession special
arrangements governing imports ofcertain used products ofinferior quality .
(ii)TheCommission notes with satisfaction that according tostatement
CONF-E /39/82theSpanish recruest ,asreformulated ,nolonger "Beeks toobtain
ageneral derogation -onatransitional basis and foralimited period -
enabling Spain not toapply theimport liberalization arrangements toevery
product which ,whennew,iseligible forsuchliberalization arrangements "*.
(iii)Inaddition ,theCommission wishes toreaffirm theCommunity position
setoutinitsstatement CONF-E /3/82asquoted above .
(iv)TheCommission would point outthat Council Regulation (EEC)No288/82
provides forsuch anexception foravery limited number ofused ornew
products inapoor state ofconservation .
Moreover ,noderogation from thegeneral rules isenvisaged forinferior
quality products orforequipment that isnotclassified forcommercial
purposes .
The Commission feels that itisnecessary toundertake anexamination in
greater depth oftheconsequences which these special arrangements could have
ontheimports oftextile products which would beconcerned .
Itwould also seem appropriate ,before the Commission adopts adefinitive
position onthese points ,forSpain tosupply thedetails ofthese arrangements
anddata showing theimpact ofthese imports ontheSpanish market (namely ,
volume ofimports foreach product concerned and intotal ,prices ,injury
suffered bySpanish production ,etc.),arequirement already formulated by
theCommunity initsstatement CONF-E /3/82.
(v)Only then will theCommission departments beprepared togointo this
problem ingreater depths intechnical contacts with the Spanish Delegation .
Cf.C0HF-E /30/81.
2Page 34»point 2.

-38-
B.THECOMMUNITY SYSTEMOPGENERALIZED PREFERENCES
Communityposition
Initslaststatement(CONF-E/3/82of29January1982),theCommunityposition
wasasfollows:
"TheCommunityreaffirmsitspositionthatSpainwillhavetoapplyfully,
asfromaccession,theCommunityschemeofgeneralized preferences asit
existsonthedateofaccession,"(CONF-E/29/81).
"TheCommunityhastakennoteoftheSpanishDelegation'sconcernregarding
thescopeoftheCommunityschemeofgeneralizedpreferences andwouldpoint
oulthatonceSpainbecomesamemberoftheCommunityitswisheswillbe
consideredinthesamewayasthoseoftheotherMemberStates^#"
Position_of Spain
"Fromaccession ,theSpanishDelegationwillapplytheexistingCommunity
systemofgeneralized preferencesvis-a-visdevelopingcountries.However,
theSpanishDelegationwoulddrawtheCommunity'sattentiontotheserious
repercussions fortheSpanisheconomyoffullandimmediateimplementation ,
uponaccession,ofthetariffdismantling providedforunderthissystem,in
2viewofthelevelofdevelopment ,akintoSpanishdevelopment ,ofanumber
ofthebeneficiarycountriesandtheexistingdegreeoftariffprotection
applicabletoinmortsoriginatinginthosecountries^#"
InresponsetotheSpanishconcernsregardingLatinAmerica.
2InthiscontexttheSpanishDelegationpointsoutthatSpainisabeneficiary
ofthegeneralizedpreferencesystemappliedbyanumberofcountries.
3Cf.CONF-E/39/82,t>.16.

-39-
Despitethatstateofaffairs,Spainispreparedtograntthemaximumof
concessionslaiddowninthepreviousaccessiontreaties.Conseouently,
wheretariffdismantlingforGSPbeneficiarycountriesisconcerned,the
SpanishDelegationwilleliminatecustomsdutiesatarateandinaccordance
withatimetableofthesamedurationasagreedforintra-Community
dismantling .Inthiscontext,theSpanishDelegationpointsoutthatthose
countrieswillnotreceivetreatmentmorefavourablethatthatappliedto
theMemberStates*.
Inviewofthechangingnatureofthepracticalapplicationofthemulti-
annualschemeofgeneralized preferences andafteranalysisofthelatter
withtheCommissiondepartments ,theSpanishDelegationwouldliketobe
abletocontinueregulartechnicaltalkssoastoreceiveup-datedinformation
onthissystem.
TheSpanishDelegationhasexpressedthewishthattheCommunity'sgeneralized
preferences schemebeappliedasbroadlyaspossibletotheLatinAmerican
countriesinviewoftheexistingtradestructurebetweenLatinAmericaand
Spain,asoutlinedintheSpanishDelegation'sstatementatthe7thmeeting
2oftheConferenceatMinisterial levelon16March1981•"
Cf.COWF-E/57/8I,point32andCONF-E/39/82,p.17.
2Cf.CONF-E/18/82,p.11etseq.andCONP-E/39/82,p.17.

-40-
Commissionproposai
(i)TheCommissionproposesthatSpainapplyasfromaccessiontheGSPas
itstandsatthatdateinitsentirety,itbeingunderstoodthat1hecountries
benefitingundertheGSPwillnotreceivemorefavourabletreatmentthatthat
appliedtotheMemberStates(applicationofthe"butoir"rule).
(ii)Consequently ,asregardstariffdismantlinginrespectofthecountries
benefitingundertheGSP,Spainwillundertake,takingasitsstartingpoint
thelevelofthecustomsdutiesappliedbySpaintotheCommunitythe
elimination ofthosedutiesatapaceandinaccordancewithatimetable
identicaltothosetobeagreedfortheintra-Community dismantling .
(iii)TheCommissiondepartmentsarepreparedtomaintainwhatevertechnical
contactsarenecessarytoexplaintheworkingoftheGSP.

-41-
II.THECOMMUNITY'SCONTRACTUAL COMMERCIAL POLICY
A.THECOMMUNITY'SPREFERENTIAL AGREEMENTS
1.THEEFTACOUNTRIES
£ommujrl"t££osition
TheCommunityagainconfirmsitspositionontheEFTAcountries(and
alsotheunilateralpreferential arrangements infavourofthe
FaroeIslands)assetoutonanumberofoccasions,mostrecently
initsstatementCONF–E/3/82,viz.:
"Uponaccession,Spainwillhavetoapplythefree-tradeagreements
betweentheCommunityandtheEFTAcountriesandterminateitsown
agreementwiththosecountries *
Intheeventofanytransitional measuresfortheabolitionofcustoms
dutiesonimportsbetweenSpainandtheCommunity^theCommunity
pointsoutthatprovisionwillalsohavetobemadefortransitional
measuresfortheabolitionbySpairofcustomsdutiesonimportswith
respecttotheEFTAcountriesinordertoensurethatSpaindoesnot
treattheEFTAcountriesmorefavourablythantheCommunity *
Transitional measuresofthiskindwouldhavetotakeaccountof
thosewhichmightbeadoptedunderthecustomsunionandfreemovement
ofgoodsintheindustrialsector"(C0NF-E/63/80)»wInthisconnection
theCommunityreferstothepositionexpressedinitsstatementCONF-E/67/8I
of26October1981onthecustomsunionchapter*Ittherefore
proposestostipulatethattheperiodofapplication ofthetransitional
measuresinquestionandthetimetablefortariffdismantling mustbe
thesameasthoselaiddowninthecontextofcustomsunionandfree
movementofgoodsintheindustrialseotor*n
TheCommunityalsoconfirmsthat"itadoptstheprinciplethatthe
otherprovisionsoftheseagreements,particularly thoseregarding
quantitative restrictions onimportsandmeasureshavingequivalent
effect,willhavetoapplytoSpainuponaccession*"(C0NF-e/63/8O)*

-42-
P°£ition_ofSpain
ThemoBtrecentSpanishstatement-CONF-E/39/82of4June1982-
readBasfollows:
"In19791Spainsignedafree-trade AgreementwiththeEFTAcountries
whichenteredintoforceon1July1980andasetofbilateral
agreementsrelatingtoagricultural productswithanumberofEFTA
countries ^.
TheSpanishDelegationreiteratesitsacceptanceofapplication of
thefree–tradeAgreements onindustrialproductsbetweentheCommunity
andtheEFTAcountriesasfromaccession.However,itwillbe
necessarytomakeprovisionfortransitional measureswithaviewto
theabolitionontheSpanishsideofcustomsdutiesonimportsand
quantitative restrictions appliedtoindustrialproductsfromthe
EFTAcountriessoastopreventMemberStatesfromreceivingless
favourabletreatmentthantheEFTAcountries.TheSpanishDelegation
agreesthatthedurationofthesetransitional measuresandthe
timetablefortariffdismantling mustbeidenticaltothoselaiddown
intheframeworkofcustomsunionandfreemovementofgoodsinthe
industrial sector.
However,faranumberofsensitiveproductswheretheEFTAcountries
areparticularly competitive ,alistofwhichisgiveninAnnex3
hereto,theSpanishDelegationconsidersthatthereshouldbealonger
transitional periodthanforgeneraltariffdismantling ar»dthat
annualindicative "ceilings"percountryshouldbeestablished ,beyond
whichthecustomsdutiesapplicabletothirdcountries maybe
reintroduced inaccordancewiththefollowingprovisions :
(a)Thevolumescoveredbythe"ceilings"willbeequaltothe
averageofimportsoverthelastfouryearsbeforeaccessionforwhich
statistics areavailable.
PortugalisnotcoveredsincetradebetweenSpainandPortugalduring
thetransitional periodwillbediscussedatalaterstageinthe
negotiations .Atthemoment,tradeandeconomicrelationsbetween
SpainandPortugalaregovernedbythe1979free–tradeAgreement
whichestablishespreferential treatmentforPortugalinitsrelations
withSpain.

-43-
(b)Thevolumesofthese"ceilings"willincreaseby5$ayear.
(c)Iffortwoconsecutiveyearsimportsofaproductsubjecttoa
"ceiling"arebelowS&foofthevolumeset,theproductinquestion
willnolongerbesubjecttothesespecialarrangements.
(d)Intheeventofseriouseconomicdifficulties ,itwillbe
possibletomaintainthevolumeofthe"ceilings"corresponding to
theimmediately precedingperiod.
(e)Thelistofproductssubjecttoindicative"ceilings"maybe
reducedduringthetransitional period.
(f)Assoonasthe"ceiling"fixedforimportsofaproduct
includedinthissystemhasbeenreached,theCCTapplicableto
thirdcountriesmaybeimplemented.
(g)These"ceilings"willbeeliminatedattheendofthe
transitional periodestablishedforsuchsensitiveproducts.
TheSpanishDelegationconsidersthatitisnecessarytomaintain
thissystem,whichalreadyexistsinthe1972free-tradeAgreements
established bytheCommunitywiththeEFTAcountries.Italso
proposesthatthecase-by-casejustifications forthisrequestshould
bethesubjectofanalysisbyexpertsfromtheSpanishDelegation and
theCommissiondepartments."
£omndssionproposal
(a)Spain'straderelationswiththeEFTAcountriesmastinany
eventbebased,afteraccession,onthefree–tradeAgreementswhich
theCommunityhasconcludedwiththosecountries.
Itwillbenecessarytoprovideforadaptation transitional
protocolstothoseagreementsgiventhatSpainhasnotconpletedthe
processoftariffeliminationwithinEFTA\
SeePartOne,pp.9"to11.

-44-
(b)Withoutprejudicetothetransitional measureswhichmightbe
agreed,Spainwillnotbeable,whenithasbecomeamemberofthe
Community,togranttheEFTAcountriesorreceivefromthose
countries morefavourable treatmentthanthatwhi';htheother
Communitycountriesgranttothemorreceivefromthem.
(c)Inthelightofthesegeneralprinciples,theCommissionwishes
toclarifyitspositionasfollows:
(c)(l)Tariffmeasures
TheCommissionwishestoreaffirmthatSpainshouldasfromaccession
applythefree–tradeAgreements betweentheCommunityandtheEFTA
countries,denounceitsownagreementwithEFTAandabolishthecustoms
dutiesappliedvis–H-visthecountriesinquestion,subjectto
appropriatetransitional measures.Giventhattransitional measures
areenvisagedf>rtheelimination ofcustomsdutiesonimportsbetween
SpainandtheCr-imunity,theCommission wouldstatethatitwillalso
benecessarytoprovidefortransitional measuresfortheelimination
bySpainofimportdutiesvis-4L-vistheEFTAcountriestoavoidSpain
givingtheEFTAcountriesmorefavourabletreatmentthantheCommunity.
Suchtransitional measuresshouldbeidenticaltothoseadoptedinthe
contextofthecustomsunionandfreemovementofgoodsinthe
industrialsector.Inthisconnection ,theCommissionwouldreferto
itspositionsetoutinitsCommunication onthecustomsunionchapter
1.2whichenvisagedatransitional periodoffiveyears.
COM(82)271of6May1982,pa#e8,point(b):
"(b)AccordinglytheCommissionproposes(withoutrulingoutthe
possibilityoftheprocessbeingspeededup)thattheabolitionof
customsdutiesbetweentheCommunityandSpainandthealignment
oftheSpanishcustomstariffontheCCTshouldbecarriedoutin
sixannualinstalments .Tothisenditproposesthefollowing
timetablefortariffmovementstobeeffectedbytheCommunityand
Spain:
1Marchofthefirstyear(yearofentryintoforceoftheaccessiontreaty): 20$
1Januaryofthesecondyear: 20$
1Januaryofthethirdyear: 1S$
1Januaryofthefourthyear: 15$
1Januaryofthefifthyear: 15$
1Januaryofthesixthyear: 15$
seealsoLheremarkonpage10,2ndparagraph ,.

-45-
TheCommission proposes therejection oftheSpanish request that
forcertain sensitive products "there should bealonger
1.2transitional period than forgeneral tariff dismantling "'■
Ontheother hand ,theCommission does notexclude apriori the
possibility ofexamining thepossibility ofestablishing "annual
indicative ceilings percountry "^during thegeneral period
(five years )forthetariff movements vis-A-visEFTA ,provided
that Spain provides detailed economic grounds foreach sensitive
product inquestion aswell asinrespect ofeach EPTA country
that islikely tobethe subject ofthese transitional measures .
Inanyevent ttheCommission canaccept thesystem ofindicative
ceilings only foravery limited list ofsensitive products for
which sufficient grounds areprovided .
TheCommission cannot acoept thearrangements for theintroduction
ofceilings proposed bytheSpanish Delegation andinsists that
those arrangements fortheestablishment ofanyindicative ceilings
must befixed atalater stage inthenegotiations .
(c)(2 )Quantitative import restrictions
* '* 'SSS=SSB3SBSSBSBhBE»aSBSBB883SSSa
TheCommission wishes toreaffirm theCommnnity position whereby it
adopts theprinciple that theother provisions oftheEPTA agreements ,
particularly those regarding quantitative restrictions onimports and
measures having equivalent effect ,will have toapply toSpain upon
accession subjeot totheproviso that Spain does nottreat theEPTA
countries more favourably than theCommunity .
Inanyevent ttheCommission would again make thepoint that the
quantitative restrictions retained vis-a –vistheCommunity would also
have tobeapplied with regard toallthird countries .
CONF-E /39/82,p.28.
2„ _ ._SeePart One.pp.9to11.

-46-
Consequently ,theCommission proposes that transitional measures
similar tothose tobeapplied vis~&–vi stheCsmrnmi ty (andforthe
same products )Ehould beapplied totheE?"TAcountries asindeed to
all other third countries .
Allother quantitative restrictions ,however ,are tobeabolished
asfrom accession inrespect ofthe EFTAcountx°ies .
2• ME-DI TFTRR fiANCCtTRIES
Communi typ_o^i tion
Initsstatements CONF–E/19/79andCONF–E/63/80,theCommunity started
from theprinciple that Spain will have toapply onaccession the
Community 'sassociation orcooperation agreements with theMediterranean
countries asthey stand onthedate ofSpain 'saccession and anyother
agreement which theCommunity mayconclude intnat region between now
and Spain 'saccession .
.Position_of Spain
According toitsstatement CONF–E/39/82:
"Asfrom accession ,Spain will apply ,bymeans ofthenecessary
protocols ,theagreements with theMediterranean countries with
respect tothecontent ofthischapter ofthenegotiations ^.
Soastoallow these agreements tobeadopted harmoniously and
without disturbances ,Spain will apply thetariff concessions
provided for inthe various agreements atthe saiae rate and in
accordance with atimetable similar tothose agreed upon for
intra –Community dismantling .Spain will innocase apply to
these countries more favourable treatment than itapplies tothe
existing Member States nor treatment lees favourable than that
itapplies tothird countries ."
The Spanish Delegation would point outthat ,where agricultural
products areconcerned ,itgave itsposition inthe statement of
26January 1982 ,CONF-E /4/82,pp.21and22,b.2.

-47-
"Asregards thetemporary derogations andtransitional measures to
beagreed upon inthenegotiations for thequantitative restrictions
onimports andmeasures having equivalent effect ,Spain will apply
the same treatment toMediterranean countries astothe other third
countries during thetransitional period ."
Çomms8ion_pro£08al
(a)Introduction
X SSSBESSBBSSSS
Anytransitional arrangement within ,the fraawwork ofthepresent Chapter such
asdefined indocument C0NF-E /...82 of21.06.82 ,covered byan
agreement concerning theCommunity 'spreferential trading partners will
1.?have tobenegotiated subsequently with those partners .
(b)Questions relating totariff preferences
* sissssssBSSsasssssSssssrssssassssBsszssas
(b)(1 )TheCommission proposes that Spain adopt asfrom acoession the
acquis communautaire inthis field andeliminate inconsequence the
customs duties vis-3 .–visthepreferential countries inquestion ,it
being understood that those countries will notreceive more favourable
treatment than that applied totheMember States (application ofthe
"butoir "rule ).
(b)(2 )Consequently ,theduration ofthese transitional arrangements
andthepace oftariff dismantling inrespect oftheproducts conoerned
will have tobeidentical tothose agreed with regard totheCommunity *
(b)(3 )Theduties will have tobetotally eliminated attheendofthe
period ofapplication ofthetransitional measure inquestion *
(b)(4 )Theattention oftheSpanish Delegation should bedrawn tothe
fact that theCommunity has accorded thecountries benefiting under
preferential agreements (theMediterranean andLom£ Convention countries )
tariff preferences forcertain industrial products falling within
Chapters 1to24(products notincluded inAnnex IItotheTreaty ofRome )*
Should theSpanish duties onthose products bethesubject ofaprogressive
elimination operation vis-i-vistheCommunity ,Spain should nottreat the
preferential countries more favourably than therest oftheCommunity *
^Thisapplies alsototheEPTAandLom6Convention countries *2SeePart One*

-48-
(c)Quantitative importrestrictionsssaeastsssssssssBaaBBassasBBflasaB
(c)(1)TheCommissioncannotaccepttheSpanishpositionthatit
shouldapplytotheMediterranean countries,duringtheperiodof
applicationofthetransitional measures,thesametreatmentasto
1otherthirdcountries.
(c)(2)TheCommissionstartsfromtheprinciplethattheprovisions
ofthepreferential agreementscoveringquantitative import
restrictions andmeasureshavingequivalenteffectwillhaveto
applytoSpainasfromaccessionwiththeprovisothatSpainmust
nottreattheMediterranean preferential countriesmorefavourably
thantheCommunity *TheCommissionacceptsthatinanyeventthe
productssubjecttoquantitativerestrictions vis-A-vistheCommunity
shouldalsobesubjecttosimilarmeasureswithregardtoallthird
countries,includingthepreferential countries.
(c)(3)TheCommissionisthereforeinagreementthatthesame
transitional measuresasagreedvis–4-vistheCommunityinthe
customsunionchaptershouldbeappliedtothepreferential countries,
asindeedtoallotherthirdcountries.Ontheotherhand,allother
quantitativerestrictions aretobeeliminatedasfromaccessionwith
regardtotheMediterranean countries.
TheSpanishStatementdoesnotmakeclearwhatthirdcountriesare
involved.

-49-
3.LOMECOyVEHTION COUNTRIES
£omimmit^£0sition
Initsstatements,theCommunityhasadoptedtheprinciplethatSpain
willhavetoapplyasfromaccessiontheEEC–ACPConventioninforce
atthatdate\
P°siti£n_°fSpain
AccordingtoitsstatementCONF-E/39/82of4June1982:
"AsfromaccessionSpainwillapply,bymeansoftherelevant
Protocol,thesecondLom£ConventionsignedbetweentheCommunity
andtheACPStates,withrespecttothischapterofthenegotiations .
Inordertomakepossibleaharmonious andsmoothadoptionofthis
Convention,Spainwillapplythetariffconcessionsprovidedfor
thereinaccordingtothesamerhythmandtimetableasagreedfor
intra-Community dismantling *InnocasewillSpainapplytothose
countriesmorefavourabletreatmentthanitappliestothepresent
MemberStatesnortreatmentlessfavourablethanitappliestothe
otherthirdcountries•••
Itcanbeassumedthatthisacceptancealsocoversthearrangements
madebytheCommunityforoverseascountriesandterritories (OCT)•••
Withrespecttothetemporaryderogations andtransitional measures
tobeagreeduponinthecontextofthenegotiations forquantitative
restrictions onimportsandmeasureshavingequivalenteffect,Spain
willapplytotheACPStatesthesametreatmentasitappliesto
otherthirdcountriesduringthetransitional period.
Andalsothenon-contractual preferential arrangements infavourof
theOCT.

-50-
InviewofSpain'sparticularrelationswiththeRepublicof
EquatorialGuinea,theSpanishDelegationhopesthattheCommunity
policyvis-4-vistheACPStateswillmakeitpossibletotakeaccount
ofthissituation,tomaintainandtodevelopsuchrelationsandto
extendthemwithintheframeworkoftheenlargedCommunity.
InaccordancewithArticle10ofthesecondLom6Convention,Spain
wouldliketoknowallthedetailsofthecustomstariffandthetrade
arrangements currentlyappliedbyeachoftheACPStatestoimportsof
goodsfromMemberStatesoftheCommunity.
TheSpanishDelegationwouldliketobeinformedastotheoperation
andpracticalresultsoftheCentreforIndustrial Development witha
viewtomakingadequatepreparationfortheactivitiesSpainmight
liketodevelopinthisarea.
Finally,theSpanishDelegationwouldalsoliketohavealldetailsof
thematerialorganization oftheimplementation offinancialand
technicalcooperation betweentheCommunityandtheACPStates.To
thisend,thereshouldbeamutualexchangeofinformation
particularly withrespecttothoseACPcountrieswhereSpanish
participation ineconomicandsocialdevelopmentismostimportant."
(a)AsregardstheLom6Convention,theCommission'sapproach,
concerningboththetariffmeasuresandquantitative importrestrictions ,
isthesameasthatsetoutpreviouslyforthepartnercountriescovered
bytheMediterranean preferential agreements.
(b)WithregardtoEquatorialGuinea,thatcountryisalreadya
signatoryoftheLom£ConventionandtheCommissionfindsitdifficult
toseewhatmoretheSpanishDelegationcouldaskfor.
(c)WithregardtotheinformationrequestedbytheSpanishDelegation
inrespectoftheprovisionsofArticle10ofthesecondLom6Convention,
andtheCentreforIndustrialDevelopment,theCommissionproposesthat
technicalcontactsshouldbeheldonthissubject.

B.THECOMMUNITY'SFINANCIAL COOPERATION POLICY
1.QuestionofthefifthEPF
Comnninltjrposition
InitsstatementCOHF-E/29/81,theCommunityconfirmeditsposition
that"Spainwillhavetocontribute fonaccession,tothefinancing
oftheCommunity'scommitments astheystandatthetimeofSpain's
accession,whethertheyareexistingcommitmentsstillvalidatthe
timeofSpain'saccessionornewcommitmentsenteredintobythe
Communitybetweennowandthatdate".
Accordingly,ifSpain'saocessionprecedestheexpiryofthesecond
Lom£Convention,Spainwillhavetocontributetothefinancingof
thefifthEDP.
Position_ofSpain
"WithrespecttoSpain'scontribution totheEuropeanDevelopment
Fund(EDF)withintheframeworkofthesecondLom6Conventionandin
viewoftheforeseeabledateforSpain'saccessiontotheEuropean
Communities andtheperiodofvalidityoftheConventioninquestion,
theSpanishDelegationconsidersthatSpainshouldbeexemptedfrom
thecontribution forwhichitmightbeliableunderthefifthEDF*"
Commissionproposai
(a)TheCommissionconsidersthatSpainwillhavetoadoptasfrom
accessiontheacquiscomnninautaire asitstandsatthatdatewith
regardtotheCommunity'scommitments,whetherthesebeexisting
commitmentsstillapplicableatthedateofaccessionornew
commitmentstobeenteredintobytheCommunitybetweennowandthat
date.
Cf.CONF-E/39/82,p.31»'para.51.

-52-
(b)Asregards theCommunity 'scommitments financed other than via
theCommunity budget ortheEIB'sownresources ,Spain will have to
participate asfrom thedate ofaccession inthefinancing ofsuch
commitments via itsnational budget *
(c)Accordingly ,ifSpain *saccession precedes theexpiry ofthe
seoond Lomd Convention ,theCommission isoftheopinion that Spain
will have toparticipate inthefinancing ofthefifth EDFin
accordance with arrangements tobeestablished atalater stage *
(d)Given that Spain will contribute ,asfrom accession ,toallthe
Community 'sfinancial cooperation activities ,Spain will have ,as
from accession ,the same possibilities astheother Member States of
participating inthesupply ofgoods andservices ,whether those
supplies ofgoods andservices befinanced bytheCommunity budget
orfrom the Bank 'sown resources orfrom the EEF *
2*Volume ofaid envisaged
Community position
Initsstatement CONF-E /19/79of12December 1979 "theCommunity
reserved theright totake adecision atalater stage inthe
accession negotiations onthequestion ofapossible adjustment -
asaresult ofSpain 'saccession -inthevolume ofaidprovided
forintheexisting Financial Protocols which will still bevalid
onthedate ofaccession orinnewcommitments which mayhave been
entered into bytheCommunity between nowandSpain 'saccession *
Comm s^ionpropo sal
TheCommission proposes toreserve itsposition until alater stage
inthenegotiations *

III .OTHER gJESTIOITS
A. APPLICATION OPARTICLE 115OPTHE EECTREAT !AND PREE CIRCULATION
Commanitjr go^ition
Initsstatement CONP-E /3/82of29January 1982 ,theCommunity
expressed itself asfollows :
"TheCommunity considers that theSpanish request for"asingle
authorization covering aseries ofproducts ,astheformal justification
would beidentical forallthose products "isnomore acceptable than
theearlier Spanish request foran"automatic derogation "from the
principle offree circulation *"
TheCommunity recalls -asitdidinitsstatements oncustoms union
andthefree movement ofindustrial goods –that Spain 'saocession
"will mean -inthecontext ofthetrade oftheenlarged Community –
that free movement will also have tobeallowed forthird country
products infree circulation inaMember State oftheenlarged
Community (Articles 9and10oftheEECTreaty )"^* Anyderogation
from thebasic Community principle offree circulation which would
apply generally andinadvance would be"incompatible with themost
2fundamental rules governing acustoms union "•
Thequestion ofpossible deflections oftrade liable toresult in
oraggravate economic difficulties should beresolved byapplying
2Article 115oftheEECTreaty •
SeeCONF-E/8/79?P*5andCONP-E/11/79»P*5onthecustoms union *
SeeCOBP-E/47/80,p*8andalso COHF-E/67/81,p*36,onthecustoms
union *

-54-
TheCommunitywouldonceagainpointoutthatthisArticlestipulates
thatmeasuresderogating fromfreecirculation mustbeauthorizedcase
bycasebytheCommissionandmustcausetheleastpossibledisturbance
tothefunctioningoftheCommonMarket.However,inviewofthe
Court'sruling"thatderogations permittedunderArticle115shall
beinterpreted andappliedstrictly,theCommissionmustaccord
authorizations onlyinresponsetoaspecificrequestbytheMember
Statesconcernedandafterexamination ofeconomicgroundspermitting
case-by-caseassessmentoftheeconomicdifficulties whichimportsin
freecirculation areliabletoresultinoraggravate.Thesimple
factofquantitative restrictions beingretainedonatransitional
basisinrespectofimportsofagivenproductdoesnotconstitute
sufficientgroundsinthisregard.
Furthermore ,itwillnotbepossibletoestimatethecaseswhere
thereisarealriskofdeflection oftradeuntilthedurationof
thetransitional measuresandthearrangements fordismantlingtariffs
betweenSpainandtheMemberStatesoftheCommunityandaligningthe
SpanishcustomstariffontheCommonCustomsTariffhavebeen
established"(CONF-E/29/81,pp.15and16).
PositionofSpain
TheSpanishstatementCONF-E/39/82readsasfollows:
"TheSpanishDelegationrepeatsthatitacceptsapplicationof
Articles9and10oftheEECTreatytoproductsinfreecirculation .
However,theSpanishDelegationhasexpressedthewishthatforcertain
productsexcludedtemporarily bySpainfromtheCommunityliberalization
arrangements andsubjecttoquantitative restrictions onimportation
ontotheSpanishmarket,andforthoseexcludedfromthecommitments
enteredintobytheCommunityunderAgreementswiththirdcountries
orgroupsofthirdcountries,itbepossibletoexcludesuchproducts
fromthebenefitoffreecirculation .

-55-
TheSpanishDelegationconsidersthattheinclusionintheActof
Accessionofanumberoftransitional measuresvis-a-visthird
countriesisinitselfaclearindicationthatfreeimportation on
totheSpanishmarketoftheproductsconcernedwouldcreate
disturbances onthatmarketandthatthejustification forsuch
transitional measuresisthesameasthejustification fortheneed
toexcludesuchproductsfromfreecirculation.
Similarly,importsintoSpainofproductsoriginatinginthird
countrieswhicharecurrentlyhavinganegativeeffectontheSpanish
marketoftenoccurthroughotherCommunitycountriesinwhichthe
thirdcountriesinquestionhavecentralizedtheirmarketingnetworks.
ThustheSpanishDelegationconsidersthat,whilecomplyingwiththe
principleoffreemovementofgoodsinfreecirculation (Articles9
and10oftheTreatyofRome),itisnecessaiyformeasurestobe
adoptedduringthetransitional periodwhichmakeitpossibletoavoid
deflections oftradeinproductsoriginatinginthirdcountriesso
astodisrupttheoperationofthecommonmarketaslittleaspossible.
SincetheexistenceofsuchmeasuresiscoveredbyArticle115of"the
TreatyofRome,theSpanishDelegationconsidersthat,inthecasesof
productssubjecttoquantitative importrestrictions ontheSpanish
marketandotherproductsexcludedfromthecommitments enteredinto
bytheCommunitywiththirdcountries,itisnecessarytolaydown
theobjectiveconditionswherebyproductsforwhichforeseeable
situationscoincidemaybeexcludedfromfreecirculation .Such
conditionswillhavetobestudiedonacase-by-casebasisandbe
specifiedintheaccessioninstruments ,sothatSpainwillbeauthorized
bymeansofthemostappropriate proceduretomaintainadequate
transitional measuresduringthetransitional period.Tothisend,
theSpanishDelegationconsidersthatitwouldbeusefultohold
technicaltalkstospecifytheprocedureinquestion."

-56-
Commissionproposal
TheCommissionproposesthattheCommunitymaintainitsposition
asexpressedinitspreviousstatementsonexternalrelations,namely
thattheapplication bytheCommissionoftheprovisionslaiddown
inArticle115of"theTreatywillbesufficienttoenableasolution
tobefoundtocasesofdeflectionoftradeliabletogiveriseto
economicdifficulties andthatnospecialprovisionwilltherefore
beenvisagedintheinstruments ofaccession.
B.ANJORRA
Communityposition
"Asregardsthetradearrangements withAndorra,theinformation
obtainedfromtheSpanishDelegation onthismatteriscurrently
beingexaminedsothattheproblemoftradewithAndorracanbe
clarifiedgiventhefactthat"theSpanishDelegationalsohopes
thatthetradearrangements inforcevis-ar-visAndorrawillbe
maintained "afteraccession.
TheCommunityaccordinglyreaffirmsitsposition,namelythat"it
reservestherighttocommentatalaterdateonthequestionoftrade
arrangements betweenAndorraontheonehandandPranceandSpainon
theother"^.
PositionofSpain
2"TheSpanishDelegationhasmadeseveralstatements onitsposition
asregardstraderelationswithAndorraandhasprovideddetailed
information .
cf.CONF-E/3/82,p.14,point4-
2cf.CONF-E/39/82,p.12,point5.

-57-
TheSpanishDelegationisawaitingtheCommunity'spositionsince
theCommunityPreservestherighttocommentatalaterdateonthe
questionoftradearrangements betweenAndorraontheonehandand
PranceandSpainontheother".
TheSpanishDelegationalsohopestoreceiveassoonaspossiblethe
informationithasrequestedontrade,bothdirectandintransit,
betweenAndorraandtheotherMemberStates,sothatitcanhavea
comprehensive pictureofAndorra 1straderelationswiththeMember
Statesandofthelegalsituationasregardssuchtrade."
Commissionposition
1.ThetradebetweenPranceandSpamontheonehandandAndorra
ontheotherpresentstwocharacteristic features:
(a)theexportationofgoodstoAndorrainconsiderablequantities ;
(b)thereimportation dutyfreebytravellersofalargeproportion
ofthosesamegoods.
ThecommercialpolicyfollowedbySpainandPrancewithregardto
Andorraisgovernedinparticularbytheconcerntoreduceasfar.
aspossiblethedangeroftheduty-freeimportation bytravellersof
eitherthirdcountrygoodsorofFrench(orCommunity)orSpanish
goodspreviouslyexportedfreeofdutyortaxtoAndorra.Theexport
restrictionscurrentlyinforceinSpainandPrance(whereonly
manufactured tobaccoandthirdcountryproductsintransitthrough
Prancearecoveredbysuchmeasures)weredesignedinthelightof
thespecialinterestsofthetwocountriesconcerned.
1
TheCommissiondepartments havesinceforwardedtotheSpanish
Delegationthestatisticaldataconcerningthetradein1980between
theMemberStatesoftheCommunityofNineandAndorra.Thedatain
questionweretakenfromEUROSTATmoduleSCE2111.

Itisclearthatanexportpolicyappliedbyoneofthetwocountries
inquestiontoAndorrahasadirectinfluenceontheavailability in
Andorraofproductsforsaletotravellers,withouttheothercountry
beingabletomitigatetheconsequences bymeansofitsownmore
restrictive exportpolicy.
Giventheinterdependence oftheattitudeofthetwocountriesas
regardsexports,theexistenceoftwodifferentpoliciesvis-a-vis
Andorrawiththeaimofmaintainingtoaverylargeextentthe
advantagesacquiredinthepastbyoneMemberStatetothepossible
detrimentofanotherMemberState,wouldbeincompatible withthe
provisionsoftheTreaty.
2.ThestatementbytheSpanishDelegationof16March1981,while
givingthebroadlinesofthevariousarrangements existinginthe
matteroftradewithAndorra,doesnotprovideanyclarification which
wouldpeiraitadefinitiveassessmentofthefuturetreatmentofgoods
intendedforexporttoAndorraviathecustomsterritoryofSpain.
ThequestionarisesofwhetherSpainwillbepreparedtoacceptthat
allgoodsfulfillingtheconditionsofArticles9a-nd10oftheTreaty
inanotherMemberStatebetreatedinthesamewayasthoseoriginating
inSpainandthatnoexportrestrictionwillbeappliedinrespectof
thosegoodsafteraccession.

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3.Despitethefactthattheeconomicimportanceofthistrade
islimited.,itwouldappearunacceptable thattradebetweenAndorra
andtwoMemberStatesoftheCommunityshouldoperatedifferently .
IntheCommission'sview,a"Community"solutionaimingtoregulate
thetradewithAndorraonthebasisofArticle113oftheTreaty
shouldbeconsidered,sincetherulesestablishedinPranceandin
Spainfollowingtheexchangeoflettersof1867donotallowforthe
situationthatwillpresentitselfafterSpain'saccession*.The
solutiontobeenvisagedshould:
(i)legalizethepresentsituationcharacterised bythe
non-application inSpainoftheCCTinrespectofproducts
originatinginAndorra;
(ii)establishCommunityrulesrelatingtoexportstoAndorrataking
intoaccountthespecialinterestsofthetwocountriesbordering
onAndorra.
TheCommissionfeelsthattheworkonthissubjectcouldbeginassoon
astheSpanishactofaccessionissignedwithaviewtoestablishing
theCommunityarrangements nolaterthantwoyearsaftertheentry
intoforceofthesaidact.
InitsanswertoWrittenQuestionNo19l/78(OJN°C238,SmlO'lJlQ,
p.14)theCommissionsaidthat:
"Inviewoftheinternational statusofthePrincipality ofAndorra,
theExchangeoflettersmustbeconsideredasoneoftheagreements
referredtoinArticle234oftheTreatywhichlaysdownthatthe
rightsandobligationsarisingfromsuchagreementarenotaffected
bytheprovisionsoftheTreaty.
However,wherevertheprovisionsoftheexchangeoflettersbetween
PranceandAndorraareincompatible withCommunitylaw,thesecond
paragraphofArticle234oftheTreatyrequiresPrancetotakeall
appropriatestepstoremovetheestablishedincompatibilities ."

Annex1
I.SCOPEOFTHEEXTERNALRELATIONS CHAPTER
Theexternalrelationschapter:
(a)covers;
(i)commercialpolicyinrespectofindustrialproductscovered
bytheTreatyestablishing theEEC;
(ii)policyinrespectofeconomic,financial,technicalandsocial
cooperation ,whethercontractualorautonomous,betweenthe
Communityand/oritsMemberStatesontheonehandandthird
countries ontheother.
(b)doesnotcover:
(i)externaltradeinvolvingtheproductscoveredbytheECSC
Treaty;
(ii)externalrelationscoveredbytheEAECTreaty;
(iii)externaltradeintheagriculturalproductscoveredby
AnnexIItotheEECTreaty;
(iv)externaltradeintheprocessedagriculturalproducts(covered
byRegulations (EEC)Nos3033/80and3035/80andproducts
coveredbyRegulations (EEC)Nos2730/75(glucoseandlactose)
and2783/75(ovalbuminandlactalbumin).
(v)cotton,notcardedorcombed,fallingwithinheadingNo55*0''
oftheCCT.
TheaboveexternaltradehasbeenorwillbedealtwithbytheConference
inthecontextoftherelevantchapters.

Communitystatements
CONF-E/19/79
CONP-E/19/80
CONF-E/63/8O
CONP-E/29/81
CONP-E/03/82
Spanishstatements
CONF-E/26/79
CONF-E/27/8O
CONP-E/70/8O
CONF-E/04/8I
CONP-E/13/81
CONP-E/30/31
CONP-E/37/8I
GOKF-E/38/8I
CONF-E/57/8I
CONP-E/75/8I
CONP-E/39/823.12.1979
22.04.1980
25.11.1980
27.04.1981
29.01.1982
18.12.1979
04.06.1980
19.12.1980
06.02.1981
06.03.1981
27.04.1981
26.05.1981
26.05.1981
13.07.1981
01.12.1981
04.06.1982

Annex3
PointsonwhichtheConferencecouldrecord,anagreement:
I.SCOPEOPTHEEXTERNAL RELATIONS CHAPTER
II.THECOMMUNITY'SAUTONOMOUS COMMERCIAL POLICY
A.Commonrulesforimports
1.Surveillance andsafeguardmeasures
2.Changestothecontentoftheliberalization list
3.Anti-dumping andanti-subsidy duties
B.Commonrulesforexports
C.FaroeIslands
III.EXPORTAIDS,EXPORTCREDITINSURANCE,SECTORALAGREEMENTSINTHE
CONTEXTOPTHEOECD
IV.CONTRACTUAL COMMERCIAL POLICY
A.Bilateralagreements
B.Multilateral commodityagreements
C.Multilateral agreementsnegotiatedwithintheGATTframework
D.Textiles
V.SPAIN'SRELATIONS WITHTHIRDCOUNTRIES
A.Cooperationagreements (allthirdcountries)
B.Tradeagreements
C.Preferential agreements
D.Preferential arrangements
VI.THECOMMUNITY'SFINANCIAL COOPERATION POLICY
A.Financialcooperation financedfromtheCommunitybudget
B.FinancingofloansfromtheEIB'sownresources
C.Financinginotherforms
*TheConferencewouldrecall,moreover,thatatits10thMinisterial
meetingon22March1982itrecordeditsagreementonanumberof
generalpointsapplicabletoallthechaptersofthenegotiations .