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DOCUMENTS "COM"
COM(75)633
Vol.1975/0237

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\
COMMISSION OFTHEEUROPEANCOMMUNITIES
'\ .COM(75)633 final .
Brussels ,8december 1975
CONCLUSION OP ARENEGOTIATION AGREEMENT
WITH AUSTRALIA UNDER ARTICLE XXVIII OPTHE
.GENERAL AGREEMENT ONTARIFFS AND TRADEj •
(Commission Communication totheCouncil )
V
Γ
Λ
COM(75 )633finalv

CONCLUSION OFARENEGOTIATION AGREEMENT WITH AUSTRALIA UNDER ..
ARTICLE XXVIII OPTHE GENERAL AGREEMENT ONTARIFFS AND TRADE
(Commission Communication totheCouncil )
I
TheCommission hereby presents totheCouncil :
1*Areport ontheresults oftherenegotiations ithasconducted
with Australia under Article XXVIII oftheGeneral Agreement
onTariffs andTrade concerning modification bytheCommunity
oftheconcession onlead andzinc (Annex I).
2.Adraft agreement containing theresults oftherenegotiation
under Article XXVIII :1oftheGeneral Agreement between the
European Economic Community andAustralia (Annex II).
TheArticle 113Committee hasdelivered afavourable opinion on
theresults ofthenegotiations referred toabove .
TheCommission recommends that theCouncil conclude therenegot­
iation agreement with Australia under Article XXVIII ofthe
General Agreement .
Tothis enditpresents thedraft proposal ofregulation setoutin
Annex III*

ANNEX I
REPORT ONTHE RESULTS OFTHE RENEGOTIATIONS ON
LEAD AND ZINC
\
I.Background
During theArticle XXIV:6 and "Dillon "negotiations in
1962 and1963 under theauspices oftheGATT theCommunity bound
theduty of1,32 UA/lOOkgforunwrought lead other (tariff
position 78*01 AII)andunwrought zinc (tariff position 79»01 A).
Protocols no.14and 15annexed totheTreaty ofAccession
provide that unwrought lead (other )andunwrought zinc should be
subject from 1January ,1974 toaduty of4,5%with aminimum
applicable duty of1,1UA/lOOkg.Since 1January ,1975 theabove
duty issuspended andtheapplicable duty is4,5%with aminimum
of1,1UA/lOOkgandamaximum of1,32UA/lOOkginorder torespect
GATT obligations .This suspension islimited to31December ,1975
atthe latest .
With aview tomodifying theduty of1,32 UA/lOOkgon
these twoproducts ,theCouncil byadecision of2/3December ,1974
authorised theCommission toundertake renegotiations inaccordance
with Article XXVIII sioftheGeneral Agreement .
Inconformity with this decision theCommission notified
theGATT Secretariat inDecember ,1974 ofitsdesire toengage
negotiations with theGATT Contracting Parties interested bythis
modification .The twoprincipal countries toshow such aninterest
areCanada andAustralia ,both primarily concerned inthetwo
concessions .
II.The negotiations
TheCommunity 'sintention inthese negotiations hasbeen
topresent ,this duty modification asthetransformation ofaspecific
duty iito anadvalorem duty ofanequivalent level ,that isasimple
technical modification .

Ineffect ,during theaccession negotiations theduty
of4,5%could beconsidered astheequivalent ofaduty of
1,32 UA/lOOkg;this hasnotbeen thecase since ,given the
sharp increase intheprice ofthese twoproducts during the
years 1972 ,73and1974 *Since then ,theintroduction ofan
advalorem duty of4,5%instead andinplace ofaspecific
duty of1,32 UA/100kgwould have ledtodemands forsubstantial
compensation onthepart ofourGATT partners .But ,neither inthe
lead and zinc sector itself ,norinother sectors hastheexamin­
ation ofpossibilities forcompensation ledtouseful results for
thenegotiations .
From statistics forthereference years 1971 »1972 and1973
thefollowing results appear :
LEAD
Averages 1971/73Quantity Value Value per Equivalent
(tons ) (1000 UA) item advalorem
(UA/100kg)
Total EEC 221.042 63.714 28.78 4.59
Australia 52.380 15.048 28.73 4,59
Canada 52.447 15.586 29.70 4.44
ZINC
Total EEC 327.303 121.662 37.17 3.55
Australia 41.832 15.365 36.73 3.57
Canada
I78.692 29.148 37.04 3,56
Taking into account these figures andonthebasis ofdirectives
annexed totheCouncil decision ,theCommission presented aninitial
offer tothese twopartners (Canada andAustralia )consisting ofan
advalorem duty of4%forlead and3,5$f°rzinc .Intheview ofthe
Community this offer would have permitted themodification ofthe
specific duty of1,32 UA/lOOkgwithout theneed forcompensation on
other products .

Aseries ofnegotiating meetings with Canadian and
Australian authorities took place after March ,1975 *These meetings
showed that intheopinion ofCanada andAustralia theoffer was
clearly insufficient .These twocountries contested thereference
period taken into consideration "bytheCommunity (average 1971-72-73)
andmaintained that 1974 andpossibly 1973 ought tobetaken into
consideration forthecalculation oftheincidence ofthe specific
duty .
Inthis situation andwith aview toterminating the
negotiation ,theCommission took theinitiative ofinforming thetwo
countries that itwould beprepared topropose totheCouncil the
conclusion ofanagreement with them onthebasis ofacommon level
of3»5%forthetwoproducts oncondition that itcould indicate
their agreement .TheCommission representative stressed thepolitical
nature ofthis proposal andasked therepresentatives ofthetwo
countries toconsider theproposal inthis sense toavoid afruitless
quarrel onthereference period totake into consideration .
TheArticle 113Committee delivered afavourable opinion on
theCommission 'sinitiative while emphasising that agreater
concession would beexcluded .
j
Inthecourse oflater meetings andcontacts with the
Canadian andAustralian authorities only Canada continued toconsider
this offer insufficient andproposed toconclude anagreement onthe
basis ofanadvalorem duty of3»5^ lead and3$forzinc .As
opposed tothis Australia accepted theCommunity 'simproved offer of
anadvalorem duty of3»5 for "thetwoproducts .
Atthis stage ,andgiven theurgency ofadoption bythe
Council ofthecommon Customs tariff for1976 ithasonly been
possible toinclude inthetariff thesingle autonomous duty level
of4,5%.However ,theCommission representative inCOREPER stated
that hereserved theright tomake supplementary proposals inthe
light ofthenegotiations .

Ill–Evaluation ofthesituation
TheCommunityisnowplacedbeforeachoiceofeitherleaving
mattersastheyare,involvingfor1Januarynexttheapplicationof
adutyof4»5forbothproducts,ortosignanagreementwith
Australiaalonefixingaconventional dutyof3I5forthetwoproduots*
IntheopinionoftheCommissionanumberofargumentsmilitate
infavouroftheseoondalternative :
a)WewouldtherebyreplytotheequallypoliticalgestureofAustralia
who,althoughnotentirelysatisfied,nonetheless acceptedouroffer*
Ineffeotitwouldseemdifficulttorefuseanagreementwiththis
countryandtoimposehigherdutiesbecauseitwasnotpossibleto
reachagreementwithanothercountryforreasonsunrelatedto
Australia.
b)Ifwere-established adutyof4»5$itisalmostcertainthatthese
countrieswouldhaverecoursetotheQ*A*T*T*Ourpositionwouldnot
beBtronginthiseventsinoeduringthenegotiations wehaveoffered
lowerdutylevels.
c)Theadvaloremdutyof3,5correspondslargelytotheincidenceof
aspecificdutyof1,32UA/lOOkgonthebasisoffigurescovering
theperiod1971-74:lead3*9zinc3>28$*Canadawouldnotthere­
forebenefitgratuitously *OntheotherhandaoomplaintbyCanada
totheG.A.T.T*wouldnotbewell-founded either*
IV–Conclusions
Takingtheaboveconsiderations intoaccount,theCommission
proposestoconcludeanagreementwithAustralianonthebasisofan
advaloremdutyof3»5$forleadandzino,replacingthespeoifio
dutyof1,32UA/lOOkgboundintheQ*A*T*T*
Thisagreementwouldterminatedefinitively fortheCommunity
theQ*A*T*T*articleXXVIIIrenegotiations onleadandzino*
Atitsmeetingon21November,1975»theartiole113Committee
deliveredanopinionagreeingwiththeproposalsoftheCommission *

Thedocumentstatingtheresultsofthenegotiations (AnnexII)
wasinitialled on
Thedateforentryintoforceinthecommoncustomstariffof
thesenewdutiesiB1January.1976.

ANNEX II
CONFIDENTIEL
NEGOCIATION5 RELATIVES ALALISTO LXXII -C.E.E.
Lesdélégations delaCommission desCommunautés Européennes et
del'Australie ontachevé lesnégociations qu'elles ontmenées autitre
del'article XXVIII :1envue delamodification ouduretrait des
concessions définies dans laliste LXXII -C.E.E. ,qui sont reproduites
dans lanote ci-jointe *
Pour laDélégation dela Pour ladélégation del'Australie
Commission des Communautés
Européennes
\
(s) (b)

RESULTATS DB3NBSOCIATIONS MHTEESAVECL'AUSTRALIE
'AUTITREDEL'ARTICLEXXVIII:1ENVUEDELAMODI­
FICATION OUDURETRAITDECONCESSIONS REPRISES DANS
LALISTEDELACOMMUNAUTE ECONOMIQUE EUROPEENNE
LISTELXXII-C.E.E.
CONCESSIONS AMODIFIER :
tarifaire DésignationdesmarchandisesTauxdesdroitsconso­
lidésdanslaliste
existante
78.01Plombbrut(mêmeargentifère)}
déchetsetdébrisdeplomb:
A*brut:
II*autre 1,32UC/lOOkg
poidsnet
79*01Zincbrut;déchetsetdébris
dezinc
A*brut 1,32UC/lOCkg
poidsne.
NOUVELLES CONCESSIONS î
tarifaire DésignationdesmarchandisesTauxdesdroits
àconsolider
78.01Plombbrut(mêmeargentifère);
déchetsetdébrisdeplomb:
A.brut:
II»autre 3,5f"
79»01Zincbrut;déohetsetdébris
dezinc
A»brut x 3,5%

ANNEXIII
PROPOSAL OFREGULATION OFTHECOUNCIL
ontheconclusionofanagreementbetweentheEuropeanEconomicCommunity
andAustralianegotiatedunderArtioleXXVIIIoftheGeneralAgreementon
TariffsandTradeandmodifyingtheCommonCustomsTariffonleadandzino
THECOUNCILOFTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropeanEoonomioCommunity
andinparticulararticle113thereof,
HavingregardtotheproposalfromtheCommission,
WhereastheEuropeanEconomioCommunity,inaccordancewithArtioleXXVIII
oftheQeneralAgreementonTariffsandTrade,hasnegotiatedwith
Australiaanagreementwhichmodifiescertainconcessions oftheSchedule
LXXII–E.E.C.affeotingthiscountry,
Whereasthisagreementshouldheconcludedandconsequently theCommon
CustomsTariffshouldhemodifiedinaccordancewiththisagreement
HASADOPTEDTIE3REGULATION i
Article1
TheAgreementnegotiatedwithAustraliaunderArticleXXVIIIof
theGeneralAgreementonTariffsandTradeisherebyconoludedonbehalf
oftheEuropeanEconomicCommunity*ThetextoftheAgreementisannexed
tothisRegulation *
Article2
TheContractingPartiestotheGeneralAgreementonTariffsand
TradeshallbenotifiedontheconclusionofthisAgreement*
··/Ο·

-2- ANNEXIII
Artioie3
Prom1January1976»thedutiesoftheCommonCustomsTariff
forunwroughtlead,other(n°780OIAII)andunwroughtzino(79*01A)
aremodified &bfollows:
Heading
numberDescriptionRateofduty
autonomous conventional
76.01Unwroughtlead(includingargentiferous
lead);leadwasteandsorap1
A*Unwrought :
II.Other 4,5
withamin.
of1,1UA
per100kg
netweight3,5
79*01Unwroughtzinc}zinowasteandscrap:
A.Unwrought 4,5
withamin.
of1,1UA
per100kg
netweight3,5
Done FortheCouncil
ThePresident

CONFIDENTIEL
NEGOCIATION5 HELATIVES ALALIST?!LXXII-C.E.E.
Lesdélégations delaCommissiondesCommunautés Européenneset
del'Australieontachevélesnégociations qu'ellesontmenéesautitre
del'articleXXVIIIs1envuedelamodification ouduretraitdes
concessionsdéfiniesdanslalisteLXXII-C.E.E»,quisontreproduites
danslanoteci-jointe *
PourlaDélégationdela
Commission desCommunautés
Européennes
(s)Pourladélégationdel'Australie
(8)

RESULTATS DESNEGOCIATIONS MMEESAVECL'AUSTRALIE
AUTITREDEL'AKTICLEXXVIII:1ENVUEDELAMODI­
FICATION OUDURETRAITDECONCESSIONS REPRISES DANS
LALISTEDELACOMMUNAUTE ECONOMIQUE EUROPEENNE
LISTELXXII-C.E.E.
CONCESSIONS AMODIFIEH:
Position
tarifaireDésignation desmarchandisesTauxdesdroitsconso­
lidésdanslaliste
existante
78.01Plomb "brut(nrêmeargentifère);
déchetsetdébrisdeplomb:
A*brut:
II*autre 1,32UC/lOOkg
poidsnet
79*01Zincbrut;dechetsetdébris
dezinc
A*brut 1,32UC/100kg
poidsnet
NOUVELLES CONCESSIONS :
Position ...,,,. Tauxdesdroitstarifaire Désignationdesmarchandises àconsolider
78.01Plombbrut(m@meargentifère);
déchetsetdébrisdeplomb:
A*brut:
II«autre 3»5
79,01Zincbrut;déchetsetdébris
dezinc
Aabrut 3»5