ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(81)82
Vol.1981/0023

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»
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)82 final
Brussels,9March1981
Recommendation fora
COUNCILDECISION
ontheconclusion ofavoluntaryrestraintAgreementwith
Hungaryinthesheepmeat andgoatmeatsector
(submittedtotheCouncilbytheCommission )
/•-<?
&.,:V
-'/
C0M(81)82final

.g
EXPLANATORY MEMORANDUM
W•
^bPursuant tothenegotiating brief given totheCommission bytheCouncil
•on20December 1979 ,voluntary restraint agreements forsheepmeat and
goatmeat with Argentina ,Australia ,NewZealand andUruguay ,and
Regulation (EEC)No1837 /80onthecommon organisation ofthemarkets .
inthat sector were implemented with effect from 20October 1980 .
*
TheCouncil isexpected toapprove similar agreements with Austria ,
Iceland ,Poland andRomania .
2.Itwasnotpossible tocomplete negotiation ofcomparable agreements at
»
that date with non-member supplier countries which were either waiting
m
fordetails astothe licence arrangements or -were not able toaccept
aclause concerning theterritories where theTreaty establishing the
European Economic Community applied ,orhadnot yet replied tothe
Commission 'sinvitation toopen negotiations . .
3.Asithasbeen possible meanwhile toresolve these difficulties with
,
1 *
Hungary ,itisproposed that approval begiven totheproposal for a
-Council Decision ontheconclusion ofavoluntary restraint agreement
inrespect ofexports ofsheepmeat andgoatmeat from that non-member
country . ,
4.Theagreement covers thefollowing annual quantities fortheCommunity
%
ofTen,expressed ascarcase weight (bone-in equivalent weight ):
•' . / -
ri '
Live animals Fresh orchilled meat .Frozen meat
Hungary , 10.050 t. 1.150 t. 0t.

Recommendation
'FOR ACOUNCIL DECISION
ontheconclusion ofavoluntary restraint Agreement with Hungary
inthe sheepmeat and goatmeat sector
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 113thereof ,
Having regard totherecommendation from theCommission ,
Whereas theCommission hasopened negotiations with non-member countries
which supply sheepmeat andgoatmeat orlive sheep andgoats ,with aview to
reaching Agreements forvoluntary restraint ontheir exports totheCommunity ;
Whereas theCommission has reached agreement with Hungary ;
Whereas the said Agreement allows trade tobecarried oninamanner compatible
with thecommon organization ofthemarket' inthesector .inquestion ,-
HAS DECIDED ASFOLLOWS :
Article 1
1.TheAgreement drawn upinthe form ofanExchange ofLetters ontrade in
thesheepmeat andgoatmeat sector with Hungary ishereby approved onbehalf
ofthe European Economic Community .
2.The text oftheAgreement isannexed tothis Decision .
Article 2
The President ofthe Council ishereby authorized todesignate theperson
empowered tosign theAgreement referred toinArticle 1,inorder tobind
theCommunity .
Done at For the Council
The President

DRAFT
.EXCHANGE OFLETTERSBETWEEN
THEEUROPEANECONOMICCOMMUNITY ANDTHEPEOPLE'SREPUBLICOFHUNGARY'
"ONTRADEINSHEEPMEAT ANDGOATMEAT
\ -
Ihavethehonourtorefertothenegotiations recentlyundertaken
Γ/
betweenourrespectivedelegations forthepurposeofdrawingupprovisions
concerningimportintotheEuropeanEconomicCommunityofmutton,lamband
goatmeat,andlivesheepandgoatsotherthanpure-bredbreedinganimalsfrom
Hungary,inconnectionwithimplementation bytheCommunityofthecommon
organisation ofthemarketinsheepmeatandgoatmeat.
<î'
Duringthesenegotiation^whichtookplacebetweenthetwopartieswho
areparticipants inGATT,ourdelegations agreedasfollows:
1.ThisArrangement covers:
-livesheepandgoatsotherthanpure-bredbreedinganimals (-01.04B);
-freshorchilledmutton,lambandgoatmeat(02.01AIVa);
-frozenmutton,lamb,andgoatmeat(02.01AIVb).

7.
2.WithinthetermsofthisArrangement ,thecompetentHungarianauthorities
undertaketoensurethatexportstotheCommunityoftheproductsreferredto
inpoint1shallnotexceedthefollowingannualquantities :
-10050tonsofliveanimals,expressedascarcaseweightbone-in^
?
1150tonsoffreshorchilledmeat,expressedascarcaseweightbone-in"
Forthispurpose,theappropriate proceduresshallbeimplemented bythe
competentHungarianauthorities.' ':
3.ProvidedthatHungarianexportsdonotexceedthequantitiesgivenin
point2theCommunitywillnotapplyanyquantitative restriction ormeasureshaving
equivalenteffect. '
IftheCommunityweretoinvoketheprotectiveclause,theprovisionsofthis
Arrangement wouldnotbeaffected.
4.IfimportsfromHungaryexceedtheagreedquantities ,theCommunity
reservestheri.ghttosuspendfurtherimportsfromthatcountryuntiltheend
ofthecurrentyear.However,inanycase,quantitiesexceedingtheagreed
quantityforthecurrentyearshallbesubtracted fromthequantitiesagreed
forthefollowingyear.
5.TheCommunityundertakes ,inrespectofimport?ofproductscoveredby
thisArrangement ,torestrictthechargesleviedtothefollowingadvalorem
levels:
10%forliveanimals„
10%,formeat
TheCommunitywillnotcharge,apartfromtheleviessetoutabove,
customsdutiesorotherchangeshavinganeffectequivalenttoleviesortocustoms
duties.
(1)100kgLiveweightshallcompoundto47kgcarcaseweight(bone-in
equivalentweight)JJl)
(2)Carcassweight(bone-inequivalentweight).Bythistermisunderstood
theweightofbone-inmeatpresentedassuchaswellasbonedmeat
convertedbyacoefficientintobone-inweight.Forthispurpose55kg
ofbonedmuttoncorrespondsto100kgofbone-inmuttonand60kgof
bonedlambcorrespondsto100kgofbone-inlamb.

6.wWhenanewMemberStateaccedestotheCommunityandifthepatternof
trade,,betweenHungaryandsuchMemberStateweretojustifyit,,theCommunity
shallagreetoconsultations betweenthetwopartieswithaviewtopossible
adaptationofthequantitiesgivenatpoint2.
Thequantitiesgivenatpoint2shallnotbereduced.
ThechargesapplicabletoimportsforthesaidnewMemberStateshall
befixedinaccordancewiththerulesintheTreatyofAccession ,themaximum
levelofthelevyspecifiedinpoint5ofthisArrangement beingtakeninto
account.- ;.*
7.•ThecompetentHungarianauthorities shallensurecompliancewiththe'
termsofthisArrangement ,inparticular bymeansoftheissuebyaHungarian
agencydesignatedf&rthepurpose ,ofexportlicencescoveringtheproducts
listedinpoint1,withintheagreedquantitylimits.
ForitsparttheCommunityundertakestoadoptallthenecessary
measurestoensurethattheautomaticissueofanimportlicenceforthe
abovementioned productsoriginating inHungary3hallbesQbjecttoproduction
ofanexportlicenceissuedbythecompetentHungarianauthority.
Detailedrulesfortheimplementation ofthissystemshallbedrawnup
insuchawaythatnosecurityneedbeLodged >forissueofimport
licencesinrespectoftheproductsinquestion.Thesedetailedrulesshall
alsoprovidethatthecompetentHungarianauthorities andthecompetent
Communityauthoritiesshallundertakeperiodicalexchangesofinformation on
thequantitiesinrespectofwhichexportandimportlicenceshavebeen
issued,brokendown,asappropriate ,accordingtodestination ,-
Itisherebyagreedthatexportlicenceswillbevalidforaperiodof
threemonthsfrpmtheirdateofissue.Thecorresponding importlicences
shallbevaliduntilthedateofexpiryoftheexportlicences. '
τ/ <
Quantitiesdeliveredunderanexportlicenceshallbe.subtractedfrom
thequantityagreedfortheyearduringwhichtheexportlicencewasissued.

8. The twopartie3 agree that steps should betaken toensure that the
smooth operation ofthe Arrangement isnot disturbed bydeliveries of
sheepmeat andgoatmeat products falling under tariff headings notcovered by
this Arrangement .
9. Inorder toensure the smooth operation ofthis Arrangement ,the two
parties agree toremain inclose contact and tobeready toundertake
consultations onany question which might arise inthe course ofapplication
ofthis Arrangement .The said .consultations must becommenced within a
maximum period of daysfollowing^eque3t byoneoftheparties .
10.The provisions ofthis Arrangement shall beaccepted without prejudice
totherights andobligations oftheparties under GATT .
I
11.The annual quantity fixed atPoint2shall cover theperiod 1January to
31December . -
Thequantity applicable from 1janusry 1984 until 31march 1934 /
•■ ■ jshall befixed bymeans of
theconsultations referred toatpoint 9-inproportion totheoverall annual
quantity . ...
This arrangement shall ''apply ,ontheone Jian<^>totheterritories in
which theTreaty establishing theEuropean Economic Community is
applied and .-under theconditions laid down inthat Treaty and,onthe
other hand ,totheterritory ofthePeople 'sRepublic ofHungary .
13..This Arrangement ,shall enter into force on4.-i.€1.Ttshall qpplv until
31March 1S3'J ,andsubsequently ,forperiod of2"years ,subject totheright
ofeither oftheparties toterminate itbygiving notice inwriting six
months before thedate ofexpiry ofanyoneofthesaid periods .Intheevent
oftermination ,theArrangement shall come toanendatthedate ofexpirv of
theperiod inquestion .Inanyevent ,theprovisions ofthis Arrangement
shall bereviewed bythetwoparties during thesixmonths preceding 1April
192*1 »inorder toincorporate initanyadaptations which might benecessary .
Ishould begrateful ifyouwould confirm that theabove
sets outcorrectly thesubstance oftheagreement between ourtwodelegations .
Formal ending .

Draft
EXCHANGE OFLETTERS
.Λ
concerning theconsultations forwhichprovisionsismadeat
point9oftheExchangeofLettersbetweentheEuropean
EconomicCommunity andthePeople'sRepulicofHungary
ontradeinsheepmeat andgoatmeat
Withreferencetocertainspecificquestionsraisedduringthenego­
tiationsforthisArrangement,Ihavethehonourtopointoutthatitwas
agreedduringthenegotiations that,withinthecontextofthis.Arrangement,
ifHungaryweretoraiseanyconcreteproblems,theycouldbecoveredbythe
consultations providedforinpoint9,withoutprejudicetothescope6fthat
provision.Theseproblemsinclude:
1^supplyofliveanimalsinrelationtothequantityagreedformeat;
2.supplyofmeatinrelationtothequantityagreedforliveanimals;
» i ..
3.possibility ofadvanceuse,duringagivenyear,ofalimitedproportion
ofthequantityagreedforthefollowingyear;
4.possibility inpoint2oftheArrangement wheretheCommunitymarketsitua­
tionsopermits.•
Foritspart,theCommunitywouldbepreparedtoundertakethesaid
consultations inaspiritofco-operation inrespectofanyrequestsputfor­
wardbyHungary.
Formalending.

r
DRAFT
EXCHANGE OFLETTERS RELEVANT TOCLAUSE 2OFTHE
EXCHANGE OFLETTERS BETWEEN THE EUROPEAN ECONOMIC
COMMUNITY AND THE PEOPLE 'SREPUBLIC OFHUNGARY ON
TRADE INSHEEPMEAT AND GOATMEAT
Ihave the honour torefer totheexchange ofletters onthe
conditions governing Hungarian exports totheCommunity inthesheepmeat
and goatmeat sector .
Further tothat exchange ofletters andtoyour request ,Iwould
advise youthat the Hungarian authorities will ensure that forthe period
1January 1981 to31March 1984 ,there will benosensitive change in
thetraditional trade flows ofmutton ,lamb andgoatmeat and live sheep and
goats tothe twomarket areas inthe European Economic Community determined
assensitive .
TheHungarian authorities will adopt thenecessary measures forthis
purpose .
Formal ending .
*

FINANCIAL STATEMENTVI/811/81
|DATEIJanuary1981
1.BUMCT1.IKSCOÎICLUVSD L100
2.ACTICT:ConclusionofavoluntaryexportrestraintagreementwithHungarylp
thesheepmeatandgoatmeatsector,Limiting'importchargestoamaximumof
10%advaloremonliveanimalsandonfreshorchilledmeat.
LEGALBASIS:Article113
4.OBJECTIVES:Tolimitthelevychargedtoamaximumadvaloremamountof10%for
productssubjecttoRegulation (EEC)No'1837/80,importedfromHungary*which
undertakestorestrainexportstothelevelsindicatedinbox5.2.
?«:»r;tj:,-iit:m":;t'
5.FIÍIAIÍCIALCC;;SE3'JD)C3
xxxx(ailQrj<x«/kxx»iaij*K3SJ (><x
χχχ*«*χο£*χοοχοαοεχ χχακχχχχουρχ
5.1RECEIPTS
-O.CIRSSCUHCIS OFT.tsEC
(LEVIES/CJARC:U5DUTIES)
-HATIC.'IALKORTH2t-'JLHKETIF.'GYEAJlCURRSRRFINANCIAL YEARUH
1,225Million
ECUFCLLCWINCPIrJCICIALTEAR
-1,47Million
ECU
YEAR...1923 YEAR3384.YEAR
5.0.1>mtftXXXXIXXâGXX3SX0n(X»fX3CXXXft
5.1.1PLURIA-'OfUALPATTEHifOPRECEIPTS-1,47M.ECU-0,61M.ECU
5*2METHODOFCALCULATIOX(Base:worldpriceformeatandliveanimals .2400ECU/t.
Freshmeat,lossLiveanimals,loss,
ofrevenue':10%ofrevenue.:5Xagainst
againstcustoms customsdutyapplicable
dutyapplicable until20.10.80againstcustoms
dutyapplicable
until20.10.80
Hungary.:10050tonnesliveanimals.....
1150tonnesfreshmeat.....276000ECU1,2millionECU
UBWITHCREDITSIKSGMDSDINFLSLSVAKTClIAPrnD0i»CUnJUI'tTDUMCT?IB3/W~
6»!flNJUJClNCPOSSIBLE)3YTKANGl-'CTlI3U£r..,^C:i0iLAPTH7D0?CUIULMTDUDOUT? vrr»AVtV •JLIJi1>V>*
KJ5/NO
6.3f.B--VTi..<ün TtiTnci'Tarpi.Tyv.--c•» Yrr/raox
C0;C-E."13t