PROPOSAL FOR A COUNCIL DECISION CONCERNING ADJUSTMENTS TO THE VOLUNTARY RESTRAINT AGREEMENTS FOR SHEEPMEAT AND GOATMEAT CONCLUDED WITH ARGENTINA, AND AUSTRALIA
Date: 1989-11-08
Institutions: European Commission
Subjects: Argentina, Australia, agreement (EU), goatmeat, sheepmeat

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM  (89) 543  final 

Brussels,  8  November 1989 

Proposal  for a 

COUNCIL  DECISION 

oonoerning adjustments to the voluntary restraint agreements 
for sheeproeat and goatmeat ooncluded with Argentina, 
and  Australia. 

(presented by the Commission) 

Explanatory memorandum 

1. The changes recently decided on for Improving the operation of the 

common organization of the market In sheepoeat and goatmeat will result 
In tighter discipline and a decrease in support for Community producers. 

As the Commission has emphasized several times In its communications to 
the Council on the future of the CAP, the extra effort being required 
from the Community's agricultural producers must be hacked up by 
parallel import measures.  This in turn will make it necessary to make 
adjustments to the voluntary restraint agreements concluded between the 
Community and the main supplier countries. 

2. It was against this background and in line with the conclusions of the 
European Council of February 1968 that the Council adopted negotiating 
directives for this subject on 15 November of the same year. 
Negotiations, notably with Argentina  ana Australia, followed 
and resulted In the attached draft agreements. 

3. The essentia,! elements of the adjustments to be made are as follows: 

maintaining or, If necessary, reducing the quantities initially 
provided for; 
setting up a system of import price surveillance; 
restricting the opportunities for importing chilled meat; 
total suspension of import levies; 
provisions for sensitive areas of the Community for 1969 and 1990. 

4. The igg»** of sensitive areas will be addressed in an additional exchange 

of letters between the Community and the oountrles concerned. 
The following has been agreed with regard to quantities: 

(a)  Argentina 

For 1989, Argentina will ensure that exports to France are limited 
to 1500t and those to Ireland to lOOt (carcase weight equivalent). 
These limits will be increased by 20% in 1990. 

(b)  AilfftTftUft 

For 1989, imports from Australia into France will be limited to 
970t and those into Ireland to lOOt (carcase weight equivalent). 
These limits will be Increased by 20% In 1990. 

PROPOSAL FOR A COUNCIL DECISION 

concerning adjustments to the voluntary restraint agreements 
for sheepmeat and goatmeat ooncluded with Argentina, 
and  Australia. 

THE COUNCIL OF THE EUROPEAN OCMMUNITIES, 

Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 113 thereof, 

Having regard to the  Proposal 

from the Commission, 

Whereas the Community has taken measures to stabilize the market in 
sheepmeat and goatmeat and whereas it Intends to bring about better 
integration of that market; 

Whereas in the context of those adjustments to the common organization of 
the market It would be opportune to make adjustments to the voluntary 
restraint agreements ooncluded in the seotor with certain third oountries, 
In order to stabilize Imports and improve Import prices, 

Whereas the Commission has held negotiations on the matter which have led 
to agreements with Argentina, and Australia. 

HAS DECIDED AS FOLLOWS: 

Article 1 

1. The Agreements in the form of exchanges of letters concerning 

adjustments to the voluntary restraint agreements for sheepmeat and 
goatmeat with the following oountries: 

-Argentina 

-Australia 

are hereby approved on behalf of the European Economic Community. 

The texts of the Agreements are attached to this Decision. 

The President of the Council is hereby authorized to designate the person 
empowered to sign the Agreements In order to bind the Community. 

Article 2 

Done at Brussels, 

For the Council, 
The President 

EXCHANGE OF LETTERS RELATING TO THE  1980 AGREEMENT  BETWEEN 
THE EUROPEAN COMMUNITY  AND ARGENTINA  ON 
TRADE  IN MUTTON, LAMB AND GOATMEAT. 

A. Letter N°1 

Sir, 

I have the honour  to refer  to the exchange of  letters of  14 October  1980 
constituting an Agreement  between  the European Community  and Argentina 
establishing provisions  relating  to  Import of mutton and  lamb and goatmeat 
into the Community  from Argentina and  to negotiations held between our 
respective delegations for  the purpose of establishing  temporary  derogations 
from certain of  those provisions concurrent  with  the  Implementation of 
measures  to stabilise the European Community  sheepmeat  sector  and  to reform 
the European Community's  Internal  regime  In order  to achieve a unified 
European Community  sheepmeat  market.  Accordingly,  they  have agreed on the 
following derogations  from  the Principal  Agreement  which shall  remain  In 
force  for  the duration of  this Agreement. 

A.  Access and quantity 

Clause 1_ 

In Clause  2 of  the Principal  Agreement  as modified by Clause 6 of  the 
Principal  Agreement,  the celling figure of 23.000 t representing the 
annual  ceiling  In metric  tonnes on  the total  quantity of  imports each 
year  Into the European Community  of mutton,  lamb and goatmeat  from 
Argentina, shall  be deemed  to have been  replaced by the figure of 
19.000 t.  This celling shall  be deemed  to  Include a maximum  in 1989 of 
1.000 metric  tonnes of  lamb  Imported  Into the European Community  from 
Argentina  in a form which  has never  been  frozen, a maximum of  1.200 
metric  tonnes  in 1990, a maximum of  1.400 metric  tonnes  in 1991, and a 
maximum of  1.600 metric  tonnes  In 1992. 

B.  Tariff 

In Clause 5 of  the Principal  Agreement,  the words  "a maximum  amount of 
10%, ad valorem" shall  be deemed  to be replaced  by  the word  "zero". 

PrIce survelI lance 

With a view to  Improved  sheepmeat  prices within the European  Community, 
prices for  lamb  Imported  from Argentina will  be monitored  In accordance 
with  the procedures contained  in the annex  to this Agreement. 

Consultât Ion 

Clause 2 

Notwithstanding  Clause  1 C) of  this Agreement  either  Party may  request 
consultations concerning  the operation of  this Agreement  at any  time. 

M 

- 9  -

Clause 3 

GATT obiIgâtions 

The provisions of  this Agreement  shall  be agreed without  prejudice  to the 
rights of Argentina  and  the European Community  under  GATT. 

This Agreement  shall  enter  Into force on  1 January  1989 and shall  remain  in 
force until  31 December  1992. 

Clause  ± 

Within 6 months prior  to expiration of  this Agreement,  Its provisions shal 
be  reviewed. 

CI ause 5. 

I have  the honour  to propose  that,  If the foregoing  Is acceptable  to your 
Goverment,  this  letter  and your  confirmatory  reply  shall  together  constitute 
and evidence  an Agreement  between  the European  Economic Community  and 
Argentina  on  the matter. 

Please accept, Sir, the assurance of my  highest  consideration. 

For  the CounclI 
of  the EC 

5" 

-  10 

ANNEX 

Price Surveillance  Procedure 

The  European  Community  will  monitor  the prices  In each Member  State  for 
imported  frozen  lamb  carcasses  from Argentina  on  the basis of  the  average 
prices over  each monthly  period. 

The  relationship  between  the prices  for  Imported  frozen  lamb  carcasses 
from  Argentina  In each  Member  State  and  the market  prices  for  Community 
produced  lamb  In each  such  Member  State will  be  compared  with  the 
benchmark  level  specified  below  for each  such Member  State.  If this 
comparison  Indicates  that  the price  relationship  has,  In two  Member 
States  in the  same month, moved  below  the benchmark  levels  for  those 
Member  States,  technical  consultations will  take  place  at  the  request  of 
either  Party  to determine  factors  causing  the downward  movement. 

Member  States  by  region 

Northern  Member  States  (Belgium, 
Denmark,  Federal  Republic of  Germany, 
France,  I Ireland,  Luxembourg, 
Netherlands, United  Kingdom) 

Benchmark  levels  for  the 
relationship  between 
prices of  Imported  frozen 
lamb  carcasses  and  prices of 
domestically  produced  lamb. 

55  percent 

Southern  Member  States 
(Greece,  Italy, Portugal,  Spain 

45  percent 

3.  In the event  that  the downward  movement  of  the  relationship  between 

prices  for Argentinian  frozen  lamb  carcasses  and  Community  produced  lamb 
below  the benchmark  levels  In the particular Member  States  under 
consideration  and  their  remaining  at  such  low  levels  Is  indicative  of a 
problem,  the Parties  shall  consider  any  recommendations  arising  out  of 
the  technical  consultations  for  the  resolution  of  the problem.  If the 
problem  Identified  is attributable  to the prices at which  Argentinian 
frozen  lamb carcasses  are being  sold  In those member  states  by 
Argentinian  exporters  then Argentina  would  take what  action  Is available 
to  it to  restore  the price  relationship  between  frozen  lamb  carcasses 
and  Community  produced  lamb  In those member  states  to the  benchmark 
levels. 

6 

-  11  -

4.  Should  the Parties  In the  technical  consultations  fail  to reach  agreement 

on  appropriate measures  to resolve  the problem,  the Consultative 
Committee  established  under  Clause  10 of  the Principal  Agreement  may  be 
convened  at  a senior  policy  level  at  the  request  of  either  Party  to give 
the matter  urgent  consideration.  If agreement  cannot  be  reached  at 
official  level, the matter  may  be  referred  by either  party  to  the  EC 
Commissioner  for Agriculture  ane  the Argentinian Minister  of  ...  for 
résolut Ion. 

5.  Argentina  and  the  European  Community  adopt  as  targets  for  achievement  by 

the end  of  1992 an  improvement  In the previously  defined  benchmark  levels 
for  Northern  Member  States by  5 percentage  points  and  for  Southern  Member 
States  by 8 percentage  points. 

+ 

- 12 -

B. Letter  N° 2 

Sir, 

I have  the honour  to acknowledge  receipt  of your  letter of  today's date, 
which  reads as fol lows : 

"I have  the honour  to refer  to the exchange of  letters of  14 October  1980 
constituting an Agreement  between  the European Community  and Argentina 
establishing  provisions  relating  to  import  of mutton  and  lamb and goatmeat 
Into the Community  from Argentina and  to negotiations held between our 
respective  delegations  for  the purpose of establishing  temporary  derogations 
from certain of  those provisions concurrent  with  the  Implementation of 
measures  to stabilise  the European Community  sheepmeat  sector  and  to reform 
the European Community's  Internal  regime  In order  to achieve a unified 
European Community  sheepmeat  market.  Accordingly,  they  have agreed on the 
following derogations from  the Principal  Agreement  which shall  remain  in 
force for  the duration of  this Agreement. 

A.  Access and quant ity 

Clause 1 

In Clause  2 of  the Principal  Agreement  as modified  by Clause 6 of the 
Principal  Agreement,  the celling  figure of  23.000 t representing  the 
annual  celling  in metric  tonnes on  the total  quantity of  imports each 
year  Into the European Community  of mutton,  lamb and goatmeat  from 
Argentina, shall  be deemed  to have been  replaced  by  the figure of 
19.000 t.  This ceiling  shall  be deemed  to  Include a maximum  In 1989 of 
1.000 metric  tonnes of  lamb  imported  Into the European Community  from 
Argentina  in a form which  has never  been  frozen, a maximum of  1.200 
metric  tonnes  in 1990, a maximum of  1.400 metric  tonnes  in 1991, and a 
maximum  of  1.600 metric  tonnes  in 1992. 

B.  Tariff 

In Clause  5 of  the Principal  Agreement,  the words  "a maximum  amount of 
10%, ad valorem"  shall  be deemed  to be replaced  by  the word  "zero". 

C.  Pr ice surveiI lance 

With a view to  Improved  sheepmeat  prices within  the European  Community, 
prices for  lamb  imported  from Argentina will  be monitored  in accordance 
with  the procedures  contained  in the annex  to this Agreement. 

Consultât ion 

Clause 2 

Notwithstanding Clause  1 C) of  this Agreement  either  Party may  request 
consultations concerning  the operation of  this Agreement  at any  time. 

? 

-  13 -

Clause 3. 

GATT  obiiqatIons 

The provisions of  this Agreement  shall  be agreed  without  prejudice  to  the 
rights of Argentina  and  the European  Community  under  GATT. 

This Agreement  shall  enter  Into  force on  1 January  1989 and  shall  remain  In 
force until  31  December  1992. 

Clause  4 

Within  6 months  prior  to expiration  of  this Agreement,  Its provisions  shal 
be  reviewed. 

Clause  5 

I have  the honour  to propose  that,  If the  foregoing  Is acceptable  to your 
Goverment,  this  letter  and  your  confirmatory  reply  shall  together  constitute 
and  evidence  an Agreement  between  the European  Economic  Community  and 
Argentina  on  the matter." 

I have  the honour  to confirm  the  foregoing  Is acceptable  to my  Government  and 
that  your  letter  together  with  this  reply  shall  constitute  an Agreement  in 
accordance  with  your  proposal. 

Please  accept,  Sir,  the assurance  of my  highest  consideration. 

For  the  Government 
of  ArgentIna 

Q 

-  14 -

ANNEX 

prIce Survol I lance Procedure 

1.  The  European Community  will  monitor  the prices  In each Member  State for 

Imported  frozen  lamb carcasses  from Argentina on  the basis of  the average 
prices over  each monthly  period. 

2.  The  relationship  between  the prices for  Imported  frozen  lamb  carcasses 

from Argentina  In each Member  State and  the market  prices  for  Community 
produced  lamb  In each  such Member  State will  be compared  with  the 
benchmark  level  specified  below  for  each  such Member  State.  If this 
comparison  Indicates  that  the price  relationship  has,  in two Member 
States  In the same month, moved  below  the benchmark  levels  for  those 
Member  States, technical  consuttatIons will  take place at  the  request  of 
either  Party  to determine  factors causing  the downward  movement. 

Member  States by  region 

Northern Member  States  (Belgium, 
Denmark, Federal  Republic of  Germany, 
France,  Ireland,  Luxembourg, 
Netherlands, United  Kingdom) 

Benchmark  levels for  the 
relationship  between 
prices of  Imported  frozen 
lamb carcasses  and  prices of 
domestically  produced  lamb. 

55 percent 

Southern Member  States 
(Greece,  Italy, Portugal, Spain 

45 percent 

3.  In the event  that  the downward movement  of  the relationship  between 

prices  for Argentinian  frozen  lamb carcasses  and Community  produced  lamb 
below  the benchmark  levels  In the particular  Member  States under 
consideration  and  their  remaining  at  such  low  levels  Is  Indicative of a 
problem,  the Parties shall  consider  any  recommendations  arising out  of 
the  technical  consultations  for  the  resolution of  the problem.  If the 
problem  Identified  Is attributable  to the prices at which  Argentinian 
frozen  lamb carcasses  are being  sold  In those member  states by 
Argentinian  exporters  then Argentina would  take what  action  Is available 
to  It to restore  the price  relationship  between  frozen  lamb  carcasses 
and Community  produced  lamb  In those member  states  to the benchmark 
levels. 

4.  Should  the Parties  in the  technical  consultations fall  to reach  agreement 

on  appropriate measures  to resolve  the problem,  the Consultative 
Committee  established under  Clause  10 of  the Principal  Agreement  may  be 
convened  at  a senior  policy  level  at  the  request  of either  Party  to give 
the matter  urgent  consideration.  If agreement  cannot  be  reached at 
official  level, the matter  may  be  referred  by either  party  to the EC 
Commissioner  for Agriculture ane  the Argentinian Minister  of  ...  for 
résolut Ion. 

G 

/ 

-  15 -

5.  Argentina and  the European Community  adopt  as targets  for achievement  by 

the end of  1992 an  Improvement  in the previously  defined  benchmark  levels 
for  Northern Member  States by 5 percentage  points and  for  Southern  Member 
States by 8 percentage  points. 

JA 

- 16  -

EXCHANGE  OF  LETTERS  RELATING TO THE  1980 AGREEMENT  BETWEEN 
THE  EUROPEAN  COMMUNITY  AND  AUSTRALIA  ON 
TRADE  IN MUTTON,  LAMB  AND  GOATMEAT. 

Sir, 

A. Letter  N° 1 

I have  the  honour  to refer  to  the exchange  of  letters of  14 October  1980 
constituting  an Agreement  between  the European  Community  and  Australia 
establishing  provisions  relating  to  Import  of mutton  and  lamb  and  goatmeat 
Into the Community  from  Australia  and  to negotiations  held  between  our 
respective  delegations  for  the purpose of  establishing  temporary  derogations 
from  certain  of  those  provisions  concurrent  with  the  Implementation of 
measures  to stabilise  the European  Community  sheepmeat  sector  and  to  reform 
the European  Community's  Internal  regime  In order  to achieve  a  unified 
European  Community  sheepmeat  market.  Accordingly,  they  have  agreed  on  the 
following  derogations  from  the Principal  Agreement  which  shall  remain  in 
force  for  the duration of  this Agreement. 

A.  Access  and  quantity 

Clause 1_ 

In Clause  2 of  the Principal  Agreement,  as modified  by Clause  6 of  the 
Principal  Agreement,  the quantity  of  17.500  t expressed  In carcass  weight 
shall  be  deemed  to  Include  a maximum  In 1989 of  1.500 metric  tonnes of 
lamb  Imported  into the European  Community  from Australia  In a  form  which 
has never  been  frozen, a maximum  of  2.000 metric  tonnes  In 1990, a 
maximum  of  2.500 metric  tonnes  In 1991, and  a maximum  of  3.000 metric 
tonnes  in 1992. 

B.  Tariff 

In Clause  5 of  the Principal  Agreement,  the words  "a maximum  amount  of 
10%,  ad  valorem"  shall  be deemed  to be  replaced  by  the word  "zero". 

C.  PrIce  survelI lance 

With  a view  to  Improved  sheepmeat  prices within  the  European  Community, 
prices  for  lamb  Imported  from Australia will  be monitored  In accordance 
with  the procedures  contained  in the annex  to this  Agreement. 

Consultât Ion 

Clause  2 

Notwithstanding  Clause  1 C) of  this Agreement  either  Party may  request 
consultations concerning  the operation of  this Agreement  at  any  time. 

jz 

-  17 -

Clause 3. 

GATT obi Igâtions 

The  provisions of  this Agreement  shall  be agreed  without  prejudice  to  the 
rights of  Australia  and  the European  Community  under  GATT. 

This Agreement  shall  enter  into force on  1 January  1989 and  shall  remain  In 
force until  31  December  1992. 

Clause  4 

Within  6 months  prior  to expiration  of  this Agreement,  Its provisions  shall 
be  reviewed. 

Clause 5. 

I have  the  honour  to propose  that,  if the  foregoing  Is acceptable  to your 
Goverment,  this  letter  and  your  confirmatory  reply  shall  together  constitute 
and evidence  an Agreement  between  the European  Economic  Community  and 
Australia  on  the matter. 

Please accept,  Sir,  the assurance of my  highest  consideration. 

For  the CounclI 
of  the European  Communities 

p 

ANNEX 

Price  Surveillance  Procedure 

1.  The  European  Community  will  monitor  the prices  In each Member  State  for 

Imported  frozen  lamb carcasses  from Australia  on  the basis of  the  average 
prices over  each  monthly  period. 

2.  The  relationship  between  the prices  for  Imported  frozen  lamb  carcasses 

from Australia  In each Member  State  and  the market  prices  for  Community 
produced  lamb  In each  such Member  State will  be compared  with  the 
benchmark  level  specified  below  for  each  such Member  State.  If this 
comparison  Indicates  that  the price  relationship  has,  In two  Member 
States  in the same month, moved  below  the benchmark  levels  for  those 
Member  States,  technical  consultations will  take place  at  the  request  of 
either  Party  to determine  factors  causing  the downward  movement. 
factors  that  will  be  taken  Into account  by  the parties  In such 
consultations shall  include  traditional  and  seasonal  price  relationships 
and  fluctuations,  the prices of  cuts, the  Impact  of  prices of  other 
meats, and other  exceptional  factors. 

The 

Member  States  by  region 

Northern  Member  States  (Belgium, 
Denmark,  Federal  Republic  of  Germany, 
France,  Ireland,  Luxembourg, 
Netherlands, United  Kingdom) 

Benchmark  levels  for  the 
relationship  between 
prices of  Imported  frozen 
lamb carcasses  and  prices of 
domestically  produced  lamb. 

55  percent 

Southern  Member  States 
(Greece,  Italy, Portugal,  Spain) 

45  percent 

3.  In the event  that  the  downward  movement  of  the  relationship  between 

prices  for  Australian  frozen  lamb  carcasses  and  Community  produced  lamb 
below  the benchmark  levels  In the particular  Member  States  under 
consideration  and  their  remaining  at  such  low  levels  Is  indicative of a 
problem,  the Parties  shall  consider  any  recommendations  arising  out  of 
the  technical  consultations for  the  resolution  of  the problem.  If  the 
problem  Identified  Is attributable  to  the prices  at  which  Australian 
frozen  lamb carcasses  are being  sold  in those member  states  by  Australian 
exporters  then Australia would  take what  action  is available  to  it to 
restore  the price  relationship  between  frozen  lamb  carcasses  and 
Community  produced  lamb  In those member  states  to the benchmark  levels. 

4.  Should  the Parties  in the  technical  consultations  fail  to  reach  agreement 

on  appropriate measures  to resolve  the problem,  the  Consultative 
Committee  established  under  Clause  10 of  the Principal  Agreement  may  be 
convened  at  a senior  policy  level  at  the  request  of  either  Party  to give 
the matter  urgent  consideration.  If agreement  cannot  be  reached  at 
official  level, the matter  may  be  referred  by either  party  to the  EC 
Commissioner  for  Agriculture and  the Australian Minister  of  ...  for 
resolution. 

À^ 

-  19 -

Australia  and  the European  Community  adopt  as  targets  for  achievement  by 
the end of  1992 an  improvement  In the previously  defined  benchmark  levels 
for  Northern Member  States by 5 percentage  points and  for  Southern  Member 
States by 8 percentage points. 

/ I-D 

-  20  -

B. Letter  N°  2 

Sir, 

I have  the  honour  to acknowledge  receipt  of  your  letter  of  today's  date, 
which  reads  as  follows : 

"I  have  the honour  to refer  to the exchange of  letters of  14 October  1980 
constituting  an Agreement  between  the European  Community  and  Australia 
establishing  provisions  relating  to  Import  of mutton  and  lamb  and  goatmeat 
into  the Community  from Australia  and  to negotiations held  between  our 
respective  delegations  for  the purpose of establishing  temporary  derogations 
from  certain  of  those  provisions  concurrent  with  the  Implementation of 
measures  to stabilise  the  European  Community  sheepmeat  sector  and  to reform 
the European  Community's  Internal  regime  In order  to achieve  a unified 
European  Community  sheepmeat  market.  Accordingly,  they  have  agreed on  the 
following derogations  from  the Principal  Agreement  which  shall  remain  In 
force  for  the duration of  this Agreement. 

A.  Access  and  quantIty 

Clause 1 

In Clause  2 of  the Principal  Agreement,  as modified  by Clause 6 of  the 
Principal  Agreement,  the quantity  of  17.500  t expressed  In carcass  weight 
shall  be deemed  to  Include a maximum  in 1989 of  1.500 metric  tonnes of 
lamb  imported  Into the European  Community  from Australia  In a form  which 
has never  been  frozen, a maximum  of  2.000 metric  tonnes  In 1990, a 
maximum  of  2.500 metric  tonnes  in 1991, and  a maximum  of  3.000 metric 
tonnes  in 1992. 

B.  Tariff 

In Clause  5 of  the Principal  Agreement,  the words  "a maximum  amount  of 
10%,  ad  valorem"  shall  be deemed  to be  replaced  by  the word  "zero". 

C.  Pr Ice survelI lance 

With  a view  to  improved  sheepmeat  prices within  the European  Community, 
prices  for  lamb  imported  from Australia will  be monitored  In accordance 
with  the procedures  contained  In the annex  to  this  Agreement. 

Consultât Ion 

Clause  2 

Notwithstanding  Clause  1 C) of  this Agreement  either  Party may  request 
consultations concerning  the operation of  this Agreement  at  any  time. 

& 

-  21  -

Clause 3. 

GATT obiIgatIons 

The provisions of  this Agreement  shall  be agreed without  prejudice  to the 
rights of Australia  and  the European Community  under  GATT. 

This Agreement  shall  enter  Into force on  1 January  1989 and  shall  remain  In 
force until  31 December  1992. 

Clause  ± 

Within  6 months prior  to expiration of  this Agreement,  its provisions shall 
be  reviewed. 

Clause 5. 

I have  the honour  to propose  that,  If the foregoing  is acceptable  to your 
Goverment,  this  letter  and your  confirmatory  reply  shall  together  constitute 
and evidence an Agreement  between  the European  Economic Community  and 
Australia on  the matter." 

I have the honour  to confirm  the  foregoing  is acceptable  to my Government  and 
that  your  letter  together  with  this reply  shall  constitute  an Agreement  In 
accordance with  your  proposal. 

Please accept, Sir,  the assurance of my  highest  consideration. 

For  the Government 
of Austral la 

A 

ANNEX 

Price Surveillance  Procedure 

1.  The  European  Community  will  monitor  the prices  In each  Member  State  for 

imported  frozen  lamb  carcasses  from  Australia  on  the  basis of  the  average 
prices over  each  monthly  period. 

2.  The  relationship  between  the prices  for  Imported  frozen  lamb  carcasses 

from  Australia  in each  Member  State  and  the market  prices  for  Community 
produced  lamb  in each  such  Member  State  will  be  compared  with  the 
benchmark  level  specified  below  for  each  such  Member  State.  If  this 
comparison  indicates  that  the price  relationship  has,  In two  Member 
States  In the  same month, moved  below  the  benchmark  levels  for  those 
Member  States,  technical  consultations will  take  place  at  the  request  of 
either  Party  to determine  factors  causing  the downward  movement. 
factors  that  will  be  taken  Into account  by  the parties  In such 
consultations  shall  Include  traditional  and  seasonal  price  relationships 
and  fluctuations,  the prices of  cuts, the  Impact  of  prices of  other 
meats,  and  other  exceptional  factors. 

The 

Member  States  by  region 

Northern  Member  States  (Belgium, 
Denmark,  Federal  Republic of  Germany, 
France,  I eland,  Luxembourg, 
Netherlands, United  Kingdom) 

Benchmark  levels  for  the 
relationship  between 
prices of  imported  frozen 
lamb  carcasses  and  prices of 
domestically  produced  lamb. 

55  percent 

Southern  Member  States 
(Greece,  Italy, Portugal,  Spain) 

45  percent 

In the event  that  the  downward  movement  of  the  relationship  between 
prices  for  Australian  frozen  lamb  carcasses  and  Community  produced  lamb 
below  the benchmark  levels  In the particular  Member  States  under 
consideration  and  their  remaining  at  such  low  levels  Is  Indicative  of a 
problem,  the Parties  shall  consider  any  recommendations  arising  out  of 
the  technical  consultations  for  the  resolution  of  the problem.  If  the 
problem  Identified  Is attributable  to  the prices  at  which  Australian 
frozen  lamb  carcasses  are being  sold  In those member  states  by  Australian 
exporters  then  Australia would  take what  action  Is available  to  It  to 
restore  the price  relationship between  frozen  lamb  carcasses  and 
Community  produced  lamb  In those member  states  to  the benchmark  levels. 

Should  the Parties  in the  technical  consultations  fall  to reach  agreement 
on  appropriate measures  to  resolve  the  problem,  the Consultative 
Committee  established  under  Clause  10 of  the  Principal  Agreement  may  be 
convened  at  a senior  policy  level  at  the  request  of  either  Party  to give 
the matter  urgent  consideration.  If agreement  cannot  be  reached  at 
official  level,  the matter  may  be  referred  by  either  party  to  the  EC 
Commissioner  for  Agriculture  and  the Australian Minister  of  ...  for 
résolut ion. 

Al 

-  23 -

5.  Australia  and  the European  Community  adopt  as targets  for  achievement  by 

the end of  1992 an  improvement  In the previously  defined  benchmark  levels 
for Northern Member  States by 5 percentage points and  for Southern Member 
States by 8 percentage points. 

y s 

F I N A N C I AL 

S T A T E M E NT 

1. BUDGET  HEADING 

100 

B»te : 4 October 1989 

APPROPRIATIONS  :  ECU  1 1 5 2 ,8 

(Til I  I i  o|l 

from  199Q draft  budget 

i  TITLE  • Proposal  for a Council  Decision  concerning  adjustments  to the voluntary 

restraint  agreements  for sheepmeat  and goatmeat  concluded  with  Argentina 
and  Australia. 

3. LEGAL BASIS :  Article  113 of the Treaty 

AIMS OF PROJECT; 

import  of the following  quotas of sheepmeat  at a levy of 0%; 

19 000 t from  Argentina 
17 500 t from  Australia 

5.  FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

CURRENT  FINANCIAL  YEAR 
Lsa 

\ 

FOLLOWING  FINANCIAL  YEAR 
I  90 ? 

5.0  EXPENDITURE 

-  Ch.'RGED TO THE EC BUDGET 
H I M!  INTERVENTIONS) 

uuMiummiii 
mini 

5 .1  RECEIPTS 

-  OWN  RESOURCES  OF  THE  EC 
IE  E s U U H I I t ll 

5.3.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED  RECEIFTS 

1 

p.m. 

p.m. 

p.m. 

ECU - 6 million 

ECU  - 5 million 

1°.°.1.... 

1992 

p.m. 

p.m. 

ECU -6 millibn  E CU  _6  m ilLi  on 

5.2 METHOD o< CALCULATION  The average  import  levy on sheepmeat  is ECU 1750 per tonne. 

However, the levy on imports  from  Argentina  and Australia  is restricted  to the 
autonomous  duty  of 10% bound  under  GATT, and is therefore  approximately 
ECU 150 per tonne.  The elimination  of this  duty  would  result  in a loss of reve 
nue  over  12 months of 36.500 t x ECU 150/t-x  1,107 = ECU 6 million 
The  impact  for the 1990 financial  year  is limited  to ECU 5 million. 

6.0  CAN  TH£  M i ll  BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? 

measure 

6.1  CAN  THE  H i ll  BE FINANCED BY TRANSFER  BETWEEN  CHAPTERS OF THE CURRENT BUDGET ? 

measure 

à.2 

j i . _L  „  S ' . O P L E C ' E N T A RY  BUDGET  BE NECESSARY  ? 

6.3  WILL  Fl'L'RE 9UDGET APPROPRIATIONS BE NECESSARY ? 

MS/NO 

M S/NC 

H§'NO 

YESJ 

OBSERVA-ION; : Since no firm  undertaking  on import  prices  was given  in the agreements, 

zero-levy  imports  of meat  may have the effect  of depressing  prices on the 
Community  market  and thus  cause  more  premiums  to be granted;  this in turn 
will  result  in a greater  drain on the Community  budget.  The degree to which 
this  will  happen  is difficult  to predict. 

FICHE  D'IMPACT  SUR  LA  COMPETITIVITE  ET  L'EMPLOI 

Proposition  de décision  du Conseil  concernant 
l'adaptation  des accords d'autolimitation  avec  l'Argentine  et  l'Australie 
dans  le secteur  des viandes ovine  et  caprine. 

Ces projets  d'accords  envisagent  une modification  du  régime à  l'Importation 
actuellement  applicable  dans  le cadre  des  accords  d'autolimitation  conclus 
respectivement  avec  l'Argentine  et  l'Australie dans  le secteur  des  viandes 
ovine et  capr ine. 

Dans  la mesure où  ils prévolent  essentiellement,  d'une  part,  le respect  des 
quantités  réellement  Importées et, d'autre  part,  l'Instauration  d'une 
procédure  de  surveillance des prix  à  l'importation,  ces projets  n'ont 
pratiquement  pas d'Impact  sur  les entreprises.  On  peut  également  considérer 
que  les modifications  proposées  ne  leur  imposeront  pas de  coûts 
supplémentaires. 

^ 

ISSN 0254-1475 

COM(89) 543 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-89-517-EN-C 

ISBN 92-77-54635-2 

Office for Official Publications of the European Communities 
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