Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of Exchanges of letters between the European Community, on the one part, and the Republic of Iceland, the Kingdom of Norway and the Swiss Confederation, on the other part, concerning certain agricultural products
Date: 1995-09-13
Institutions: European Commission
Subjects: Iceland, Norway, Switzerland, agreement (EU), agricultural product, milk product

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  13.09.1995 
COM(95) 426  final 

95/  0230  (ACC) 

Proposal  for a 

COUNCIL DECISION 

on the conclusion  of the Agreements in the form  of Exchanges  of Letters 
between the European Community,  on the one part, and the Republic 
of Iceland, the Kingdom  of Norway  and the  Swiss  Confederation, 
on the other part, concerning  certain agricultural  products 

(presented by the  Commission) 

EXPLANATORY  MEMORANDUM 

1.  Pursuant  to Articles  76,  102 and  128 of the  Act of Accession,  from  1 January  1995 
Austria,  Finland  and  Sweden  are  to  apply  the  provisions  of  the  preferential 
agreements  concluded  by  the  Community  with  certain  third  countries,  in  particular 
Iceland,  Norway  and  Switzerland,  all  the  amendments  required  as  a  result  of 
enlargement  being the  subject  of  additional  protocols to be  negotiated  with  the third 
countries  in  question. 

2.  In accordance with  the directives laid  down  to that end by  the  Council,  negotiations 
have been  conducted  with those three  countries with  a view  to the  adaptation  of the 
preferential  agricultural  agreements  they  have  concluded  with  the  Community. 

The draft  Agreements  in  the form  of Exchanges  of Letters  appended  hereto  contain 
the  outcome  of  those  negotiations. 

3.  The  approach  contemplated  provides  essentially  for: 

the  extension  to  the  enlarged  Community  of  the  bilateral  agricultural 
concessions which  existed  between  the  Community  of  Twelve  and  the three 
third  countries  in  question; 

the  carrying-over,  where possible,  of  the  (preferential)  bilateral  concessions 
which existed prior to enlargement between the three new Member  States and 
those three third  countries, all the bilateral  agreements concluded  previously 
by the new Member  States having  lapsed. 

4. 

In  the  course  of  the  negotiations,  Norway  also  wished  to  take  the  opportunity  to 
regularize the  situation  regarding  its  exports  of  cheese to the  Canary  Islands.  Since 
1 July  1992,  new  import  arrangements  for  cheese  are  applicable  to  the  Canary 
Islands, which  affects  the  traditional  exports  of  cheese  from  Norway  and  calls  for 
adequate  compensation  for  the  latter. 

The solution finally  adopted by common  agreement entails adapting the EC/Norway 
bilateral  agreement  on  trade  in  cheese  to  increase  the  Jmport  quota  into  the 
Community  by  a  total  of  43 tonnes  of  "Jarlsberg"  cheese  representing  on  the  one 
hand compensation for the damage suffered  by Norway  (13  tonnes) and on the  other' 
hand  the carrying-over  of the traditional  quantities  imported  by  the  Canary  Islands. 

It  should,  however,  be  noted  that  this  solution  is  only  valid  if Norway  accepts,  by 
an exchange of letters, to forgo  any subsequent compensation  for cheese not covered 
by the  1986 EC/Norway  agreement concluded  in the wake of the accession  of  Spain 
to the  Community(1). 

(i)  O J N o L 3 2 8,  22.11.1986,  p.76. 

5.  On  19 June, the Council Working Party on EFT A delivered  a favourable  opinion on 
the  approach  followed  and  on the  outcome  of  the  negotiations  with  Norway. 

COUNCIL  DECISION 

of 

on the conclusion  of the Agreements  in the form  of Exchanges  of Letters 
between the European Community,  on the one part, and the Republic 
of Iceland,  the Kingdom  of Norway  and the  Swiss  Confederation, 
on the other part, concerning  certain agricultural  products 

THE COUNCIL  OF THE EUROPEAN UNION, 

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

Having  regard  to  the  Act  of  Accession  of  the  Republic  of  Austria,  the  Republic  of 
Finland and the Kingdom  of  Sweden, 

Having regard to the proposal  from the Commission, 

Whereas  the  Agreements  in  the  form  of  Exchanges  of  Letters  between  the  European 
Community,  on the one part, and the Republic of Iceland,  the Kingdom  of Norway and 
the Swiss Confederation, on the other part, concerning certain agricultural products should 
be approved to take account of the accession of the Republic of Austria, the Republic of 
Finland  and the Kingdom  of  Sweden to the European Union, 

HAS DECIDED  AS FOLLOWS: 

Article 1 

The Agreements in the form of Exchanges of Letters between the European Community, 
on  the  one  part,  and the  Republic  of  Iceland,  the  Kingdom  of  Norway  and the  Swiss 
Confederation,  on  the  other  part,  concerning  certain  agricultural  products  are  hereby 
approved  on behalf of the Community. 

The texts of the Exchanges  of Letters are attached to this Decision. 

Article  2 

Detailed  rules for the  application  of  this Decision  shall  be  adopted  by  the  Commission 
in  accordance with the procedure laid down in Article  30  of  Council  Regulation  (EEC) 
No  804/68  of 27  June  1968 on the common organization of the market in milk and milk 
products(1)  or  the  corresponding  provisions  of  other  regulations  on  the  common 
organization  of the markets. 

Article 3 

(i)  J.O.  nr. L  148,  28.6.1968,  p.  13 

The President of the Council  is hereby authorized to designate the person empowered to 
sign the Agreements referred  to in Article  1 in  order to bind the Community. 

Done  at Brussels, 

For the Council 

The President 

AGREEMENT 

in the  form  of  an Exchange  of Letters  between  the European  Community 
and  the Republic  of  Iceland  concerning  certain  agricultural  products 

Brussels, 

Sir, 

1  have  the  honour  to  refer  to  the  Agreement  in  the  form  of  an Exchange  of  Letters  of 
2 May  1992 between  the European  Community  and the Republic  of Iceland  concerning 
certain agricultural  products and to the negotiations  which have taken  place between  the 
two  parties  with  a  view  to  adapting  the  said  Agreement  and  establishing  trade 
arrangements for certain agricultural products in the spirit of Article  15 of the EC-Iceland 
Free  Trade  Agreement,  consequent  on  the  Accession  of  the  Republic  of  Austria,  the 
Republic  of Finland  and the Kingdom  of  Sweden  to the European  Community. 

I  hereby  confirm  that  the  results  of the negotiations  were as  follows: 

1. 

Iceland  and  the  Community  agree  that,  from  1 January  1995,  the  concessions 
granted  by  the Republic  of Iceland  under the  abovementioned  Exchange  of Letters 
shall  be  extended  to the  enlarged  Community. 

2. 

From  1 January  1995 the Community will  open for  Iceland the annual tariff  quotas 
set out  in  Annex I  hereto. 

3.  The rules of origin for the application  of the quotas referred  to in point  2 above are 

set out in  Annex II  hereto. 

This Exchange of Letters shall be approved by the Contracting Parties in accordance with 
their  normal  procedures. 

I  should be obliged  if you would confirm  your agreement with the contents of this letter. 

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

For the Government of 
the Republic of Iceland 

Brussels, 

Sir, 

1 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 Agreement  in the form  of  an Exchange  of Letters of 
2  May  1992 between the European Community  and the Republic of Iceland concerning 
certain agricultural  products and to the negotiations which have taken place between the 
two  parties  with  a  view  to  adapting  the  said  Agreement  and  establishing  trade 
arrangements for certain agricultural products, in the spirit of Article  15 of the EC-Iceland 
Free  Trade  Agreement,  consequent  on  the  Accession  of  the  Republic  of  Austria,  the 
Republic  of Finland  and the Kingdom  of  Sweden to the European Community. 

I hereby  confirm  that the results of the negotiations were  as follows: 

1. 

Iceland  and  the  Community  agree  that,  from  1 January  1995,  the  concessions 
granted by the Republic of Iceland under the abovementioned Exchange of Letters 
shall  be extended to the enlarged  Community. 

2.  From  1 January  1995 the Community will  open for Iceland the annual tariff quotas 

set out in Annex I hereto. 

3.  The rules of origin for the application of the quotas referred to in point 2 above are 

set out in Annex II hereto. 

This Exchange of Letters shall be approved by the Contracting Parties in accordance with 
their normal procedures. 

I should be obliged if you would confirm your agreement with the contents of this letter." 

I  have the honour to confirm  that the Community  is  in  agreement with the contents  of 
your letter. 

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

On behalf of the Council of the 
European Union 

10 

ANNEX  I 

TARIFF  QUOTAS  GRANTED  BY  THE EUROPEAN  COMMUNITY 
TO  THE REPUBLIC  OF  ICELAND 

CN  CODE 

DESCRIPTION 

QUANTITY 

RATE  OF  DUTY 

0101  19  10 
0101  19 20 

0204 

)  live  horses 
) 

Meat  of  sheep  or 
goats  -  fresh, 
chilled  or  frozen 

)  100  head 
) 

750  t 
carcase 
weight 
equivalent 

)  free 
) 

free 

11 

ANNEX  II 

Rules  of  origin 

The  provisions  of Protocol  3 to the  Agreement  between  the European  Community 
and the Republic of Iceland  concerning the definition  of the concept of  "originating 
products"  and  methods  of  administrative  cooperation  as  last  amended  by  Decision 
No  1/94  of the EC-Iceland  Joint Committee  of 8 March  1994(1), shall  apply  mutatis 
mutandis  to the  products  mentioned  in  Annex  I. 

The specific  rules for the working or processing to be carried out on non-originating 
materials  used  in  the  manufacture  of  the  products  in  question  in  order  that  they 
obtain  originating  status  and  which  are  not  yet  mentioned  in  Annex  II  to  the  said 
Protocol  3  shall  be the  following: 

HS  heading 

Description  of  product 

Working  or  processing 
carried  out  on  non-
originating  materials  that 
confers  originating  status 

(D 

0101 

0204 

(2) 

(3) 

Live  horses 

Meat  of  sheep  or  goats, 
fresh,  chilled  or frozen 

All  the  animals  of 
Chapter  1 used  must  be 
wholly  obtained 

Manufacture  in  which  all 
the  materials  of  Chapter 
2  used  must  be  wholly 
obtained 

(i)  O J N o L 2 0 4,  6.8.1994,  p.62. 

12 

AGREEMENT 

in  the  form  of  an  Exchange  of  Letters  between  the  European  Community  and  the 
Kingdom  of Norway  concerning  certain  agricultural  products 

Exchange  of  letters No 1 

Sir, 

I  have  the  honour  to  refer  to the  Agreements  in  the  form  of  Exchanges  of  Letters  of 
16 April  1973, 14 July  1986 and 2 May  1992 between the European Community and the 
Kingdom  of  Norway  concerning  certain  agricultural  products  and  to  the  negotiations 
which  have  taken  place  between  the  two  parties  with  a  view  to  adapting  the  said 
Exchanges of Letters and establishing trade arrangements for certain agricultural products, 
in the  spirit of  Article  15 of the EC-Norway  Free Trade Agreement,  consequent  on the 
accession  of  the  Republic  of  Austria,  the  Republic  of  Finland  and  the  Kingdom  of 
Sweden to the European Union. 

I hereby  confirm  that the results of the negotiations were  as follows: 

1.  Norway and the Community agree that, from  1 January  1995, the mutual  concessions 
under  the  abovementioned  Exchanges  of  Letters  shall  be  extended  to  the  enlarged 
Community. 

2.  Norway and the Community agree to conclude a new arrangement on their reciprocal 

trade in cheese.  The text of that arrangement is  set out in Annex I hereto. 

3.  From  1 January  1995 the Community will  open for Norway  the annual  tariff quotas 

set out in Annex II hereto. 

4.  From  1 January  1995 Norway  will  open for the Community  the annual tariff  quotas 

set out in Annex IH hereto. 

5.  As regards imports of hay falling within heading  ex  1214.90, Norway undertakes to 
apply its import arrangements on the basis of the principle  "first come, first served". 

6.  The rules  of  origin  for the application  of  the quotas referred  to in points 2,  3 and 4 

above  are set out in Annex IV hereto. 

This Exchange of Letters shall be approved by the Contracting Parties in accordance with 
their normal procedures. 

I should be obliged if you would confirm your agreement with the contents of this letter. 

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

For the Government  of the Kingdom  of Norway 

13 

Sir, 

Brussels, 

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  Agreements  in  the  form  of  Exchanges  of  Letters  of 
16 April  1973, 14 July  1986 and 2 May  1992 between the European  Community  and the 
Kingdom  of  Norway  concerning  certain  agricultural  products  and  to  the  negotiations 
which  have  taken  place  between  the  two  parties  with  a  view  to  adapting  the  said 
Exchanges of Letters and establishing trade arrangements for certain agricultural products, 
in  the  spirit  of  Article  15 of  the EC-Norway  Free  Trade  Agreement,  consequent  on  the 
accession of the Republic of Austria, the Republic of Finland  and the Kingdom of Sweden 
to the European  Union. 

I  hereby  confirm  that  the  results  of the  negotiations  were  as  follows: 

1.  Norway  and the Community  agree that, from  1 January  1995, the mutual  concessions 
under  the  abovementioned  Exchanges  of  Letters  shall  be  extended  to  the  enlarged 
Community. 

2.  Norway  and the Community  agree to conclude a new arrangement  on their reciprocal 

trade  in  cheese.  The text  of that  arrangement  is  set  out  in  Annex  I  hereto. 

3.  From  1 January  1995 the  Community  will  open  for  Norway  the  annual  tariff  quotas 

set  out  in  Annex II  hereto. 

*• 

4.  From  1 January  1995 Norway  will  open for  the  Community  the  annual  tariff  quotas 

set  out  in  Annex  III  hereto. 

5.  As regards imports  of hay  falling within  heading  ex  1214.90, Norway  undertakes  to 
apply  its import  arrangements  on the basis of the principle  "first  come,  first  served". 

6.  The  rules  of  origin  for  the  application  of  the  quotas  referred  to  in  points  2,  3 and  4 

above  are  set  out  in  Annex IV hereto. 

This Exchange of Letters shall be approved by the Contracting Parties in accordance with 
their  normal  procedures. 

I  should be obliged if you would confirm  your agreement with the contents of this letter." 

I  have  the  honour  to  confirm  that  the Community  is  in  agreement  with  the  contents  of 
your  letter. 

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

On behalf of the Council of the 
European  Union 

14 

ANNEX I 

ARRANGEMENT 

between  the European Community  and the Kingdom  of  Norway  concerning 
reciprocal  trade in  cheese 

With the aim of fostering  the harmonious development  of trade in agricultural products and taking  into account  the discussions which have taken place with a view to 
adapting their bilateral agricultural concessions following the accession of Austria, Finland and Sweden to the European Union, the European Community and the Kingdom 
of Norway have agreed to conclude a new arrangement with effect from  1 January  1995 concerning their reciprocal trade in cheese0'.  In view of the common interest of 
the Community and Norway in offering consumers, in addition to home-produced cheese, other types of imported cheese, the provisions of this arrangement read as follows: 

1. 

The import duties on the annual quantities of  cheese set out below may not exceed  the following  levels: 

a) 

On import into the Community  (excluding  Spain and Portugal): 

Cheese  covered  by  CN code  0406,  originating  in Norway  and accompanied  by  an approved  certificate0': 

Annual  quantity 
(tonnes) 

Import  duty  (ECU/100 
kg) 

Jarlsberg,  of  a minimum  fat  content  of  45%  by  weight  in the  dry  matter  and  of  a  dry  matter 
content  by  weight  of  not  less than  56%, matured  for  at  least  3 months: 
whole  cheeses  with  rind0>  weighing  from  8 kg  to  12 kg 
rectangular  blocks  of  a  net  weight  not  exceeding  7 kg(4) 
pieces packed  in vacuum  or  in  inert  gas, of  a net weight  of  not  less than  150 g  but  not 
exceeding  1  kg(4) 

Ridder, of  a minimum  fat  content  of  60%,  by  weight,  in the  dry  matter  and  matured  for  at 
least four  weeks: 

whole  cheeses  with  rind  (3) weighing  from  1 kg  to  2 kg 
pieces packed  in vaccum  or  in  inert gas, with rind  on  at least  one side  (3), of  a  net 
weight  of not  less than  ISO g(4) 

) 
) 
) 
) 
) 
) 
) 2  263 
) 
) 
) 
) 
) 

) 
) 
) 
) 
) 
) 
) 
) 
) 
) 
) 

66,41 

Whey  cheese 

_ 

357 

7,50 

(1)  This  arrangement  is without  prejudice  to  point  3  of  the Exchange  of  Letters 
concerning  reciprocal  trade  in  cheese  signed  on  14 July  1986 between  the 
Community  and Norway  following  the  accession  of  Spain  and  Portugal 
(2)  The  certificate  will  be  issued  by  "Norske Meierier"  (Norwegian  dairies). 

(3) 

The  expression  "whole  cheeses  with  rind"  means  cheeses  of  the  conventional  flat 
cylindrical  shape.  For  the  purposes  of  these  provisions, 
the  rind  is  defined  as 
follows:  the  rind  of  such  cheeses  is the  outer  layer  formed  from  the  cheese  itself, 
having  a distinctly  more  solid  consistency  and  a distinctly  darker  colour. 

The wording  on  the packing  must be  such  as to  enable this  cheese to be  identified 
by  the  consumer. 

15 

b)  on importation into Norway 

-  Cheese of  all  types  and 
varieties,  originating  in  the 
Community 

Annual  quantity  (tonnes) 

Import  duty  (Nkr/kg) 

2  560 

1,20 

2.  Norway will  take the necessary  steps in order to: 

limit  the  issue  of  the  certificates  referred  to  in  1)  a)  to  the  quantities  agreed  in  this 
Arrangement; 

ensure that the autonomous  system  of import licence  allocation will  be managed taking 
into account market requirements and in such a way that imports may take place regularly 
and  that  the  quantities  agreed  for  import  into  Norway  from  the  Community  can 
effectively  be imported. 

3. 

4. 

5. 

6. 

7. 

The Community and Norway will take steps to ensure that the benefits which they grant each 
other will  not be jeopardized by other import measures. 

The  Community  and Norway  undertake,  each  on  its  own  behalf,  to  ensure  that the  prices 
charged  by  their  exporters  are not  such  as to  create  difficulties  on  the  importing  country's 
market. 

They  agree,  in  this  connection,  to  exchange  at  regular  intervals  information  on  price 
quotations and any other useful information concerning the market in domestic and imported 
cheeses. 

If difficulties  arise concerning the prices charged, consultations will be held at the request of 
either party,  as promptly  as possible,  with  a view  to the adoption  of  appropriate  corrective 
measures. 

Consultations  will  be  held  at  the  request  of  either  party  on  any  question  relating  to  the 
operation of this Arrangement. The two parties may, by common accord, alter it by reference 
in particular to the trend in market prices,  production,  marketing  or consumption  of home-
produced  and imported cheeses. 

This  Arrangement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaty 
establishing the European Community is applicable and under the conditions laid down in that 
Treaty  and, on the other hand, to the territory  of  the Kingdom  of Norway. 

This Arrangement shall replace the Arrangement between the European Community  and the 
Kingdom  of Norway  concerning reciprocal  trade in cheese,  signed  on 2 May  1992. 

16 

TARIFF  QUOTAS  GRANTED BY THE EUROPEAN  COMMUNITY  TO THE KINGDOM  OF NORWAY 

ANNEX II 

CN  code 

Description 

Quantity  (tonnes) 

Rate  of duty 

1504  10 10 

1504 20 10 

ex  1516 10  90 

Fish-liver  oils  and their  fractions, 
of a vitamin  A content not 
exceeding  2 500 IU/g 

Solid  fractions  of fats  and oils of 
fish,  other  than  liver  oils 

Animal  fats  and oils and their 
fractions,  wholly  of fish or 
marine  mammals, in bulk 

ex 2309  90 31 

Fish  feed 

103 

384 

5 141 

1 177 

free 

free 

free 

free 

17 

TARIFF  QUOTAS  GRANTED  BY  THE KINGDOM  OF NORWAY  TO  THE EUROPEAN  COMMUNITY 

ANNEX  III 

Norwegian  tariff  position 

Description 

Quantity  (tonnes) 

0407  00  11 
0407  00  19 

0511  99  11 
0511  99  21 

)Birds'  eggs, in  shell,  of the 
)species Gallus  domesticus 

) 

). 

)Powdered  animal  blood 
) 

1209 23  00 

Fescue  seed 

1209 24  00 

Kentucky  blue  grass  seed 

1602 49  10 

Bacon  crisp  (Roasted  puffy  bacon 
rind) 

290 

300 

75 

50 

50 

Rate  of  duty 
(Nkr/kg) 

free 

free 

free 

free 

1,40 

18 

ANNEX IV 

Rules of origin 

The provisions of Protocol  3 to the Agreement between the European Community  and the 
Kingdom of Norway concerning the definition of the concept of "originating products"  and 
methods  of  administrative  cooperation  as  last  amended  by  Decision No  1/94  of  the EC-
Norway Joint Committee of  8 March 1994(1),  shall  apply mutatis mutandis  to the products 
mentioned in Annexes I, II and HI. 

The specific rules for the working or processing to be carried out on non-originating materials 
used in the manufacture of the products in question in order that they obtain originating status 
and which are not yet mentioned in Annex II to the said Protocol  3 shall be the following: 

HS heading 

Description 

0) 
ex 0406 

Cheese 

. 

(2) 

0407 

Birds' eggs, in shell 

ex 0511 

Powdered animal blood 

Working or processing 
carried out on non-
originating materials that 
confers  originating status 

(3) 
Manufacture  in which all 
the materials of 
Chapter 4 used must be 
wholly  obtained 

Manufacture  in which all 
the birds' eggs of 
Chapter 4 used  must be 
wholly  obtained 

Manufacture  in which all 
the materials of 
Chapter 5 used must be 
wholly  obtained 

(i) 

OJ No L 204, 6.8.1994,  p.90. 

19 

ex  1209 

Seeds 

Manufacture  in  which  all 
the  materials  of 
Chapter  12 used  must  be 
wholly  obtained 

ex  1504 

ex  1516 

- Fish-liver  oils and  their  Manufacture  in  which  all 
fractions,  of  a vitamin  A 
content  not  exceeding 
2  500  IU/g 

the  materials  of 
Chapter  3 used  must  be 
wholly  obtained 

-  Solid  fractions  of  fats 
and  oils,  of  fish,  other 
than  liver  oils 

Manufacture  from 
materials  of  any  heading 
including  other  materials 
of  heading No  1504 

Animal  fats  and oils  and  Manufacture  in  which  all 
their  fractions,  obtained 
entirely  from  fish  or 
marine  mammals 

the  materials  of 
Chapters  2  and  3 used 
must be wholly  obtained 

ex  1602 

Bacon  crisp 

Manufacture  from 
animals  of  Chapter  1 

ex 2309 

Fish  feed 

Manufacture  in  which: 

-  all  the  cereals,  sugar  or 
molasses,  meat  or  milk 
used  must  already  be 
originating,  and 

-  all  the materials  of 
Chapter  3 used  must  be 
wholly  obtained 

20 

Exchange  of Letters No  2 

Brussels, 

Sir, 

I have the honour to refer to the Arrangement between the European Community  and the Kingdom 
of Norway on reciprocal trade in cheese and to the negotiations which have taken place with a view 
to  adjusting  that  Arrangement  following  the  accession  of  Austria,  Finland  and  Sweden  to  the 
European Union. 

In this connection,  I confirm  that Norway  accepts the following  undertakings: 

1. 

2. 

Subject to  a  limit  of  200 tonnes  of  cheese,  Norway  forgoes  the  provisions  of  its  letter  of 
11 April  1983  in which it  reserved the right to  restrict imports of  certain  cheeses  from the 
Community. 

Norway  recognizes that the change in import arrangements for cheese in the Canary Islands 
from  1 July  1992, which affected traditional exports from Norway,  has been taken fully  into 
account under the new Arrangement. 

Under these circumstances, Norway forgoes any further compensation for cheeses not covered 
by the Agreement between the Community and Norway of  14 July  1986 concluded following 
the accession  of  Spain to the European Union. 

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

For the Government  of the 
Kingdom  of Norway 

21 

Sir, 

Brussels, 

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 Arrangement between the European Community and the Kingdom 
of Norway on reciprocal trade in cheese and to the negotiations which have taken place with a view 
to  adjusting  that  Arrangement  following  the  accession  of  Austria,  Finland  and  Sweden  to  the 
European Union. 

In this connection,  I confirm  that Norway  accepts the following  undertakings: 

1. 

2. 

Subject  to  a limit  of  200  tonnes  of  cheese,  Norway  forgoes  the  provisions  of  its  letter  of 
11 April  1983  in which  it  reserved  the right to restrict  imports  of  certain  cheeses  from  the 
Community. 

Norway  recognizes that the change in import arrangements for cheese in the Canary  Islands 
from  1 July  1992, which affected  traditional  exports from Norway,  has been taken fully into 
account under the new Arrangement. 

Under these circumstances, Norway forgoes any further compensation for cheeses not covered 
by the Agreement between the Community and Norway of 14 July  1986 concluded following 
the accession  of  Spain to the European Union." 

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

On behalf of the  Council  of 
the European Union 

22 

AGREEMENT 

in the form  of  an Exchange  of Letters between the European Community  and 
the  Swiss  Confederation  concerning  certain  agricultural  and fishery products 

Brussels, 

Sir, 

I  have  the  honour  to  refer  to  the  Exchanges  of  Letters  of  21  July  1972,  5 February  1981  and 
14 July  1986 between the Community  and the Swiss Confederation  and to the negotiations which 
have  taken  place  between  the  parties with  a view  to  adapting  the  said Exchanges  of  Letters and 
establishing  trade arrangements for  certain  agricultural  products,  in the  spirit  of  Article  15  of the 
EC-Switzerland Free Trade Agreement, consequent upon the accession of the Republic of Austria, 
the Republic  of Finland and the Kingdom  of  Sweden to the European Union. 

I hereby  confirm that as a result of those negotiations the Swiss Confederation and the Community 
agree  that  from  1 January  1995  the  reciprocal  concessions  covered  by  the  abovementioned 
Exchanges of Letters and the concessions granted reciprocally  as regards cheeses shall be extended 
to the enlarged  Community. 

This  Exchange  of  Letters  shall  be  approved  by  the  Contracting  Parties  in  accordance  with their 
normal  procedures. 

I  should  be obliged  if you would  confirm  your agreement with the contents  of this letter. 

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

For the Government  of 
the  Swiss  Confederation 

23 

Brussels, 

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  Exchanges  of  Letters  of  21  July  1972,  5 February  1981  and 
14 July  1986 between the Community  and the Swiss  Confederation  and to the negotiations which 
have taken  place between  the parties with  a view  to  adapting the  said Exchanges  of Letters and 
establishing  trade arrangements for  certain agricultural  products,  in the  spirit  of  Article  15 of the 
EC-Switzerland Free Trade Agreement, consequent upon the accession of the Republic of Austria, 
the Republic  of Finland and the Kingdom  of  Sweden to the European Union. 

I hereby confirm that as a result of those negotiations the Swiss Confederation  and the Community 
agree  that  from  1 January  1995  the  reciprocal  concessions  covered  by  the  abovementioned 
Exchanges of Letters and the concessions granted reciprocally as regards cheeses shall be extended 
to the enlarged  Community. 

This  Exchange  of  Letters  shall  be  approved  by  the  Contracting  Parties  in  accordance  with  their 
normal  procedures. 

I  should  be obliged  if you would  confirm  your agreement with the contents  of  this letter." 

I have the honour to confirm that the Community is in agreement with the contents of your letter. 

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

On behalf of the Council 
of the European Union 

24 

FINANCIAL  STATEMENT 

Date:( 

BUDGET  HEADING:  Chapter  10: levies  and premiums 

APPROPRIATIONS:  ECU  946.2 m 

TITLE:  Proposal for a Council  Decision  on the  conclusion  of the  Agreements  in the form  of  Exchanges  of  Letters  between the  European 
Community,  of the one part, and the Republic of  Iceland, the  Kingdom of Norway  and the  Swiss  Confederation,  of the other part, 
concerning  certain agricultural products 

LEGAL  BASIS: Article  113 of the Treaty 

AIMS: To take  account of the trade existing between the three new  Member States before their accession  on the  one  hand and the 
Republic of  Iceland  and the  Kingdom  of Norway  on the other hand (and, as regards the  latter, to take  account of  an additional  quota of 43 
tonnes  of cheese  exported to the  Canary Islands) and to bring into line the conditions  governing trade existing  between the three new 
Member States  and Switzerland  with the  Free Trade  Agreement existing between the  EC and Switzerland. 

FINANCIAL IMPLICATIONS: 

5.0. 

EXPENDITURE 
-  CHARGED TO THE  EC BUDGET 

5.1. 

REVENUE 

(LEVIES/CUSTOMS  DUTIES) 

5.0.1. 
5.1.1. 

ESTIMATED  REVENUE 

5.2. 

METHOD  OF CALCULATION: 

PERIOD OF  12 
MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL  YEAR 
(95) 
(ECU  million) 

FOLLOWING 
FINANCIAL YEAR 
(96) 
(ECU  million) 

p.m. 

p.m. 

p.m. 

1997 
ECU m 

1998 
ECU m 

1999 
ECU m 

2000 
ECU m 

p.m. 

p.m. 

p.m. 

p.m. 

-  As  regards Norway  and Iceland, since the quantities concerned  are particularly small, the  impact on own resources  is limited; 
-  As regards  Switzerland, the new arrangements  do not imply any change  in tariff (import at zero  duty before  and after). 

CAN THE  PROJECT BE FINANCED  FROM  APPROPRIATIONS  ENTERED  IN THE  RELEVANT  CHAPTER  OF THE 
CURRENT  BUDGET? 

CAN THE  PROJECT  BE FINANCED  BY TRANSFER  BETWEEN  CHAPTERS  OF THE  CURRENT  BUDGET? 

WILL  A SUPPLEMENTARY  BUDGET  BE  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE NECESSARY? 

6.0. 

6.1. 

6.2. 

6.3. 

OBSERVATIONS 

25 

ISSN 0254-1475 

COM(95) 426 final 

DOCUMENTS 

EN 

03  1 1-

Catalogue number  : CB-CO-95-465-EN-C 

ISBN 92-77-93347-X 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg