Proposal for a COUNCIL DECISION Concerning the conclusion of the results of negotiations with certain third countries under GATT Article XXIV: 6 and other related matters
Date: 1995-12-15
Institutions: European Commission
Subjects: GATT, agreement (EU), agricultural product, tariff quota, third country

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  15.12.1995 
COM(95) 736 final 

95/ 0354 (ACC) 

Proposal  for a 

COUNCIL DECISION 

Concerning the con elusion of the results of negotiations with certain third countries 
under GATT Article XXIV:6 and other related matters 

(presented  by  the  Commission) 

PROPOSAL  FOR  A COUNCIL  DECISION 

The  Commission  has  now  concluded  negotiations  with  Australia,  Chile,  Japan,  New 
Zealand  and  Thailand.  The  results  of  the  negotiations  are  contained  in  the  Proposal 
lor  a Council  Decision  concerning  the  conclusion  ol  the  rcsulls  of  negotiations  with 
certain  third  countries  under  (ïA'IT  Article  XXIV:6 and  other  related  matters 

The  agreements  essentially  cover  agricultural  issues  and  include  commitments  on 
tariffs,  tariffs  quotas, export  cornmitments  and  domestic  support 

1 

ial  for  a  Councji 

Concerning  the  conclusion  of  the  results  of  negotiations  with  certain  tliiMçmjJlloes 
under  G A IT  Article  XX1V:6  and  other  related  matters 

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  proposal  from  the  Commission, 

whereas  the  Community  has  entered  into  negotiations  under  GAIT  Article  XXIV:6; 
whereas these  negotiations  have  resulted  in agreements  with  Australia, Chile, Japan,  New 
Zealand  and  Thailand, 

whereas  it  was  also  in  the  interest  of  the  Community  to  resolve  certain  other  outstanding 
issues  in the agricultural  sector  with  the  parties  concerned, 

whereas  it  is in the  interest  of the Community  to approve  these  agreements, 

has decided  as  follows  : 

Article \ 

1.  Agreements  for  the  conclusion  of  negotiations  between  Australia,  Chile,  Japan,  New 
Zealand  and  Thailand  and  the  European  Community  under  Article  XXIV:6  of  the 
GATT  1994, as well  as  Exchanges  of  Letters  where  relevant,  are  hereby  approved  on 
behalf of the  Community, 

2.  The texts of the agreements  referred  to  in this Article are attached  to this  Decision. 

3.  The President  of  the Council  is hereby  authorised  to designate  the  person  empowered 

to sign  the agreement  in order  to bind  the  Community. 

Done at  Brussels, 

For the  Council 
The  President 

i 

AGREEMENT 
•OR  TUT; CONCLUSION OI;  NEGOTIATIONS BETWEEN 
AUSTRALIA  AND THE EUROPEAN  COMMUNITY 
UNDER  ARTICLE  XXIV.6 

Australia  and  the  European  Community, 

desiring  to  bring  their'GATT  Article  XXI V:6  negotiations  to  conclusion  on  the  basis 
of a reasonable  and  mutually  satisfactory  compromise, and 

further  desiring  to  strengthen  the  close  partnership  in  commercial  and  economic 
matters  between  the  European  Community  and  Australia, 

agree  to the  following  provisions : 

A.  The  European  Community  shall  incorporate  in  its  new  Schedule  CLX,  for  the 
customs  territory  of  the  EC-15,  the  concessions  that  were  included  in  the  previous 
Schedule  LXXX  as  modified  by  the  European  Community  Schedule  annexed  to  the 
Marrakech  Protocol  to the General  Agreement,  1994 (dated  15 April  1994). 

B.  To  settle  the current  GATT  Article  XXIV.6  negotiations  on  agriculture  the  following 
has  been  agreed  and  as  regards  the  tariff  rate  quotas  will  apply  with  effect  from  1 
January  1996 : 

-  Add  2.000  tons to the allocation  for  Australia  under the  EC tariff  rate quota  for 

"high quality"  beef. 

-  Add  1.150 tons to the allocation  for  Australia  under  the EC tariff  rate quota  for 

sheepmeat. 

-  Add  750 tons to the allocation  for  Australia  under  the  EC tariff  rate quota  for 

cheddar. 

-  Tariff  rate quota  63.000  tons of  "semi-milled  and  wholly  milled  rice" 

10 06  3000 at 0  Ecu/t (erga omnes)."> 

-  Tariff  rate quota  20.000  tons of  "husked  (brown)  rice" 

10 06 2055 at  88 Ecu/t (erga omnes). ID 

-  Tari ÇÇ rate quota 21.000 tons of  oats 
10 04 0050  at  89 Ecu/t (erga  omnes). 

11 ) The  management  of  this quota  will  include  allocation  to traditional  suppliers. 

A 

The  Australian  Government  accepts  the  basic  components  ol  the  European  Community's 
approach  lo adjusting  the  (JATT  obligations  of  EC  12 and  those  of  Austria,  Sweden  and 
T inland,  following  the  recent  enlargement  of Ihc Community 

-  netting out  ol  export  commitments 
-  netting out  of tariff  quotas 
-  aggregation  of domestic  support  commitments. 

The appropriate  legal  modalities  of  implementation  remain  to be agreed. 

C.  final  provisions: 

This Agreement  shall  enter  into  force  on  the date of signature. 

Consultations  will  be  held  with  regard  to  the  matters  in this  Agreement  at  any  time  at 
the request  of either  party. 

Signed  at 
hundred  and  ninety-five. 

this 

day  of  December  in  the  year  one  thousand  nine 

For  Australia 

Tor the Council  of the  European  Union 

^ 

Exchange  of  letter; 
format  : I wo duplicate  letters 

Dear 

lo  confirm 
I  have  the  honour 
delegations  of Australia  and  the  European  Community. 

the  following  understanding  reached  between 

the 

To  settle  the  current  WTC)  Article  XXIV.6  negotiations  on  agriculture  the 
following  has  been  agreed  and  as  regards  the  tariff  rate  quotas  will  apply  with 
effect  from  I January  1996 : 

Add  2.000  tons  to  the  allocation  for  Australia  under  the  EC  tariff  rate 
quota  for  "high quality"  beef. 

Add  1.150  tons  to  the  allocation  for  Australia  under  the  EC  tariff  rate 
quota  for  shcepmeat. 

Add  750  tons  to the  allocation  for  Australia  under  the  EC  tariff  rate  quota 
for  cheddar. 

Tariff  rate quota  63.000  tons of "semi-milled  and  wholly  milled  rice" 
10 06 3000 at 0 Ecu/t (erga  omnes).') 

Tariff  rate quota  20.000  tons of "husked  (brown) rice" 
10 06 2055  at 88 Ecu/t  (erga omnes).1» 

Tariff  rate quota  21.000 tons of oats 
10 04 0050  at 89 Ecu/t (erga  omnes). 

The  Australian  Government  accepts  the  basic  components  of  the  European 
Community's  approach  to adjusting  the  GATT  obligations  of  EC  12 and  those  of 
Austria,  Sweden  and  Tinland, 
the 
following 
Community. 

recent  enlargement  of 

the 

netting out of export  commitments 
netting out of tariff  quotas 
aggregation  of domestic  support  commitments. 

The appropriate  legal  modalities  of implementation  remain  to be agreed. 

Australia  and  the  European  Community  agree  to  review  in  the  first  quarter  of 
1996  the  particular  functioning  of  the  "representative  price"  system  for  cereals  as 
it affects  Australian  exports of  high quality  wheat to the  EC. 

'»  The  management  of this quota  will  include  allocation  to traditional  suppliers. 

G> 

3. 

Wine. 

A i j s t ra. lianj J.api taUIiiy  S1 IP wA wax\b 

Both  sides agreed  that: 

the  Australian  Wine  Show  Awards  by  publishing 

the  EC  recognizes,  in accordance  with  Article  15 of  Regulation  (EEC)  No 
3201/90, 
the 
organisations  in  question  in  the  "C"  series  of  the  Official  Journal  of  the 
EC.  This  recognition  excludes  any  use  of  Community  names,  protected 
by  virtue  of  the  EC/Australia  Wine  Agreement,  as  class  descriptors  of  the 
awards; 

Australia  shall  ensure  that  the  show  organisers  will  amend  their  rules  so 
that  where  a class  description  consisting  of  or  containing  a  name  listed  in 
Article  8 of  the  Wine  Agreement,  i.e.  "Sherry  class",  "Port  class",  is  used 
to  describe  and/or  present  wines,  including  advertising,  no  reference  shall 
be  made  to  the  fact  that  the  award  concerned  has  been  recognised  by  the 
European  Community. 

Other  pending  issues  should  be  addressed  and  resolved  in  the  framework  of  the 
Wine Agreement  without  delay. 

I have  the  honour  to propose  that  this  letter and  your  letter  in  reply  will  constitute 
an agreement  between  our two authorities. 

7 

Side  letter  : EC,  Australia 

The European  Community  confirms  that  it does  not  intend  to include  in  its  new  schedule 
live  horses  or  shccpmcat  as  products  that  can  benefit  from  export  subsidies  listed  in  the 
Agreement  on  Agriculture. 

in  the  first  quarter  of  1996, 
The  European  Community  and  Australia  will  resume, 
discussions  on  outstanding  issues  under  the  Wine  Agreement,  and  will  work  to  resolve 
these  issues as quickly  as  possible. 

The management  of  the  IRQ  for  63.000  tons of  milled  rice and  the  TRO  lor  20.000  tons 
of  husked  (brown)  rice  will  include  allocation  lo  traditional  suppliers  based  on  their 
exports to Austria,  Sweden  and  Tinland. 

The specifications  for  the TRQ  for  21.000 tons of milling oats are as  follows  : 

a  minimum  test  weight  of 55 kg per  hectolitre 
a maximum  moisture  level  of  12 percent 
a maximum  admixture  (EG  foreign  seeds) of 2 percent. 

5 

AGREEMENT 
TOR  m i;  C O N C L U S I ON  Ol-  NT:GO H  A TioNs  BT:TWT:I.N 
CHILE  AND  TUT; EUROPEAN  COMMUNITY 
UNDER  ARTICLE  XXIV:6 

Chile  and  the  European  Community, 

desiring  to  bring  their  Ci ATT  Article  XXI V:6  negotiations  to conclusion  on  the  basis 
of a reasonable  and  mutually  satisfactory  compromise, and 

further  desiring  to  strengthen  the  close  partnership  in  commercial  and  economic 
matters  between  the  European  Community  and  Chile, 

agree  to the  lollowing  provisions: 

A.  The  European  Community  shall  incorporate  in  its  new  Schedule  CLX,  for  the 
customs  territory  of  the  EC-15,  the  concessions  that  were  included  in  the  previous 
Schedule  LXXX  as  modified  by  the  European  Community  Schedule  annexed  to  the 
Marrakech  Protocol  to the General  Agreement,  1994 (dated  15 April  1994). 

B.  To settle  the current  GATT  Article  XXIV:6  negotiations  on  agriculture  the  following 

has been  agreed  and  will  apply  with effect  from  1  January  1996: 

- 

- 

- 

- 

08081099  Fresh  apples (1/4-31/7):  reduction  of  the  final  tariff  rate  by  50%  (from 
3%  to  1.5%). 

08082033  Fresh  pears  (1/4-30/4  and  1-15/7):  reduction  of  the  final  tariff  rate  by 
50% (from  2.5% to  1.3%). 

08133000  Dried  apples:  reduction  of  the  final  tariff  rate  by  50%  (from  6.4%  to 
3.2%). 

08134092 Other dried  fruit:  reduction  of the  final  tariff  rate by  50% ( from  4.8% to 
2.4%). 

-  Add  1.510  tons  to  the  allocation  for  Chile  under  the  EC  tariff  rate  quota  for 

sheepmeat. 

Chile  accepts  the  basic  components  of  the  European  Community's  approach  to 
adjusting  the  obligations  of  the  EC  of  12 and  those  of  Austria,  Finland  and  Sweden 
following  the recent  enlargement  of the  Community: 

netting out of export  commitments 

-  netting  out of tariff  quotas 
- 

aggregation  of domestic  support  commitments. 

'The appropriate  legal  modalities of  implementation  remain  to be agreed. 

°f 

( '.  The following  has also  been  agreed  : 

2 Ml  20 00  Tishmeal  : reduction  in the tariff  rale to zero 

D.  final  provisions: 

This Agreement  shall  enter  into  force  on  the date of signature 

Consultations  will  be  held  with  regard  to the  matters  in  this  Agreement  al  any  time at 
the request  ol  either  party. 

Signed  at 
hundred  and  ninety-five. 

this 

day  of  December  in  the  year  one  thousand  nine 

ror  Chile 

For the Council  of the  European  Union 

^> 

NEGOTIATIONS  BETWEEN 
JAPAN AND THE EUROPEAN  COMMUNITY 
UNDER  ARTICLE  XXIV:6 

The delegations of Japan  and  the  European  Community, 

desiring  to  bring  their  GA I " r a d i c le  XXIV:6  negotiations  to conclusion  on  the  basis 
of a reasonable  and  mutually  satisfactory  compromise, and 

further  desiring  to  strengthen  the  close  partnership  in  commercial  and  economic 
matters  between  the  European  Community  and  Japan, 

have achieved  a solution  as described  below : 

I.  Market  access  concessions: 

A.  The  European  Community  shall  incorporate  in  its  new  Schedule  CLX,  for  the 
customs  territory  of  the  EC-15,  the  concessions  that  were  included  in  the  previous 
Schedule  LXXX  as  modified  by  the  European  Community  Schedule  annexed  to  the 
Marrakech  Protocol  to the General  Agreement,  1994 (dated  15 April  1994). 

B.  As  provided  in  Annex  A  to  this  Agreement,  the  European  Community  shall  reduce 
and  bind  tariffs  effective  I  January  1996  except  as  noted,  shall  open  tariff  quotas  as 
indicated, and  shall  accelerate  the staging of Uruguay  Round  tariff  concessions. 

C.  Improvements  granted  to  third  countries  in  European  Community  Article  XXIV.6 

negotiations  shall  also be applied  to Japan. 

II.  Agriculture: 

A.  The  basic  components  of  the  European  Community's  approach  to  adjusting 

the 
obligations  of  the  EC  of  12 and  those  of  Austria,  Finland  and  Sweden  following  the 
recent enlargement  of the Community  will be as follows  : 

-  netting out of export  commitments 
-  netting out of tariff  quotas 
-  aggregation  of domestic  support  commitments. 

The appropriate  legal  modalities of  implementation  remain  to be agreed. 

^ 

B.  The  following  tariff  reduction  will  lake effect  from  I January  1996 

1209 91 90  :  Other  vegetable  seeds (other  than  Kohlrabi). 

Reduction  in the duly  rate  from  4% to 3%. 

Signed  at 
hundred  and  ninety-five. 

this 

"y,, 

day  ol  December  in  the  year  one  thousand  nine 

For the  Delegation  ol  Japan 

Tor the  Delegation  ol  the  European  Community 

^2 

ANMLXA 

1. 

2. 

a) 

b) 

c) 

"Ihe European Community  will  accelerate the Uruguay  Round  reductions  due to take 
place in  1997 10 I si January  1996 for all non-agricultural products (fish and industrial) 
except  lor  those  which  are  separately  listed  in  Annex  I  lo  111 to  the  Council 
Regulation providing!^ the implementation of tariff reductions resulting from Article 
XXI V:6  negotiations following the accession  of Austria,  Finland  and  Sweden. 

Ihe reductions  listed  in Annex I to HI will be implemented  in the  following  manner: 

From  1 January  1996 the conventional  rales of duty  for  the products  listed  in  Annex 
1 shall  he those  indicated  in column  3 of that  Annex 

From  1 January  1996 the autonomous and conventional  rates of duty for the products 
listed  in  Annex  II shall  he those  indicated  in column  3 and column 4 respectively  of 
dial  Annex. 

For  the  products  listed  in  Section  1 of  Annex  HI  the  conventional  rates  of  duty 
applicable  on  1 January  1996 shall  be those indicated  in column 3. 

For the products  listed  in Section  2 of Annex III the conventional  rates of duty  shall 
he progressively  reduced  in accordance with the timetable contained  in column  3. 

For the products  listed  in Section 3 of Annex III and within the limit of the quantities 
indicated  in  column  3, the conventional  rates  of duty  applicable  on  1 January  1996 
shall  be those  indicated  in column 4. 

<<n 

AGREEMENT 
FOR THE CONCLUSION  OF NEGOTIATIONS  BETWEEN 
NEW ZEALAND  AND THE EUROPEAN COMMUNITY 
UNDER  ARTICLE  XXIV6 

New Zealand and the European Community, 

desiring to bring their GATT Article XXIV:6 negotiations to conclusion on the basis 
of a reasonable and mutually  satisfactory  compromise, and 

further  desiring  to  strengthen  the  close  partnership  in  commercial  and  economic 
matters between the European Community  and New Zealand, 

agree to the following  provisions: 

A.  The European Community shall incorporate in its new Schedule CLX, for the customs 
territory  of the EC-15,  the concessions that were included in the previous Schedule 
LXXX as modified by the European Community  Schedule annexed to the Marrakech 
Protocol  to the General  Agreement,  1994 (dated  15 April  1994). 

B.  To settle the current GATT Article XXIV.6 negotiations on agriculture the following 
has been  agreed and as regards the tariff  rate quotas will  apply  with effect  from 1 
January  1996 : 

-  Add  1.700 tons to the allocation  for New Zealand under the EC tariff rate quota 

for sheepmeat 

-  Add  1.000 tons to the allocation for  New Zealand under the EC tariff rate quota 

for cheese for processing. 

-  Add 500 tons to the allocation for Mew Zealand under the EC tariff rate quota for 

cheddar. 

-  Tariff rate quota 300 tons of high quality beef at 20% (to be defined). 

-  ex  0810 90  10 Kiwifruit,  15 May -  15 November : 

reduction  of  the final tariff  rate from  8 8% to 8.0%. 

-  reduction by 0.8  percentage points of the tariff  rate at each  stage prior to the 

final  tariff  rate.  The first such reduction  shall  apply  from  15 May 1996. 

-  New  Zealand  accepts  the  basic  components  of  the  European  Community's 
approach  to  adjusting  the  GATT  obligations  of  EC  12  and  those  of  Austria, 
Sweden and Finland, following  the recent enlargement of the Community: 

-  netting out of export commitments 
-  netting out of tariff quotas 
-  aggregation  of domestic  support commitments. 

The appropriate legal  modalities of implementation  remain to be agreed. 

^4 

( '.  The  lollowing  has also  been  agreed  : 

ex  03  04  20  W> fro/en  fillets  of  fish  of  the  species  smooth  oreo  dory  and  black 

oreodory  (( )reosomatidae) 

Tariff  quota  of  200  tonnes  at zero  duty. 

I) 

final  provisions: 

I his Agreement  shall  enter  into  force  on  the date of signature. 

Consultations  will  be  held  with  regard  to the  matters  in this  Agreement  at  any  time  at 
the  request  of either  party. 

Signed  at 
hundred  and  ninety-live. 

this 

day  of  December  in  the  year  one  thousand  nine 

For  New  Zealand 

For  the Council  of the  European  Union 

-7f 

AGREEMENT 
FOR  I Hi; CONCLUSION  Ol-  NEGOTIATIONS  HI  I WEI N 
1 HI-  KINGDOM  Ol; THAILAND  AND T i l l;  EUROPEAN COMMUNII Y 
UNDER  ARTICLE  XXIV.6 

The  Kingdom  of Thailand  and  the  European  Community, 

desiring  to  bring  their  GATT  Article  XXI V:6  negotiations  to conclusion  on  the  basis 
of a reasonable  and  mutually  satisfactory  compromise, and 

further  desiring  lo  strengthen  the  close  partnership  in  commercial  and  economic 
matters  between  the  European  Community  and  Thailand, 

agree  lo the  following  provisions: 

A.  The  European  Community  shall  incorporate  in  its  new  Schedule  CLX,  lor  the 
customs  territory  of  the  EC-15,  the  concessions  that  were  included  in  the  previous 
Schedule  LXXX  as  modified  by  the  European  Community  Schedule  annexed  to  the 
Marrakech  Protocol  to the General  Agreement,  1994 (dated  15 April  1994). 

IL  To settle  the current  G A IT  Article  XXIV:6 negotiations  on agriculture  the  following 

has been agreed  : 

-  Bound  tariff  rate quota 63.000 t. of semi  milled  and  wholly  milled  rice 

10 06 30 00 at zero duty  (erga omnes)  with  effect  form  1  Janaury  1996. 

-  Bound  tariff  rale quota  20.000 t. of "husked  (brown)  rice" 

10 06 20 55 at  88  Ecu/t. (erga omnes)  with effect  from  1  January  1996. 

the  European 
The  Kingdom  of  Thailand  accepts 
Community's  approach  to  adjusting  the  obligations  of  the  EC  of  12  and  those  of 
Austria,  Finland  and  Sweden  following  the recent  enlargement  ol  the  Community: 

the  basic  components  of 

-  netting out  of export  commitments 
-  netting out  of tariff  quotas 
-  aggregation  of domestic  support  commitments. 

The appropriate  legal  modalities of  implementation  remain  to be agreed. 

/)(s 

t  .  Final  provisions : 

I his Agreement  shall enter  into  force  on  the date of signature. 

Consultations  will  be  held  with  regard  to the  matters  in this  Agreement  at  any  time at 
the  request  of either  party. 

Signed  at 
hundred  and  ninety-live. 

this 

o- 

day  of  December  in  the  year  one  thousand  nine 

For the  Kingdom  of  Thailand 

For  the Council  of  the  European  Union 

J 

Technical  Annex 

The  basis of  the  understandings  arrived  al are  listed  below: 

•  Milled  or semi-milled  rice (1006 30 00) 

IRQ  63,000  I. (Thailand  19,505 l.  » 10%) 

•  Husked  rice (1006 20  55) 

IRQ  20,000  t. (Thailand  1,647  t.  < 10%) 

To  the  extent  that  the  Kingdom  of  Thailand  is  a  beneficiary  under  each  of  the  TRQ's 
above,  the  European  Community  import  licences  will  be  issued  automatically  within  the 
agreed  limits on  the  basis of export  certilicates  issued  by  the Government  of  Thailand. 

/ 

FINANCIAL STATEMENT 

Section  I. 

Financial  Implications 

1. 

Proposal  for  a Council  Regulation  providing  for  offers  of compensation  made in 
the Article XXI V:6 Negotiations to be implemented  from  1  January  1996. 

2. 

3. 

4. 

5. 

6. 

Budget heading: 

(loss of revenue: not known). 

Legal basis: 

Article  113 and 28 

Description:  The application  of  the  Common  External  Tariff  duty  rates  by  the 
three  new  Member  States  from  I  January  1995  has  resulted  in  increases  in  duty 
payments on imports from  third countries beyond  levels previously  in force. 

The  proposed  regulation  is  intended  to  implement  Ihc compensation  offered  for 
the adverse effects  experienced by third countries as a result of changed duty rates 
in the three new Member States. 

Type of re venue: 

Loss of revenue for duties paid on third country imports. 

Change in level of revenue: 

It is estimated  that the maximum  loss of revenue will be in the order of 20 MECU 
in  the  period  1996  until  final  UR  rates  are  reached.  This  figure  is  adjusted  in 
order  to  take  into  account  the  fact  that  no  revenue  loss  occurs  1 ) where  imports 
enter al lower duty rales applied  under GSP; and, 2) where imports enter  duty-free 
under already established temporary suspensions. 

PM.  Sections 2 and 3 do not seem applicable. 

h 

ISSN 0254-1475 

COM(95) 736 final 

DOCUMENTS 

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11 

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ISBN 92-77-98735-9 

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