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 (Republic of Argentina)
Date: 1996-02-01
Institutions: European Commission
Subjects: Argentina, GATT, agricultural product, tariff negotiations, tariff reduction, trade agreement (EU)

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 01.02 1996 
COM(%)  V)  final 

96/0036  (ACC) 

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 

(Republic  of Argentina) 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

The  Commission  has  now  concluded  negotiations  with  Argentina  under  GATT  Article 
XXIV.6.  The  results  of  the  negotiations  are  contained  in  the  Proposal  for  a  Council 
Decision concerning  the conclusion  of the results of  negotiations with  Argentina under 
GATT  Article XXIV:6 and  other related  matters. 

The  agreement  covers  agricultural  issues  and  includes  commitments  on  tariffs,  tariff 
quotas, export commitments and domestic support.  The  phasing in of the duty reductions 
foreseen  in the  agreement  needs to  be  specified. 

As regards the EC's import regime for cereals, an exchange of letters has been negotiated 
under which  Argentina agrees not to request  GATT consultations  provided the terms of 
the  agreement  are  respected. 

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 

The  Council  of  the European  Union, 

having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  113,  in conjunction  with Article  228 (2), first  sentence thereof, 

having  regard  to the proposal  from  the  Commission, 

whereas  the  Community  has  entered  into  negotiations  under  GATT  Article  XXIV:6; 
whereas these negotiations  have resulted  in an agreement  with  Argentina. 

whereas  the  phasing  in  of  the  duty  reductions  foreseen  in  the  agreement  should  be 
specified, 

whereas  the  Community  has  entered  into  discussions  with  Argentina  relating  to  the 
Community's  import  regime  for  cereals.  Whereas  the  result  of  these  discussions  are 
contained  in an agreement  in the  form  of  an exchange  of letters, 

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

has decided  as follows  : 

Article 1 

1.  The  following  agreements  are hereby  approved  on behalf  of the  Community: 

Agreement for the conclusion of negotiations between Argentina and the European 
Community  under  Article  XXIV:6  of the  GATT  1994 (Annex  I). 

Exchange  of  letters  between  Argentina  and the  European  Community  on  cereals 
(Annex II). 

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  agreements  in order  to bind  the  Community. 

4.  The  phasing  in  of  the  duty  reductions  foreseen  in  the  Agreement  is  laid  down  in 

Annex  III. 

Done at Brussels, 

For the  Council 
The  President 

J 

Annex  I 

AGREEMENT 
FOR  THE  CONCLUSION  OF NEGOTIATIONS  BEI WEEN 
THE  REPUBLIC  OF ARGENTINA  AND THE  EUROPEAN  COMMUNITY 
UNDER  ARTICLE  XXIV:6 

The  Republic  of  Argentina  and the  European  Community, 

desiring to bring their GATT Article XXIV:6 negotiations, following  the enlargement 
of the  European  Community  which  took  place  on  1 January  1995, 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  the  Republic  of  Argentina, 

agree  to the  following  provisions: 

A.  The European Community shall incorporate in its new Schedule CXL, 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) and additions thereto 
as set out  in  document  G/SP/2  (dated  3 August  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 : 

08081093  Fresh Apples  (1/1-31/3)  : 
two additional  steps (10%,  12%) before  the full  tariff  equivalent  is applied 
in the period  15/2-31/3. 

08081099  Fresh  apples  (1/4-31/7) : 
-  reduction  of the final tariff  rate  from  3% to 0%. 
-  one additional step (14%) before the full  tariff  equivalent is applied in the 

period  1/4-30/6. 

-  three  additional  steps  (10%,  12%,  14 %) before  the  full  tariff  equivalent 

is applied  in  the period  1-15/7. 

08082031  Fresh  Pears (1/1-31/3)  : 
reduction  of  the  final  tariff  rate  from  8%  to  5%  for  pears  respecting  the 
entry  price  for  the period  1/2  -  31/3. 

08082033  Fresh  pears (1/4-30/4  and  1-15/7) : 
-  reduction  of the final tariff  rate from  2.5% to  0%. 
-  one additional  step (14%) before the full tariff  equivalent is applied in the 

period  1/4-30/4. 

-  three  additional  steps (10%,  12%,  14 %) before  the  full  tariff  equivalent 

is applied  in the period  1-15/7. 

2 

08053010  Lemons : 
-  four  additional  steps  (10%,  12%,  14  %,  16  %)  before  the  full  tariff 

equivalent  is applied  in  the  period  1/5  - 31/7. 

-  three additional steps (10 %,  12 %,  14 %)  before the full  tariff  equivalent 

is applied  in the period  1 -  15/8. 

Grape juice  and  grape  must.  Tariff  rate  quota  for  14.000 t  (erga  omnes). 
See Annex  1.  This tariff rate quota will apply with effect  from  1 September 
1996  '. 

15081010 Ground-nut oil, crude : reduction of the final tariff rate (3.2%) to 
zero. 

The  Republic  of  Argentina  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. 

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-six. 

this 

day  of 

in the year  one thousand  nine 

For the  Republic  of  Argentina 

For the  Council  of the European  Union 

In accordance with present EC regulations imports for  inward processing will not be 
counted  against  the  TRQ.  Taking  into  account  the  fact  that  in the  past  imports  of 
products  covered  by  the  TRQ  were  sometimes  higher  than  14 000  t  the  European 
Community  is  prepared  to  open  up,  on  an  autonomous  basis,  additional  import 
opportunities  if  it  emerges,  after  assessing 
relevant  data  (domestic  supply  and 
demand  situation including market assessment by operators), that the internal market 
situation  in  the  European  Community  necessitates  additional  import  of  grape juice 
and  grape  must  used  for  the  production  of  grape  juice  and/or  non-wine  sector 
products. 

4-

Tariff quota for grape juice and grape must 

Description of product 

Tariff item 
number 

Initial quota 
quantity and in-quota 
tariff rate 

Final quota 
quantity and in-quota 
tariff rate 

Other terms and 
conditions 

Grape juice (including grape must) : 

14.0001 

14.0001 

- Of a density exceeding 1.33 g/cm3 at 20° C : 
- - Of a value not exceeding 22 ECU per 100 kg 

2009 6011 

net weight 

- - Other 

- Of a density not exceeding 1.33 g/cm3 

at 20° C  : 

- - Of a value exceeding 18 ECU/100 kg net 

46.7 % + 
24.0 ECU/100 kg/net 

The initial in-quota 
tariff rates shall be 
reduced as committed 
in the Uruguay Round 
for out-quota rates 

2009 6019 

46.7 % 

The products imported will be used for 
the production of grape juice and/or 
non-wine sector products such as vinegar, 
non-alcoholic drinks, jams and sauces. 

Qualification for the quota is subject to 
conditions laid down in the relevant 
Commmunity provisions. 

i /i 

weight : 

-  Concentrated 

2009 60 51 

26.1  % 

- - Of a value not exceeding 18 ECU/100 kg 

net weight : 

- - - Other 

2009 60 90 

26.1  % 

Annex  II 

Exchange  of  letters 

I have the honour to confirm the following  understanding reached between the delegations 
of the Republic  of Argentina  and the  European  Community: 

The European Community agrees to make the following  adustment to its import rules for 
"flint  maize"  (within tariff  line  10059000)  from  1 January  to  30 June  1996: 

The  abatement  for  flint  maize  (within  tariff  line  10059000) will  be  increased 
from  8 ECU/tonne  to  14 ECU/tonne. 

Flint  maize will  be certified  by the Instituto  Argentino  de Sanidad  y Calidad Vegetal  as 
being  in conformity  with  the  specifications  for  "maiz Colorado o plata". 

The  two  parties  will  enter  into  consultations  before  1  March  1996  with  a  view  to 
determining whether the level of the abatement is reflecting prevailing market conditions. 

It  is agreed  that  the two parties will  enter  into discussions  in the first half  of  1996 with 
a  view  to  examing  what  measures  might  be  necessary  in  view  of  the  European 
Community commitments, under Schedule LXXX, for subsequent marketing years.  If the 
outcome  of  those  consultations  is mutually  satisfactory,  its results  may  be  implemented 
starting  1 July  1996. 

Subject  to the foregoing  being  implemented,  the  Republic  of Argentina  will  not request 
consultations  under  Article  XXII  or  XXIII  of  the  GATT  1994 on this issue. 

(a 

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fjLs&wzmm 

Hiinex 

in 

Summary  description 
UR Code 

CN Code 
1996 

1 

Fresh apples.  1 April -  31  July 

0808  10 99 

1/4-30/6 
0808  10 61 
63 
69 

1:31/7 
0808  10 71 
73 
79 

Fresh pears.  1 February  - 31  March 

ex 0808 20 31 

ex 0808 20 31 

Fresh^pMrs.  1 -  30 April aM  1 -15 July 

ex 0808 20 33 

0808 20 37 

1 -15/7 
0808 20 47 

Ground  nut oil,  crude 

11508 10 10 

1508  10 10 

Rate of duty to be applied 
in  1996 and in later 
years  indicated 

3' " 

1996 
1997 
1998 
1999 
2000 
2001 

5.0 % 
4.0 % 
3.0 % 
2.0 % 
1.0% 
0.0 % 

1996 
1997 
1998 
1999 
2000 

4.0 % 
3.0 % 
2.0 % 
1.0% 
0.0% 

1996 
1907 
1996 
1999 
2000 
2001 

9.2% 
6.3% 
7.5% 
6.7% 
5.8% 
5.0% 

1996 
1997 
1998 
1999 
2000 
2001 

4.2 % 
3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 

1996 
1997 
1998 
1999 
2000 

3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 

1/1/1996 
1/7/1996 
1/7/1997 
1/7/1998 
1/7/1999 
1/7/2000 

4.2 % 
3.3 % 
2.5 % 
1.7% 
0.8 % 
0.0 % 

1-

FINANCIAL  STATEMENT 

Section  1.  Financial  Implications 

1. 

2. 

3. 

4. 

5. 

6. 

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

Budget  heading: 

(loss of  revenue: not  known) 

Legal  basis: 

Article  113 

Description:  The  application  of  the  Common  External  Tariff  duty  rates  by  the 
three  new Member  States  from  1 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  the  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 revenue: 

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 6 MECU 
in the period  1996 until  final  UR rates  are  reached. 

<* 

ISSN 0254-1475 

COM(96) 39 final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-96-051-EN-C 

ISBN 92-78-00192-9 

Office for Official Publications of the European Communities 

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