Proposal for a Council Decision concerning the conclusion of an Agreement in the form of an Exchange of Letters between the European Community, of the one part, and the Swiss Confederation, of the other part, on Protocol 2 to the Agreement between the European Economic Community and the Swiss Confederation
Date: 1999-12-20
Institutions: European Commission
Subjects: Switzerland, agricultural product, free movement of goods, import

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.12.1999
COM(1999) 707 final

1999/0282(ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community, of the one part, and the Swiss Confederation, of the
other part, on Protocol 2 to the Agreement between the European Economic
Community and the Swiss Confederation

(presented by the Commission)

EXPLANATORY MEMORANDUM

The trading arrangement applicable to processed agricultural products between the European
Community and the Swiss Confederation is governed by Protocol 2 to the bilateral free trade
agreement.

Following problems reported by France regarding the import of soft drinks from Switzerland,
the Commission began consultations with Switzerland in order to find a solution acceptable to
both parties. These consultations resulted in a compromise with a solution for the soft drinks
problem and reciprocal improvement of the quotas opened by the two parties following the
accession of Austria, Finland and Sweden.

This proposal reflects the above objectives. It
Decision.

is proposed that

the Council adopt

this

2

1999/0282(ACC)

Proposal for a

COUNCIL DECISION

concerning the conclusion of an Agreement in the form of an Exchange of Letters
between the European Community, of the one part, and the Swiss Confederation, of the
other part, on Protocol 2 to the Agreement between the European Economic
Community and the Swiss Confederation

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 in conjunction with the first sentence of Article 300(2) thereof,

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

An agreement in the form of an exchange of letters between the European Community,
of the one part, and the Swiss Confederation, of the other part, concerning certain
processed agricultural products covered by Protocol 2 to the Agreement between the
European Economic Community and the Swiss Confederation,2 has been negotiated
on a reciprocal basis in order to improve the trading arrangements and solve certain
related problems.

implementing this Decision are management
Since the measures necessary for
measures within the meaning of Article 2 of Council Decision 1999/468/EEC of
28 June 1999 laying down the procedures for the exercise of implementing powers
conferred on the Commission,3 they should be adopted by the management procedure
laid down in Article 4 of that Decision.

(3)

The Agreement should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an Exchange of Letters between the European Community, of
the one part, and the Swiss Confederation, of the other part, concerning Protocol to the
Agreement between the European Economic Community and the Swiss Confederation is
hereby approved on behalf of the Community.

1

2

3

OJ L …, …, p. …
OJ L 300, 31.12.1972, p. 189
OJ L 184, 17.7.1999, p. 23.

3

The text of the Agreement is attached to this Decision.

Article 2

Rules for the application of this Decision shall be adopted by the Commission, in accordance
with the procedure referred to in Article 3(2) of this Decision.

Article 3

1.

2.

3.

The Commission shall be assisted by the management committee on horizontal
questions concerning trade in processed agricultural products not listed in Annex II
referred to in Article 15 of Council Regulation (EC) No 3448/93.(4)

Where reference is made to this Article, the management procedure laid down in
Article 4 of Decision 1999/468/EC shall apply, in accordance with the provisions of
Article 7(3) thereof.

The period provided for in Article 4(3) of Decision 1999/468/EC shall be set at one
month.

The President of the Council is hereby authorised to designate the person in power to sign the
Agreement referred to in Article 1 in order to bind the Community.

Article 4

Article 5

This Decision shall enter into force on [date to be determined].

Done at Brussels,

For the Council
The President

4

OJ L 318, 20.12.1993, p. 18. Regulation last amended by Regulation (EC) No 2491/98 (OJ L 309,
19.11.1998, p. 28).

4

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community, of the one part, and the Swiss Confederation, of the other
part, concerning Protocol 2 of the Agreement between the European Economic Community
and the Swiss Confederation.

A. Letter from the Community

Brussels,

Sir,

I have the honour to confirm that the European Community is in agreement with the "agreed
minutes" attached to this letter concerning a number of changes to the import arrangements
applied by the Community and the Swiss Confederation respectively to processed agricultural
products, certain of which are covered by Protocol 2 to the 1972 free trade agreement. These
changes precede an overall revision of Protocol 2 to be initiated shortly.

I should be obliged if you would confirm that the Government of the Swiss Confederation is
in agreement with the content of this letter.

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

For the European Community

B. Letter from Switzerland

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 confirm that the European Community is in agreement with the "agreed
minutes" attached to this letter concerning a number of changes to the import arrangements
applied by the Community and the Swiss Confederation respectively to processed agricultural
products, certain of which are covered by Protocol 2 of the 1972 free trade agreement. These
changes precede an overall revision of Protocol 2 to be initiated shortly."

I have the honour to confirm that my Government is in agreement with the content of your
letter and the proposed date of entry into force of the amendments.

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

For the Government of the Swiss Confederation

5

Agreed minutes

I – Introduction

A number of meetings were held between European Commission officials and officials of the
Swiss Confederation following a significant
lemonade from
Switzerland into the European Community.

increase in exports of

After these meetings, it was agreed to submit for approval to their respective authorities a
number of changes to the import arrangements applied by the Community and the Swiss
Confederation respectively to processed agricultural products, certain of which are covered by
Protocol 2 to the 1972 free trade agreement.

These changes will enter into force on [date to be determined]. As far as Switzerland is
concerned, pending internal procedures for the ratification of this agreement, it will be applied
provisionally from [same date as above].

As regards soft drinks, the two parties may decide, before the end of the second year
following the entry into force of this agreement, to extend the measures laid down therein on
the basis of the provisions of the free trade agreement.

II – Swiss import arrangements

1.

The Swiss Confederation will open the following annual tariff quotas for the European
Community:

Swiss tariff
codes

Description

Quotas

Applicable
rate of duty

0505 10 90 Feathers of a kind used for stuffing and down, other

12 tonnes

Exempt

than raw, washed.

2202 10 00 Waters, including mineral waters and aerated waters,
containing added sugar or other sweetening matter or
flavoured.

2202 90 90 Other non-alcoholic beverages.

35 million
litres

13 millions
litres

Exempt

Exempt

2402 20 20 Cigarettes containing tobacco, with a maximum unit

242 tonnes

Exempt

weight of 1.35 g.

2403 10 00 Smoking tobacco, whether or not containing tobacco

99 tonnes

Exempt

substitutes in any proportion.

2.

The following year, the quotas will be increased by 10%.

6

III – Community import arrangements

1.

The Community will open the following annual quotas for Switzerland:

CN Code

Description

Quotas

Applicable
rate of duty

1302 20 10 Pectic substances, pectinates and pectates: dry

605 tonnes

Exempt

2101 11 11 Extracts,

essences

a
coffee-based dry matter content of 95% or more by
weight

concentrates with

and

1 870 tonnes

Exempt

2101 20 20 Extracts, essences and concentrates of tea or maté

132 tonnes

Exempt

2106 90 92 Food preparations/other containing no milk fats,
sucrose,
or
containing, by weight, less than 1.5% milk fat, 5%
sucrose or isoglucose, 5% glucose or starch

isoglucose,

glucose

starch

or

935 tonnes

Exempt

2.

3.

The following year, the quotas will be increased by 10%.

Soft drinks

– The Community will open an annual duty-exempt quota for

the Swiss
Confederation,
classified under CN Codes 2202 10 00 (waters,
including mineral waters and aerated waters, containing added sugar or other
sweetening matter or flavoured) and ex 2202 90 10 (other drinks containing
sugar), for the following quantity: 75 million litres.

for goods

– Outside this quota allocation, the import duty will be 9.1%.

– In the following years, if the quota has been used up, it will be increased by 10%
on an annual basis. If the quota has not been used up, mineral waters will again be
governed by a free trade arrangement.

IV – As regards rules of origin, the provisions of Protocol 3 of the Switzerland-EC Free Trade
Agreement will apply.

7

1.

2.

3.

4.

5.

5.0

5.1

FINANCIAL STATEMENT

BUDGET HEADING:
Chapter 12 - Article 120
TITLE:
Proposal for a Council Decision concerning the conclusion of an Agreement in the form of an
Exchange of Letters between the European Community, of the one part, and the Swiss Confederation,
of the other part, on Protocol 2 to the Agreement between the European Economic Community and the
Swiss Confederation.

DATE: 24/11/1999
APPROPRIATIONS:

LEGAL BASIS:
Articles 133 and 300.
AIMS:
Implementation of the result of the compromise with Switzerland (mineral waters containing sugar)
with reciprocal improvement of the trading arrangement between the two parties through a reciprocal
increase in existing quotas.
FINANCIAL IMPLICATIONS

CURRENT
FINANCIAL
YEAR
[n]
(EUR million)
[...]

FOLLOWING
FINANCIAL
YEAR
[n+1]
(EUR million)
[...]

12 MONTH
PERIOD

(EUR million)

[...]

+0,897 Mio EUR

EXPENDITURE
-

CHARGED TO THE EC
BUDGET (REFUNDS/
INTERVENTIONS
NATIONAL AUTHORITIES
OTHER

-
-
REVENUE
-

-

OWN RESOURCES OF THE EC
(LEVIES/CUSTOMS DUTIES)
NATIONAL

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATIONS:

[n+2]

[n+3]

[n+4]

[n+5]

Impact of the introduction of the duty over and above the quota on headings 2202 10 00 and
2202 10 90
(on the basis of estimated imports from Switzerland in 1999: 150 million litres)
(cid:1)
(cid:1)

75 000 000 litres with a value of EUR 15 million

Additional revenue (customs duties)
€
Calculation of ad valorem duty =

€
1 365 000

5 000 000 x 9.1 % =

Impact of increase (10%) in zero-rated quotas

Decrease in revenue (customs duties not collected)
Ad valorem duty. Total for the 4 quotas =
€
Impact of increase (10 %) = 4 672 280 x 10 % =
€

€

€

€

4 672 280

467 228

Impact:

1 365 000 -

467 228 =

897 772

6.0

6.1

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?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS:
[...]

NO

NO
NO
NO

8