Proposal for a Council Decision on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Argentina pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic provided for in Schedule CXL annexed to the GATT
Date: 2001-05-04
Institutions: European Commission
Subjects: Argentina, agreement (EU), bulb vegetable, customs tariff, tariff quota, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 04.05.2001
COM(2001) 250 final

2001/0102(ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an exchange of letters between the
European Community and the Republic of Argentina pursuant to Article XXVIII of
the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of
concessions with respect to garlic provided for in Schedule CXL annexed to the GATT

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

2.

3.

4.

On 2 May 2000, the Council authorised the Commission to notify the WTO that the
European Community intended to modify the bound tariff for garlic under the
heading 0703 20 00 and was prepared to enter into negotiations and consultations
with WTO Members under Article XXVIII of GATT 1994.

Negotiations have been conducted by the Commission in consultation with the
133 Committee and within the framework of the negotiating directives issued by the
Council.

Negotiations with the Republic of Argentina, the only WTO Member having a
principal supplying interest, have been successfully concluded in the form of an
exchange of letters.

This proposal asks the Council to approve the agreement in the form of an exchange
of letters between the European Community and the Republic of Argentina.

2

2001/aaaa (ACC)

Proposal for a

COUNCIL DECISION

on the conclusion of an Agreement in the form of an exchange of letters between the
European Community and the Republic of Argentina pursuant to Article XXVIII of
the General Agreement on Tariffs and Trade (GATT) 1994 for the modification of
concessions with respect to garlic provided for in Schedule CXL annexed to the GATT

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)

(3)

(4)

(5)

1

2

3

On 2 May 2000, the Council authorised the Commission to enter into negotiations and
consultations with WTO Members under Article XXVIII of GATT 1994 with a view
to modify the bound tariff for garlic.

Negotiations have been conducted by the Commission in consultation with the
133 Committee and within the framework of the negotiating directives issued by the
Council.

Negotiations with the Republic of Argentina,
principal supplying interest, have been successfully concluded.

the only WTO Member having a

The agreement
in the form of an exchange of
Community and the Republic of Argentina should therefore be approved.

letters between the European

As the measures needed to implement this Decision are management measures within
the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing powers conferred on the
Commission2, they should be adopted in accordance with the management procedure
laid down in Article 46 of Council Regulation (EC) No 2200/963.

OJ C …, …, p. …
OJ L 184, 17.7.1999, p. 23.
OJ L 297, 21.11.1996, p. 1. Regulation last amended by Regulation (EC) No 2826/2000 (OJ L 328,
23.12.2000, p. 2).

3

HAS DECIDED AS FOLLOWS:

Article 1

The agreement in the form of exchange of letters between the European Community and the
Republic of Argentina on garlic, negotiated in the framework of Article XXVIII of the
General Agreement on Tariffs and Trade, is hereby approved on behalf of the Community.

The text of the agreement is attached to this Decision.

Article 2

The Commission, assisted by the Committee established by Article 45 of Regulation (EC)
No 2200/96, shall adopt the necessary measures for managing the tariff quotas provided in the
agreement in accordance with the procedure provided in Article 46 of the said Regulation and
in conformity with the procedure set down by Decision 1999/468/EC.

The President of the Council is hereby authorised to designate the person empowered to sign
the agreement in order to bind the Community4.

Article 3

Article 4

This Decision shall be published in the Official Journal of the European Communities.

Done at Brussels,

For the Council,
The President

4

The date of entry into force of the agreement will be published in the Official Journal of the European
Communities.

4

ANNEX

AGREEMENT

in the form of an exchange of letters between the European Community and the Republic of
Argentina pursuant to Article XXVIII of the General Agreement on Tariffs and Trade
(GATT) 1994 for the modification of concessions with respect to garlic
provided for in Schedule CXL annexed to the GATT

Letter No 1

Letter from the European Community

Brussels, ……………

Sir,

Following negotiations between the European Community (EC) and the Republic of
Argentina under Article XXVIII of GATT 1994 for the modification of concessions with
respect to garlic provided for in Schedule CXL annexed to the GATT, the EC agrees to the
conclusions as outlined below and in the Annex.

1.

2.

3.

4.

The EC establishes a tariff quota for garlic where the quota quantity is equal to
38 370 tons and the in-quota tariff rate is equal to 9.6%.
The out-of-quota rate of duty is set at EUR 1200/t + 9.6% ad valorem.

The tariff quota is allocated among supplying countries as follows:

–

–

–

Argentina: 19 147 t,

China: 13 200 t,

Other countries: 6 023 t.

The tariff quota opens on 1st June each year and is managed through subdivision in
four trimestrial sub-quotas as set out in the Annex.

The tariff quota is managed using the historical/newcomers system, the shares being
70% for historical importers and 30% for newcomers.

This agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 June 2001.

I would be grateful if you could confirm the agreement of your Government to the above.

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

On behalf of the European Community

5

Letter No 2

Letter from the Republic of Argentina

Brussels, ……………

Sir,

I have the honour to acknowledge receipt of your letter of today’s date, worded as follows:

“Following negotiations between the European Community (EC) and the Republic of
Argentina under Article XXVIII of GATT 1994 for the modification of concessions with
respect to garlic provided for in Schedule CXL annexed to the GATT, the EC agrees to the
conclusions as outlined below and in the Annex.

1.

2.

3.

4.

The EC establishes a tariff quota for garlic where the quota quantity is equal to
38 370 tons and the in-quota tariff rate is equal to 9.6%.
The out-of-quota rate of duty is set at EUR 1200/t + 9.6% ad valorem.

The tariff quota is allocated among supplying countries as follows:

–

–

–

Argentina: 19 147 t,

China: 13 200 t,

Other countries: 6 023 t.

The tariff quota opens on 1st June each year and is managed through subdivision in
four trimestrial sub-quotas as set out in the Annex.

The tariff quota is managed using the historical/newcomers system, the shares being
70% for historical importers and 30% for newcomers.

This agreement shall be approved by the Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 June 2001.

I would be grateful if you could confirm the agreement of your Government to the above.”

The Republic of Argentina has the honour of confirming its agreement with the contents of
this letter.

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

For the Republic of Argentina

6

ANNEX

Yearly TQ
(t)

Trim. 1
(t)

Trim. 2
(t)

Trim. 3
(t)

Trim. 4
(t)

Argentina

19 147

0

0

13 700

5 447

China

13 200

3 600

3 600

3 000

3 000

Other countries

6 023

1 344

2 800

1 327

552

Total

38 370

4 944

6 400

18 027

8 999

7

1.

2.

3.

4.

5.

5.0

5.1

FINANCIAL STATEMENT

BUDGET HEADING:
1000

APPROPRIATIONS:
EUR 1180 million

TITLE:
Council Decision on the conclusion of an Agreement in the form of an exchange of letters between the
European Community and the Republic of Argentina pursuant to Article XXVIII of the General
Agreement on Tariffs and Trade (GATT) 1994 for the modification of concessions with respect to garlic
provided for in Schedule CXL annexed to the GATT.

LEGAL BASIS:
Article 133 of the Treaty

AIMS:
To modify concessions with respect to garlic provided for in Schedule CXL annexed to the GATT.

FINANCIAL IMPLICATIONS

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
-

NATIONAL

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE

5.2 METHOD OF CALCULATION:

12 MONTH
PERIOD

(EUR million)
-

CURRENT
FINANCIAL
YEAR 2001
(EUR million)
-

FOLLOWING
FINANCIAL
YEAR 2002
(EUR million)
-

p.m.

p.m.

p.m.

2003
-
p.m.

2004
-
p.m.

2005
-
p.m.

2006
-
p.m.

Level of TRQ calculated according to Article XXVIII GATT, on the basis of imports of non-preferential
garlic into the EC, increased by 10%.

6.0

6.1

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

YES

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?

NO

OBSERVATIONS:

The quantities having been established on the basis of the real imports, and the in-quota tariff rate fixed at the
actual level (i.e. before the entry in force of the Agreement), revenue from levies should stay unchanged.

8