Agreement in the form of an Exchange of Letters between the European Community and the United States of America relating to the modification of concessions with respect to cereals provided for in EC Schedule CXL to the GATT 1994
Date: 2002-12-27
Institutions: European Community, United States
Subjects: GATT, United States, agreement (EU), agricultural trade, cereals, ratification of an agreement, tariff quota

11.4.2003

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Official Journal of the European Union

L 95/41

AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS

between the European Community and the United States of America relating to the modification
of concessions with respect to cereals provided for in EC Schedule CXL to the GATT 1994

A. Letter from the European Community

Sir,

The European Community (EC) and the United States of America, with respect to the concessions on
cereals provided for in EC Schedule CXL to the General Agreement on Tariffs and Trade 1994 (GATT
1994), agree to the conclusions as outlined below.

Common wheat

1. For item 1001 90 95 (other spelt, common wheat, and meslin), the concessions contained in EC Sche-
dule CXL shall continue to apply to high quality common wheat (as specified in Annex I to Commis-
sion Regulation (EC) No 1249/96 (28 June 1996), OJ L 161, p. 125).

2.

(a) For other spelt, medium and low quality common wheat (as specified in Annex I to Commission
Regulation (EC) No 1249/96), and meslin under item 1001 90 95 (other spelt, common wheat,
and meslin), the EC shall establish a tariff quota of 2 981 600 metric tonnes.

(b) Within the tariff quota specified in 2(a), 572 000 metric tonnes shall be allocated to the United
States of America. Subject to prior approval by the United States of America, in the event the
United States of America is unable to fill its allocation, this allocation may be opened to other
countries.

(c) The in-quota tariff rate for the tariff quota specified in 2(a) shall be EUR 12/metric tonne, and the
out-of-quota tariff rate shall be no higher than the lower of the bound rate of duty for item 1001
90 95 (other spelt, common wheat, and meslin) in EC Schedule CXL as of 1 July 2002 or the
most-favoured-nation rate of duty.

3. Once the EC has established the tariff quota as specified in 2, the EC need not apply the concessions
for other spelt, medium and low quality common wheat (as specified in Annex I to Commission Regu-
lation (EC) No 1249/96 (28 June 1996), OJ L 161, p. 125) and meslin under item 1001 90 95,
contained in headnote 6 of EC Schedule CXL.

Barley

4.

(a) For item 1003 00 50 (barley), the EC shall establish a tariff quota of 50 000 metric tonnes for
malting barley (barley intended for the production of malt used for manufacture of beer aged in
vats containing beechwood and with quality criteria as specified in Article 2(3) of Commission
Regulation (EC) No 1234/2001 (22 June 2001), OJ L 168, p. 12) and a tariff quota for all other
barley of 300 000 metric tonnes.

(b) The in-quota tariff rate for the malting-barley tariff quota specified in 4(a) shall be EUR 8/metric
tonne, and the out-of-quota tariff rate shall be no higher than the lower of the bound rate of duty
for item 1003 00 50 (barley) in EC Schedule CXL as of 1 July 2002 or the most-favoured-nation
rate of duty. The in-quota tariff rate for the all-other-barley tariff quota specified in 4(a) shall be
EUR 16/metric tonne, and the out-of-quota tariff rate shall be no higher than the lower of the
bound rate of duty for item 1003 00 50 (barley) in EC Schedule CXL as of 1 July 2002 or the
most-favoured-nation rate of duty.

5. Once the EC has established the tariff quotas as specified in 4, the EC need not apply the concessions

for item 1003 00 50 (barley) contained in headnote 6 of EC Schedule CXL.

General

6. The tariff quotas specified in 2 and 4 shall open on 1 January of each year.

7. The tariff quotas specified in 2 and 4 shall be managed on a first-come, first-served basis.

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8. Any modification of concessions in EC Schedule CXL pursuant to 3 and/or 5 shall add the concessions

specified in 2, 4, and 6 to EC Schedule CXL.

9. The EC recognises that the United States of America has initial negotiating rights with respect to the
concessions contained in headnote 6 of EC Schedule CXL and the concessions specified in 2, 4 and 6.

10. With respect to the notification of 26 July 2002 by the EC of its intention to modify certain conces-
sions in EC Schedule CXL (circulated in G/SECRET/15), the EC is not modifying concessions contained
in EC Schedule CXL on item 1001 90 95 as specified in 1 and on items 1001 10 50 (durum wheat),
1002 00 00 (rye), ex 1005 (maize, except hybrid seed), and ex 1007 (grain sorghum, except hybrids
for sowing) and shall notify the WTO of such.

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

The provisions of this Agreement shall be applicable from 1 January 2003.

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.

For the European Community

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L 95/43

B. Letter from the United States of America

Sir,

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

‘The European Community (EC) and the United States of America, with respect to the concessions on
cereals provided for in EC Schedule CXL to the General Agreement on Tariffs and Trade 1994 (GATT
1994), agree to the conclusions as outlined below.

Common Wheat

1. For item 1001 90 95 (other spelt, common wheat, and meslin), the concessions contained in EC
Schedule CXL shall continue to apply to high quality common wheat (as specified in Annex I to
Commission Regulation (EC) No 1249/96 (28 June 1996), OJ L 161, p. 125).

2.

(a) For other spelt, medium and low quality common wheat (as specified in Annex I to Commis-
sion Regulation (EC) No 1249/96), and meslin under item 1001 90 95 (other spelt, common
wheat, and meslin), the EC shall establish a tariff quota of 2 981 600 metric tonnes.

(b) Within the tariff quota specified in 2(a), 572 000 metric tonnes shall be allocated to the United
States of America. Subject to prior approval by the United States of America, in the event the
United States of America is unable to fill its allocation, this allocation may be opened to other
countries.

(c) The in-quota tariff rate for the tariff quota specified in 2(a) shall be EUR 12/metric tonne, and
the out-of-quota tariff rate shall be no higher than the lower of the bound rate of duty for item
1001 90 95 (other spelt, common wheat, and meslin) in EC Schedule CXL as of 1 July 2002
or the most-favoured-nation rate of duty.

3. Once the EC has established the tariff quota as specified in 2, the EC need not apply the conces-
sions for other spelt, medium and low quality common wheat (as specified in Annex I to Commis-
sion Regulation (EC) No 1249/96 (28 June 1996), OJ L 161, p. 125) and meslin under item 1001
90 95, contained in headnote 6 of EC Schedule CXL.

Barley

4.

(a) For item 1003 00 50 (barley), the EC shall establish a tariff quota of 50 000 metric tonnes for
malting barley (barley intended for the production of malt used for manufacture of beer aged
in vats containing beechwood and with quality criteria as specified in Article 2(3) of Commis-
sion Regulation (EC) No 1234/2001 (22 June 2001), OJ L 168, p. 12) and a tariff quota for all
other barley of 300 000 metric tonnes.

(b) The in-quota tariff rate for the malting-barley tariff quota specified in 4(a) shall be EUR 8/
metric tonne, and the out-of-quota tariff rate shall be no higher than the lower of the bound
rate of duty for item 1003 00 50 (barley) in EC Schedule CXL as of 1 July 2002 or the most-
favoured-nation rate of duty. The in-quota tariff rate for the all-other-barley tariff quota speci-
fied in 4(a) shall be EUR 16/metric tonne, and the out-of-quota tariff rate shall be no higher
than the lower of the bound rate of duty for item 1003 00 50 (barley) in EC Schedule CXL as
of 1 July 2002 or the most-favoured-nation rate of duty.

5. Once the EC has established the tariff quotas as specified in 4, the EC need not apply the conces-

sions for item 1003 00 50 (barley) contained in headnote 6 of EC Schedule CXL.

General

6. The tariff quotas specified in 2 and 4 shall open on 1 January of each year.

7. The tariff quotas specified in 2 and 4 shall be managed on a first-come, first-served basis.

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8. Any modification of concessions in EC Schedule CXL pursuant to 3 and/or 5 shall add the conces-

sions specified in 2, 4, and 6 to EC Schedule CXL.

9. The EC recognises that the United States of America has initial negotiating rights with respect to
the concessions contained in headnote 6 of EC Schedule CXL and the concessions specified in 2, 4
and 6.

10. With respect to the notification of 26 July 2002 by the EC of its intention to modify certain
concessions in EC Schedule CXL (circulated in G/SECRET/15), the EC is not modifying concessions
contained in EC Schedule CXL on item 1001 90 95 as specified in 1 and on items 1001 10 50
(durum wheat), 1002 00 00 (rye), ex 1005 (maize, except hybrid seed), and ex 1007 (grain
sorghum, except hybrids for sowing) and shall notify the WTO of such.

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

The provisions of this Agreement shall be applicable from 1 January 2003.

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

The Government of the United States of America has the honour of confirming its agreement with the
contents of this letter.

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

On behalf of the Government of the United States of America