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 Kingdom of Thailand.
Date: 2005-10-20
Institutions: European Commission
Subjects: European Community, GATT, Thailand, accession to the European Union, fish, preserved product, ratification of an agreement, rice, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.10.2005 
COM(2005) 510 final 

2005/0212 (ACC) 
2005/0213 (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 Kingdom of Thailand. 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of the Agreement concluded by the EC following 
negotiations in the framework of Article XXIV.6 of GATT 1994, amending Annex I to 
Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the 
Common Customs Tariff.  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

5. 

6. 

the  customs  union 

the  context  of  enlarging 

In 
the  provisions  of  GATT 
Article XXIV.6 oblige the EC to enter into negotiations with third countries having 
negotiating rights in any of the acceding Members in order to agree on compensatory 
adjustment if the adoption of the EC’s external tariff regime results in an increase in 
tariff beyond the level for which the acceding country has bound itself at the WTO, 
whilst  taking  ‘due  account  of  reductions  of  duties  on  the  same  tariff  line  made  by 
other constituents of the customs union upon its formation’.  

On  22  March  2004,  the  Council  authorised  the  Commission  to  open  negotiations 
under Article XXIV.6 of the GATT 1994 (COM proposal 6792/04 WTO 34).  

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

The Commission has negotiated with the Members of the WTO holding negotiating 
rights  with  respect  to  the  withdrawal  of  specific  concessions  in  relation  to  the 
withdrawal  of  the  schedules  of  the  Czech  Republic,  the  Republic  of  Estonia,  the 
Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic 
of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia 
and the Slovak Republic, in the course of the accession to the European Community. 

The negotiations have resulted in an Agreement in the form of an exchange of letters 
with the Kingdom of Thailand. 

This proposal asks the Council to approve this agreement.  

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2005/0212 (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 Kingdom of Thailand. 

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 the first subparagraph of Article 300(2) 
thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

On 22 March 2004 the Council authorised the Commission to open negotiations with 
certain other Members of the WTO under Article XXIV.6 of the GATT 1994, in the 
course of the accessions to the European Community of Czech Republic, the Republic 
of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, 
the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic 
of Slovenia and the Slovak Republic.  

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

The  Commission  has  finalised  negotiations  for  an  Agreement  in  the  form  of  an 
Exchange of Letters between the European Community and the Kingdom of Thailand. 
This agreement should be approved. 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement in the form of an Exchange of Letters between the European Community and 
the Kingdom of Thailand with respect to the withdrawal of specific concessions in relation to 
the withdrawal of the schedules of the Czech Republic, the Republic of Estonia, the Republic 
of  Cyprus,  the  Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of  Hungary,  the 
Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic 
in the course of accession to the European Community; are hereby approved on behalf of the 
Community. 

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The text of the Agreement is annexed to this Decision. 

Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement in the form of an Exchange of Letters referred to in Article 1 in order to 
bind the Community.  

Done at Brussels, 

For the Council 
The President 

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AGREEMENT 

In the form of an exchange of letters between the European Community and the Kingdom of 
Thailand  

relating to the modification of concessions in the Schedules of the Czech Republic, the 
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of 
Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the 
Republic of Slovenia and the Slovak Republic in the course of accession to the European 
Community.  

Letter from the European Communities 

Brussels,  

Sir, 

Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and  the 
Kingdom  of  Thailand  under  Article  XXIV:6  and  Article  XXVIII  of  GATT  1994  for  the 
modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, 
the  Republic  of  Cyprus,  the  Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of 
Hungary,  the  Republic  of  Malta,  the  Republic  of  Poland,  the  Republic  of  Slovenia  and  the 
Slovak Republic in the course of their accession to the EC, the following is agreed between 
the EC and the Kingdom of Thailand in order to conclude the negotiations initiated following 
the  EC’s  notification  of  19  January  2004  to  the  WTO  pursuant  to  Article  XXIV:6  of 
GATT 1994. 

The  EC  agrees  to  incorporate  in  its  Schedule  for  the  customs  territory  of  EC  25,  the 
concessions that were included in its previous schedule of EC 15.  

The EC agrees that it will incorporate in its Schedule for the EC 25 the concessions contained 
in the Annex to this Agreement. 

The Kingdom of Thailand accepts the basic components of the EC’s approach to adjusting the 
obligation  of  the  EC-15  and  those  of  the  Czech  Republic,  the  Republic  of  Estonia,  the 
Republic  of  Cyprus,  the  Republic  of  Latvia,  the  Republic  of  Lithuania,  the  Republic  of 
Hungary,  the  Republic  of  Malta,  the  Republic  of  Poland,  the  Republic  of  Slovenia  and  the 
Slovak  Republic  following  the  recent  enlargement  of  the  EC:  netting  out  of  export 
commitments; netting out of tariff quotas; and aggregation of domestic support commitments. 

This  Agreement  shall  enter  into  force  on  the  date  on  which  the  EC  and  the  Kingdom  of 
Thailand  have  exchanged  letters  of  agreement,  following  consideration  by  the  parties  in 
accordance with their own procedures. The EC shall  use  its best endeavours to put in place 
the  appropriate  implementing  measures  before  1  January  2006  and  under  no  circumstances 
later than 1 July 2006. 

On behalf of the European Communities 

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ANNEX 

16042070:  a  new  annual  tariff  rate  quota  of  2,558  Tonnes  of  which  1,816  Tonnes  shall  be 
allocated to the Kingdom of Thailand, the rest erga omnes, with an in quota rate of 0%, out of 
quota rate 24%.  

16042050:  a  new  annual  tariff  rate  quota  of  2,275  Tonnes  of  which  1,410  Tonnes  shall  be 
allocated to the Kingdom of Thailand, the rest erga omnes, with an in quota rate of 0%, out of 
quota rate 25%. 

100610 (Paddy rice): a new annual quota (erga omnes) of 7 Tonnes, in quota rate 15%. 

100620 (Husked rice): a new annual quota (erga omnes) of 1,634 Tonnes, in quota rate 15%. 

100630 (Semi/wholly milled rice): an increase in annual quota of 25,516 Tonnes (erga omnes) 
in the current EC15 quota, in quota rate 0%. 

A  country  allocation  of  1,200  Tonnes  to  the  Kingdom  of  Thailand  to  be  integrated  in  the 
current EC15 semi/wholly milled rice quota, in-quota rate 0%.  

100640 (Broken rice): an increase of 31,788 Tonnes (erga omnes) in the current EC15 quota, 
in quota rate 0%. 

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1. 

2. 

3. 

4. 

FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 10 – Agricultural Duties  
Chapter 12 – Customs Duties 

DATE: 13/09/2005 

CREDITS B 2005: 

10.37 M€ 

TITLE: 
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 Kingdom of Thailand relating to compensatory 
adjustment as provided for by Article XXIV:6 of the GATT 1994.  

LEGAL BASIS: 
Article 133 of the Treaty  

AIMS: 
To comply with Article XXIV:6 of the GATT 1994 in relation to the enlargement of the Customs 
Union as of 1 May 2004.  

5. 

FINANCIAL IMPLICATIONS: 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

PERIODE DE
12 MOIS 

(Mio EUR) 
- 

EXERCICE EN 
COURS 
2005 
(Mio EUR) 
- 

EXERCICE 
SUIVANT 
2006 
(Mio EUR) 
- 

5.1  REVENUE 

- 

- 10,37 (1) 

(1) 

OWN RESOURCES OF THE EC 

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOLD OF CALCULATION: 

[n+2] 
- 

(1) 

[n+3] 
- 

(1) 

[n+4] 
- 

(1) 

[n+5] 
- 

(1) 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN 

THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  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? 

N/A  

N/A  

NO 

NO 

OBSERVATIONS: 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement with the Kingdom of Thailand following negotiations in the framework of 
Article XXIV:6 of the GATT 1994.  

The present proposal for a Council Regulation implements the Agreement entered into 
by the Community. 

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2005/0213 (ACC) 

Proposal for a 

COUNCIL REGULATION 

concerning the implementation of the Agreement concluded by the EC following 
negotiations in the framework of Article XXIV.6 of GATT 1994, amending Annex I to 
Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the 
Common Customs Tariff.  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
133 thereof, 

Having regard to the proposal from the Commission1,  

Whereas: 

(1) 

(2) 

Council  Regulation  (EEC)  No  2658/87(1)  established  a  goods  nomenclature, 
hereinafter referred to as the "Combined Nomenclature", and set out the conventional 
duty rates of the Common Customs Tariff.  

By its decision XX/XXX/EC concerning the conclusion of Agreements in the form of 
an  Exchange  of  Letters  between  the  European  Community  and  the  Kingdom  of 
Thailand,  the  Council  approved,  on  behalf  of  the  Community,  the  before  mentioned 
Agreement with a view to closing negotiations initiated pursuant to Article XXIV:6 of 
GATT 1994.  

HAS ADOPTED THIS REGULATION: 

Annex  I  to  Regulation  (EEC)  No  2658/87  shall  be  amended  as  shown  in  the  Annex  to  this 
Regulation. 

Article 1 

1 

OJ C , , p. . 

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This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording 
for the description of the products is to be considered as having no more than an indicative 
value, the concessions being determined, within the context of this Annex, by the coverage of 
the  CN  codes  as  they  exist  at  the  time  of  adoption  of  the  current  regulation.  Where  ex  CN 
codes are indicated, the concessions are to be determined by application of the CN code and 
corresponding description taken together. 

Annex 7  
WTO Tariff Quotas to be opened by the Competent community authorities 

(Qualification for these quotas is subject to conditions laid down in the relevant Community 
provisions) 

CN Code 

Description 

Tariff 
number 
16042070 

item 

Quota for prepared or preserved fish (excl. whole or in pieces): --- 
of tunas, skipjack or other fish of the genus Euthynnus 

item 

Tariff 
number 
16042050 

Quota for prepared or preserved fish (excl. whole or in pieces): --- 
of sardines, bonito, mackerel of the species Scomber scombrus and 
Scomber japonicus, fish or the species Orcynopsis unicolor 

item 

Quota for Paddy rice 

item 

Quota for Husked rice 

item 

Quota for semi-milled or wholly-milled rice 

Tariff 
number 
100610 

Tariff 
number 
100620 

Tariff 
number 
100630 

item 

Quota for broken rice 

Tariff 
number 
100640 

Other terms and conditions 

A new annual tariff rate quota 
of 2,558 Tonnes of which 
1,816 Tonnes shall be 
allocated to Thailand, the rest 
erga omnes, with an in quota 
rate of 0%, out of quota rate 
24% 

A new annual tariff rate quota 
of 2,275 Tonnes of which 
1,410 Tonnes shall be 
allocated to Thailand, the rest 
erga omnes, with an in quota 
rate of 0%, out of quota rate 
25% 

A new annual quota (erga 
omnes) of 7 Tonnes, in quota 
rate 15% 

A new annual quota (erga 
omnes) of 1,634 Tonnes, in 
quota rate 15% 

An increase in annual quota 
of 25,516 Tonnes (erga 
omnes) in the current EC15 
quota, in quota rate 0% 

A country allocation of 1,200 
Tonnes to Thailand to be 
integrated in the current EC15 
semi-wholly milled rice 
quota, in quota rate 0% 

An increase of 31,788 Tonnes 
(erga omnes) in the current 
EC15 quota, in quota rate 0% 

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