Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and Australia
Date: 2005-12-16
Institutions: European Commission
Subjects: Australia, agreement (EU), beef, butter, cheese, goatmeat, ratification of an agreement, raw sugar, sheepmeat, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.12.2005 
COM(2005) 659 final 

2005/0255 (ACC) 
2005/0256 (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 Australia 

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) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

5. 

6. 

In  the  context  of  enlarging  the  customs  union  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 Australia. 

This proposal asks the Council to approve this agreement.  

EN 

2 

   EN 

 
2005/0255 (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 Australia 

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 Australia. 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 
Australia 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;  is  hereby  approved  on  behalf  of  the 
Community. 

EN 

3 

   EN 

 
The text of the Agreement is annexed to this Decision. 

Article 2  

The Commission shall adopt the detailed rules for implementing the agreement in accordance 
with the procedure laid down in Article 3 of this Decision. 

Article 3 

1. The Commission shall be assisted by the Management Committee for Cereals instituted by 
Article  25  of  Regulation  (EC)  No  1784/2003  or  the  relevant  committee  instituted  by  the 
corresponding  article  of  the  regulation  for  the  common  market  organization  for  the  product 
concerned. 

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall 
apply. 

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

Article 4 

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 

EN 

4 

   EN 

 
 
 
AGREEMENT 

In the form of an exchange of letters between the European Community and Australia  

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 
Australia  under  Article  XXIV:6  and  Article  XXVIII  of  GATT  1994  for  the  modification  of 
concessions  in  the  schedules  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 
in  the  course  of  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and 
Australia with a view to concluding the negotiations opened 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.  

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained 
in the annex to this agreement. 

This agreement shall enter into force on the date on which the EC receives from Australia a 
duly executed letter 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 

EN 

5 

   EN 

 
AGREEMENT 

In the form of an exchange of letters between the European Community and Australia  

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 
Communities.  

Letter from Australia  

Brussels,  

Sir, 

Reference is made to your letter stating: 

“Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and 
Australia  under  Article  XXIV:6  and  Article  XXVIII  of  GATT  1994  for  the  modification  of 
concessions  in  the  schedules  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 
in  the  course  of  their  accession  to  the  EC,  the  following  is  agreed  between  the  EC  and 
Australia with a view to concluding the negotiations opened 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.  

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained 
in the annex to this agreement. 

This agreement shall enter into force on the date on which the EC receives from Australia a 
duly executed letter 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.” 

I hereby have the honour to express my government’s agreement.  

On behalf of Australia  

EN 

6 

   EN 

 
Annex  

- add 136 tonnes (carcase weight) to the allocation for Australia under the EC tariff rate quota 
for sheep meat; ‘meat of sheep or goats, fresh, chilled or frozen’ (tariff item number 0204), 

- a country allocated (Australia) tariff rate quota 9925 tonnes of raw cane sugar for refining 
(tariff item number 1701 1110), in quota rate 98€/tonne. 

- add 4003 tonnes (erga omnes) in EC tariff rate quota for ‘meat of bovine animals, frozen; 
un-separated or separated forequarters; boneless’ and ‘edible offal of bovine animals, frozen; 
thick skirt and thin skirt. The meat imported shall be used for processing’ (tariff item numbers 
0202 2030, 0202 30, 0206 2991), 

- add 150 tonnes (product weight) to the allocation for Australia under the EC tariff rate quota 
for ‘high quality meat of bovine animals, fresh, chilled or frozen, with or without bone; edible 
offal  of  bovine  animals,  fresh,  chilled  or  frozen’  (tariff  item  numbers  ex  0201,  ex  0202,  ex 
0206 1095 and ex 0206 2991), 

-  add  461  tonnes  to  the  allocation  for  Australia  under  the  EC  tariff  rate  quota  for  Cheddar 
cheese (tariff item number ex 0406 9021), 

- add 1360 tonnes (erga omnes) in the EC tariff rate quota for butter (tariff item numbers 0405 
10, 0405 90. 

In quota rates of the EC15 shall apply. 

EN 

7 

   EN 

 
1. 

2. 

3. 

4. 

FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 10 – Agricultural Duties 

DATE: 06/10/2005 

CREDITS B 2005: 

13.2 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 Australia 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 

- 

- 13.2 (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: 

EN 

8 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement with Australia 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. 

EN 

9 

   EN 

 
2005/0256 (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 Australia, 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. […]. 

EN 

10 

   EN 

 
                                                 
This  Regulation  shall  enter  into  force  six  weeks  following  the  day  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 

EN 

11 

   EN 

 
 
 
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 

item 

Meat of sheep or goats, fresh, chilled or frozen 

Tariff 
number 
0204 

Raw cane sugar for refining 

item 

Tariff 
number 
1701 1110 

Meat  of  bovine  animals,  frozen;  un-separated  or  separated 
forequarters;  boneless’  and  ‘edible  offal  of  bovine  animals, 
frozen; thick skirt and thin skirt. The meat imported shall be 
used for processing 

High quality meat of bovine animals, fresh, chilled or frozen, 
with  or without bone;  edible  offal of  bovine animals, fresh, 
chilled or frozen 

Cheddar cheese 

item 

Tariff 
number 
0202  2030, 
30, 
0202 
0206 2991 

Tariff 
item 
number  ex 
ex 
0201, 
0202, 
ex 
0206  1095 
and  ex  0206 
2991 

Tariff 
item 
number  ex 
0406 9021 

Other terms and 
conditions 

add 136 tonnes 
(carcase weight) to 
the allocation for 
Australia 

a country allocated 
(Australia) tariff 
rate quota 9925 
tonnes, in quota 
rate 98 €/tonne (*) 
(*) This rate applies 
to raw sugar with a 
yield of 92% (see 
also additional note 
2 to chapter 17) 

add 4003 tonnes 
(erga omnes) in EC 
tariff quota 

add 150 tonnes 
(product weight) to 
the allocation for 
Australia 

add 461 tonnes to 
the allocation for 
Australia 

EN 

12 

   EN 

 
item 

10, 

Tariff 
number 
0405 
0405 90 

Butter and other fats and oils derived from milk 

add 1360 tonnes 
(erga omnes) in the 
EC tariff rate quota 

EN 

13 

   EN