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 Chile concerning amendments to the Agreement on Trade in Wines annexed to the Association Agreement between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part
Date: 2005-12-16
Institutions: European Commission
Subjects: Chile, association agreement, signature of an agreement, trade agreement, wine

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.12.2005 
COM(2005) 660 final 

2005/0257 (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 Chile concerning amendments to the 
Agreement on Trade in Wines annexed to the Association Agreement between  
the European Community and its Member States, of the one part,  
and the Republic of Chile, of the other part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  Agreement  on  Trade  in  Wines  annexed  to  the  Association  Agreement  between  the 
European  Community,  of  the  one  part,  and  the  Republic  of  Chile,  of  the  other  part, 
(hereinafter  referred  to  as  “Annex  V”)  was  signed  in  Brussels  on  18  November  2002  and 
entered into force on 1 February 2003. 

The Joint Committee set up by Article 30 of Annex V is responsible for the administration of 
the  agreement  and  its  respective  appendices.  This  Joint  Committee  bears  in  particular  the 
responsibility for making recommendations on Annex V, in particular by taking into account 
developments  in  the  acquis  communautaire  and  laws  and  regulations  of  Chile,  and  by 
addressing  issues  that  remained  unsolved  during  the  original  negotiations.  The  Joint 
Committee has agreed on the need to amend not only the appendices but also the text of the 
agreement in order to update it.  

Following the mandate given by the Council to the Commission on 24 November 2005, the 
relevant  negotiations  on  various  (rather  technical)  amendments  to  the  Annex  V  have  been 
successfully  concluded  which  now  should  be  adopted  by  the  Council.  To  that  effect,  the 
Commission  submits  to  the  Council  a  proposal  for  the  conclusion  of  the  Agreement  in  the 
form of exchange of letters. 

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2005/0257 (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 Chile concerning amendments to the 
Agreement on Trade in Wines annexed to the Association Agreement between  
the European Community and its Member States, of the one part,  
and the Republic of Chile, of the other part 

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) 

The Agreement establishing an Association between the European Community and its 
Member  States,  of  the  one  part,  and  the  Republic  of  Chile,  of  the  other  part1,  was 
signed on 18 November 2002, and entered into force on 1 March 20052. 

On  24  November  2005  the  Council  authorised  the  Commission  to  enter  into 
negotiations  with  the  Republic  of  Chile  to  amend  the  Agreement  on  trade  in  wines 
annexed  to  the  Association  Agreement  between  the  European  Community  and  its 
Member  States,  of  the  one  part,  and  the  Republic  of  Chile,  of  the  other  part3 
(hereinafter referred to as ‘Annex V’). 

(3) 

These negotiations have been successfully concluded and the draft Agreement in the 
form of exchange of letters amending Annex V 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 Republic of Chile concerning amendments to the Agreement on trade in wines annexed to 
the Association Agreement between the European Community and its Member States, of the 
one  part,  and  the  Republic  of  Chile,  of  the  other  part,  is  hereby  approved  on  behalf  of  the 
Community.  

1 
2 
3 

OJ L 352, 30.12.2002, p. 3. 
OJ L 84, 2.4.2005, p. 21. 
OJ L 352, 30.12.2002, p. 1083. 

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The text of the Agreement is annexed to this Decision. 

Article 2 

The Commissioner for Agriculture and Rural Development is hereby empowered to sign the 
exchange of letters in order to legally bind the Community. 

Done at Brussels, 

For the Council 
The President 

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ANNEX 

AGREEMENT IN THE FORM OF EXCHANGE OF LETTERS 

between the European Community and the Republic of Chile concerning amendments 
to the Agreement on Trade in Wines annexed to the Association Agreement between  
the European Community and its Member States, of the one part,  
and the Republic of Chile, of the other part 

Letter No 1 

Letter from the European Community 

Brussels, ………. 2005 

Sir, 

I have the honour to refer to meetings of the Joint Committee established in accordance with 
Article 30 of Annex V to the Association Agreement (the Agreement on Trade in Wines). The 
Joint Committee has recommended that modifications  should  be  made  to  the  Agreement  on 
Trade in Wines (hereinafter referred to as ‘Annex V’), in order to take account of legislative 
developments since its adoption. 

During  the  recent  Joint  Committee  meeting  held  in  Madrid  on  13-14  June  2005  there  was 
agreement on the need to amend not only the appendices but also the text of the agreement in 
order  to  update  it.  I  have  therefore  the  honour  to  propose  that  Annex  V  be  amended  as 
indicated in the Appendix attached hereto, with effect as of xxxx (probably to be the date of 
signature). 

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

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

On behalf of the European Community 

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Letter No 2 

Letter from Chile 

Santiago de Chile/Brussels, ………. 2005 

Madam, 

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

“I have the honour to refer to meetings of the Joint Committee established in accordance with 
Article 30 of Annex V to the Association Agreement (the Agreement on Trade in Wines). The 
Joint Committee has recommended that modifications  should  be  made  to  the  Agreement  on 
Trade in Wines (hereinafter referred to as ‘Annex V’), in order to take account of legislative 
developments since its adoption. 

During  the  recent  Joint  Committee  meeting  held  in  Madrid  on  13-14  June  2005  there  was 
agreement on the need to amend not only the appendices but also the text of the agreement in 
order  to  update  it.  I  have  therefore  the  honour  to  propose  that  Annex  V  be  amended  as 
indicated in the Appendix attached hereto, with effect as of xxxx (probably to be the date of 
signature). 

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

I have the honour to inform you that the Republic of Chile is in agreement with the content of 
this letter. 

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

On behalf of the Republic of Chile 

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APPENDIX 

Annex V is hereby amended as follows: 

(1) 

In Article 5, paragraph 2 is replaced by the following: 

“2.  The  names  referred  to  in  Article  6  shall  be  reserved  exclusively  for  the 

products originating in the Party to which they apply.” 

(2) 

Article 7 is amended as follows: 

(a) 

paragraph 2 is replaced by the following: 

“2.  On the basis of the Chilean trademark register as established on 10 June 
2002,  the  trademarks  listed  in  Appendix  VI.A  shall  be  cancelled  within 
twelve  years  for  use  on  the  internal  market  and  five  years  for  use  for 
export from the date of entry into force of this Agreement.” 

(b) 

after paragraph 2, the following paragraph 2a is inserted: 

“2a  On the basis of the Chilean trademark register as established on 10 June 
2002,  trademarks  listed  in  Appendix  VI.  B.  are  allowed  under  the 
conditions laid down in this Appendix, exclusively for use on the internal 
market and shall be cancelled within 12 years from the date of entry into 
force of this Agreement.” 

(3) 

Article 8 is amended as follows: 

(a) 

paragraph 5(b) is replaced by the following: 

“(b)  where  a  traditional  expression  or  complementary  quality  mention  listed 
in  Appendix  III  or  IV  is  homonymous  with  the  name  of  a  wine 
originating  outside  the  Parties,  the  latter  name  may  be  used  to  describe 
and  present  a  wine  only  if  such  use  is  recognised  in  the  internal 
legislation  of  the  country  of  origin  and  does  not  constitute  unfair 
competition  and  consumers  are  not  misled  as  to  the  origin,  nature  or 
quality of the wine;” 

(b)  paragraph 5(c) is deleted. 

(4) 

Article 9 is amended as follows: 

(a) 

point (a) is replaced by the following: 

“(a)  as  regards  wine  originating 

in 

the  Community, 

those 

listed 

in 

Appendix III,” 

(b)  point (b) is replaced by the following: 

“(b)  as regards wine originating in Chile, those listed in Appendix IV.” 

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(5) 

Article 10 is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

“1.  Registration of a trademark for a wine in a Party which is identical with, 
or  similar  to,  or  contains  a  traditional  expression  or  a  complementary 
quality  mention  of  the  other  Party  listed  in  Appendix III  or IV  shall  be 
refused  insofar  as  that  registration  concerns  use  of  that  traditional 
expression or complementary quality mention to describe or present the 
category  or  categories  of  wine  for  which  that  traditional  expression  or 
complementary quality mention is listed in Appendix III or IV.” 

(b)  paragraph 2 is replaced by the following: 

“2.  By  way  of  derogation  from  paragraph  1,  refusal  to  register  a  trademark 
for a wine in a Party which is identical with, or similar to, or contains a 
traditional expression or a complementary  quality mention  of that  Party 
listed  in  Appendix III  or  IV  shall  not  be  obligatory  if  that  registration 
concerns  use  of  that  traditional  expression  or  complementary  quality 
mention  to  describe  or  present  the  category  or  categories  of  wine  for 
which it is listed in Appendix III or IV.” 

(c) 

paragraph 3 is deleted. 

(6) 

Article 11 is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

“1.  The Parties are not aware, on the basis of the Chilean trademark register 
as  established  on  10  June  2002,  of  any  trademarks  other  than  those 
referred to in Article 7(2) and (2a), and Article 10(4) which are identical 
with, or similar to, or contain the geographical indications or traditional 
expressions or complementary quality mentions referred to in Articles 6 
and 10, respectively.” 

(b)  paragraph 2 is replaced by the following: 

“2.  Pursuant  to  paragraph  1,  neither  Party  shall  deny  the  right  to  use  a 
trademark contained in the Chilean trademark register on 10 June 2002, 
other  than  those  referred  to  in  Articles  7(2)  and  (2a),  and  10(4),  on  the 
basis  that  such  a  trademark  is  identical  or  similar  to,  or  contains  a 
geographical  indication  listed  in  Appendix  I  or  II  or  a  traditional 
expression  or  complementary  quality  mention  listed  in  Appendix  III 
or IV.” 

(c) 

paragraph 3 is replaced by the following: 

“3.  The  holders  of  trademarks  other  than  those  listed  in  Articles  7(2)  and 
10(4), that are registered in only one of the Parties, may within two years 
from  the  entry  into  force  of  this  Agreement  request  the  registration  of 
such trademarks in the other Party. In this case, that Party shall not reject 
such  a  request  on  the  basis  that  any  such  trademark  is  identical  with  or 
similar to, or contains a geographical indication contained in Appendix I 

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or  II,  or  to  a  traditional  expression  or  complementary  quality  mention 
contained in Appendix III or IV.” 

(7) 

Article 30(3) is replaced by the following: 

“3. 

In particular, the Joint Committee may make recommendations in furtherance 
of the  objectives of  this  Agreement.  It shall be conducted in accordance with 
the Rules of Procedure for the Special Committees.” 

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FINANCIAL STATEMENT 

1. 

BUDGET HEADING: 

05 02 09 

2. 

TITLE: 

APPROPRIATIONS: 

EUR 1.227,84 Mio € 

Council Decision on the conclusion of an agreement in the form of an exchange of letters between the 
European Community and the Republic of Chile concerning amendments to the Agreement on Trade in 
Wines  and  Commission  Decision  on  the  conclusion  on  an  agreement  in  the  form  of  an  exchange  of 
letters  between  the  European  Community  and  the  Republic  of  Chile  concerning  amendments  to 
Appendix VI of the agreement on Trade in Wines 

3. 

LEGAL BASIS: 

Art. 133 of the EC Treaty 

4. 

AIMS: 

Under this EU/Chile Association Council Decision, Chile will eliminate imports duties on wines, spirit 
drinks and aromatised drinks originating in the Community 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

– 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR  2005 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2006 
(EUR million) 

– 

– 

– 

– 

– 

– 

2007 

2008 

2009 

2010 

– 
– 

– 
– 

– 
– 

– 
– 

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? 

YES NO 

YES NO 

YES NO 

YES NO 

OBSERVATIONS: 

It is not expected that the trade volume will change significantly as a result of this measure. It can be assumed 
that there will be no implication with the Community budget. 

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