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 Spirit Drinks and Aromatised Drinks 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: 2005-12-21
Institutions: European Commission
Subjects: Chile, alcoholic beverage, association agreement (EU), brand name, export (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.12.2005 
COM(2005) 682 final 

2005/0266 (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 Spirit Drinks and Aromatised Drinks 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 Spirit Drinks and Aromatised Drinks annexed to the Association 
Agreement between the European Community and the Republic of Chile (hereinafter referred 
to  as  “Annex VI”)  was  signed  in  Brussels  on  18  November  2002  and  entered  into  force  on 
1 February 2003. 

The  Joint  Committee  set  up  by  Article  17  of  the  Annex  VI  is  responsible  for  the 
administration of the agreement and its respective appendices. This Joint Committee bears in 
particular the responsibility for making recommendation on Annex VI, 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  VI  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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2005/0266 (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 Spirit Drinks and Aromatised Drinks 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  part,  was 
signed on 18 November 2002, and entered into force on 1 March 20051. 

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  Spirit 
Drinks  and  Aromatised  Drinks  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 part2 (hereinafter referred to as ‘Annex VI’).  

(3) 

These negotiations have been successfully concluded and the draft Agreement in the 
form of exchange of letters amending Annex VI 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 Spirit Drinks and 
Aromatised Drinks 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 

OJ L 84, 2.4.2005, p. 21. 
OJ L 352, 20.12.2005, p. 1193. 

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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 Spirit Drinks and Aromatised Drinks 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  17  of  Annex  VI  to  the  Association  Agreement  (the  Agreement  on  Trade  in  Spirit 
Drinks  and  Aromatised  Drinks).  The  Joint  Committee  has  recommended  that  modifications 
should  be  made  to  the  Agreement  on  Trade  in  Spirit  Drinks  and  Aromatised  Drinks 
(hereinafter referred to as ‘Annex VI’), 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  VI  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 17  of  Annex VI  to  the  Association  Agreement  (the  Agreement  on  Trade  in  Spirit 
Drinks  and  Aromatised  Drinks).  The  Joint  Committee  has  recommended  that  modifications 
should  be  made  to  the  Agreement  on  Trade  in  Spirit  Drinks  and  Aromatised  Drinks 
(hereinafter referred to as ‘Annex VI’), 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  VI  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 VI 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 II A shall be cancelled within 12 
years  for  use  on  the  internal  market  and  five  years  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  II 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 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 listed 
in Article 7(2) and (2a) which are identical with, or similar to, or contain 
the protected designation referred to in Article 6.  

(b)  paragraph 2 is replaced by the following: 

“2.  Pursuant  to  paragraph  1,  the  Parties  shall  not  deny  the  right  to  use  a 
trademark contained in the Chilean trademark register on 10 June 2002, 
other than those referred to in Article 7(2) and (2a), on the basis that such 
a  trademark  is  identical  with,  or  similar  to,  or  contains  a  protected 
designation listed in Appendix I.” 

(4) 

Article 17(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 
Spirit  Drinks  and  Aromatised  Drinks  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 

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 

EXPENDITURE 

CHARGED TO THE EC BUDGET 

– 
(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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