Proposal for a Council Decision on the conclusion of the agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning adjustments of trade preferences in cheese undertaken on the basis of Article 19 of the Agreement on the European Economic Area
Date: 2006-09-25
Institutions: European Commission
Subjects: Norway, agreement (EU), cheese, preferential agreement, tariff quota, trade agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.09.2006 
COM(2006) 553 final 

2006/0174 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the agreement in the form of an exchange of letters  
between the European Community and the Kingdom of Norway concerning  
adjustments of trade preferences in cheese undertaken on the basis of Article 19  
of the Agreement on the European Economic Area 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

Consultations  between  the  European  Commission  and  the  Government  of  Norway 
were  undertaken  on  the  basis  of  Article  19  of  the  Agreement  on  the  European 
Economic Area, with a view to improving bilateral trade conditions for cheese traded 
under respective preferential quotas, were held from 3 May to 7 June 2006.  

For the EC, this agreement aims at increasing the volume of the existing tariff quota 
on imports into the Kingdom of Norway of cheese1, reflecting the increase of exports 
of  cheeses  in  brine  or  oil  within  the  quota.  The  additional  volume  reflects  the 
estimated weight of brine or oil imported in combination with cheese. 

For the Kingdom of Norway, this arrangement aims at improving export possibilities, 
thanks  to  the  merge  of  the  two  existing  cheese  quotas1.  This  does  not  lead  to  an 
increase  in  the  cheese  concession  but  should  help  improving  the  utilisation  of  the 
quota.  

The  Commission  therefore  proposes  that  the  Council  adopt  the  proposal  for  a 
decision on the conclusion of these agreements in the form of an exchange of letters 
as set out in the annex. 

5. 

Financial impact: no change compared to the existing exchange of letters1. 

1 

Exchange  of  letters  of  20  June  2003;  Council  decision  2003/465/EC  of  16  June  2003  (OJ L 156, 
25.6.2003, p. 48). 

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2006/0174 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the agreement in the form of an exchange of letters  
between the European Community and the Kingdom of Norway concerning  
adjustments of trade preferences in cheese undertaken on the basis of Article 19  
of the Agreement on the European Economic Area 

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133 thereof, in conjunction with the first sentence of Article 300(2) thereof, 

Having regards to the proposal from the Commission,  

Whereas: 

(1) 

(2) 

Article  19(1)  of  the  Agreement  on  the  European  Economic  Area  foresees  that  the 
contracting  parties  shall  examine  any  difficulties  that  might  arise  in  their  trade  in 
agricultural products and shall endeavour to seek appropriate solutions. 

The  Kingdom  of  Norway  and  the  European  Community  held  bilateral  consultations, 
on the basis of Article 19(1) of the Agreement on the European Economic Area, which 
were concluded satisfactorily on 7 June 2006. 

(3) 

The Agreement in question, in the form of an exchange of letters, 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  Norway,  concerning  adjustments  of  trade  preferences  in  cheese  undertaken 
on  the  basis  of  Article 19  of  the  Agreement  on  the  European  Economic  Area,  is  hereby 
approved on behalf of the Community. 

The texts of the Agreement are attached to this Decision. 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement in order to bind the Community. 

Article 2 

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Done at Brussels,  

For the Council 
The President 

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ANNEX 

AGREEMENT 

in the form of an exchange of letters between the European Community and the 
Kingdom of Norway concerning adjustments of trade preferences in cheese undertaken 
on the basis of Article 19 of the Agreement on the European Economic Area 

A. Letter from the Community 

Brussels, ………. 2006 

Sir, 

I  have  the  honour  to  refer  to  the  consultations  between  the  European  Community  and  the 
Kingdom of Norway on adjustments of preferential concessions on cheese, held from 3 May 
2006 to 7 June 2006, undertaken on the basis of Article 19 of the Agreement on the European 
Economic Area. 

With the aim of improving the bilateral trade conditions for cheese, the European Community 
and the Kingdom of Norway have agreed to adjust the current respective preferential quotas.  

I hereby confirm that the results of the consultations were as follows: 

1. 

2. 

3. 

The Kingdom of Norway will increase the existing annual duty free tariff quota on 
imports  into  the  Kingdom  of  Norway  of  cheese  originating  in  the  European 
Community  by  500  tonnes.  The  additional  quantity  will  be  allocated  to  existing 
importers on a pro rata basis (i.e. 12,5% increase of existing quotas). The volume of 
the  additional  tariff quota will be 250 tonnes in 2006.  The  additional quota will be 
opened as soon as possible, and no later than 1 November 2006.  

The European Community will merge the two existing annual duty free tariff quotas 
on  imports  into  the  European  Community  of  cheese  originating  in  the  Kingdom  of 
Norway (quota numbers 09.4781 and 09.4782). The European Community will apply 
its normal provisions relating to the management of this merged tariff quota, under a 
licensing management system. The European Community will implement this merge 
as of 1 January 2007, at the start of the second semester (1 January 2007 – 30 June 
2007)  of  the  management  year  of  this  concession  (1  July  2006  –  30  June  2007). 
Possible  underutilisation  of  the  existing  cheese  quotas  during  the  semester  1  July 
2006  –  31  December  2006  will  be  transferred  to  the  semester  1  January  2007  – 
30 June 2007. 

The  rules  of  origin  for  the  purpose  of  implementing  the  adjustments  referred  to  in 
items  1  and  2  are  set  out  in  Annex  IV  to  the  Exchange  of  Letters  of  2  May  1992. 
However, paragraph 2 to Annex IV shall refer to the list in Annex II to Protocol 4 to 
the Agreement on the European Economic Area, to be applied according to Annex I 
to the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of 
Annex IV to the Exchange of Letters of 2 May 1992. 

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4. 

The Parties agree to take the necessary steps in order to ensure that tariff quotas will 
be  managed  in  such  a  way  that  imports  may  take  place  regularly  and  that  the 
quantities agreed for import can effectively be imported. 

This  Exchange  of  Letters  shall  be  approved  by  the  Parties  in  accordance  with  their  own 
procedures. 

I have the honour to confirm that the European Community is in agreement with the content 
of this letter. 

I should be obliged if you would confirm that the Government of the Kingdom of Norway is 
in agreement with the above. 

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

Done at Brussels, 

On behalf of the Council of the European Union 

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B. Letter from the Kingdom of Norway 

Sir, 

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  the  consultations  between  the  European  Community  and  the 
Kingdom of Norway on adjustments of preferential concessions on cheese, held from 3 May 
2006 to 7 June 2006, undertaken on the basis of Article 19 of the Agreement on the European 
Economic Area. 

With the aim of improving the bilateral trade conditions for cheese, the European Community 
and the Kingdom of Norway have agreed to adjust the current respective preferential quotas.  

I hereby confirm that the results of the consultations were as follows: 

1. 

2. 

3. 

4. 

The Kingdom of Norway will increase the existing annual duty free tariff quota on 
imports  into  the  Kingdom  of  Norway  of  cheese  originating  in  the  European 
Community  by  500  tonnes.  The  additional  quantity  will  be  allocated  to  existing 
importers on a pro rata basis (i.e. 12,5% increase of existing quotas). The volume of 
the  additional  tariff quota will be 250 tonnes in 2006.  The  additional quota will be 
opened as soon as possible, and no later than 1 November 2006.  

The European Community will merge the two existing annual duty free tariff quotas 
on  imports  into  the  European  Community  of  cheese  originating  in  the  Kingdom  of 
Norway (quota numbers 09.4781 and 09.4782). The European Community will apply 
its normal provisions relating to the management of this merged tariff quota, under a 
licensing management system. The European Community will implement this merge 
as of 1 January 2007, at the start of the second semester (1 January 2007 – 30 June 
2007)  of  the  management  year  of  this  concession  (1  July  2006  –  30  June  2007). 
Possible  underutilisation  of  the  existing  cheese  quotas  during  the  semester  1  July 
2006  –  31  December  2006  will  be  transferred  to  the  semester  1  January  2007  – 
30 June 2007. 

The  rules  of  origin  for  the  purpose  of  implementing  the  adjustments  referred  to  in 
items  1  and  2  are  set  out  in  Annex  IV  to  the  Exchange  of  Letters  of  2  May  1992. 
However, paragraph 2 to Annex IV shall refer to the list in Annex II to Protocol 4 to 
the Agreement on the European Economic Area, to be applied according to Annex I 
to the same Protocol, instead of the list in the Appendix referred to in paragraph 2 of 
Annex IV to the Exchange of Letters of 2 May 1992. 

The Parties agree to take the necessary steps in order to ensure that tariff quotas will 
be  managed  in  such  a  way  that  imports  may  take  place  regularly  and  that  the 
quantities agreed for import can effectively be imported. 

This  Exchange  of  Letters  shall  be  approved  by  the  Parties  in  accordance  with  their  own 
procedures. 

I have the honour to confirm that the European Community is in agreement with the content 
of this letter. 

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I should be obliged if you would confirm that the Government of the Kingdom of Norway is 
in agreement with the above.” 

I have the honour to confirm that the Government of Norway is in agreement with the content 
of your letter. 

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

Done at Oslo, 

For the Government of the Kingdom of Norway 

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