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 Argentine Republic
Date: 2006-10-04
Institutions: European Commission
Subjects: Argentina, common commercial policy, ratification of an agreement, trade agreement (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.10.2006 
COM(2006) 572 final 

2006/0188 (ACC) 
2006/0189 (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 Argentine Republic 

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 and 
supplementing 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. 

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 negotiations 
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 Argentine Republic. 

This proposal asks the Council to approve this agreement.  

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2006/0188 (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 Argentine Republic. 

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 Argentine Republic. 
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 Argentine Republic 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 Argentine 
Republic  

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 
Argentine  Republic  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  The  Argentine  Republic  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  The 
Argentine  Republic  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  October  2006  and  under  no 
circumstances later than 1 January 2007. 

On behalf of the European Community  

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AGREEMENT  

In the form of an exchange of letters between the European Community and The Argentine 
Republic  

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 The Argentine Republic  

Brussels,  

Sir, 

Reference is made to your letter stating: 

“Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and  The 
Republic  of  Argentina  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  The  Republic  of  Argentina  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 The Republic 
of  Argentina  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  October  2006  and  under  no  circumstances 
later than 1 January 2007.” 

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

On behalf of The Argentine Republic  

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ANNEX 

03042096: A lower applied duty of 11.4% for three years or until the implementation of the 
results of the DDA reaches the tariff-level agreed, whichever comes first.  

03037996: A lower applied duty of 12.4% for three years or until the implementation of the 
results of the DDA reaches the tariff-level agreed, whichever comes first.  

- 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 537 tonnes (erga omnes) in EC tariff rate quota for skimmed milk powder (tariff item 
number 0402 1019), 

- add 96 tonnes (erga omnes) in EC tariff rate quota for apples (tariff item number ex 0808 
1080), 

-  open  a  tariff  rate  quota  242074  tonnes  (erga  omnes)  for  maize  (tariff  item  numbers  1005 
1090, 1005 9000), in quota rate 0%, 

- open a tariff rate quota 7044 tonnes (erga omnes) for fruit juices (tariff item numbers 2009 
1111, 2009 1119, 2009 1911, 2009 1919, 2009 2911, 2009 2919, 2009 3911, 2009 3919, 2009 
4911, 2009 4919, 2009 7911, 2009 7919, 2009 8011, 2009 8019, 2009 8032, 2009 8033, 2009 
8035, 2009 8036, 2009 8038, 2009 9011, 2009 9019, 2009 9021, 2009 9029), in quota rate 
20%, 

- open a tariff rate quota 20000 hl (erga omnes) for wine (tariff item numbers 2204 2965 and 
2204 2975), in quota rate 8€/hl 

- open a tariff rate quota 40000 hl (erga omnes) for wine (tariff item numbers 2204 2179 and 
2204 2180), in quota rate 10€/hl 

- open a tariff rate quota 13810 hl (erga omnes) for vermouth (tariff item number 2205 9010), 
in quota rate 7€/hl 

The exact tariff description of the EC-15 shall apply to all tariff lines and quotas above. 

-  adjust  the  definition  of  the  EC  tariff  rate  quota  of  11000  tonnes  'Boneless  "high  quality" 
meat:  "Special  or  good-quality  beef  cuts  obtained  from  exclusively  pasture-grazed  animals, 
aged  between  22  and  24  months,  having  two  permanent  incisors  and  presenting  a  slaughter 
live weight not exceeding 460 kilograms, referred to as "special boxed beef", cuts of which 
may bear the letters "sc" (special cuts)" to 'Boneless high quality meat of bovine animals fresh 
or chilled', supplying country Argentina. 

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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

DATE: 11-07-2006 
APPROPRIATIONS: 
973.1 M € 

BUDGET HEADING: 
Chapter 10 – Agricultural duties 
Chapter 12 – Customs duties 
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 Argentine Republic 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 Xof the GATT 1994 in relation to the enlargement of the Customs Union as of 1 
May 2004 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
[n] 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 
[n+1] 
(EUR million) 

(EUR million) 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

- 973.1 M€ (1) 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

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? 
OBSERVATIONS: 

N/A 

N/A 
NO 
NO 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

Reference  is  made  to  Council  Decision  XXXX,  regarding  the  conclusion  of  an 
Agreement with The Argentine Republic 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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2006/0189 (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 and 
supplementing 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  Argentine 
Republic,  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: 

In Regulation (EEC) No 2658/87 Annex I shall be amended with the duties and supplemented 
with the volumes shown in the annex to this Regulation. 

Article 1 

Article 2 

Annex  7  of  Section  III  of  Part  Three  (WTO  quotas  to  be  opened  by  the  Competent 
Community authorities) shall be amended as follows:  

a)  adjust  the  definition  of  the  EC  tariff  rate  quota  of  11000  tonnes  'Boneless  "high  quality" 
meat:  "Special  or  good-quality  beef  cuts  obtained  from  exclusively  pasture-grazed  animals, 

1 

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aged  between  22  and  24  months,  having  two  permanent  incisors  and  presenting  a  slaughter 
live weight not exceeding 460 kilograms, referred to as "special boxed beef", cuts of which 
may bear the letters "sc" (special cuts)" to 'Boneless high quality meat of bovine animals fresh 
or chilled'. 

b) Insert under "other terms and conditions" the text: "Supplying country Argentina" 

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

Article 3 

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. 

Part Two  
Schedule of Customs duties. 

CN code 

Description 

03042094 

Frozen fish fillets of other than freshwater fish 

Duty rate 

A lower applied 
duty of 11.4% (1) 

03037998 

Other  frozen  saltwater  fish,  excluding  fish  fillets  and  other 
fish meat of heading 0304, excluding livers and roes 

A lower applied 
duty of 12.4% (1) 

item 

Tariff 
numbers 
02022030 
020230 
02062991 

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

Skimmed milk powder 

Apples 

Maize 

Fruit juices 

item 

Tariff 
number 
04021019 

item 
Tariff 
number  ex 
08081080 

item 

Tariff 
numbers 
10051090 
10059000 

item 

Tariff 
numbers 
20091111 
20091119 
20091911 
20091919 
20092911 

Add 4003 tonnes 
(erga omnes) in EC 
tariff rate quota 

Add 537 tonnes 
(erga omnes) in EC 
tariff rate quota 

Add 96 tonnes 
(erga omnes) in EC 
tariff rate quota 

Open a tariff rate 
quota 242074 
tonnes (erga 
omnes) in quota 
rate 0% 

Open a tariff rate 
quota 7044 tonnes 
(erga omnes) in 
quota rate 20% 

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20092919 
20093911 
20093919 
20094911 
20094919 
20097911 
20097919 
20098011 
20098019 
20098034 
20098035 
20098036 
20098038 
20099011 
20099019 
20099021 
20099029 

item 

Tariff 
numbers 
22042965 
22042975 

item 

Tariff 
numbers 
22042179 
22042180 

item 

Tariff 
number 
22059010 

Wine 

Wine 

Vermouth 

Open a tariff rate 
quota 20 000 hl 
(erga omnes) in 
quota rate 8€/hl 

Open a tariff rate 
quota 40 000 hl 
(erga omnes) in 
quota rate 10€/hl 

Open a tariff rate 
quota 13 810 hl 
(erga omnes) in 
quota rate 7€/hl 

(1)  The  lower  applied  rate  indicated  above  is  to  be  applied  for  three  years  or  until  the 
implementation of the results of the Doha Development Agenda Round reaches the tariff level 
above, whichever comes first. 

The exact tariff description of the EC-15 shall apply to all tariff lines and quotas above. 

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