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.
Date: 2006-11-23
Institutions: European Commission
Subjects: Canada, Combined Nomenclature, agreement (EU), common customs tariff, tariff nomenclature, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.11.2006 
COM(2006) 716 final 

2006/0243 (ACC) 
2006/0244 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement between the European Community and Canada. 

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 with Canada. 

This proposal asks the Council to approve this agreement.  

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2006/0243 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement between the European Community and Canada. 

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  between  the  European 
Community and Canada. This agreement should be approved. 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement between the European Community and Canada 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. 

The text of the Agreement is annexed to this Decision. 

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The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement referred to in Article 1 in order to bind the Community.  

Article 2 

Done at Brussels, 

For the Council 
The President 

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Agreement between the European Community and the Government of Canada on the 
conclusion of GATT Article XXIV:6 Negotiations 

Following  the  initiation  of  negotiations  between  the  European  Communities  (EC)  and  the 
Government  of  Canada  under  Article  XXIV:6  and  Article  XXVIII  of  GATT  1994  for  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  their  accession  to  the  EC,  and  following  the  EC’s 
notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994,  

The European Community (EC) and the Government of Canada, hereinafter jointly referred to 
as the “Parties”,  

Have agreed the following provisions:  

1.  The  EC  shall  incorporate  in  its  schedule,  valid  for  the  customs  territory  of  the  European 
Communities of 25, the concessions that were included in its previous Schedule CLX of the 
European Communities of 15.  

2. In addition, the EC shall incorporate in its schedule, valid for the customs territory of EC 
25, the concessions contained in the annex to this Agreement. 

3.  The  EC  shall  reduce  its  tariffs  and  adjust  tariff  rate  quotas  as  indicated  in  the  Annex  no 
later than 1 March 2007. 

4. This Agreement shall enter into force on the date of Canada's notification of the completion 
of its appropriate domestic procedures, following the signing of the Agreement by the parties. 

IN  WITNESS  WHEREOF,  the  undersigned,  being  duly  authorized,  have  signed  this 
Agreement. 

DONE at xxx, this xxx day  of xxx 200_,  in two  original  copies, in the English and French 
languages, each version being equally authentic. 

FOR THE EUROPEAN COMMUNITY 

FOR THE GOVERNMENT OF CANADA 

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Annex 

-  a  country  allocated  (Canada)  tariff  rate  quota  of  4624  tonnes  of  pork  (tariff  item  numbers 
0203 1211, 0203 1219, 0203 1911, 0203 1913, 0203 1915, ex 0203 1955, 0203 1959, 0203 
2211, 0203 2219, 0203 2911, 0203 2913, 0203 2915, ex 0203 2955 and 0203 2959), in quota 
rate 233-434€/T 

- add 35 tonnes (erga omnes) in EC tariff rate quota for cuts of domestic swine (tariff item 
numbers  0203  1211,  0203  1219,  0203  1911,  0203  1913,  0203  1915,  ex  0203  1955,  0203 
1959,  0203  2211,  0203  2219,  0203  2911,  0203  2913,  0203  2915,  ex  0203  2955  and  0203 
2959), in quota rate 233-434 €/T 

- add 1265 tonnes (erga omnes) in EC tariff rate quota for frozen boneless hams and loins (ex 
0203 1955 and ex 0203 2955), in quota rate 250 €/T 

-  add  49  tonnes  (erga  omnes)  in  EC  tariff  rate  quota  for  'chicken  carcass  fresh,  chilled  or 
frozen' (tariff item numbers 0207 11 10,0207 11 30, 0207 11 90,0207 12 10, 0207 12 90), in 
quota rate 131-162€/T 

-  add  4070  tonnes  (erga  omnes)  in  EC  tariff  rate  quota  for  'chicken  cuts,  fresh,  chilled  or 
frozen' (tariff item numbers 0207  13  10, 0207 13 20, 0207 13 30, 0207 13 40, 0207 13 50, 
0207 13 60, 0207 13 70, 0207 14 20, 0207 14 30, 0207 14 40, 0207 14 60), in quota rate 93-
512€/T 

- add 1605 tonnes (erga omnes) in EC tariff rate quota for 'cuts of fowls', (tariff item number 
0207 14 10), in quota rate 795€/T 

-  add  201  tonnes  (erga  omnes)  in  EC  tariff  rate  quota  for  'turkey  meat,  fresh,  chilled  or 
frozen'(tariff  item  numbers  0207  24  10,  0207  24  90,  0207  25  10,  0207  25  90,  0207  26  10, 
0207 26 20, 0207 26 30, 0207 26 40, 0207 26 50, 0207 26 60, 0207 26 70, 0207 26 80, 0207 
27 30, 0207 27 40, 0207 27 50, 0207 27 60, 0207 27 70), in quota rate 93-425€/T, 

-  add  2485  tonnes  (erga  omnes)  in  EC  tariff  rate  quota  for  'turkey  cuts,  frozen'  (tariff  item 
numbers 0207 27 10, 0207 27 20, 0207 27 80), in quota rate 0%, 

- add 537 tonnes (erga omnes) in EC tariff rate quota for skimmed milk powder (tariff item 
number 0402 10 19) , in quota rate 475€/T 

- open a tariff rate quota 20000 HLT (erga omnes) for wine (tariff item numbers 2204 2965, 
2204 2975), in quota rate 8.0€/hlt, 

- open a tariff rate quota 40000 HLT (erga omnes) for wine (tariff item numbers 2204 2179, 
2204 2180), in quota rate 10.0€/hlt, 

- open a tariff rate quota 13810 HLT (erga omnes) for wine (tariff item number 2205 9010), in 
quota rate 7.0€/hlt, 

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-  open  a  tariff  rate  quota  2838  tonnes  (erga  omnes)  for  preserved  pineapples,  citrus  fruit, 
pears, apricots, cherries, peaches and strawberries (tariff item numbers 2008 2011, 2008 2019, 
2008 2031, 2008 2039, 2008 2071, 2008 3011, 2008 3019, 2008 3031, 2008 3039, 2008 3079, 
2008 4011, 2008 4019, 2008 4021, 2008 4029, 2008 4031, 2008 4039, 2008 5011, 2008 5019, 
2008 5031, 2008 5039, 2008 5051, 2008 5059, 2008 5071, 2008 6011, 2008 6019, 2008 6031, 
2008 6039, 2008 6060, 2008 7011, 2008 7019, 2008 7031, 2008 7039, 2008 7051, 2008 7059, 
2008 8011, 2008 8019, 2008 8031, 2008 8039, 2008 8070), in quota rate 20%, 

-  add  6215  tonnes  (erga  omnes)  in  EC  tariff  rate  quota  for  barley  (tariff  item  number  1003 
00), in quota rate 16€/T, 

- expansion of 853 tonnes of Canada’s existing country allocation in the EC tariff rate quota 
for soft wheat (tariff item number 1001 9099 ), in quota rate 12€/T, 

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

- open a tariff rate quota 2058 tonnes (erga omnes) for dog and cat food (tariff item numbers 
2309 1013, 2309 1015, 2309 1019, 2309 1033, 2309 1039, 2309 1051, 2309 1053, 2309 1059, 
2309 1070), in quota rate 7%, 

- add 2700 tonnes (erga omnes) in EC tariff rate quota for preparation of a kind used in animal 
feeding (tariff item numbers  2309 9031, 2309  9041, 2309 9051,  2309  9095, 2309  9099), in 
quota rate 7%. 

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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

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

BUDGET HEADING: 
Chapter 10 – Agricultural duties 
TITLE: 
Proposal for a Council Decision on the conclusion of an Agreement between the European Community 
and Canada 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 XXIV.6 of 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 

- 2.302 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  Canada  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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2006/0244 (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  between  the 
European  Community  and  Canada,  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: 

Article 1 

In Regulation (EEC) No 2658/87 Annex 7 of Section III of Part Three (WTO tariff quotas to 
be opened by the Competent Community Authorities) shall be amended with the tariff quotas 
and supplemented with the volumes shown in the Annex of this Regulation. 

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

Article 2 

1 

OJ C , , p. . 

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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 Three 
Tariff Annexes 

Description 

Cuts  of  domestic  swine,  fresh,  chilled  or  frozen,  with  or 
without bone, excluding tenderloin presented separately 

Duty rate 

A country allocated 
(Canada) tariff rate 
quota of 4624 
tonnes in quota rate 
of 233-434 €/ tonne 

Cuts  of  domestic  swine,  fresh,  chilled  or  frozen,  with  of 
without bone, excluding tenderloin presented separately 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

CN code 

0203 1211 
0203 1219 
0203 1911 
0203 1913 
0203 1915 
ex02031955 
0203 1959 
0203 2211 
0203 2219 
0203 2911 
0203 2913 
0203 2915 
ex02032955 
0203 2959 

0203 1211 
0203 1219 
0203 1911 
0203 1913 
0203 1915 
ex02031955 
0203 1959 
0203 2211 
0203 2219 
0203 2911 
0203 2913 
0203 2915 
ex02032955 
0203 2959 

Ex02031955 
ex02032955 

Boneless loins and hams of domestic swine, fresh, chilled or 
frozen 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

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0207 1110 
0207 1130 
0207 1190 
0207 1210 
0207 1290 

0207  1310 
0207  1320 
0207  1330 
0207  1340 
0207  1350 
0207  1360 
0207  1370 
0207  1420 
0207  1430 
0207  1440 
0207 1460 

0207 1410 

0207 2410 
0207 2490 
0207 2510 
0207 2590 
0207 2610 
0207 2620 
0207 2630 
0207 2640 
0207 2650 
0207 2660 
0207 2670 
0207 2680 
0207 2730 
0207 2740 
0207 2750 
0207 2760 
0207 2770 

0207 2710 
0207 2720 
0207 2780 

Chicken carcass, fresh, chilled or frozen 

Chicken cuts, fresh, chilled or frozen 

Boneless  cuts  of  fowls  of  the  species  Gallus  domesticus, 
frozen 

Turkey meat, fresh, chilled or frozen 

Cuts of turkey, frozen 

Boneless 

Halves or quarters 

Other 

0402 1019 

Skimmed milk powder 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

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

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2204 2965 
2204 2975 

Wine of fresh grapes (other than sparkling wine and quality 
wine  produced  in  specified  regions)  of  an  actual  alcoholic 
strength  by  volume  not  exceeding  13%  vol,  in  containers 
holding more than 2 litres 

2204 2179 
2204 2180 

Wine of fresh grapes (other than sparkling wine and quality 
wine  produced  in  specified  regions)  of  an  actual  alcoholic 
strength  by  volume  not  exceeding  13%  vol,  in  containers 
holding 2 litres or less 

quota rate of 475 € / 
tonne 

Open a tariff rate 
quota 20 000 HLT 
(erga omnes) in 
quota rate of 8.0 € / 
hlt 

Open a tariff rate 
quota 40 000 HLT 
(erga omnes) in 
quota rate of 10.0 € 
/ hlt 

Vermouth  and  other  wine  of  fresh  grapes  flavoured  with 
plants or aromatic substances, of an actual alcoholic strength 
by  volume  of  18%  vol  or  less,  in  containers  holding  more 
than 2 litres 

Open a tariff rate 
quota 13 810 HLT 
in quota rate of 7.0 
€ / hlt 

Preserved  pineapples,  citrus  fruit,  pears,  apricots,  cherries, 
peaches and strawberries 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

2205 9010 

2008 2011 
2008 2019 
2008 2031 
2008 2039 
2008 2071 
2008 3011 
2008 3019 
2008 3031 
2008 3039 
2008 3079 
2008 4011 
2008 4019 
2008 4021 
2008 4029 
2008 4031 
2008 4039 
2008 5011 
2008 5019 
2008 5031 
2008 5039 
2008 5051 
2008 5059 
2008 5071 
2008 6011 
2008 6019 
2008 6031 
2008 6039 
2008 6060 
2008 7011 
2008 7019 
2008 7031 
2008 7039 

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2008 7051 
2008 7059 
2008 8011 
2008 8019 
2008 8031 
2008 8039 
2008 8070 

1003 00 

Barley 

1001 9099 

Soft wheat 

1005 9000 
1005 1090 

Maize 

Dog and cat food 

Preparation of a kind used in animal feeding 

2309 1013 
2309 1015 
2309 1019 
2309 1033 
2309 1039 
2309 1051 
2309 1053 
2309 1059 
2309 1070 

2309 9031 
2309 9041 
2309 9051 
2309 9095 
2309 9099 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Expansion of 853 
tonnes of Canada's 
existing country 
allocation in the EC 
tariff rate quota, in 
quota rate of 12 € / 
tonne 

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Implemented 
through Council 
Regulation (EC) No 
711/2006 (OJ L 
124, 11.5.2006, p.1)

Open a tariff rate 
quota 2700 tonnes 
(erga omnes) in EC 
tariff rate quota, in 
quota rate of 7% 

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

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