Proposal for a COUNCIL DECISION on the European Union position on the adaptation of Annex 3 to the Agreement between the European Community and the Swiss Confederation on trade in agricultural products
Date: 2010-11-10
Institutions: European Commission
Subjects: Switzerland, agreement (EU), agricultural product, cheese, liberalisation of the market, market access, tariff quota, trade agreement

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EUROPEAN COMMISSION 

Brussels, 10.11.2010 
COM(2010) 647 final 

2010/0314 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the European Union position on the adaptation of Annex 3 to the Agreement between 
the European Community and the Swiss Confederation on trade in agricultural 
products 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Annex  3  (thereafter  "the  Annex")  to  the  Agreement  between  the  European  Community  and 
the  Swiss  Confederation  on  trade  in  agricultural  products  (thereafter  "the  Agreement") 
provides for concessions regarding cheeses, in particular for gradual liberalisation of trade in 
cheeses  over  a  period  of  five  years  following  the  entry  into  force  of  the  Agreement. 
Liberalisation of cheeses has been completed in June 2007. Furthermore, the European Union 
and  the  Swiss  Confederation  agreed  to  insert  into  the  Agreement  a  new  Annex  12  on  the 
protection of designations of origin and geographical indications for agricultural products and 
foodstuffs. As a consequence, the Annex needs to be revised to take into account both the full 
liberalisation  in  bilateral  trade  in  cheeses  and  the  protection  of  geographical  indications, 
stipulated for in Annex 12. 

The Commission therefore submits to the Council for adoption the proposal for the Decision 
on the European Union position on the adaptation of Annex 3 to the Agreement between the 
European Community and the Swiss Confederation on trade in agricultural products. 

2. 

BUDGETARY IMPLICATION 

No implications. 

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2010/0314 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the European Union position on the adaptation of Annex 3 to the Agreement between 
the European Community and the Swiss Confederation on trade in agricultural 
products 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4) first subparagraph, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Agreement  between  the  European  Community  and  the  Swiss  Confederation  on 
trade  in  agricultural  products1  (thereafter  "the  Agreement")  entered  into  force  on 
1 June 2002. 

Article 6 of the Agreement sets up a Joint Committee on Agriculture to be responsible 
for the administration of the Agreement and to ensure its proper functioning. 

Article  11  of  the  Agreement  provides  that  the  Joint  Committee  on  Agriculture  may 
decide to amend Annexes to the Agreement. 

Following the full liberalisation in bilateral trade in cheeses, with effect from 1 June 
2007  and  the  protection  of  geographical  indications,  to  be  stipulated  for  in  a  new 
Annex 12 to the Agreement, which calls for consistency in the specifications notably 
of cheeses, the necessary adaptations of Annex 3 to the Agreement should be made, 

The  first  subparagraph  of  Article  5(2)  of  Decision  2002/309/EC,  Euratom  of  the 
Council,  and  of  the  Commission  as  regards  the  Agreement  on  Scientific  and 
Technological  Cooperation,  of  4 April  2002  on  the  conclusion  of  seven  Agreements 
with  the  Swiss  Confederation2  provides  that  the  European  Union  position  within  the 
Joint Committee for  Agriculture is to  be adopted by the Council on a proposal  from 
the Commission. 

1 

2 

OJ L 114, 30.4.2002, p. 132. Agreement as last amended by Decision No 1/2007 of the Joint Committee 
on Agriculture (OJ L 173, 3.7.2007, p. 31). 
OJ L 114, 30.4.2002, p. 1. 

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HAS ADOPTED THIS DECISION:  

Article 1 

The position to be adopted by the European Union within the Joint Committee on Agriculture 
set  up  by  Article 6  of  the  Agreement  between  the  European  Community  and  the  Swiss 
Confederation on trade in agricultural products, regarding the adaptations of the Agreement as 
far  as  bilateral  trade  in  products  falling  under  heading  0406  of  the  Harmonised  System  is 
concerned  to  take  account  of  the  fully  liberalised  trade  in  the  sector,  shall  be  based  on  the 
draft Decision of the Joint Committee attached to this Decision. 

Article 2 

The decision of the Joint Committee on Agriculture shall be published in the Official Journal 
of the European Union as soon as it is adopted. 

Done at Brussels, 

For the Council 
The President

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ANNEX 

DRAFT 
DECISION N° …./2010 OF THE JOINT COMMITTEE ON AGRICULTURE 

the 

Concerning  the  modification  of  the  Annex  3  to  the  Agreement  between  the  European 
Community and the Swiss Confederation on trade in agricultural products 

(…/…/…) 

THE JOINT COMMITTEE ON AGRICULTURE, 

Having  regard  to  the  Agreement  between  the  European  Community  and  the  Swiss 
Confederation on trade in agricultural products3 , and in particular Article 11 thereof, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The Agreement between the European Community and the Swiss Confederation on 
trade  in  agricultural  products  (thereafter  "the  Agreement")  entered  into  force  on  1 
June 2002. 

Annex  3  (thereafter  "the  Annex")  to  the  Agreement  provides  for  concessions 
regarding  cheeses,  in  particular  for  gradual  liberalisation  of  trade  in  cheeses  over  a 
period of five years following the entry into force of the Agreement. 

.  The  European  Union  and  the  Swiss  Confederation  agree  to  insert  into  the 
Agreement  a  new  Annex  12  on  the  protection  of  designations  of  origin  and 
geographical  indications  for  agricultural  products  and  foodstuffs,  which  calls  for 
consistency in the specifications notably of cheeses. 

As a consequence, the Annex needs to be revised to take into account both the full 
liberalisation  in  bilateral  trade  in  cheeses,  with  effect  from  1  June  2007,  and  the 
protection of geographical indications, to be stipulated for in a new Annex 12. 

HAS DECIDED AS FOLLOWS: 

Article 1 

Annex 3 to the Agreement between the European Community and the Swiss Confederation on 
trade in agricultural products and its appendices shall be replaced by the text in the Annex to 
this Decision. 

Article 2 

The decision enters into force on …….2010. 

Done at …, the… 

3 

Agreement  between  the  European  Community  and  the  Swiss  Confederation  on  trade  in  agricultural 
products; OJ L 114, 30.4.2002 p. 132 

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For the Joint Committee on Agriculture 

[…] 

President and Head of EU 
delegation  

Head of the Swiss delegation 

Secretary of the Committee  

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ANNEX 

'Annex 3 

1. 

2. 

3. 

4. 

5. 

Bilateral trade in all products falling under heading 0406 of the Harmonised System 
is fully liberalised as from 1 June 2007 by abolishing all the tariffs and quota. 

The  European  Union  shall  not  apply  export  refunds  for  cheeses  exported  to 
Switzerland. Switzerland shall not apply export subsidies4 for cheeses exported to the 
European Union. 

All  products  falling  under  CN  code  0406  originating  in  the  European  Union  or  in 
Switzerland  and  traded  between  those  two  Parties  are  exempted  from  the 
presentation of an import licence.  

The European Union and Switzerland shall ensure that the benefits they grant each 
other are not undermined by other measures affecting imports and exports. 

Should  the  development  of  prices  and/or  imports  give  rise  to  disturbance  on  the 
market  of  either  Party,  consultations  shall  be  held  as  soon  as  possible  within  the 
Committee set up under Article 6 of the Agreement at the request of either Party with 
a view to finding appropriate solutions. In this connection, the Parties hereby agree 
periodically to exchange information on prices and any other relevant information on 
the market in locally produced and imported cheeses.' 

4 

The basic amounts on which the elimination of export subsidies were based were calculated by common 
agreement by the Parties on the basis of the difference in the institutional prices for milk likely to be in 
force when the Agreement entered into force, plus an additional amount for milk processed into cheese, 
obtained on the basis of the quantity of milk needed to manufacture the cheeses concerned, minus 
(except in the case of cheeses subject to quotas) the reduction of customs duty applied by the 
Community. 

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1. 

2. 

3. 

4. 

5. 

5.0 

5.1 

FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 12 – Custom duties and other duties  

Fichefin/10/599507 
DDG/tm 
6.0.2005.1-2010 

DATE: 27/08/2010 

APPROPRIATIONS: 
B2010: 14 079.7 M€ 

TITLE: 
Proposal  for  a  Council  Decision  on  the  European  Union  position  on  the  adaptation  of  Annex  3  to  the 
Agreement  between  the  European  Community  and  the  Swiss  Confederation  on  trade  in  agricultural 
products. 

LEGAL BASIS: 
Treaty and in particular art. 207(4) first subparagraph, in conjunction with Article 218(9). 

AIMS: 
To  establish  the  European  Union  position  on  the  adaptation  of  Annex  3  to  the  Agreement  between  the 
European Community and the Swiss Confederation on trade in agricultural products. 

FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 2010  
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 2011 
(EUR million) 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

REVENUE 
- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

OWN RESOURCES OF THE EC  

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: - 
6.0 

- 

-  

- 

-  

- 

-  

2012 

2013 

2014 

- 

- 

- 

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: 
The measure provides the position to be adopted by the European Union on the modification of Annex 3 (Trade 
on  cheese  products  under  CN  code  0406)  to  the  Agreement  between  the  European  Community  and  the  Swiss 
Confederation on trade in agricultural products. It has no financial impact. 

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