Proposal for a COUNCIL DECISION concluding an Agreement in the form of an Exchange of Letters between the European Union and Argentina pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Republic of Bulgaria and Romania in the course of their accession to the European Union
Date: 2011-02-14
Institutions: European Commission
Subjects: Argentina, accession to the European Union, tariff quota, trade agreement (EU)

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EUROPEAN COMMISSION 

Brussels, 14.2.2011 
COM(2011) 56 final 

2011/0027 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of an Exchange of Letters between the European 
Union and Argentina pursuant to Article XXIV:6 and Article XXVIII of the General 
Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of 
concessions in the schedules of the Republic of Bulgaria and Romania in the course of 
their accession to the European Union 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

With the accession of the Republic of Bulgaria and Romania, the European Union enlarged its 
customs  union.  Consequently,  the  European  Union  was  obliged  under  WTO  rules  (GATT 
Article XXIV:6) to enter into negotiations with WTO Members having negotiating rights in 
the schedules of any of the acceding Members in order to agree on compensatory adjustment. 
Such adjustment is due if the adoption of the EU’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  29  January  2007,  the  Council  authorised  the  Commission  to  open  negotiations  under 
Article  XXIV:6  of  GATT  1994.  The  Commission  has  negotiated  with  the  Members  of  the 
WTO  holding  negotiating  rights  with  respect  to  the  withdrawal  of  specific  concessions  in 
relation to the withdrawal of the schedules of the Republic of Bulgaria and Romania, in the 
course of their accession to the European Union.  

Negotiations  with  Argentina  resulted  in  a  draft  Agreement  in  the  form  of  an  Exchange  of 
Letters that was initialled on 22 September 2010 in Brussels. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Negotiations  have  been  conducted  by  the  Commission  within  the  framework  of  the 
negotiating directives issued by the Council. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

This proposal asks the Council to adopt a decision concluding the Agreement in the form of 
an Exchange of Letters with Argentina. In parallel, a separate proposal on the signature of this 
Agreement is also submitted. 

The implementing Regulation will consequently be adopted by the Commission, pursuant to 
Article 144 of the Single Common Market Organisation (CMO) Regulation (Regulation (EC) 
No 1234/2007). 

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2011/0027 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of an Exchange of Letters between the European 
Union and Argentina pursuant to Article XXIV:6 and Article XXVIII of the General 
Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of 
concessions in the schedules of the Republic of Bulgaria and Romania in the course of 
their accession to the European Union 

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(6)(a)(v) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

On 29 January 2007 the Council authorised the Commission to open negotiations with 
certain other Members of the WTO under Article XXIV:6 of the General Agreement 
on  Tariffs  and  Trade  (GATT)  1994,  in  the  course  of  the  accessions  to  the  European 
Community of the Republic of Bulgaria and Romania. 

Negotiations  have  been  conducted  by  the  Commission  within  the  framework  of  the 
negotiating directives issued by the Council. 

These  negotiations  have  been  concluded  and  an  Agreement  in  the  form  of  an 
Exchange  of  Letters  between  the  European  Union  and  Argentina  pursuant  to  Article 
XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 
1994  relating  to  the  modification  of  concessions  in  the  schedules  of  the  Republic  of 
Bulgaria  and  Romania  in  the  course  of  their  accession  to  the  European  Union  was 
initialled on 22 September 2010. 

(4) 

The  Agreement  was  signed  on  behalf  of  the  European  Union  on  […],  subject  to  the 
conclusion of the Agreement at a later date, in accordance with Council Decision […]. 

(5) 

The Agreement should be concluded, 

1 

OJ C […], […], p. […]. 

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HAS ADOPTED THIS DECISION:  

Article 1 

The  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European  Union  and 
Argentina  pursuant  to  Article  XXIV:6  and  Article  XXVIII  of  the  General  Agreement  on 
Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules 
of  the  Republic  of  Bulgaria  and  Romania  in  the  course  of  their  accession  to  the  European 
Union, is hereby concluded. 

The text of the Agreement is annexed to this Decision. 

Article 2 

The President of the Council shall designate the person empowered to proceed, on behalf of 
the European Union, to the notification provided for in the Agreement, in order to express the 
consent of the European Union to be bound by the Agreement. 

Article 3 

This  Decision  shall  enter  into  force  on  the  day  of  its  adoption.  It  shall  be  published  in  the 
Official Journal of the European Union. 

The date of entry into force of the Agreement shall be published in the Official Journal of the 
European Union. 

Done at  

For the Council 
The President 

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AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

ANNEX 

between  the  European  Union  and  the  Argentine  Republic  pursuant  to  Article  XXIV:6  and 
Article  XXVIII  of  the  General  Agreement  on  Tariffs  and  Trade  (GATT)  1994  relating  to  the 
modification  of  concessions  in  the  schedules  of  the  Republic  of  Bulgaria  and  Romania  in  the 
course of their accession to the European Union 

A. Letter from the European Union 

[…], […] 

Sir,  

Following negotiations under Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs 
and Trade 1994 (GATT) relating to the modification of the Schedules of the Republic of Bulgaria and 
Romania  in  the  course  of  their  accession  to  the  European  Union,  I  have  the  honour  to  propose  the 
following: 

The  European  Union  shall  incorporate  in  its  schedule,  for  the  customs  territory  of  the  EU  27,  the 
concessions contained in the schedule of the EU 25 with the following modifications: 

Add 1 500 tonnes in the country allocated (Argentina) EU tariff rate quota 'boneless meat of 
bovine animals, fresh or chilled', maintaining the present in quota rate of 20%. For four first 
years  of  the  implementation  the  increase  will  be  2  000  tonnes.  As  from  the  fifth  year  of 
implementation onwards the increase will be 1 500 tonnes 

Create a country allocation (Argentina) of 200 tonnes under the EU tariff rate quota 'Boneless 
buffalo meat, frozen', the allocation of Argentina also covering 'fresh and chilled', maintaining 
the present in quota rate of 20% 

Add 122 790 tonnes (erga omnes) in the EU tariff rate quota 'common wheat (medium and low 
quality)', maintaining the present in quota rate of 12 €/t 

Add  890  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  'barley',  maintaining  the  present  in 
quota rate of 16 €/t 

Add  890  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  'malting  barley',  maintaining  the 
present in quota rate of 8 €/t 

Add 35 914 tonnes (erga omnes) in the EU tariff rate quota 'maize', maintaining the present in 
quota rate of 0%. 

The European Union and the Argentine Republic shall notify each other the completion of their internal 
procedures for the entry into force of the agreement. The agreement shall enter into force 14 days after 
the date of receipt of the latest notification.  

I should be obliged if you would confirm that your Government is in agreement with the content of this 
letter. Should this be the case, this letter and your confirmation shall together constitute an Agreement 
in the form of an Exchange of Letters between the European Union and the Argentine Republic. 

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

For the European Union 

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B. Letter from the Argentine Republic 

[…], […] 

Sir,  

I have the honour to acknowledge the receipt of your letter of […], which reads as follows: 

"Following  negotiations  under  Article  XXIV:6  and  Article  XXVIII  of  the  General  Agreement  on 
Tariffs  and  Trade  1994  (GATT)  relating  to  the  modification  of  the  Schedules  of  the  Republic  of 
Bulgaria  and  Romania  in  the  course  of  their  accession  to  the  European  Union,  I  have  the  honour  to 
propose the following: 

The  European  Union  shall  incorporate  in  its  schedule,  for  the  customs  territory  of  the  EU  27,  the 
concessions contained in the schedule of the EU 25 with the following modifications: 

Add 1 500 tonnes in the country allocated (Argentina) EU tariff rate quota 'boneless meat of 
bovine animals, fresh or chilled', maintaining the present in quota rate of 20%. For four first 
years  of  the  implementation  the  increase  will  be  2  000  tonnes.  As  from  the  fifth  year  of 
implementation onwards the increase will be 1 500 tonnes 

Create a country allocation (Argentina) of 200 tonnes under the EU tariff rate quota 'Boneless 
buffalo meat, frozen', the allocation of Argentina also covering 'fresh and chilled', maintaining 
the present in quota rate of 20% 

Add 122 790 tonnes (erga omnes) in the EU tariff rate quota 'common wheat (medium and low 
quality)', maintaining the present in quota rate of 12 €/t 

Add  890  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  'barley',  maintaining  the  present  in 
quota rate of 16 €/t 

Add  890  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  'malting  barley',  maintaining  the 
present in quota rate of 8 €/t 

Add 35 914 tonnes (erga omnes) in the EU tariff rate quota 'maize', maintaining the present in 
quota rate of 0%. 

The European Union and the Argentine Republic shall notify each other the completion of their internal 
procedures for the entry into force of the agreement. The agreement shall enter into force 14 days after 
the date of receipt of the latest notification.  

I should be obliged if you would confirm that your Government is in agreement with the content of this 
letter. Should this be the case, this letter and your confirmation shall together constitute an Agreement 
in the form of an Exchange of Letters between the European Union and the Argentine Republic." 

I hereby have the honour to express my Government's agreement with the above letter. 

On behalf of the Argentine Republic 

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