Proposal for a COUNCIL DECISION on the signing on behalf of the European Union of Agreements in form of exchanges of letters on the modification of concessions with respect to processed poultry meat between the European Union and the Federal Republic of Brazil, and between the European Union and the Kingdom of Thailand pursuant to Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994)
Date: 2012-03-15
Institutions: European Commission
Subjects: Brazil, GATT, Thailand, import (EU), poultry, poultrymeat, signature of an agreement, tariff agreement, tariff preference, trade agreement (EU)

EUROPEAN COMMISSION 

Brussels, 15.3.2012  
COM(2012) 105 final 

2012/0045 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signing on behalf of the European Union of Agreements in form of exchanges of 
letters on the modification of concessions with respect to processed poultry meat 
between the European Union and the Federal Republic of Brazil, and between the 
European Union and the Kingdom of Thailand pursuant to Article XXVIII of the 
General Agreement on Tariffs and Trade 1994 (GATT 1994)  

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Negotiations  under  Article  XXVIII  of  GATT  1994  concluded  on  poultry  in  2007  (OJ  L138 
30.5.2007) covered tariff lines on poultry meat under heading 0210 as well as one processed 
poultry line, 1602 32 19 in the EC Schedule CXL: cooked preparations containing more than 
57% of poultry meat. Limiting the negotiations to the processed poultry line 1602 32 19 was 
considered  to  sufficiently  prevent  potential  substitution  effects.  Subsequent  import  data, 
however,  showed  a  dramatic  import  surge  of  processed  poultry  meat  under  tariff  line 
1602 32 30:  preparations  containing  25%  or  more  but  less  than  57%  by  weight  of  poultry 
meat or offal. This indicated that exporters seemed to take advantage of a relative gap in the 
EU level of protection, substituting poultry preparations containing more than 57% of poultry 
meat  with  preparations  containing  less  than  57%,  under  tariff  line  1602 32 30.  Comparable 
substitution effects were to be expected under other 1602 tariff lines in the future. In order to 
comprehensively  address  these  substitution  effects  affecting  the  EU  poultry  industry,  the 
Commission  requested  from  the  Council  the  authorisation  to  renegotiate  the  concessions  on 
poultry meat under Chapter 16 of the CN. 

On  25  May  2009  the  Council  authorised  the  Commission  to  open  negotiations  under 
Article XXVIII of the GATT 1994 (COM proposal 8615/09 WTO 72 AGRI 166) with a view 
to the renegotiation of concessions on poultry meat tariff lines under Chapter 16 of the CN.  

On 16 June 2009 the communication of the EU's intention to modify the concessions on items 
1602 20 10,  1602 32 11,  1602 32 30,  1602 32 90,  1602 39 21,  1602 39 29,  1602 39 40  and 
1602 39 80  included  in  Schedule  CXL  of  the  European  Communities  was  circulated  to  the 
other WTO Members. 

Negotiations have been conducted by the Commission in consultation with the Trade Policy 
Committee and within the framework of the negotiating directives issued by the Council. 

The Commission has negotiated with the Federal Republic of Brazil and with the Kingdom of 
Thailand holding each principal supplying interests and/or substantial interests in various of 
the tariff lines concerned. 

The  negotiations  have  resulted  in  Agreements  in  the  form  of  exchanges  of  letters  initialled 
with the Kingdom of Thailand on 22 November 2011 and with the Federal Republic of Brazil 
on 7 December 2011. 

2. 

BUDGETARY IMPLICATION  

See Financial Fiche in Annex (please note that it is a copy of the one related to the proposal 
for the Council Decision on the conclusion of the agreements). 

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2012/0045 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the signing on behalf of the European Union of Agreements in form of exchanges of 
letters on the modification of concessions with respect to processed poultry meat 
between the European Union and the Federal Republic of Brazil, and between the 
European Union and the Kingdom of Thailand pursuant to Article XXVIII of the 
General Agreement on Tariffs and Trade 1994 (GATT 1994)  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 207(4), first paragraph and 218(5) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

On 25 May 2009 the Council authorised the Commission to open negotiations under 
Article XXVIII of the GATT 1994 (COM proposal 8615/09 WTO 72 AGRI 166) with 
a view to the renegotiation of concessions on poultry meat tariff lines under Chapter 
16 of the CN. 

Those  negotiations  resulted  in  Agreements  in  the  form  of  exchanges  of  letters 
initialled with the Kingdom of Thailand on 22 November 2011 and with the Federal 
Republic of Brazil on 7 December 2011. 

HAS ADOPTED THIS DECISION:  

Article 1 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign  the  Agreements  in  the  form  of  exchanges of  letters  on  the  modification  of  concessions 
with respect to processed poultry meat between the European Union and the Federal Republic 
of Brazil and between the European Union and the Kingdom of Thailand pursuant to Article 
XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994). 

The text of the Agreements is annexed to this Decision. 

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Article 2 

This Decision shall enter into force on the day following its adoption. 

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 Union and Brazil pursuant to Article XXVIII of the General Agreement 
on  Tariffs  and  Trade  (GATT)  1994  relating  to  the  modification  of  concessions  with  respect  to 
processed poultry meat provided for in the EU Schedule annexed to GATT 1994 

A. Letter from the European Union 

Place, date 

Sir, 

Following negotiations under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 
1994, relating to the modification of EU concessions with respect to processed poultry meat, I have the 
honour to propose the following: 

1. 

The European Union shall incorporate in its Schedule the following modifications: 

The bound rate of duty for items 1602 3211, 1602 3230 and 1602 3290 shall be 2 765 €/tonne. 

For  item  1602  3211  a  tariff  rate  quota  of  16 140  tonnes  is  opened,  of  which  15 800  tonnes 
shall be allocated to Brazil. The in-quota rate shall be 630€/tonne. 

For  item  1602  3230  a  tariff  rate  quota  of  79 705  tonnes  is  opened,  of  which  62 905  tonnes 
shall be allocated to Brazil. The in-quota rate shall be 10,9%. 

For item 1602 3290 a tariff rate quota of 2 865 tonnes is opened, of which 295 tonnes shall be 
allocated to Brazil. The in-quota rate shall be 10,9%. 

Imports under the tariff rate quotas referred to in paragraph 1 shall take place on the basis of 
certificates of origin issued in a non-discriminatory way by the competent authorities in Brazil. 

Consultations may be held at any time with regard to any of the above matters at the request of 
either Party. 

2. 

3. 

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 Brazil.  

The European Union and Brazil 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 (fourteen) days after the 
date of the latest notification. 

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

On behalf of the European Union 

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B. Letter from Brazil 

Place, date 

Sir,  

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

"Following  negotiations  under  Article  XXVIII  of  the  General  Agreement  on  Tariffs  and  Trade  1994 
(GATT), relating to the modification of EU concessions with respect to processed poultry meat, I have 
the honour to propose the following: 

1. 

The European Union shall incorporate in its Schedule the following modifications: 

The bound rate of duty for items 1602 3211, 1602 3230 and 1602 3290 shall be 2 765 €/tonne. 

For  item  1602  3211  a  tariff  rate  quota  of  16 140  tonnes  is  opened,  of  which  15 800  tonnes 
shall be allocated to Brazil. The in-quota rate shall be 630€/tonne. 

For  item  1602  3230  a  tariff  rate  quota  of  79 705  tonnes  is  opened,  of  which  62 905  tonnes 
shall be allocated to Brazil. The in-quota rate shall be 10,9%. 

For item 1602 3290 a tariff rate quota of 2 865 tonnes is opened, of which 295 tonnes shall be 
allocated to Brazil. The in-quota rate shall be 10,9%. 

Imports under the tariff rate quotas referred to in paragraph 1 shall take place on the basis of 
certificates of origin issued in a non-discriminatory way by the competent authorities in Brazil. 

Consultations may be held at any time with regard to any of the above matters at the request of 
either Party. 

2. 

3. 

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 Brazil.  

The European Union and Brazil 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 (fourteen) days after the 
date of the latest notification." 

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

On behalf of Brazil 

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AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

Between  the  European  Union  and  Thailand  pursuant  to  Article  XXVIII  of  the  General 
Agreement  on  Tariffs  and  Trade  (GATT)  1994  relating  to  the  modification  of  concessions  with 
respect to processed poultry meat provided for in the EU Schedule annexed to GATT 1994 

A. Letter from the European Union 

Place, date 

Sir, 

Following negotiations under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 
1994, relating to the modification of EU concessions with respect to processed poultry meat, I have the 
honour to propose the following: 

1. 

The European Union shall incorporate in its Schedule the following modifications: 

The bound rate of duty for items 1602 3230, 1602 3290 and 1602 39 shall be 2 765 €/tonne. 

For  item  1602 3230  a  tariff  rate  quota  of  79 705  tonnes  is  opened,  of  which  14 000  tonnes 
shall be allocated to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3290 a tariff rate quota of 2 865 tonnes is opened, of which 2 100 tonnes shall 
be allocated to Thailand. The in-quota rate shall be 10,9%. 

For  item 1602 3921 a tariff  rate  quota of 10  tonnes allocated to Thailand is opened. The in-
quota rate shall be 630€/tonne. 

For  item  1602 3929,  a  tariff  rate  quota  of  13 720  tonnes  is  opened,  of  which  13 500  tonnes 
shall be allocated to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3940 a tariff rate quota of 748 tonnes is opened, of which 600 tonnes shall be allocated 
to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3980 a tariff rate quota of 725 tonnes is opened, of which 600 tonnes shall be allocated 
to Thailand. The in-quota rate shall be 10,9%. 

2. 

3. 

Imports  under  the  tariff  rate  quotas  referred  to  in  paragraph  1  shall  take  place  on  the  basis  of 
certificates of origin issued in a non-discriminatory way by the competent authorities in Thailand. 

Consultations may be held at any time with regard to any of the above matters at the request of either 
Party. 

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 Thailand.  

The European Union and Thailand 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 (fourteen) days after 
the date of the latest notification. 

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

On behalf of the European Union 

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B. Letter from Thailand 

Place, date 

Sir, 

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

"Following negotiations under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 
1994, relating to the modification of EU concessions with respect to processed poultry meat, I have the 
honour to propose the following: 

1. 

The European Union shall incorporate in its Schedule the following modifications: 

The bound rate of duty for items 1602 3230, 1602 3290 and 1602 39 shall be 2 765 €/tonne. 

For  item  1602 3230  a  tariff  rate  quota  of  79 705  tonnes  is  opened,  of  which  14 000  tonnes 
shall be allocated to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3290 a tariff rate quota of 2 865 tonnes is opened, of which 2 100 tonnes shall 
be allocated to Thailand. The in-quota rate shall be 10,9%. 

For  item 1602 3921 a tariff  rate  quota of 10  tonnes allocated to Thailand is opened. The in-
quota rate shall be 630€/tonne. 

For  item  1602 3929,  a  tariff  rate  quota  of  13 720  tonnes  is  opened,  of  which  13 500  tonnes 
shall be allocated to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3940 a tariff rate quota of 748 tonnes is opened, of which 600 tonnes shall be 
allocated to Thailand. The in-quota rate shall be 10,9%. 

For item 1602 3980 a tariff rate quota of 725 tonnes is opened, of which 600 tonnes shall be 
allocated to Thailand. The in-quota rate shall be 10,9%. 

Imports under the tariff rate quotas referred to in paragraph 1 shall take place on the basis of 
certificates  of  origin  issued  in  a  non-discriminatory  way  by  the  competent  authorities  in 
Thailand. 

Consultations may be held at any time with regard to any of the above matters at the request of 
either Party. 

2. 

3. 

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 Thailand.  

The European Union and Thailand 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 (fourteen) days after 
the date of the latest notification." 

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

On behalf of Thailand 

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FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 12 – Custom duties and other duties  

Fichefin/11/ 1163256 
DDG/GM/nh 
6.146.2011.1 

DATE: 06/10/2011 

APPROPRIATIONS: 
DB2012: 19 171.2 M€ 

TITLE: 
Proposal for a Council Decision on the conclusion of Agreements in form of exchanges of letters on the 
modification of concessions with respect to processed poultry meat between the European Union and the 
Federal  Republic  of  Brazil,  and  between  the  European  Union  and  the  Kingdom  of  Thailand  pursuant  to 
Article XXVIII of the general Agreement on Tariffs and Trade 1994 (GATT 1994). 

LEGAL BASIS: 
Treaty on the Functioning of the European Union, and in particular Articles 207 and 218. 

AIMS: 
To conclude the Agreements between EU – Brazil and Thailand, in order to address the substitution effects 
of imports affecting the EU poultry industry.  

1. 

2. 

3. 

4. 

5. 

FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 2011  
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR 2012 
(EUR million) 

5.0 

5.1 

CHARGED TO THE EC BUDGET 

NATIONAL AUTHORITIES 
OTHER 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 
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 

- 

-  

- 

-  

- 

- 1.4  

2013 

2014 

2015 

- 

- 

- 

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: 
Following  negotiations  under  Article  XXVIII  of  GATT  1994,  started  mid-2009  with  Brazil  and  Thailand,  the 
measure  concerns  the  conclusion  of  the  Agreements  between  EU  – Brazil  and  Thailand,  in  order  to  address  the 
substitution effects of imports affecting the EU poultry industry.  
The  financial  impact  of  the  Regulation  of  the  European  Parliament  and  of  the  Council,  implementing  these
Agreements, is indicated in its specific Financial Statement*, and can be estimated of a reduction of own resources 
of an approximated net amount of EUR 1.4 million, after deduction of 25% of collection costs by Member States.  
* Financial Statement No 1163357/2011 

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