Proposal for a COUNCIL DECISION concluding an Agreement in the form of an Exchange of Letters between the European Union and the United States of America 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: 2012-06-29
Institutions: European Commission
Subjects: Bulgaria, GATT, Romania, United States, accession to the European Union, ratification of an agreement, tariff quota, trade agreement (EU)

EUROPEAN COMMISSION 

Brussels, 29.6.2012  
COM(2012) 346 final 

2012/0167 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of an Exchange of Letters between the European 
Union and the United States of America 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 the United States of America resulted in a draft Agreement in the form of 
an Exchange of Letters that was initialled by the EU side on 21 December 2011 in Brussels 
and by the US side on 17 February in Washington D.C.. 

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. The Council (TPC) and the European Parliament 
(INTA) were informed of the text of the draft agreement prior to being initialled.  

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 the United States of America. 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) and to Article 7 of the Regulation (EC) No 1216/2009 laying down the trade 
arrangements  applicable  to  certain  goods  resulting  from  the  processing  of  agricultural 
products. 

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2012/0167 (NLE) 

Proposal for a 

COUNCIL DECISION 

concluding an Agreement in the form of an Exchange of Letters between the European 
Union and the United States of America 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 the 
first subparagraph of Article 207(4), 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 Parliament, 

Whereas: 

(1) 

(2) 

(3) 

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

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

These  negotiations  have  been  concluded  and  the  Agreement  in  the  form  of  an 
Exchange  of  Letters  between  the  European  Union  and  the  United  States  of  America 
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  Agreement)  was  initialled  by  a  representative  of  the  European 
Union on 21 December 2011 and by a representative of the United States of America 
on 17 February 2012. 

(4) 

The  Agreement  was  signed  on  behalf  of  the  European  Union  on  […],  subject  to  its 
conclusion at a later date, in accordance with Council Decision […]1. 

(5) 

The Agreement should be approved, 

1 

OJ L […], […], 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 the 
United  States  of  America  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 Agreement) is hereby approved on behalf of the Union. 

The text of the Agreement is annexed to this Decision. 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
give, on behalf of the Union, the notification provided for in the Agreement2. 

Article 2 

Article 3 

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

Done at Brussels,  

For the Council 
The President 

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EN 

The date of entry into force of the Agreement will be published in the Official Journal of the European 
Union by the General Secretariat of the Council. 

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AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

ANNEX 

Between the European Union and the United States of America 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 

Place, date 

Sir,  

Following negotiations under Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs 
and Trade (GATT) 1994 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  confirm  the 
following understanding: 

1. 
The European Union shall incorporate and bind in its WTO Schedule for the customs territory 
of the EU 27 the concessions that were included in its schedule for the customs territory of the EU 25 
with the modifications set out in this letter.  

Add 4680 tonnes in the country allocated (US) EU tariff rate quota for 'meat and edible offal of poultry, 
fresh, chilled or frozen', maintaining the existing in-quota rates  

(tariff item numbers 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 1410, 0207 1420, 0207 1430, 0207 
1440, 0207 1450, 0207 1460, 0207 1470, 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 2710, 0207 
2720, 0207 2730, 0207 2740, 0207 2750, 0207 2760, 0207 2770, 0207 2780); 

Add 200 tonnes in the country allocated (US) EU tariff rate quota for 'frozen boneless hams and loins', 
maintaining the present in-quota rate of 250 € /t (tariff item numbers ex 0203 1955 and ex 0203 2955); 

Create  a  country  allocated  (US)  tariff  rate  quota  of  1550  tonnes  for  ‘food  preparations’,  with  an  in-
quota rate 'Agricultural Element' (tariff item number 2106 9098);  

Add 600 tonnes (erga omnes) in the EU tariff rate quota for 'cuts of domestic swine, fresh, chilled or 
frozen, with or without bone, excluding tenderloin, presented separately', maintaining the existing in-
quota  rates  (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,  0203 
2959); 

Add  500  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  for  'chicken  cuts,  fresh,  chilled  or  frozen', 
maintaining the existing in-quota rates (tariff item numbers 0207 1310, 0207 1320, 0207 1330, 0207 
1340, 0207 1350, 0207 1360, 0207 1370, 0207 1420, 0207 1430, 0207 1440, 0207 1460); 

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Add 400 tonnes (erga omnes) in the EU tariff rate quota for 'cuts of fowls', maintaining the existing in 
quota rate 795 €/t (tariff item number 0207 1410); 

Add  580  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  for  'turkey  meat,  fresh,  chilled  or  frozen', 
maintaining the existing in-quota rates (tariff item numbers 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); 

If  all  internal  procedures  required  for  the  EU  to  incorporate  and  bind  in  its  WTO  schedule  the 
modifications set forth in this letter are not completed 60 days prior to the expiration of the period for 
the  United  States  to  exercise  its  right  to  withdraw  substantially  equivalent  concessions  pursuant  to 
Article XXVIII of the GATT, the EU shall request that the WTO Council for Trade in Goods approve, 
prior to the expiration of the period, an extension of the period. Such extension shall be of sufficient 
length to ensure that all those EU internal procedures are completed 60 days prior to the expiration of 
the period for the United States to exercise its rights under Article XXVIII of the GATT. 

2. 
Concurrent  with  the  negotiation  of  the  modifications  set  forth  above  and  also  related  to  the 
enlargement  of  the  customs  territory  of  the  European  Union  to  include  the  Republic  of  Bulgaria  and 
Romania,  the  United  States  of  America  shall  within  21  days  of  entry  into  force  of  this  agreement 
submit  for  publication  in  the  Federal  Register  a  notice  modifying  the  tariff-rate  import  quotas  for 
cheeses allocated for the European Union in the additional U.S. notes 16, 17, 18, 19, 20, 21, 22, 23 and 
25 of Chapter 04 of the Harmonized Tariff Schedule of the United States to reflect the enlargement of 
the customs territory of the European Union to include Bulgaria and Romania.  

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

3. 
either Party. 

I should be obliged if you would confirm that your Government is in agreement with the content of this 
letter. I have the honour to propose that, 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 United States of America (the ‘Agreement’). 

The  European  Union  and  the  United  States  of  America  shall  notify  to  each  other  in  writing  of  the 
completion  of  any  internal  procedures  necessary  for  the  entry  into  force  of  this  Agreement.  This 
Agreement shall enter into force 14 days after the date of receipt of the date of the latest notification.  

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

For the European Union 

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B. Letter from the United States of America 

Place, date 

Sir,  

I have the honor 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  (GATT)  1994  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 
confirm the following understanding: 

The European Union shall incorporate and bind in its WTO Schedule for the customs territory 
1. 
of the EU 27 the concessions that were included in its schedule for the customs territory of the EU 25 
with the modifications set out in this letter.  

Add 4680 tonnes in the country allocated (US) EU tariff rate quota for 'meat and edible offal of poultry, 
fresh, chilled or frozen', maintaining the existing in-quota rates  

(tariff item numbers 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 1410, 0207 1420, 0207 1430, 0207 
1440, 0207 1450, 0207 1460, 0207 1470, 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 2710, 0207 
2720, 0207 2730, 0207 2740, 0207 2750, 0207 2760, 0207 2770, 0207 2780); 

Add 200 tonnes in the country allocated (US) EU tariff rate quota for 'frozen boneless hams and loins', 
maintaining the present in-quota rate of 250 € /t (tariff item numbers ex 0203 1955 and ex 0203 2955); 

Create  a  country  allocated  (US)  tariff  rate  quota  of  1550  tonnes  for  ‘food  preparations’,  with  an  in-
quota rate 'Agricultural Element' (tariff item number 2106 9098);  

Add 600 tonnes (erga omnes) in the EU tariff rate quota for 'cuts of domestic swine, fresh, chilled or 
frozen, with or without bone, excluding tenderloin, presented separately', maintaining the existing in-
quota  rates  (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,  0203 
2959); 

Add  500  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  for  'chicken  cuts,  fresh,  chilled  or  frozen', 
maintaining the existing in-quota rates (tariff item numbers 0207 1310, 0207 1320, 0207 1330, 0207 
1340, 0207 1350, 0207 1360, 0207 1370, 0207 1420, 0207 1430, 0207 1440, 0207 1460); 

Add 400 tonnes (erga omnes) in the EU tariff rate quota for 'cuts of fowls', maintaining the existing in 
quota rate 795 €/t (tariff item number 0207 1410); 

Add  580  tonnes  (erga  omnes)  in  the  EU  tariff  rate  quota  for  'turkey  meat,  fresh,  chilled  or  frozen', 
maintaining the existing in-quota rates (tariff item numbers 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); 

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If  all  internal  procedures  required  for  the  EU  to  incorporate  and  bind  in  its  WTO  schedule  the 
modifications set forth in this letter are not completed 60 days prior to the expiration of the period for 
the  United  States  to  exercise  its  right  to  withdraw  substantially  equivalent  concessions  pursuant  to 
Article XXVIII of the GATT, the EU shall request that the WTO Council for Trade in Goods approve, 
prior to the expiration of the period, an extension of the period. Such extension shall be of sufficient 
length to ensure that all those EU internal procedures are completed 60 days prior to the expiration of 
the period for the United States to exercise its rights under Article XXVIII of the GATT. 

2. 
Concurrent  with  the  negotiation  of  the  modifications  set  forth  above  and  also  related  to  the 
enlargement  of  the  customs  territory  of  the  European  Union  to  include  the  Republic  of  Bulgaria  and 
Romania,  the  United  States  of  America  shall  within  21  days  of  entry  into  force  of  this  agreement 
submit  for  publication  in  the  Federal  Register  a  notice  modifying  the  tariff-rate  import  quotas  for 
cheeses allocated for the European Union in the additional U.S. notes 16, 17, 18, 19, 20, 21, 22, 23 and 
25 of Chapter 04 of the Harmonized Tariff Schedule of the United States to reflect the enlargement of 
the customs territory of the European Union to include Bulgaria and Romania.  

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

3. 
either Party. 

I should be obliged if you would confirm that your Government is in agreement with the content of this 
letter. I have the honour to propose that, 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 United States of America (the ‘Agreement’). 

The  European  Union  and  the  United  States  of  America  shall  notify  to  each  other  in  writing  of  the 
completion  of  any  internal  procedures  necessary  for  the  entry  into  force  of  this  Agreement.  This 
Agreement shall enter into force 14 days after the date of receipt of the date of the latest notification.” 

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

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

On behalf of the United States of America 

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