CELEX: 51993PC0012
Language: en
Date: 1993-02-04
Title: Proposal for a COUNCIL REGULATION (EEC) on the conclusion of the Agreement on relations in the sea fisheries sector between the European Economic Community and the Argentine Republic

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                COM(93) 12 final
                                                                Brussels, 4 February 1993
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                                                 Proposal for a
                                            COUNCIL REGULATION (EEC)
                                on the conclusion of the Agreement on relations
                                    in the sea fisheries sector between the
                            European Economic Community and the Argentine Republic
                                         (presented by the Commission)
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 ---pagebreak---                                    - 2 -
                         Explanatory Memorandum
1. Following the final round of negotiations in Buenos Aires from 12 to
    14 November 1992, a bilateral fisheries Agreement between the
   Community and Argentina was initialled on 30 November.
   This Agreement, valid for a period of five years, is balanced and
   satisfactory for both parties. It provides the Community with access
   to new and very considerable fishing opportunities with a high
   commercial value and the possibility of considerably reducing its
   surplus fleet capacity.
2. The Agreement conforms with the negotiating directives for fisheries
   agreements with Latin America adopted by the Council in October
   1990.
   Those directives maintain the general guidelines for the negotiation
   of fisheries agreements previously laid down by the Council but
   incorporate new elements which differenciate between the different
   levels of development of the fisheries sector in Latin America. A
   fundamental objective is therefore to help the creation of joint
   enterprises and the possibility of the Community offering certain
   trade concessions in accordance with its international commitments
   as compensation for the fishing possibilities obtained.
3. The contents of the Agreement therefore respond to the objectives of
   the Common Fisheries Policy and the aims laid down in the
   negotiating directives.
   Firstly,   the   Agreement    includes  very  considerable   fishing
   opportunities (250 000 tonnes annually) with a high commercial value
   (120 000 tonnes of Merluccius hubbsi annually) which will provide
   work for a significant number of vessels. A considerable proportion
   of the vessels will continue to fly the flag of one of the Member
   States and, through the creation of joint ventures between
   companies, will have access to a third of the total catch
   possibilities for the various species covered by the Agreement.
   Secondly, it will permit the definitive transfer of a considerable
   number of Community vessels through the establishment in Argentina
   of various types of companies between Community and Argentinian
   shipowners in which the former may provide up to 100% of the
   capital. This part of the fleet, sailing under the Argentinian flag,
   will have access to two-thirds of the total catch possibilities
   provided for under the Agreement.
   Thirdly, in return for the fishing opportunities provided for in the
   Agreement the Community is giving trade concessions which will
   promote the supply of the Community market with fish products in
   great demand.
   Over the five years of the Agreement's validity, the Community will
   grant annual tariff reductions (erga omnes) on the importation of
   products   of  interest    for the Argentinian    fisheries   sector
   (Merluccius hubbsi and other species).
 ---pagebreak---                                     - 3 -
 4. In order to promote the creation of the various types of companies
     (joint enterprises, companies based in Argentina operating with
    European capital and joint ventures) provided for in the Agreement,
    and in accordance with the negotiating directives, the Community
    will grant financial assistance, from the Fisheries Agreement
    budget, to Community and Argentinian shipowners in accordance with
    the relevant criteria and scales laid down in Community rules.
    Community shipowners will receive assistance in accordance with the
    scales laid down in Structures Regulation (EEC) No 4028/86 increased
    by a percentage corresponding to the contribution made by the Member
    State.
    In addition, Argentinian shipowners forming part of the said
    companies will receive financial assistance as working capital equal
    to 15% of the assistance received by the Community shipowner.
5. Finally, the Community and Argentina are to cooperate in the
    scientific and technical fields to promote the conservation and
    rational exploitation of resources and the balanced development of
    the fisheries sector.
   To that end the Community will contribute ECU 28 million during    the
   period of validity of the Agreement, principally intended for     the
   development of fisheries research programmes, the improvement       of
   port facilities and vocational and technical training in          the
    fisheries sector.
6. This is the first Agreement with a Latin American country and the
   first "second generation" agreement, i.e. an agreement covering the
   activities of vessels flying the flags of Member States of the
   Community and which provides for the creation of joint enterprises.
   In short, this is an innovatory fisheries arrangement involving a
   system of companies established in Argentina which, in addition to
   reducing a part of the Community's surplus fishing capacity, permits
   access to very considerable fishing opportunities of great value to
   the whole of the Community fleet, whilst at the same time promoting
   stable,    long-term  fisheries relations between      Community  and
   Argentinian shipowners and fully respecting the principles of the
   conservation and rational management of fishery resources.
7. In view of the above, the Commission proposes that, with regard to
   the conclusion of the Agreement on relations in the sea fisheries
   sector between the Argentine Republic and the European Economic
   Community, the Council, without delay:
   -   decide to sign, subject to its approval, the Agreement on
       relations in the sea fisheries sector between the Argentine
       Republic and the European Economic Community and
       approve, with the adoption of the attached Regulation and after
       consulting the European Parliament, the Agreement on relations in
       the sea fisheries sector between the Argentine Republic and the
       European Economic Community.
 ---pagebreak---                                    - 4 -
           DATA SHEET ON THE EEC/ARGENTINA FISHERIES AGREEMENT
A. Annual fishing opportunities
   -   Merluccius hubbsi:                           120 000 tonnes
      Other species (Patagonian grenadier,
       Patagonian rockcod, roughhead grenadier,
       squid):                                      130 000 tonnes
       By-catches: 10%
B. Access to resources
   -   Joint enterprises and Community companies (up to 100% of
      capital):
      Conditions:- Argentinian flag;
                  - access to 2/3 of the total fishing opportunities
                    given in A
      Joint ventures:
      Conditions:- flag of one of the Member States of the Community;
                  - access to 1/3 of the total fishing opportunities
                    given under A
C. Financial contribution to the companies referred to under B ( from
   the budget for fisheries agreements)
   -  To the Community shipowner: in accordance with the scales laid
      down in Regulation (EEC) No 4028/86 increased by a percentage
      corresponding to the contribution from the Member State;
      To the Argentinian shipowner: an amount equivalent to 15% of the
      sum received by the Community shipowner.
D. Trade concessions
   The Community will fix tariff rates erga omnes for the import of
   certain products (Merluccius hubbsi, Patagonian rockcod, pollack,
   red sea bream and anchovy) for the period from 1 January to
   31 December inclusive for the period of validity of the Agreement.
E. Scientific programme and other specific measures
   A total of ECU 28 million over the period of validity of the
   Agreement intended principally for:
      fisheries research programmes;
      technological development programmes;
      the improvement of port infrastructures;
   - vocational and technical training.
F. Fishing zones and gear
   -  Merluccius hubbsi: north of 47°S latitude; south of 47°S latitude
      and west of 65 °W longitude to the Isla Grande de Tierra del
      Fuego.
      Patagonian grenadier, Patagonian rockcod and roughhead grenadier:
      south of 47°S latitude and west of 65°W latitude to the Isla
      Grande de Tierra del Fuego.
   - squid: north of 45°S latitude. Squid are to be caught with squid
      jigs.
 ---pagebreak---                                   - 5 -
G. Period of validity of the Agreement
   Five years. If not terminated, to be renewed automatically for two
   years. The Agreement will enter into force on the day on which the
   parties notify each other of the completion of the procedures
   necessary to that end.
 ---pagebreak---                                      - 6 -
                                Proposal for a
                           COUNCIL REGULATION (EEC)
               on the conclusion of the Agreement on relations
                   in the sea fisheries sector between the
           European Economic Community and the Argentine Republic
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof,
Having regard to the proposal from the Commission(^),
Having regard to the opinion of the European Parliament(2)f
Whereas on 30 November    1992, following   negotiations, the Community and
Argentina initialled an Agreement on relations in the sea fisheries sector
which provides Community fishermen with new fishing opportunities and in
return requires concessions from the Community, and in particular tariff
concessions;
Whereas, in the interests of the Community, the said Agreement should be
adopted,
HAS ADOPTED THIS REGULATION:
                                  Article 1
The Agreement between the European Economic Community and the Argentine
Republic on relations in the sea fisheries sector is hereby approved on
behalf of the Community.
The text of the Agreement is annexed to this Regulation.
(1) OJ No
(2) OJ No
 ---pagebreak---                                     - 7-
                                 Article 2
The President of the Council shall give the notification referred to in
Article 14 of the Agreement on behalf of the Community(3).
                                 Article 3
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,                                    For the Council
                                                      The President
(3) The date of entry into force of the Agreement is to be published in the
     Official Journal of the European Communities by the Secretariat-General
     of the Council.
 ---pagebreak---                                    - 8 -
                                AGREEMENT
          on relations in the sea fisheries sector between the
         European Economic Community and the Argentine Republic
THE EUROPEAN ECONOMIC    COMMUNITY,   hereinafter  referred  to  as "the
Community", and
THE ARGENTINE REPUBLIC, hereinafter referred to as "Argentina",
hereinafter referred to as the "Parties",
HAVING REGARD to the existing close links between the Community and
Argentina, and in particular those laid down under the Framework
Agreement on Cooperation signed between the Community and Argentina on
2 April 1990;
CONSIDERING that the Community and Argentina are signatories to the
United Nations Convention on the Law of the Sea;
RESOLVED to cooperate, in their joint interest, in the conservation and
rational exploitation of living marine resources;
ANXIOUS to establish terms and conditions for fishing activities and
cooperation between both Parties in this sector;
CONVINCED that their mutual interests and the achievement of their
respective economic and social objectives will be reinforced by means
of such cooperation;
CONSIDERING that, in the context of its political development,
Argentina wishes to stabilize and encourage economic and social
progress;
RECOGNIZING the efforts which Argentina has been making to restructure
its economy through economic deregulation, monetary stability and the
opening-up of its economy;
RESOLVED to pursue closer economic cooperation in the sea fisheries
sector   through   the   encouragement    of   joint   enterprises,  the
establishment of undertakings in Argentina and the constitution of
joint ventures between companies;
CONVINCED that this new type of cooperation in the fisheries sector
will provide regular access to new fishing opportunities, further the
aims of renewing and converting the Argentine fleet and restructuring
the Community fleet and promote the rational exploitation of resources
in the long term;
CONVINCED that such cooperation must be carried out in an evolutionary
and pragmatic way, paying special attention to scientific research and
the specific measures being adopted in the sea fisheries sector;
 ---pagebreak---                                    - 9 -
HAVE DECIDED AS FOLLOWS:
                                Article 1
This Agreement lays down the principles, rules and procedures       for
cooperation between Argentina and the Community as regards          the
conservation, exploitation and processing of fishery resources.
                                Article 2
For the purposes of this Agreement the following definitions      shall
apply:
(a)   Argentinian enforcement authority: the Ministry of Agriculture
       and Fisheries of the Argentine Republic;
(b)    joint venture: contractual relationship for a limited period
      between shipowners from one or more Member States of the
      Community and Argentinian shipowners for the purpose of jointly
      exploiting Argentinian fishery resources using one or more
      Community vessels with a view to the priority supply of the
      Community market;
(c)   Community vessel: a vessel flying the flag of one of the Member
      States of the Community;
(d)   Community shipowner: a shipowner of one of the Member States of
      the Community;
(e)    joint enterprise: a company constituted under private law
      consisting of one or more Community shipowners and one or more
      Argentinian natural or legal persons bound by a joint enterprise
      contract for the purpose of exploiting and, where appropriate,
      processing Argentinian fishery resources with a view to the
      priority supply of the Community market;
(f)   Community undertaking established      in Argentina: a company
      constituted under private law with capital coming from one or
      more Member States of the Community, established in Argentina for
      the purpose of exploiting and, where appropriate, processing
      Argentinian fishery resources with a view to the priority supply
      of the Community market.
                                Article 3
The Parties shall cooperate to promote the conservation and rational
exploitation of fish stocks on a sustainable basis, in accordance with
the relevant provisions of the United Nations Convention on the Law of
the Sea.
To this end, the Parties shall:
   -  make a joint study of the most efficient means of promoting the
      preservation and conservation of living marine resources while
      observing and respecting the relevant principles and rules of
      international law;
 ---pagebreak---                                   - 10 -
      exchange the data at their disposal on the state of fish stocks;
   -  develop joint scientific research programmes.
                                Article 4
1. The Parties shall encourage economic, commercial, scientific and
technical cooperation in the fisheries and related sectors. They shall
consult with each other to coordinate and integrate on a permanent
basis the various activities which may be carried out under this
Agreement.
2. With this aim, the Parties shall endeavour, in particular, to
encourage and facilitate the exchange of information on fishing
techniques and equipment and on methods for the preservation and
industrial processing of fishery products and on the development of
aquaculture.
3. Similarly, the Parties shall act so as to create conditions which
will encourage technological, commercial and economic contacts between
their undertakings.
4. The Community shall make payments to the Argentinian Government as
laid down in Protocol I, to be used, in particular, for:
      the development of fisheries research programmes aimed at
      improving the management of resources and activities related to
      the conservation of living marine resources;
      the development of projects for the construction, improvement and
      extension of fishing port facilities;
   -  the development of programmes and investments in aquaculture;
   -  the strengthening of resources and infrastructure for sea-going
      training in Argentina;
      the   start-up   and   implementation   of   specific  programmes,
      activities and studies;
   -  the provision of means and technical assistance to step up the
      monitoring of fishing in the area covered by this Agreement;
   -  the development of new fishing      techniques  which promote  the
      rational exploitation of stocks;
   -  vocational and technical training in all areas of fisheries and
      the fishing industry through study grants, practical training and
      the exchange of personnel;
      studies, seminars and conferences on fisheries;
   -  the identification, assessment and proposal of new projects;
 ---pagebreak---                                  - 11 -
   -  the official administration of this Agreement;
   -  the promotion of the preservation     and conservation  of  living
      marine resources.
                               Article 5
1. The Parties shall create suitable conditions for the establishment
in Argentina of undertakings using capital originating in one or more
Member States of the Community and the creation of joint enterprises
and joint ventures in the fisheries sector between Argentinian and
Community shipowners with the aim of jointly exploiting and, where
appropriate, jointly processing Argentinian fishery resources under the
conditions laid down in Protocol I and Annexes I and II.
2. Argentina shall grant the undertakings referred to in paragraph 1
access to the fishing opportunities set out in Protocol I in accordance
with the provisions of Annexes I to IV.
3. As part of its policy for the restructuring of its fleet, the
Community shall facilitate the inclusion of Community vessels in
undertakings established or to be established in Argentina. To that
end, and as part of its policy for the technical renovation of its
fishing industry, Argentina shall facilitate the transfer of current
fishing licences and issue the appropriate new licences pursuant to
this Agreement.
                               Article 6
The Parties shall select the projects for the joint ventures, Community
undertakings established in Argentina and joint enterprises provided
for in Article 5, which shall be authorized to take the catch
quantities specified in Protocol I. The projects shall be selected in
accordance with the methods and criteria set out in Annex III.
                               Article 7
1. In order to encourage the establishment of the undertakings
provided for in Article 5, the projects selected by the Parties
pursuant to Article 6 shall be eligible for financial assistance in
accordance with Protocol I.
2. The Community shall grant a financial contribution in respect of
the measures referred to in Articles 3 and 4 in accordance with
Protocol I.
                               Article 8
1. The pursuit of fishing activities under this Agreement shall be
subject to the possession of a fishing licence issued by the
Argentinian enforcement authority.
2. Fishing licences shall be issued and transferred in accordance with
the procedures and other conditions laid down in Annexes I to IV.
 ---pagebreak---                                   - 12 -
                                Article 9
 1. If, as a result of a change in     fish populations, the Argentinian
enforcement authority decides to      adopt new conservation measures
affecting the fishing activities       of vessels fishing under this
Agreement, discussions shall be held  between the Parties with a view to
amending the Annexes and Protocol I   hereto and maintaining the general
balance of the Agreement.
2. Conservation measures adopted by the Argentinian enforcement
authority shall be applied in a non-discriminatory manner to all
vessels and be based on objective scientific information and criteria.
                               Article 10
A Joint Committee shall be set up to oversee the application of this
Agreement. It shall be the duty of the Committee, in particular, to:
-  supervise the implementation, interpretation and smooth operation of
   the Agreement;
   serve as a forum for the amicable resolution of disputes which may
   arise regarding the interpretation or application of the Agreement;
-  ensure the necessary liaison concerning matters of common interest
   relating to fisheries;
   consider the programmes   and activities referred to in Articles 3
   and 4;
   evaluate the projects put forward by the Parties             for the
   establishment of joint enterprises and joint ventures as provided
   for in Article 7, in accordance with the criteria set out in
   Annex III;
   recommend the projects to receive aid as laid down in Protocol I;
   study the promotion of industrial joint ventures;
   check that the projects are being properly administered and oversee
   the use of the financial support given to projects in accordance
   with Article 7;
-  review the activities of Community vessels        belonging to  joint
   ventures before the end of their contracts.
The Joint Committee shall meet once a year, alternately in Argentina
and the Community, and in extraordinary session at the request of
either of the Parties.
                               Article 11
Nothing in this Agreement shall affect or prejudice in any way the
views of either Party with regard to any matter relating to the Law of
the Sea.
 ---pagebreak---                                   - 13 -
                               Article 12
 1. This Agreement shall apply for a period of five years with effect
 from the date of its entry into force and shall continue to apply for
additional periods of two years, unless notice of termination is given
in writing by either of the Parties at least six months before the date
of expiry of the initial and any additional period.
2. In the event of either of the Parties giving notice to terminate
this Agreement, the parties shall enter into consultations.
3. Before the end of the period of validity of the Agreement, the
Parties shall begin negotiations in order to decide upon any amendments
to the Annexes and/or Protocol I which may be necessary for the
subsequent period.
                               Article 13
Annexes I, II, III, IV, V, VI and VII and Protocol I to this Agreement
shall form an integral part thereof.
                               Article 14
This Agreement, drawn up in duplicate in Danish, Dutch, English,
French, German, Greek, Italian, Spanish and Portuguese, each version
being equally authentic, shall enter into force on the day on which the
Parties notify each other of the completion of the procedures necessary
to that end.
 ---pagebreak---                                   - 14 -
                                 ANNEX 1
      laying down the conditions governing the creation and access
                  to resources of joint enterprises and
                  undertakings established in Argentina
A. Selected projects
   Once the project selection procedure laid down in Annex III to this
   Agreement has been completed, the Community shall provide the
   Argentinian enforcement authority with a list of the Community
   vessels selected in accordance with Article 6 of the Agreement to
   undertake the fishing activities in question.
B. Register
   The Argentinian enforcement authority shall authorize the entry in
   the National Vessels Register of the vessels referred to in point A.
C. Fishing opportunities
1. Vessels entered in the National Vessels Register may exploit non-
   surplus and surplus resources within the maximum limits laid down in
   Protocol I.
2. Fishing for non-surplus resources shall be carried out using
   Community vessels in substitution for vessels flying the Argentinian
   flag, this substitution being effected in such a way as to ensure no
   increase in fishing effort.
3. The Argentinian enforcement authority shall authorize the transfer
   of current fishing licences in accordance with technical equivalence
   criteria to be laid down by that authority.
4. Exploitation of resources must be effected within the limits and
   under the terms laid down in the fishing licence of the laid-up
   Argentinian flag vessel and shall include fishing for the species
   authorized by that licence, with the exception of the species of
   prawn pleoticus mulleri. This species may not be fished by a laid-
   up vessel's licence-holder or by a third party. In addition, the
   transfer of licences for the fishing of species intended for the
   processing of surimi shall not be authorized.
D. Licences
1. In accordance with Articles 5 and 8 of the Agreement, the
   Argentinian enforcement authority shall facilitate the transfer of
   current fishing licences to the companies referred to in this Annex,
   with the exception of those issued to Argentinian flag vessels laid
   up, for whatever reason, for longer than one year without
   interruption, such as vessels belonging to bankrupt undertakings.
   It shall also facilitate the issue of new fishing licences covering
   the fishing opportunities set out in Protocol I.
 ---pagebreak---                                  - 15 -
2. Licences for the fishing of non-surplus species shall have the same
   term as the original licence being transferred. The validity of new
   licences for the fishing of surplus species shall be determined by
   the Argentinian enforcement authority in a general and non-
   discriminatory fashion.
3. Fishing licences shall be granted to an undertaking in respect of a
   specific vessel.
4. The terms governing the application for and issue of licences are
   set out in Annex IV.
5. The terms governing the application for and arrangements for the
   payment of Community aid are set out in Protocol I.
 ---pagebreak---                                     - 16 -
                                  ANNEX II
       laying down the conditions governing the creation and access
                to resources of joint ventures in Argentina
 I. COMMON PROVISIONS GOVERNING JOINT VENTURES
A. Selected projects
    Once the project selection procedure laid down in Annex III to this
    Agreement has been completed, the Community shall provide the
    Argentinian enforcement authority with a list of Community vessels
    selected in accordance with Article 6 of the Agreement for inclusion
    in a joint venture with a view to the exercise of fishing
    activities.
B. Register
    The Argentinian Government shall open a special register of vessels
    in which shall be entered all Community vessels that have been
    granted a fishing licence in accordance with this Annex.
    A Community vessel may be replaced in the register by another
    Community    vessel   with   equivalent   capacity    and  technical
    specifications only on duly justified grounds and with the agreement
    of the Parties.
C. Fishing opportunities
   Vessels operating under joint ventures entered in the register
    referred to in paragraph B may exploit non-surplus and surplus
    resources within the maximum limits laid down in Protocol I.
D. Licences
1. In accordance with Articles 5 and 8 of the Agreement, the
   Argentinian enforcement authority shall authorize the transfer to
   undertakings established or to be established in accordance with
   Argentinian law, in respect of Community vessels operating under
   joint ventures as referred to in this Annex, of new fishing licences
   covering the fishing opportunities set out in Protocol I, with the
   exception of those issued to Argentinian flag vessels laid up, for
   whatever reason, for longer than one year without interruption, such
   as vessels belonging to bankrupt undertakings. It shall also
   facilitate the issue of new fishing licences covering the fishing
   opportunities set out in Protocol I.
 ---pagebreak---                                   - 17 -
2. The fishing licences shall be issued for a period of validity equal
   to the duration of the joint venture.
3. Community vessels operating under joint ventures shall do so under
    fishing licences which lay down catch limits per species and
    authorized fishing zones.
4. Exploitation of non-surplus species must be effected within the
    limits laid down in the fishing licence of the laid-up Argentinian
    flag vessel and shall include fishing for the species authorized by
    that licence, with the exception of the species of prawn pleoticus
    mulleri. This species may not be fished by a laid-up vessel's
    licence-holder or by a third party. In addition, the transfer of
    licences for the fishing of species intended for the processing of
    surimi shall not be authorized.
5. The terms governing the application for and granting of licences are
    set out in Annex IV.
E. Fitting-out, victualling and fishing fees
Vessels operating under this Agreement shall comply with the  rules and
regulations laid down by the Argentinian enforcement          authority
regarding fitting-out, victualling and fishing fees, which     shall be
applied without discrimination between Argentinian and        Community
vessels.
F. Catch declaration
All Community vessels fishing pursuant to the Agreement shall forward
to the Argentinian enforcement authority a catch declaration in
accordance with the model given in Annex VII within 48 hours of the end
of each trip.
In the event of these provisions not being complied with, the
Argentinian enforcement authority may suspend the fishing licence of
the vessel involved until the said formalities have been complied with.
Community vessels shall forward a copy of the catch declaration to the
Delegation of the Commission of the European Communities in Buenos
Aires.
G. Duration of the joint ventures
Joint ventures shall be valid for a period of not more than three (3)
years. Under no circumstances may this duration be extended beyond the
expiry date of this Agreement. Six (6) months before the end of the
period of validity of the joint venture, the Joint Committee shall
 consider whether to extend its validity for the additional period
 requested.
 ---pagebreak---                                      18 -
 H. Signing on of crew
 1. Community vessels operating under joint ventures shall sign on at
    least thirty per cent (30%) of Argentinian crew members. Such crew
    members must possess the knowledge necessary for performing their
    functions.
 2. The said crew members' work contracts shall be concluded in
    Argentina between the representatives of the shipowners and the crew
    members concerned and must include social security arrangements and
    life and    accident  insurance   in accordance with Argentinian
    legislation.
 I. Scientific observers
At the request of the Argentinian enforcement authority, Community
vessels fishing pursuant to the Agreement shall permit a scientific
observer designated by the said authority to come on board and to
perform his tasks. He shall be provided with all the facilities
necessary for the exercise of his functions.
The conditions of his stay on board shall be the same as those of the
other officers of the vessel. Observers' remuneration and social
security contributions shall be paid by the Argentinian authorities.
The costs of their stay on board shall be borne by the owner of the
vessel.
J. Inspection and monitoring
At the request of the Argentinian enforcement authority, Community
vessels fishing under this Agreement shall permit the officials of
Argentina designated by the said authority and charged with the
inspection and control of fishing activities to come on board and tô
exercise their functions and shall provide them with assistance in
doing so.
Such officials must not stay on board any longer than is required for
the performance of their task.
K. Fishing zones and gear
Fishing is authorized for the following species, in the zones and with
the gear specified below, not including the territorial waters and the
Argentinian-Uruguayan joint fishing zone established in the Treaty of
Rio de La Plata and its maritime coast:
 ---pagebreak---                                   - 19
1. Fishing zones:
    Merluccius hubbsi:
    (a)     north of 47°S latitude.
    (b)     south of 47°S latitude and west of 65°W longitude to the
            outer limit of the territorial sea at the Isla Grande de
            Tierra del Fuego.
    Patagonian grenadier, Patagonian rockcod or roughhead grenadier
    South of 47°S latitude and west of 65°W longitude to the outert
    limit of the territorial sea at the Isla Grande de Tierra del Fuego.
    Argentinian shortfin squid
    North of 45°S latitude.
2. Fishing gear.
Argentinian shortfin squid may only be fished using jiggers.
II.    SPECIAL PROVISIONS   FOR JOINT VENTURES FISHING   FOR SPECIES  IN
       STRUCTURAL SURPLUS
Joint ventures may catch up to a third (1/3) of the maximum total
volume fixed in Protocol I for the species in structural surplus.
A. The grant of fishing licences
Community vessels must commence operations within six (6) months of the
issue of the corresponding licence. If they fail to begin within this
period, the licence shall be revoked automatically without prior notice
or further formalities.
The Argentinian enforcement authority may, however, extend the period
for commencing operations for one further period of three (3) months.
B. Requirements for licence applications
The Argentinian enforcement authority shall lay down the documents
which must accompany applications, a specimen of which can be found in
Annex IV.
 ---pagebreak---                                  -20 -
III.  SPECIAL PROVISIONS FOR JOINT VENTURES FISHING FOR SPECIES NOT IN
      STRUCTURAL SURPLUS AND SUBSTITUTING ARGENTINIAN FLAG VESSELS
A. Joint ventures between companies may catch up to a third (1/3) of
   the maximum total volume fixed in Protocol I for Merluccius hubbsi.
B. The provisions of Annex 1, points C(2), (3) and (4) and D shall
   apply.
 ---pagebreak---                                   - 21 -
                               ANNEX III
               Methods and criteria for project selection
1. The Parties shall exchange information on the projects presented for
   the formation of joint enterprises, undertakings established in
   Argentina and joint ventures as provided for in Article 5 of the
   Agreement which are liable to receive financial aid from the
   Community.
2. The projects shall be presented to the Commission of the European
   Communities via the competent authorities of the Member State or
   States concerned in accordance with Community rules.
3. The Community shall submit to the Joint Committee the list of
   projects eligible for financial assistance as provided for in
   Article 7 of the Agreement. The Joint Committee shall evaluate the
   projects in accordance basically with the following criteria:
   (a)     technology appropriate to the proposed fishing operations;
   (b)     species and fishing zones;
   (c)     modernization of vessels;
   (d)     total investment in the project;
   (e)     investment in on-shore plant;
   (f)     previous experience of Community        shipowner  and any
           Argentinian partner in the fisheries sector.
4. The Joint Committee shall recommend to the Parties the projects
   selected in accordance with the criteria set out in point 3.
5. Once the projects have been approved by the Argentinian enforcement
   authority and the Community, the Community shall forward to the
   Argentinian enforcement authority the list of selected projects for
   the purpose of transferring and issuing the necessary fishing
   licences and their subsequent entry in the appropriate Register.
 ---pagebreak---                                    - 22 -
                                 ANNEX IV
              conditions governing applications for and the
                       issuing of fishing licences
1. Argentinian    owners  who   have   established  joint   enterprises,
   undertakings in Argentina or joint ventures with Community owners in
   accordance with this Agreement shall submit an application for the
   relevant fishing licence to the Argentinian enforcement authority
   once they have complied with the provisions of point 5 of Annex III.
2. In the case of joint enterprises and undertakings established in
   Argentina, the fishing licence shall be issued to the joint
   enterprise or undertaking in respect of the vessels for which
   projects have been approved by the Parties.
3. In the case of joint ventures, the fishing licence shall be issued
   to the Argentinian undertaking which formed the joint venture, in
   respect of the Community vessel or vessels the projects for which
   have been approved by the Parties and identified in the respective
   joint venture contract.
4. Applications shall be submitted on the forms supplied for that
   purpose by the Argentinian enforcement authority, a specimen of
   which is attached.
5. Fishing licences shall be issued within thirty (30) working days of
   submission of applications.
6. Fishing  activities by Community vessels shall begin within six (6)
   months  of issue of the relevant licence. If they do not, the
   licence will be automatically revoked, without prior notification or
   further formality.
   The Argentinian enforcement authority may nevertheless grant a
   single three (3) month extension of the period for beginning fishing
   activities.
7. If the Argentinian enforcement authority decides to revoke a
   licence, it shall inform the Commission of the European Communities
   of its decision within fifteen (15) working days.
 ---pagebreak---                                   - 23 -
                       NOTE TO POINT 4 OF ANNEX IV
 APPLICATIONS FOR FISHING LICENCES FOR VESSELS COVERED BY THE FISHERIES
              AGREEMENT BETWEEN ARGENTINA AND THE COMMUNITY
National Director for Fisheries and Agriculture
       In my capacity as         of the company        , a legal entity
which I declare to be        , I hereby apply for the relevant fishing
licence for the vessel        , registration number       / o f which the
principal characteristics are:
Length                              Engine power..
Beam                                Hold capacity.
Depth                               GRT
      Authorization of the abovementioned vessel was recommended by the
Joint Committee on         , decision no           and approved by the
Argentinian enforcement authority on       , resolution no
      The Community approved the project on            and   notified the
Argentinian enforcement authority on
       I therefore request that the relevant fishing licence be issued
for the abovementioned vessel within the time limit laid down in the
resolution approving the project.
 ---pagebreak---                                     - 24 -
                                 PROTOCOL I
                 establishing the fishing opportunities and
           financial compensation provided for in the Agreement
                  on relations in the sea fisheries sector
    between the Argentine Republic and the European Economic Community
                                 Article 1
 1. In accordance with Article 5 of the Agreement and for a period of
    five years from the date on which it comes into force, the maximum
    annual fishing opportunities shall be as follows:
A. Non-surplus species
    Merluccius hubbsi                                   120 000 tonnes
B. Surplus species
     (i)    Patagonian grenadier
             (Macruronus magellanicus)                   50 000 tonnes
     (ii)   Argentinian shortfin squid
             (IIlex argentinus)                          30 000 tonnes
   (iii)    Patagonian rockcod (Salilota australis)
            and/or roughhead grenadier
             (Macruronus whitsoni)                       50 000 tonnes
                                                                in all.
2. By-catches shall be included in the maximum quantities indicated
    above and may not exceed ten (10) per cent of the catch actually
    taken on each trip.
                                 Article 2
1. Of the quantities referred to in Article 1, Community vessels
    operating as part of joint ventures may catch the following maximum
    annual quantities:
A. Non-surplus species
   Merluccius hubbsi                                     40 000 tonnes
 ---pagebreak---                                  - 25 -
B. Surplus species
   (i)     Patagonian grenadier
           (Macruronus magellanicus)               17 000 tonnes
   (ii)    Argentinian shortfin squid
           (Illex argentinus)                      10 000 tonnes
  (iii)    Patagonian rockcod (Salilota australis)
           and/or roughhead grenadier
           (Macruronus whitsoni)                   17 000 tonnes
                                                          in ail.
 ---pagebreak---                                    - 26 -
                                Article 3
 1. In accordance with Article 7 of the Agreement, the Community shall
    provide financial assistance for the formation of joint enterprises,
    Community undertakings established in Argentina and joint ventures
    selected in accordance with Article 6 of the Agreement.
    This financial assistance, as specified in the sheets in Annex VI,
    shall be paid to the Community owner to cover part of his financial
    contribution to the establishment of a joint enterprise, undertaking
    or joint venture in Argentina and/or to remove the vessels in
    question from the Community register.
2. With a view to encouraging the establishment and development of
    joint enterprises, the Community shall grant to joint enterprises
    established in Argentina financial support of fifteen (15) per cent
    of the amount paid to the Community owner. This financial support
    in the form of operating capital shall be paid by the Community to
    the Argentinian enforcement authority, which shall lay down the
    terms governing its use and its administration.
    Argentina shall inform the Joint Committee of how these funds are
    used.
3. The Community shall grant to the Argentinian company which forms a
    joint venture financial support equivalent to fifteen (15) per cent
    of that granted to the Community owner.
4. The provisions governing applications for and the grant of Community
    assistance to the Community owner as referred to in paragraph 1
    shall be laid down in accordance with the relevant Community rules
    in force.
    In the case of joint ventures, payment of the aid provided for in
    paragraph 1 shall be made twice yearly. Applications for payment
    shall be made in accordance with Community rules and shall be
    accompanied by a report on the activity of the joint venture during
    the period in question.
5. Payment of the financial assistance shall take place as soon as
   possible after all the formal requirements have been met.
                                Article 4
1. The financial contribution referred to in Article 7(2) of the
   Agreement for scientific and technical cooperation shall be fixed at
   ECU twenty-eight million (ECU 28 000 000) for the duration of the
   Agreement.
 ---pagebreak---                                  - 27 -
2. The Joint Committee established under Article 10 of the Agreement
   shall be informed of the programmes and activities implemented with
   this financial contribution.
   Argentina shall undertake to use the financial support for the
   purposes laid down. The Commission of the European Communities
   shall receive a report on the results of the programmes and
   activities in question.
3. The total financial contribution for the period covered by the
   Agreement shall be paid by the Community on an annual basis; the
   amount paid each year shall be determined by the Argentinian
   Government, which shall inform the Community of how the funds have
   been used.
                               Article 5
The financial assistance referred to in Article 3(2) and the financial
contribution referred to in Article 4 of this Protocol shall be paid to
an account authorized for that purpose by the Argentinian enforcement
authority and which shall be extra-budgetary.
 ---pagebreak---                                   - 28 -
                                ANNEX V
                          EXCHANGE OF LETTERS
Letter No 1
Sir,
We should be grateful if you would      kindly confirm  the  Community's
Agreement on the following:
With regard to the fishing agreement signed today between the European
Economic Community and the Government of the Argentine Republic, and in
particular with respect to Protocol I annexed thereto, establishing
between the Parties the terms for cooperation in the fisheries sector,
I have the honour to confirm that the Argentinian Government shall
offer the fishing opportunities laid down in Protocol I annexed to the
Agreement.
These fishing opportunities shall be retained on condition that the
Community fulfils its obligations with regard to commercial cooperation
as set out above.
Talks will be held as soon as possible to resolve any difficulties in
fulfilling the Agreement experienced by either of the Parties.
I have the honour to confirm, moreover, that the Community will grant
tariff reductions on the importation of specific fishery products
listed in the note annexed to this letter for the period from 1 January
to 31 December during the period of the Agreement's validity.
The maintenance of these tariff reductions shall depend on Argentina
fulfilling its obligations regarding the allocation of fishing quotas
as referred to in previous paragraphs.
The Community shall foster in an appropriate way regular exchanges of
information on commercial cooperation with a view to ensuring the
smooth operation and creating favourable conditions for the harmonious
development of this Agreement.
In the event of serious disruption of the Community market as a result
of tariff reductions for the products specified in the note annexed to
this letter, the Parties shall consult one another on the matter as
promptly as possible.
This exchange of letters is without prejudice to the rights and
obligations of Argentina and the Community under the General Agreement
on Tariffs and Trade.
(Complimentary close)
                           For the Government of the Argentine Republic
 ---pagebreak---                                  - 29 -
Letter No 2
Sir,
I have the    honour   to confirm  the  Community's  Agreement  on  the
following:
"With regard to the fishing agreement signed today between the European
Economic Community and the Government of the Argentine Republic, and in
particular with respect to Protocol I annexed thereto, establishing
between the Parties the terms for cooperation in the fisheries sector,
I have the honour to confirm that the Argentinian Government shall
offer the fishing opportunities laid down in Protocol I annexed to the
Agreement.
These fishing opportunities shall be retained on condition that the
Community fulfils its obligations with regard to commercial cooperation
as set out above.
Talks will be held as soon as possible to resolve any difficulties in
fulfilling the Agreement experienced by either of the Parties.
I have the honour to confirm, moreover, that the Community will grant
tariff reductions on the importation of specific fishery products
listed in the note annexed to this letter for the period from 1 January
to 31 December during the period of the Agreement's validity.
The maintenance of these tariff reductions shall depend on Argentina
fulfilling its obligations regarding the allocation of fishing quotas
as referred to in previous paragraphs.
The Community shall foster in an appropriate way regular exchanges of
information on commercial cooperation with a view to ensuring the
smooth operation and creating favourable conditions for the harmonious
development of this Agreement.
In the event of serious disruption of the Community market as a result
of tariff reductions for the products specified in the note annexed to
this letter, the Parties shall consult one another on the matter as
promptly as possible.
This exchange of letters is without prejudice to the rights and
obligations of Argentina and the Community under the General Agreement
on Tariffs and Trade."
(Complimentary close)
                           For the Council of the European Communities
 ---pagebreak---                                     - 30 -
                              NOTE TO ANNEX V
  CN Code                        Description                 Rate of Duty
  ex 0302 69 97:     Fish of the species Sparus pagrus
                     (red sea bream), fresh or chilled,
                     excluding fish fillets and other fish
                     meat falling within heading No 0304           5%
  ex 0303 78 10:     Hake of the species Merluccius hubbsi,
  ex 0304 90 47:     frozen, excluding fish fillets and
                     minced fish                                   5%
  ex 0303 79 97:     Patagonian rockcod (Salilota australis)
                     Patagonian grenadier (Macruronus
                     magellanicus), fish of the species Genypterus
                     blacodes (pollack) and Sparus pagrus,
                     (red sea bream), frozen,
                     excluding fish fillets and other fish meat
                     falling within heading No 0304.                5%
  ex 0304 20 57:     Frozen fillets of hake of the genus
                     Merluccius hubbsi                              5%U>
  ex 0304 20 97;     Frozen fillets of the species Patagonian
                     grenadier (Macruronus magellanicus)and
                     Patagonian rockcod (Salilota australis)        5%
  ex 0305 63 00:     Fish of the species Engraulis
                     anchoita, salted but not dried or smoked
                     and in brine                                   5%
  ex 1604 19 91:     Fillets of hake of the species Merluccius
                     hubbsi, merely coated with batter or
                     breadcrumbs, whether or not prefried in
                     oil, deep frozen                               10%
(1)  Subject to compliance with the reference price.
 ---pagebreak---                               - 31 -
                                  ANNEX VI
                                  Note No 1
Maximum amount of Community financial assistance for joint enterprises and
Community undertakings established in Argentina as laid down in Article 3(1)
of Protocol I.
 Category of vessel      Age of vessel            Amount per vessel
 (Gross registered tons)
 Less than 100 GRT       10 years or less         7 200 ECU/GRT + 90 000
                         More than 10 years but   4 800 ECU/GRT + 60 000
                         20 years or less
                         More than 20 years       3 600 ECU/GRT + 45 000
 100 GRT or more but     10 years or less         3 600 ECU/TRB + 450 000
 less than 400 GRT
                         More than 10 years but   2 400 ECU/GRT + 300 000
                         20 years or less
                         More than 20 years       1 800 ECU/GRT + 225 000
 400 GRT or more but     10 years or less         1 800 ECU/GRT+1 170 000
 less than 3 500 GRT
                         More than 10 years but   1 200 ECU/GRT + 780 000
                         20 years or less
                         More than 20 years         900 ECU/GRT + 585 000
 3 500 GRT or more       10 years or less         1 440 ECU/GRT+2 430 000
                         More than 10 years but     960 ECU/GRT+1 620 000
                         20 years or less
                         More than 20 years         720 ECU/GRT+1 215 000
 ---pagebreak---                                - 32 -
                                  Note No 2
Maximum amount of Community financial assistance for joint ventures laid
down in Article 3(2) of Protocol I
 Tonnage of the vessel                        Amount of the cooperation
 (expressed in gross registered tons)         premium per vessel
                                              (ECU/day)
 Less than 25 GRT                                         89
 from 25 to under 50 GRT                                 179
 from 50 to under 70 GRT                                 250
 from 70 to under 100 GRT                                394
 from 100 to under 200 GRT                               715
 from 200 to under 300 GRT                             1 180
 from 300 to under 500 GRT                             1 573
 from 500 to under 1 000 GRT                           2 002
 from 1 000 to under 1 500 GRT                         2 646
 from 1 500 to under 2 000 GRT                         3 217
 from 2 000 to under 2 500 GRT                         3 575
 from 2 500 to under 3 000 GRT                         4 076
 3 000 GRT or more                                     4 676
 ---pagebreak---                                                 - 33 ~
                                            ANNEX VII
                                       DEEP-SEA FISHING
          REFRIGERATOR                           FREEZER                              FACTORY
                                                      Annual voyage No
Name o f     vessel                                        Registration No         x
Fishing company                                            Number of crew
Port of departucfi-
                                                      Day     Month        Year         Hour       Minute
Port o f u n l o a d i n g                            •• i
Fuel ( l i t r e s )                            Distance travelled (milps)
                                  Seine net                 Pelagic trawl           M
                                                     01                             OP
                                  Trawl net                 Dredge                 0,
Fishing gear used                                    03                                  —-
                                  Lampara net               Pots                    w
                                     r
                                                     03
                                  Gill net                  Lines                   _
                                                     04                             00
                                  Long line         c*      "Rano"                 »o
                                  Other (specify)
    Fishing zone
    Number of casts
    Fishing time Ms
    Type of waters
    Depth in fathoms
    Weather
     Species                 captures by KG by zone                             Total catch
                                                   •
                                                                              ...... . ,
  •
                                                                                           •
         •
                           -   —-.—
                                                                          —
                              -<
    Comments
                                              •
                                                                   . , . . . , • • • • • .   . . -    . •
 I hereby declare that to the best                                 Signature and skipper's
 of my knowledge the information                                   declaration
 given above is correct
 ---pagebreak---                                                        •* s*
           Financial Statement                                              Date
  1. BUDGET HEADING :     B.2-9100                                         APPROPRIATIONS
 2. TITLE : Fisheries agreement between the EEC and Argentina
 3. LEGAL BASIS : Agreement on sea-fisheries relations between the EEC and Argentina
 4. AIMS
     Agreement and protocol for a period of five years
 5. FINANCIAL IMPLICATIONS           PERIOD OF 12 MONTHS    CURRENT FINANCIAL YEAR     FOLLOWING FINANCIAL YEAR
                                                                     ( 1993 )               ( 1994 )
5.0 EXPENDITURE
         - CHARGED TO THE EC BUDGET
           (REFUNDS/INTERVENTIONS)  ECU 32.5 million (1)       (1)                      (1)
                                      (yearly average)
         - NATIONAL AUTHORITIES
         - OTHER
5.1 REVENUE
        - OWN RESOURCES OF THE EC
           (LEVIES/CUSTOMS DUTIES)
        - NATIONAL
                                            1993.             ,1994.             1995.           1996.      1997.
5.0.1 ESTIMATED EXPENDITURE                (2)                 (2)               <2)             (2)         <2)
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION
      Total estimated cost for 1993-97:    ECU 162.5 million, of which:
      1. Joint enterprises             : ] 95.4 ECU million
      2. Establishment of undertakings: ]
      3. Joint ventures: ECU 39.1 million
      4. Scientific programme and special measures: ECU 28 million
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                         YES
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?
                                                                                                         YES
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                                              NO
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                         YES
COMMENTS :
<1) Total and average cost are obvious estimates at this stage; actual cost incurred will depend on the type
      (size and age) of vessels involved.
(2) The estimated expenditure per year will vary similarly and is dependant on the take-up of the Agreement
     Greater expenditure is expected after the 1st and 2nd year of application of the Agreement.                 .
 ---pagebreak---                                                35
                                                                      ISSN 0254-1475
                                                                COM(93) 12 final
                                                       DOCUMENTS
EN                                                                           U03
                                 Catalogue number : CB-CO-93-016-EN-C
                                                             ISBN 92-77-52085-X
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