CELEX: 51988PC0767
Language: en
Date: 1988-12-05
Title: PROPOSAL FOR A COUNCIL DECISION concerning the adaptation to the Voluntary restraint agreement between the European Economic Community and New Zealand on trade in mutton, lamb and goatmeat (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 767
Vol. 1988/0251
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM ( 88 ) 767 final
                                                    Brussels , 5   December 1988
                                   PROPOSAL
                            FOR A COUNCIL DECISION
 concerning the adaptation to the Voluntary restraint agreement between
             the European Economic Community and New Zealand
                 on trade In mutton , lamb and goatmeat
                    ( presented by the Commission )
                          O
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 ---pagebreak---                            EXPLANATORY MEMORANDUM
1. The amendments decided recently with a view to realising a better
   management of the common market organisation for sheep and goatmeat
   will result In Increased disciplines and a reduction In support for
   Community producers .
   As the Commission has underlined on several occasions In Its
   commun I tat Ion to the Council on the future of the Common Agricultural
   Policy , It Is Important that these extra efforts demanded    from the
   Community 's agricultural producers are supported by a parallel action
   at Import . This requires an adaptation to the voluntary restraint
   agreements concluded by the Community with principal supplier
   countr les .
2. It Is within this context that , In line with the conclusions of the
   European Council of February 1988 , the Council decided on 15 November
   1988 on the negotiating mandate for this subject .
   Because of this mandate , negotiations have taken place with
   New Zealand , by far the largest supplier to the Community , and these
   negotiations have led to the draft agreement attached of which the
   essential elements are set out below :
   1 .       Quant it les
             The quantity of 245.500 t , laid down in paragraph 6 of the
             voluntary restraint agreement Is reduced to 205.000 t , ie a
             reduction of 40.500 t .
   2.        Chilled products
             A maximum quantity of 6.000 t Is fixed for 1989 , It being
             understood that this amount will be Increased by 1.500 t per
             annum for the following three years .
   3.        System of pr I ce sur ve I I I ance
             A system of price surveillance Is established assuring notably
             a balanced relationship between prices of the imported product
             and those of the Internal market .
   4.        Customs tarlff
             The level of charge fixed autonomously is suspended at zero
             for the duration of the arrangement , under the reserve that
             the conditions fixed within the context of the system of price
             surveillance are respected .
   5.        Duration of the agreement
             The agreement Is concluded for four years starting 1
             January 1989 .
                                                                          г
 ---pagebreak---                                2
6. Sensit Ive areas
   For 1989 and 1990 , specific quantities are established for
    Import into France and Ireland :
              for 1989 , these quantities are , respectively , 6.150 t
              ( le . the amount for 1988 Increased by 20% ) for France
              and 450 t for Ireland (0 In 1988 );
              for 1990 , these quantities are Increased by 20% .
7. Add 1 1 Iona I  letter
   The draft agreement also makes provision for an additional
   letter , which will not be published , through which the
   Commission wl l I confirm Its Intent Ion not to Initiates
   procedure for remedial action against New Zealand under
   certain circumstances .      These are where the acts of New
   Zealand 's traders were not the main cause of the movement      In
   prices which eventually triggered a consultative process under
   the exchange .
                                                                   3
 ---pagebreak---                         PROPOSAL FOR A COUNCIL   DECISION
        concerning the adaptation to the Voluntary restraint agreement
            between the European Economic Community and New Zealand
                     on trade In mutton , lamb and goatmeat .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Article 113 thereof ;
Having regard to the proposal from the Commission ;
Whereas the Community has taken measures to stabilise the markets for
sheepmeat and goatmeat and that It has the Intention of arriving at a better
Integration of Its markets ;
Whereas within the context of these adjustments to the common market
organisation , It is opportune to adapt the voluntary restraint agreements
with certain third countries in this sector with a view to obtaining a
stabilisation of imports and an Improvement In the import price ;
Whereas the Commission has conducted negotiations in this connection with
New Zealand which have resulted In a draft agreement ;
HAS DECIDED AS FOLLOWS :
                                    Art Icle 1_
1.     The agreement drawn up in the form of an exchange of letters between
       the European Economic Community and New Zealand concerning the
       adaptation to the voluntary restraint agreement between the European
       Economic Community and New Zealand on trade in mutton , lamb and
       goatmeat is hereby approved on behalf of the European Economic
       Commun I ty .
2.     The text of the exchange of letters Is attached to this Decision .
                                    Article 2_
The President of the Council Is hereby authorized to designate the person
empowered to sign the exchange of letters referred to In Article 1 In order
to bind the Community .
Done at Brussels ,
                                                 For the Council
                                                 The President
 ---pagebreak---                                                                    DRAFT
  EXCHANGE OF LETTERS RELATING TO THE 1980 AGREEMENT BETWEEN THE EUROPEAN
  COMMUNITY AND NEW ZEALAND ON TRADE IN MUTTON , LAMB AND GOATMEAT
                                  A. Letter N° 1
 Sir ,
  I have the honour to refer to the exchange of letters of 17 October 1980
 constituting an Agreement between the European Community and the Government
 of New Zealand ( hereinafter referred to as " the Parties ") establishing
 provisions relating to the Import of mutton and lamb and goatmeat Into the
 European Community from New Zealand ( hereinafter referred to as " the
 Principal Agreement ") and to negotiations held between our respective
 delegations for the purpose of establishing temporary derogations from
 certain of those provisions concurrent with the Implementation of measures to
 stabilise the European Community sheepmeat sector and to reform the European
 Community sheepmeat Internal regime In order to achieve a unified European
 Community sheepmeat market .  Having regard to the Interests of both the
 parties In the stability and strength of that market , and on the basis of the
 above measures being Implemented by the European Community , I have the honour
 to propose the following derogations from the Principal Agreement which shall
 remain In force for the duration of this Agreement .
                                    Clause  1
                              TEMPORARY DEROGATIONS
The following derogations from the Principal Agreement shall apply :
                                                                            5
 ---pagebreak---                                        - 2 -
 A. Access and Quant Ity
  In Clause 2 of the Principal Agreement , as modified by Clause 6 of the
 Principal Agreement , the celling figure of " 245,500 ", representing the annual
 celling In metric tonnes on the total quantity of Imports each year Into the
 European Community of mutton , lamb and goatmeat from New Zealand , shall be
 deemed to have been replaced by the figure of " 205.000 ". This celling shall
 be deemed to Include a maximum In 1989 of 6,000 metric tonnes of lamb
 Imported Into the European Community from New Zealand In a form which has
 never been frozen , a maximum of 7,500 metric tonnes In 1990 , a maximum of
 9,000 metric tonnes In 1991 , and a maximum of 10,500 metric tonnes In 1992 .
B. Tarlff
 In Clause 5 of the Principal Agreement , the words " to a maximum amount of
 10 percent ad valorem " shall be deemed to be replaced by the word " zero ".
C. Pr Ice Survel I lance
With a view to improved sheepmeat prices within the European Community , the
Parties shall monitor the prices for lamb In accordance with the procedures
contained In the Annex to this Agreement and shall consult as necessary In
accordance with Its provisions .
                                    Clause 2
                                  CONSULTATION
Notwithstanding Clause 1 .C of this Agreement either Party may request
consultations concerning the operation of this Agreement at any time .
                                                                                G
 ---pagebreak---                                        - 3 -
                                     Clause 3
                                 GATT OBLIGATIONS
 The provisions of this Agreement shall be agreed without prejudice to the
 rights of New Zealand and the European Community under GATT .
                                     Clause 4
                                 ENTRY INTO FORCE
This Agreement shall enter Into force on 1 Janaury 1989 and shall remain In
force until 31 December 1992 provided that , If either Party gives notice of
denunciation of the Principal Agreement In accordance with Clause 14 of that
Agreement , this Agreement shall cease to have effect upon the same date as
the Principal Agreement ceases to have effect .
                                     Clause 5
                                      REVIEW
Within 6 months prior to expiration of this Agreement , Its provisions shall
be reviewed .  In this review , account shall be taken of :
 ---pagebreak---                                       - 4 -
 (a)    the effects of the reforms of the European Community 's sheepmeat
        regime ,
 (b)    the effect of this Agreement upon the operation of the European
       Community sheepmeat market and upon New Zealand 's returns from that
       market , and
(c)    the Imports Into the European Community of mutton , lamb and goatmeat
       from other third countries during the term of this Agreement .
1 have the honour to propose that If the foregoing Is acceptable to your
Government , this letter and your confirmatory reply shall together constitute
an Agreement between the European Community and the Government of New Zealand
on the matter .
Please accept Sir ,  the assurance of my highest consideration .
                                                For the Council of the
                                                European Communities ,
 ---pagebreak---                                   B.  Letter N° 2
 Sir ,
  I have the honour to acknowledge receipt of your letter of today 's date ,
 which reads as follows :
 "I have the honour to refer to the exchange of letters of 17 October 1980
 constituting an Agreement between the European Community and the Government
 of New Zealand ( hereinafter referred to as " the Parties ") establishing
 provisions relating to the Import of mutton and lamb and goatmeat Into the
 European Community from New Zealand ( hereinafter referred to as " the
 Principal Agreement ") and to negotiations held between our respective
 delegations for the purpose of establishing temporary derogations from
certain of those provisions concurrent with the Implementation of measures to
stabilise the European Community sheepmeat sector and to reform the European
Community sheepmeat Internal regime In order to achieve a unified European
Community sheepmeat market .   Having regard to the Interests of both the
parties In the stability and strength of that market , and on the basis of the
above measures being implemented by the European Community , 1 have the honour
to propose the following derogations from the Principal Agreement which shall
remain in force for the duration of this Agreement .
                                     Clause  1
                              TEMPORARY DEROGATIONS
The following derogations from the Principal Agreement shall apply :
                                                                           S
 ---pagebreak--- A. Access and Quant ity
 In Clause 2 of the Principal Agreement , as modified by Clause 6 of the
Principal Agreement , the celling figure of " 245,500 ", representing the annual
celling In metric tonnes on the total quantity of Imports each year into the
European Community of mutton , lamb and goatmeat from New Zealand , shall be
deemed to have been replaced by the figure of " 205.000 ", This celling shall
be deemed to Include a maximum In 1989 of 6,000 metric tonnes of lamb
 imported Into the European Community from New Zealand In a form which has
never been frozen , a maximum of 7,500 metric tonnes In 1990 , a maximum of
9,000 metric tonnes In 1991 , and a maximum of 10,500    metric tonnes In 1992 .
B. Tarlff
In Clause 5 of the Principal Agreement , the words " to a maximum amount of
10 percent ad valorem " shall be deemed to be replaced by the word " zero ".
C. Price Surve I I lance
With a view to Improved sheepmeat prices within the European Community , the
Parties shall monitor the prices for lamb In accordance with the procedures
contained In the Annex to this Agreement and shall consult as necessary In
accordance with Its provisions .
                                   Clause 2
                                 CONSULTATION
Notwithstanding Clause 1.C of this Agreement either Party may request
consultations concerning the operation of this Agreement at any time .
 ---pagebreak---                                      Clause 3
                                 GATT OBLIGATIONS
 The provisions of this Agreement shall be agreed without prejudice to the
 rights of New Zealand and the European Community under GATT .
                                     Clause 4
                                 ENTRY INTO FORCE
This Agreement shall enter Into force on 1 Janaury 1989 and shall remain In
force until 31 December 1992 provided that , If either Party gives notice of
denunciation of the Principal Agreement In accordance with Clause 14 of that
Agreement , this Agreement shall cease to have effect upon the same date as
the Principal Agreement ceases to have effect .
                                     Clause 5
                                      REVIEW
Within 6 months prior to expiration of this Agreement , Its provisions shall
be reviewed .  In this review , account shall be taken of :
 ---pagebreak---  (a)    the effects of the reforms of the European Community 's sheepmeat
        regime ,
 (b)    the effect of this Agreement upon the operation of the European
        Community sheepmeat market and upon New Zealand 's returns from that
        market , and
(c)     the Imports Into the European Community of mutton , lamb and goatmeat
        from other third countries during the term of this Agreement .
 I have the honour to propose that If the foregoing Is acceptable to your
Government , this letter and your confirmatory reply shall together constitute
an Agreement between the European Community and the Government of New Zealand
on the matter . "
I have the honour to confirm the foregoing Is acceptable to my Government and
that your letter together with this reply shall constitute an Agreement In
accordance with your proposal .
Please accept , Sir , the assurance of my highest consideration .
                                         For the Government
                                          of New Zealand .
 ---pagebreak---                                          - 5 -
                                                     ANNEX
                             PRICE SURVEILLANCE PROCEDURE
 1 . Pursuant to Clause 1.C of this Agreement , New Zealand and the European
 Commun Ity w II I monltor :
 (a)     the representative market prices for Community produced lamb In each
         Member State , such prices to be calculated for each Member State on
         the basis of the average price paid for such products over each
         monthly period In that Member State ,
 (b)     the representative market prices for New Zealand frozen lamb carcasses
         In each Member State , such prices to be calculated for each Member
         State on the basis of the average prices for such products over each
         monthly period in that Member State .
2 . The relationship between the representative market prices for New Zealand
frozen lamb carcasses In each Member State of the European Community and the
representative market prices for Community produced lamb In each such Member
State of the European Community ( hereinafter referred to as " the Price
Relationship ") will be compared with the benchmark level specified below for
each such Member State , according to region of the European Community within
which that Member State falls .     The comparison will be made on the basis of a
monthly average of the percentage price relationship between representative
market prices for New Zealand frozen lamb carcasses In each Member State and
the representative market prices for Community produced lamb in the same
Member State .     If this comparison indicates that the Price Relationship has ,
In two Member States In the same month , moved below the benchmark levels for
those Member States , the Parties shall at the request of either enter Into
technical consultations with a view to determining the factors causing the
downward movement In the Price Relationship below the benchmark level for
each of those Member States , whether that downward movement still obtains , and
the relative importance of the factors :
                                                                             43
 ---pagebreak---                                       - 6 -
 Member States by region                         Benchmark levels for the
                                                 relat lonshlp
                                                 between prices of Imported
                                                 frozen
                                                 I amb and pr I ces of
                                                 domes t leal I y
                                                 produced lamb
Northern Member States ( Belgium ,               55 percent
Denmark , Federal Republic of
Germany , France , Ireland ,
Luxembourg , Netherlands ,
Un I ted K I ngdom )
Southern Member States                          45 percent
( Greece , Italy , Portugal ,
Spa In )
3 . In making any determination pursuant to paragraph 2 of this Annex , the
factors to be taken Into account by the Parties shall Include traditional and
seasonal price relationships and fluctuations , the prices of cuts , the Impact
of prices of other meats , and other exceptional factors .
                                                                             Ali
 ---pagebreak---                                         - 7 -
 4.   In the event that either Party considers that the downward movement of the
 relationship between prices for New Zealand frozen lamb carcasses and
 Community produced lamb below the benchmark levels In the particular Member
 States under consideration ( hereinafter referred to as " the particular Member
 States ") and their remaining at such lower levels Is Indicative of a problem ,
 the Parties shall consider any recommendations arising out of the technical
 consultations for the resolution of the problem .     The Parties should In this
 situation agree on such measures as they consider appropriate to restore the
 Price Relationship In those Member States to the benchmark levels , having due
 regard to the cause or causes for the situation .
 5 . Should the Parties In the technical consultations fall to reach agreement
on appropriate measures to resolve the problem , the Consultative Committee
established under Clause 10 of the Principal Agreement may be convened at a
senior policy level at the request of either Party to give the matter urgent
cons I derat ion .
6 . Should the Parties   In the official consultations In the Consultative
Committee similarly fall to reach agreement on appropriate measures
satisfactorily to resolve the problem , consultations shall be held between
the European Community Commissioner for Agriculture and the New Zealand
Minister of External relations and Trade for resolution .     If a solution
cannot be found , the Commission would then be able to Initiate a procedure
for appropriate    adjustment to the tariff on It being established that the
downward movement of the Price Relationship below benchmark levels In the
particular Member States is attributable to the prices at which New Zealand
frozen lamb carcasses are being sold In those Member States by New Zealand
exporters , provided that the maximum rate of the tariff following any such
adjustment shall be ten percent ad valorem .    Such adjustment shall remain In
effect for no longer than the Price Relationship remains below benchmark
levels In the particular Member States as attributed above .
                                                                             'il
 ---pagebreak---                                      - 8 -
7 . New Zealand and the European Community adopt as targets for achievement by
the end of 1992 an Improvement In the previously defined benchmark levels for
the relationship between the representative market prices for New Zealand
frozen lamb carcasses and the representative market prices of Community
produced lamb In each Member State of the European Community as follows :
Member States by region                 |       Targeted rate of improvement
                                                over
                                        !       present benchmark levels
Northern Member States                          5 percentage points
Southern Member States                          8 percentage points
 ---pagebreak---                                                                   ANNEXE I I I
                                                                  DRAFT
Sir
 I have the honour to refer to the exchange of letters of today 's date
relating to the Agreement between the European Community and New Zealand on
trade in mutton , lamb and goatmeat , and In particular to Clause 6 of the
Annex to that exchange of letters .
To this end ,  I confirm that It Is not the Commission 's Intention to Initiate
a procedure for remedial action against New Zealand where the acts of New
Zealand traders were not the main cause of the movement In prices which
eventually triggered a consultative process under the exchange .
Please accept , Sir , the assurance of my highest consideration .
 ---pagebreak---          1 . UGNC RUOGETAIRE : Receites 100                                                   CREDITS ;       _
                                                                                                        1419,2 Mio Ecu
                                                                                       Conseil concernant l'adaptation de (
            des viandes de mouton , d' agneau et de chèvres et la Nouvel                         – le    - Zélande
                                                                                                             – sur      * ur leLe commlrce
                                                                                                                                  commerce
      i. MU JURIDIGUE ;                  Art . 113 du Traité
      4 , OBJECTIFS DE LA MESURE ;
                          Importation d' un contingent de 205.000 t de viande ovine à un prélèvemen*
                          de D /; en provenance de La Nouvelle Zélande .
     5 . INCIDENCES FINANCIERES                             PERIODE PE 12 MOIS      EXERCICE EN COURS t 89 IEXERCICE SUIVANT t 90
     5.0 DEPENSES A LA CHARGE
              - DU BUDGET DES CE
                  ( REBflf PUPEBTG / INTERVENT : as:s j
                                                                 p.m.      (1 )            P.m .
            “                    HA M.
                                                                                                                         P.m .    (1 )
            * »* A>ffRt»' TCWTJffJ
    J.1 RECETTES
            - RESSOURCES PROPRES DES CE                        - 374 Mio E U           - 32 Mio ECU             “ 374 Mio ECU
                ( PRElEVEMENTS / DROlTS BC DOUANE )
           -"MW rt-rLAH 'NAPfOwn.
                                                                1991                 1992
   $.0.1         'REVISIONS DES DEPENSES
                                                               p.m .    ( 11        p.m . d )
   5.1.1        'REVISIONS DES RECETTES
                                                             - 374Mio |         - 374 MioECU
                                                                      g eu *
  3.2 HOSI #E CALCJL 1                 .    ..¿i i .. A1_ . _ _ 1 • _ 1           •  11 .
            •                          Le prélèvement moyen appliqué à l 1 importât i on de la viande ovine
                        s 'élève a 1.750 ECU / t . Un abattement de 100 % de ce prélèvement induirait
                        une perte de recettes pour 12 mois de :
                        205.000 t x 1.750 ECU / t x 1,043 ( DT ) =                    374 Mio ECU
                        La lettre rectificative tient déjà compte d' un abattement de 1.600 ECU / t
                        ( régime actuel ). La perte donc sur cet exercice se limiterait à 150 ECU / t
                        soit :
                        205.000 t x 150 ECU / t x 1,043 ( DT ) = 32 Mio ECU
 é.0      TINA NC EN£NT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET EN COURS D' EXECUTION            E8S> / NON
                                                                                                                             NON
 $.1      FlNAHCiHEHT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS D' EXECUTION
6.2 NECESSITE D * UN BUDGET SUPPLEMENTAIRE                                                                             0UI / H8I
4.3     CREDIT » 4 INSCRIRE DANS LES BUDGETS fU TU»S                                                                   oui / 488
OBSERVATION' ? ü ? y0 engagement précis ne figurant dans l' accord en ce qui concerne le pr x
                       i L 1 importation ,
                       l' importation à prélèvement nul de cette viande pourrait avoir un effet déjréssif
                      conduisant à une baisse desprix du marché dans la Communauté , avec comme
                      conséquence une hausse correspondante des primes octroyées et donc des
                      dépenses du budget communautaire . L' ampleur de ce phénomène est difficile
                      à estimer .                                                                                                 I
 ---pagebreak---                  FICHE D' IMPACT SUR LA COMPETITIVITE ET L' EMPLOI
                  Proposition de décision du Conseil concernant
                     l' adaptation de l' accord d' autolimitation
        entre la Communauté Economique Européenne et la Nouvelle-Zélande
          sur le commerce des viandes de mouton , d' agneau et de chèvre .
Ce projet d' accord envisage une modification du régime à l' Importation
actuellement applicable dans le cadre de l' accord d' autolimitation entre la
Communauté et la Nouvelle-Zélande sur le commerce des viandes ovine et
caprine .
Dans la mesure où II prévoit essentiellement , d' une part , de réduire les
quantités prévues dans ces accords en les ramenant au niveau des quantités
réellement Importées et , d' autre part , d' introduire des prix mlnlma à
l' Importation , ce projet n' a pratiquement pas d' impact sur les entreprises .
On peut également considérer que les modifications proposées ne leur
imposeront pas de coûts supplémentaires .
                                                                            Aj