CELEX: 51995PC0426
Language: en
Date: 1995-09-13
Title: Proposal for a COUNCIL DECISION on the conclusion of the Agreements in the form of Exchanges of letters between the European Community, on the one part, and the Republic of Iceland, the Kingdom of Norway and the Swiss Confederation, on the other part, concerning certain agricultural products

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             Brussels, 13.09.1995
                                             COM(95) 426 final
                                             95/ 0230 (ACC)
                              Proposal for a
                         COUNCIL DECISION
on the conclusion of the Agreements in the form of Exchanges of Letters
  between the European Community, on the one part, and the Republic
    of Iceland, the Kingdom of Norway and the Swiss Confederation,
        on the other part, concerning certain agricultural products
                     (presented by the Commission)
 ---pagebreak---  ---pagebreak---                             EXPLANATORY MEMORANDUM
1. Pursuant to Articles 76, 102 and 128 of the Act of Accession, from 1 January 1995
    Austria, Finland and Sweden are to apply the provisions of the preferential
    agreements concluded by the Community with certain third countries, in particular
    Iceland, Norway and Switzerland, all the amendments required as a result of
    enlargement being the subject of additional protocols to be negotiated with the third
    countries in question.
2. In accordance with the directives laid down to that end by the Council, negotiations
    have been conducted with those three countries with a view to the adaptation of the
    preferential agricultural agreements they have concluded with the Community.
    The draft Agreements in the form of Exchanges of Letters appended hereto contain
    the outcome of those negotiations.
3. The approach contemplated provides essentially for:
             the extension to the enlarged Community of the bilateral agricultural
             concessions which existed between the Community of Twelve and the three
             third countries in question;
             the carrying-over, where possible, of the (preferential) bilateral concessions
             which existed prior to enlargement between the three new Member States and
             those three third countries, all the bilateral agreements concluded previously
             by the new Member States having lapsed.
4.   In the course of the negotiations, Norway also wished to take the opportunity to
     regularize the situation regarding its exports of cheese to the Canary Islands. Since
     1 July 1992, new import arrangements for cheese are applicable to the Canary
     Islands, which affects the traditional exports of cheese from Norway and calls for
     adequate compensation for the latter.
     The solution finally adopted by common agreement entails adapting the EC/Norway
     bilateral agreement on trade in cheese to increase the Jmport quota into the
     Community by a total of 43 tonnes of "Jarlsberg" cheese representing on the one
     hand compensation for the damage suffered by Norway (13 tonnes) and on the other'
     hand the carrying-over of the traditional quantities imported by the Canary Islands.
     It should, however, be noted that this solution is only valid if Norway accepts, by
     an exchange of letters, to forgo any subsequent compensation for cheese not covered
     by the 1986 EC/Norway agreement concluded in the wake of the accession of Spain
     to the Community(1).
(i)
     O J N o L 3 2 8 , 22.11.1986, p.76.
 ---pagebreak--- 5. On 19 June, the Council Working Party on EFT A delivered a favourable opinion on
   the approach followed and on the outcome of the negotiations with Norway.
 ---pagebreak---                                    COUNCIL DECISION
                                             of
         on the conclusion of the Agreements in the form of Exchanges of Letters
           between the European Community, on the one part, and the Republic
             of Iceland, the Kingdom of Norway and the Swiss Confederation,
                 on the other part, concerning certain agricultural products
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 thereof,
Having regard to the Act of Accession of the Republic of Austria, the Republic of
Finland and the Kingdom of Sweden,
Having regard to the proposal from the Commission,
Whereas the Agreements in the form of Exchanges of Letters between the European
Community, on the one part, and the Republic of Iceland, the Kingdom of Norway and
the Swiss Confederation, on the other part, concerning certain agricultural products should
be approved to take account of the accession of the Republic of Austria, the Republic of
Finland and the Kingdom of Sweden to the European Union,
HAS DECIDED AS FOLLOWS:
                                          Article 1
The Agreements in the form of Exchanges of Letters between the European Community,
on the one part, and the Republic of Iceland, the Kingdom of Norway and the Swiss
Confederation, on the other part, concerning certain agricultural products are hereby
approved on behalf of the Community.
The texts of the Exchanges of Letters are attached to this Decision.
                                          Article 2
Detailed rules for the application of this Decision shall be adopted by the Commission
in accordance with the procedure laid down in Article 30 of Council Regulation (EEC)
No 804/68 of 27 June 1968 on the common organization of the market in milk and milk
 products(1) or the corresponding provisions of other regulations on the common
 organization of the markets.
                                           Article 3
 (i)
     J.O. nr. L 148, 28.6.1968, p. 13
 ---pagebreak--- The President of the Council is hereby authorized to designate the person empowered to
sign the Agreements referred to in Article 1 in order to bind the Community.
Done at Brussels,                                                        For the Council
                                                                         The President
 ---pagebreak---                                       AGREEMENT
        in the form of an Exchange of Letters between the European Community
           and the Republic of Iceland concerning certain agricultural products
                                                                      Brussels,
Sir,
1 have the honour to refer to the Agreement in the form of an Exchange of Letters of
2 May 1992 between the European Community and the Republic of Iceland concerning
certain agricultural products and to the negotiations which have taken place between the
two parties with a view to adapting the said Agreement and establishing trade
arrangements for certain agricultural products in the spirit of Article 15 of the EC-Iceland
Free Trade Agreement, consequent on the Accession of the Republic of Austria, the
Republic of Finland and the Kingdom of Sweden to the European Community.
I hereby confirm that the results of the negotiations were as follows:
1.    Iceland and the Community agree that, from 1 January 1995, the concessions
      granted by the Republic of Iceland under the abovementioned Exchange of Letters
      shall be extended to the enlarged Community.
2.    From 1 January 1995 the Community will open for Iceland the annual tariff quotas
      set out in Annex I hereto.
3.    The rules of origin for the application of the quotas referred to in point 2 above are
      set out in Annex II hereto.
This Exchange of Letters shall be approved by the Contracting Parties in accordance with
their normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                                                       For the Government of
                                                                       the Republic of Iceland
 ---pagebreak---                                                                        Brussels,
Sir,
1 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 Agreement in the form of an Exchange of Letters of
2 May 1992 between the European Community and the Republic of Iceland concerning
certain agricultural products and to the negotiations which have taken place between the
two parties with a view to adapting the said Agreement and establishing trade
arrangements for certain agricultural products, in the spirit of Article 15 of the EC-Iceland
Free Trade Agreement, consequent on the Accession of the Republic of Austria, the
Republic of Finland and the Kingdom of Sweden to the European Community.
I hereby confirm that the results of the negotiations were as follows:
1.    Iceland and the Community agree that, from 1 January 1995, the concessions
      granted by the Republic of Iceland under the abovementioned Exchange of Letters
      shall be extended to the enlarged Community.
2.    From 1 January 1995 the Community will open for Iceland the annual tariff quotas
      set out in Annex I hereto.
3.    The rules of origin for the application of the quotas referred to in point 2 above are
      set out in Annex II hereto.
This Exchange of Letters shall be approved by the Contracting Parties in accordance with
their normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter."
I have the honour to confirm that the Community is in agreement with the contents of
your letter.
Please accept, Sir, the assurance of my highest consideration.
                                                                On behalf of the Council of the
                                                               European Union
                                              10
 ---pagebreak---                                 ANNEX I
     TARIFF QUOTAS GRANTED BY THE EUROPEAN COMMUNITY
                  TO THE REPUBLIC OF ICELAND
   CN CODE        DESCRIPTION            QUANTITY RATE OF DUTY
0101 19 10      ) live horses        ) 100 head   ) free
0101 19 20      )                    )            )
0204           Meat of sheep or        750 t        free
                goats - fresh,         carcase
                chilled or frozen      weight
                                       equivalent
                                   11
 ---pagebreak---                                         ANNEX II
                                      Rules of origin
    The provisions of Protocol 3 to the Agreement between the European Community
    and the Republic of Iceland concerning the definition of the concept of "originating
    products" and methods of administrative cooperation as last amended by Decision
    No 1/94 of the EC-Iceland Joint Committee of 8 March 1994(1), shall apply mutatis
    mutandis to the products mentioned in Annex I.
    The specific rules for the working or processing to be carried out on non-originating
    materials used in the manufacture of the products in question in order that they
    obtain originating status and which are not yet mentioned in Annex II to the said
    Protocol 3 shall be the following:
        HS heading              Description of product       Working or processing
                                                             carried out on non-
                                                             originating materials that
                                                             confers originating status
             (D                              (2)                         (3)
            0101                Live horses                  All the animals of
                                                             Chapter 1 used must be
                                                             wholly obtained
            0204                Meat of sheep or goats,     Manufacture in which all
                                fresh, chilled or frozen     the materials of Chapter
                                                             2 used must be wholly
                                                             obtained
(i)
    O J N o L 2 0 4 , 6.8.1994, p.62.
                                              12
 ---pagebreak---                                       AGREEMENT
in the form of an Exchange of Letters between the European Community and the
Kingdom of Norway concerning certain agricultural products
                                 Exchange of letters No 1
Sir,
I have the honour to refer to the Agreements in the form of Exchanges of Letters of
16 April 1973, 14 July 1986 and 2 May 1992 between the European Community and the
Kingdom of Norway concerning certain agricultural products and to the negotiations
which have taken place between the two parties with a view to adapting the said
Exchanges of Letters and establishing trade arrangements for certain agricultural products,
in the spirit of Article 15 of the EC-Norway Free Trade Agreement, consequent on the
accession of the Republic of Austria, the Republic of Finland and the Kingdom of
Sweden to the European Union.
I hereby confirm that the results of the negotiations were as follows:
1. Norway and the Community agree that, from 1 January 1995, the mutual concessions
    under the abovementioned Exchanges of Letters shall be extended to the enlarged
    Community.
2. Norway and the Community agree to conclude a new arrangement on their reciprocal
    trade in cheese. The text of that arrangement is set out in Annex I hereto.
3. From 1 January 1995 the Community will open for Norway the annual tariff quotas
     set out in Annex II hereto.
4. From 1 January 1995 Norway will open for the Community the annual tariff quotas
     set out in Annex IH hereto.
5. As regards imports of hay falling within heading ex 1214.90, Norway undertakes to
     apply its import arrangements on the basis of the principle "first come, first served".
6. The rules of origin for the application of the quotas referred to in points 2, 3 and 4
     above are set out in Annex IV hereto.
This Exchange of Letters shall be approved by the Contracting Parties in accordance with
their normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                      For the Government of the Kingdom of Norway
                                            13
 ---pagebreak---                                                              Brussels,
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 Agreements in the form of Exchanges of Letters of
16 April 1973, 14 July 1986 and 2 May 1992 between the European Community and the
Kingdom of Norway concerning certain agricultural products and to the negotiations
which have taken place between the two parties with a view to adapting the said
Exchanges of Letters and establishing trade arrangements for certain agricultural products,
in the spirit of Article 15 of the EC-Norway Free Trade Agreement, consequent on the
accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden
to the European Union.
I hereby confirm that the results of the negotiations were as follows:
 1. Norway and the Community agree that, from 1 January 1995, the mutual concessions
     under the abovementioned Exchanges of Letters shall be extended to the enlarged
     Community.
2. Norway and the Community agree to conclude a new arrangement on their reciprocal
     trade in cheese. The text of that arrangement is set out in Annex I hereto.
3. From 1 January 1995 the Community will open for Norway the annual tariff quotas
     set out in Annex II hereto.        *•
4. From 1 January 1995 Norway will open for the Community the annual tariff quotas
     set out in Annex III hereto.
 5. As regards imports of hay falling within heading ex 1214.90, Norway undertakes to
     apply its import arrangements on the basis of the principle "first come, first served".
 6. The rules of origin for the application of the quotas referred to in points 2, 3 and 4
     above are set out in Annex IV hereto.
 This Exchange of Letters shall be approved by the Contracting Parties in accordance with
their normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter."
 I have the honour to confirm that the Community is in agreement with the contents of
 your letter.
 Please accept, Sir, the assurance of my highest consideration.
                                                              On behalf of the Council of the
                                                             European Union
                                              14
 ---pagebreak---                                                                                    ANNEX I
                                                                               ARRANGEMENT
                                                between the European Community and the Kingdom of Norway concerning
                                                                           reciprocal trade in cheese
With the aim of fostering the harmonious development of trade in agricultural products and taking into account the discussions which have taken place with a view to
adapting their bilateral agricultural concessions following the accession of Austria, Finland and Sweden to the European Union, the European Community and the Kingdom
of Norway have agreed to conclude a new arrangement with effect from 1 January 1995 concerning their reciprocal trade in cheese0'. In view of the common interest of
the Community and Norway in offering consumers, in addition to home-produced cheese, other types of imported cheese, the provisions of this arrangement read as follows:
1.       The import duties on the annual quantities of cheese set out below may not exceed the following levels:
         a)      On import into the Community (excluding Spain and Portugal):
         Cheese covered by CN code 0406, originating in Norway and accompanied by an approved certificate0':
                                                                                                                   Annual quantity           Import duty (ECU/100
                                                                                                                   (tonnes)                  kg)
             Jarlsberg, of a minimum fat content of 45% by weight in the dry matter and of a dry matter            )                         )
            content by weight of not less than 56%, matured for at least 3 months:                                 )                         )
                      whole cheeses with rind0> weighing from 8 kg to 12 kg                                        )                         )
                     rectangular blocks of a net weight not exceeding 7 kg(4)                                      )                         )
                     pieces packed in vacuum or in inert gas, of a net weight of not less than 150 g but not       )                         )
                     exceeding 1 kg(4)                                                                             )                         )
                                                                                                                   ) 2 263                   )    66,41
             Ridder, of a minimum fat content of 60%, by weight, in the dry matter and matured for at              )                         )
             least four weeks:                                                                                     )                         )
                     whole cheeses with rind (3) weighing from 1 kg to 2 kg                                        )                         )
                     pieces packed in vaccum or in inert gas, with rind on at least one side (3), of a net         )                         )
                     weight of not less than ISO g(4)                                                              )
             Whey cheese                                _                                                              357                         7,50
           (1)
                  This arrangement is without prejudice to point 3 of the Exchange of Letters
                  concerning reciprocal trade in cheese signed on 14 July 1986 between the
                  Community and Norway following the accession of Spain and Portugal
           (2)
                  The certificate will be issued by "Norske Meierier" (Norwegian dairies).
           (3)
                      The expression "whole cheeses with rind" means cheeses of the conventional flat
                      cylindrical shape. For the purposes of these provisions, the rind is defined as
                      follows: the rind of such cheeses is the outer layer formed from the cheese itself,
                      having a distinctly more solid consistency and a distinctly darker colour.
                      The wording on the packing must be such as to enable this cheese to be identified
                      by the consumer.
                                                                                        15
 ---pagebreak---       b) on importation into Norway
                                      Annual quantity (tonnes)          Import duty (Nkr/kg)
   - Cheese of all types and                       2 560                             1,20
   varieties, originating in the
   Community
2.    Norway will take the necessary steps in order to:
             limit the issue of the certificates referred to in 1) a) to the quantities agreed in this
             Arrangement;
             ensure that the autonomous system of import licence allocation will be managed taking
             into account market requirements and in such a way that imports may take place regularly
             and that the quantities agreed for import into Norway from the Community can
             effectively be imported.
3.      The Community and Norway will take steps to ensure that the benefits which they grant each
        other will not be jeopardized by other import measures.
4.      The Community and Norway undertake, each on its own behalf, to ensure that the prices
        charged by their exporters are not such as to create difficulties on the importing country's
        market.
        They agree, in this connection, to exchange at regular intervals information on price
        quotations and any other useful information concerning the market in domestic and imported
        cheeses.
        If difficulties arise concerning the prices charged, consultations will be held at the request of
        either party, as promptly as possible, with a view to the adoption of appropriate corrective
        measures.
5.      Consultations will be held at the request of either party on any question relating to the
        operation of this Arrangement. The two parties may, by common accord, alter it by reference
        in particular to the trend in market prices, production, marketing or consumption of home-
        produced and imported cheeses.
6.      This Arrangement shall apply, on the one hand, to the territories in which the Treaty
        establishing the European Community is applicable and under the conditions laid down in that
        Treaty and, on the other hand, to the territory of the Kingdom of Norway.
7.      This Arrangement shall replace the Arrangement between the European Community and the
        Kingdom of Norway concerning reciprocal trade in cheese, signed on 2 May 1992.
                                                     16
 ---pagebreak---                                                               ANNEX II
                TARIFF QUOTAS GRANTED BY THE EUROPEAN COMMUNITY TO THE KINGDOM OF NORWAY
            CN code                       Description                    Quantity (tonnes) Rate of duty
    1504 10 10               Fish-liver oils and their fractions,         103                  free
                             of a vitamin A content not
                             exceeding 2 500 IU/g
    1504 20 10               Solid fractions of fats and oils of         384                   free
                             fish, other than liver oils
ex 1516 10 90                Animal fats and oils and their            5 141                   free
                             fractions, wholly of fish or
                             marine mammals, in bulk
ex 2309 90 31                Fish feed                                 1 177                   free
                                                                  17
 ---pagebreak---                                                          ANNEX III
           TARIFF QUOTAS GRANTED BY THE KINGDOM OF NORWAY TO THE EUROPEAN COMMUNITY
Norwegian tariff position             Description                  Quantity (tonnes) Rate of duty
                                                                                      (Nkr/kg)
     0407 00 11           )Birds' eggs, in shell, of the       )        290              free
     0407 00 19           )species Gallus domesticus           ).
     0511 99 11           )Powdered animal blood                        300              free
     0511 99 21           )
      1209 23 00          Fescue seed                                     75             free
      1209 24 00          Kentucky blue grass seed                        50             free
      1602 49 10          Bacon crisp (Roasted puffy bacon                50             1,40
                          rind)
                                                            18
 ---pagebreak---                                        ANNEX IV
                                     Rules of origin
 The provisions of Protocol 3 to the Agreement between the European Community and the
Kingdom of Norway concerning the definition of the concept of "originating products" and
 methods of administrative cooperation as last amended by Decision No 1/94 of the EC-
Norway Joint Committee of 8 March 1994(1), shall apply mutatis mutandis to the products
 mentioned in Annexes I, II and HI.
 The specific rules for the working or processing to be carried out on non-originating materials
 used in the manufacture of the products in question in order that they obtain originating status
 and which are not yet mentioned in Annex II to the said Protocol 3 shall be the following:
    HS heading                    Description           Working or processing
                                                        carried out on non-
                                                        originating materials that
                                     .                  confers originating status
        0)                             (2)                          (3)
     ex 0406               Cheese                       Manufacture in which all
                                                        the materials of
                                                        Chapter 4 used must be
                                                        wholly obtained
         0407             Birds' eggs, in shell         Manufacture in which all
                                                        the birds' eggs of
                                                        Chapter 4 used must be
                                                        wholly obtained
     ex 0511              Powdered animal blood         Manufacture in which all
                                                        the materials of
                                                        Chapter 5 used must be
                                                        wholly obtained
(i)
       OJ No L 204, 6.8.1994, p.90.
                                            19
 ---pagebreak--- ex 1209 Seeds                       Manufacture in which all
                                    the materials of
                                    Chapter 12 used must be
                                    wholly obtained
ex 1504 - Fish-liver oils and their Manufacture in which all
        fractions, of a vitamin A   the materials of
        content not exceeding       Chapter 3 used must be
        2 500 IU/g                  wholly obtained
        - Solid fractions of fats   Manufacture from
        and oils, of fish, other    materials of any heading
        than liver oils             including other materials
                                    of heading No 1504
ex 1516 Animal fats and oils and    Manufacture in which all
        their fractions, obtained   the materials of
        entirely from fish or       Chapters 2 and 3 used
        marine mammals              must be wholly obtained
ex 1602 Bacon crisp                 Manufacture from
                                    animals of Chapter 1
ex 2309 Fish feed                   Manufacture in which:
                                    - all the cereals, sugar or
                                    molasses, meat or milk
                                    used must already be
                                    originating, and
                                    - all the materials of
                                    Chapter 3 used must be
                                    wholly obtained
                           20
 ---pagebreak---                                      Exchange of Letters No 2
                                                                          Brussels,
Sir,
I have the honour to refer to the Arrangement between the European Community and the Kingdom
of Norway on reciprocal trade in cheese and to the negotiations which have taken place with a view
to adjusting that Arrangement following the accession of Austria, Finland and Sweden to the
European Union.
In this connection, I confirm that Norway accepts the following undertakings:
 1.    Subject to a limit of 200 tonnes of cheese, Norway forgoes the provisions of its letter of
       11 April 1983 in which it reserved the right to restrict imports of certain cheeses from the
       Community.
2.     Norway recognizes that the change in import arrangements for cheese in the Canary Islands
       from 1 July 1992, which affected traditional exports from Norway, has been taken fully into
       account under the new Arrangement.
       Under these circumstances, Norway forgoes any further compensation for cheeses not covered
       by the Agreement between the Community and Norway of 14 July 1986 concluded following
       the accession of Spain to the European Union.
 Please accept, Sir, the assurance of my highest consideration.
                                                            For the Government of the
                                                            Kingdom of Norway
                                                  21
 ---pagebreak---                                                            Brussels,
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 Arrangement between the European Community and the Kingdom
of Norway on reciprocal trade in cheese and to the negotiations which have taken place with a view
to adjusting that Arrangement following the accession of Austria, Finland and Sweden to the
European Union.
In this connection, I confirm that Norway accepts the following undertakings:
1.     Subject to a limit of 200 tonnes of cheese, Norway forgoes the provisions of its letter of
       11 April 1983 in which it reserved the right to restrict imports of certain cheeses from the
       Community.
2.     Norway recognizes that the change in import arrangements for cheese in the Canary Islands
       from 1 July 1992, which affected traditional exports from Norway, has been taken fully into
       account under the new Arrangement.
       Under these circumstances, Norway forgoes any further compensation for cheeses not covered
       by the Agreement between the Community and Norway of 14 July 1986 concluded following
       the accession of Spain to the European Union."
Please accept, Sir, the assurance of my highest consideration.
                                                            On behalf of the Council of
                                                            the European Union
                                                 22
 ---pagebreak---                                            AGREEMENT
           in the form of an Exchange of Letters between the European Community and
            the Swiss Confederation concerning certain agricultural and fishery products
                                                                           Brussels,
Sir,
I have the honour to refer to the Exchanges of Letters of 21 July 1972, 5 February 1981 and
14 July 1986 between the Community and the Swiss Confederation and to the negotiations which
have taken place between the parties with a view to adapting the said Exchanges of Letters and
establishing trade arrangements for certain agricultural products, in the spirit of Article 15 of the
EC-Switzerland Free Trade Agreement, consequent upon the accession of the Republic of Austria,
the Republic of Finland and the Kingdom of Sweden to the European Union.
I hereby confirm that as a result of those negotiations the Swiss Confederation and the Community
agree that from 1 January 1995 the reciprocal concessions covered by the abovementioned
Exchanges of Letters and the concessions granted reciprocally as regards cheeses shall be extended
to the enlarged Community.
This Exchange of Letters shall be approved by the Contracting Parties in accordance with their
normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                                                    For the Government of
                                                                    the Swiss Confederation
                                                  23
 ---pagebreak---                                                                     Brussels,
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 Exchanges of Letters of 21 July 1972, 5 February 1981 and
14 July 1986 between the Community and the Swiss Confederation and to the negotiations which
have taken place between the parties with a view to adapting the said Exchanges of Letters and
establishing trade arrangements for certain agricultural products, in the spirit of Article 15 of the
EC-Switzerland Free Trade Agreement, consequent upon the accession of the Republic of Austria,
the Republic of Finland and the Kingdom of Sweden to the European Union.
I hereby confirm that as a result of those negotiations the Swiss Confederation and the Community
agree that from 1 January 1995 the reciprocal concessions covered by the abovementioned
Exchanges of Letters and the concessions granted reciprocally as regards cheeses shall be extended
to the enlarged Community.
This Exchange of Letters shall be approved by the Contracting Parties in accordance with their
normal procedures.
I should be obliged if you would confirm your agreement with the contents of this letter."
I have the honour to confirm that the Community is in agreement with the contents of your letter.
Please accept, Sir, the assurance of my highest consideration.
                                                             On behalf of the Council
                                                             of the European Union
                                                  24
 ---pagebreak---                                     FINANCIAL STATEMENT
                                                                                                             Date:(
        BUDGET HEADING: Chapter 10: levies and premiums                                                      APPROPRIATIONS: ECU 946.2 m
        TITLE: Proposal for a Council Decision on the conclusion of the Agreements in the form of Exchanges of Letters between the European
        Community, of the one part, and the Republic of Iceland, the Kingdom of Norway and the Swiss Confederation, of the other part,
        concerning certain agricultural products
        LEGAL BASIS: Article 113 of the Treaty
        AIMS: To take account of the trade existing between the three new Member States before their accession on the one hand and the
        Republic of Iceland and the Kingdom of Norway on the other hand (and, as regards the latter, to take account of an additional quota of 43
        tonnes of cheese exported to the Canary Islands) and to bring into line the conditions governing trade existing between the three new
        Member States and Switzerland with the Free Trade Agreement existing between the EC and Switzerland.
        FINANCIAL IMPLICATIONS:                                               PERIOD OF 12                 CURRENT                FOLLOWING
                                                                                 MONTHS                FINANCIAL YEAR           FINANCIAL YEAR
                                                                                                              (95)                     (96)
                                                                               (ECU million)              (ECU million)           (ECU million)
5.0.    EXPENDITURE
        - CHARGED TO THE EC BUDGET
5.1.    REVENUE                                                                     p.m.                      p.m.                     p.m.
           (LEVIES/CUSTOMS DUTIES)
                                                                                  1997                 1998               1999              2000
                                                                                ECU m                 ECU m              ECU m            ECU m
5.0.1.
5.1.1.   ESTIMATED REVENUE                                                        p.m.                  p.m.               p.m.             p.m.
5.2.     METHOD OF CALCULATION:
         - As regards Norway and Iceland, since the quantities concerned are particularly small, the impact on own resources is limited;
         - As regards Switzerland, the new arrangements do not imply any change in tariff (import at zero duty before and after).
6.0.     CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE
         CURRENT BUDGET?
6.1.     CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
6.2.     WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3.     WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
OBSERVATIONS
                                                                  25
 ---pagebreak---                                                                    ISSN 0254-1475
                                                            COM(95) 426 final
                                              DOCUMENTS
EN                                                                        03   11-
                                     Catalogue number : CB-CO-95-465-EN-C
                                                             ISBN 92-77-93347-X
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