CELEX: 51980PC0884
Language: en
Date: 1980-12-16 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of voluntary restraint Agreements with Austria, Iceland, Poland and Rumania in the sheepmeat and goatmeat sector (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (80) 884
Vol. 1980/0277
 ---pagebreak--- Disclaimer
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 ---pagebreak---           COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM ( 80 ) 884 final
                                                  Brussels , 16th December 1980
                           RECOMMENDATION FOR A COUNCIL DECISION
                     on the conclusion of voluntary restraint Agreements
                          with Austria , Iceland , Poland und Rumania
                           in the sheepmeat and goatmeat sector
                       (presented by the Commission to the Council )
COM ( 80 ) 884 final
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
1 . Following the negotiating brief given to the Commission by the Council on
    20 December 1979 , voluntary restraint agreements for sheepmeat and goatmeat
    with Argentina , Australia , New Zealand and Uruguay , and Regulation ( EEC )
    No 1837 / 80 on the common organisation of the markets in that sector were
    implemented with effect from 20 October 1980 .            N
2 . It was not possible to complete negotiation of comparable agreements at
    that date with non-member supplier countries which were either waiting for
    details as to the licence arrangements or were hot able to accept a clause
    concerning the territories where the Treaty establishing the European ~
    Economic Community applied , or had not, yet replied to the Commission 's
    invitation to open negotiations .
3 . As it has been possible meanwhile to resolve these difficulties with
    Austria , Iceland , Poland and Romania , it is proposed that approval be given
    to the proposal for a Council Decision on the conclusion of voluntary
    restraint agreements in respect of exports of sheepmeat and goatmeat from
    these four non-member countries .           "
4 . The agreements cover the following annual quantities for the Community of
    Ten , expressed as carcase weight ( bone-in equivalent weight ):
                          Live animals    Fresh or chilled meat      Frozen meat
    Austria                   300                    0                    0
    Iceland                     0                   (1)                600 ( 1 )
    Poland                  5 800                  200                    0
    Romania                   475                   75                    0
(1)   including a maximum of 10% of fresh or chilled meat
 ---pagebreak---                                 RECOMMENDATION FOR A
                              COUNCIL DECISION
        on the conclusion of voluntary restraint Agreements with Austria , Iceland ,
       Poland and        Rumania in the sheepmeat and goatmeat sector
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 recommendation from the Commission ,
Whereas the Commission has opened negotiations with non-member countries
which supply sheepmeat and goatmeat or live sheep and goats , with a view to
reaching Agreements for voluntary restraint on their exports to the
Communi ty ;
Whereas the Commission has reached agreement with Austria , Iceland ,
Poland and Rumania ;
                            «
Whereas the said agreements allow trade to be earned on in a manner
compatible with the common organisation of the markets in the sector in
question .
HAS  DECIDED AS       FOLLOWS :
                                        Article 1
1.    The Agreements drawn up in the form of exchangc-s of letters on trade
      in the sheepmeat and goatmeat sector with the countries listed
      hereafter are hereby approved on behalf of the European Economic
      Community ;
             Austria
             Iceland
             Pbland
             Rurr.a ni a
      The texts of the Agreements are annexed to this Decision .
                                        Art t c le 2
The President of the Council is hereby authorized to designate the person
empowered to sign the Agreements referred to in Article         , -'n     to bind
the Community .
Done  at                                                  for tne Council
                                                           The President
 ---pagebreak---                                                                                     κ
                                   ARRANGEMENT
in the -form of an exchange of letters between the European Economic
Community and Austria on trade in mutton and lamb .
Sir ,                                _    .  .                       .
I have the honour to refer to the negotiations recently undertaken between
our respective delegations for the purpose of drawing up provisions
concerning import into the European Economic Community of mutton , lamb and
goatmeat and live sheep and goats other than pure-bred breeding animals
from Austria in connection with the implementation by the Community of the
common organisation of the market in sheepmeat and goatmeat .
During these negotiations both parties agreed as follows :
1.       This arrangement shall relate to :                                     .
              live sheep and goats other than pure-bred breeding animals(subheading
              01.04B of the common customs Tariff ),
              fresh or chilled mutton, lamb and goatmeat ( subheading 02.01 A IV
              a )) of the Common Customs Tariff ),
              frozen mutton, lamb and goatmeat ( subheading 02.01 A IVb)), of the
              Common Customs Tariff ).
2.       Within the terms of this arrangement , the possibilities of export of .
         mutton and lamb and goatmeat from Austria to the Community are fixed
         at the following annual quantity :
                                                                           (1 )
                  iOO tonnes of live animals expressed in carcass weight
         In order to ensure the proper functioning of the arrangement , Austria
         undertakes to implement the appropriate procedures to ensure that the
         annual quantity actually exported does not exceed the quantity agreed .
(1 )     100 kg live weight shall compound to 47 kg carcase weight ( bone-in
         equivalent weight )^?                               "
(2 )     Carcass weight ( bone-in equivalent weight ). By this term is understood
         the weight of bone-in meat presented as such as well as boned meat
      .. converted by a coefficient into bone-in weight . For this purpose 55kg
         of boned mutton corresponds to 100 kg of bone-in mutton and 60 kg of
         boned lamb corresponds to 100 kg of bone-in lamb .
 ---pagebreak---                                                                               Γ
                                - 2 -
3. Should the Community have recourse to the safeguard clause , it
   undertakes that Austria 's access to the Community as provided for in
   this arrangement will not be affected .
4. If imports from Austria in any one year exceed the quantities agreed ,
   the Community reserves the right to suspend imports from Austria for
   the remainder of that year .   The quantity overshipped shall be offset
   against Austria 's export entitlement for the following year .
5. The Community undertakes to limit the levy applicable to imports of
   products covered by the present arrangement to a maximum amount of 10% ,
   ad valorem .
6. At the time of new Member States , the Community , in consultation with
   Austria , will alter the quantities set out in clause 2 , in accordance
   with Austria 's trade with each new Member State .  The charges
   applicable to imports for the said new Member State shall be fixed in
   accordance with*the rules in the Treaty of Accession ;   the maximum
   level of the levy specified in clause 5 of this arrangement being
   taken into account .
7. Austria shall ensure that this arrangement is observed , in particular ,
   by issuing export certificates covering the products referred to in
   clause 1 within the limits of the quantities covered by this arrangement .
   For its part , the Community shall undertake to adopt all necessary
   provisions to make the issue of the import certificates for the
   products referred to above , originating in Austria , subject to the
   presentation of an export certificate , issued by the competent
   authority designated by the Austrian Government .
   Detailed ruLes for applying this system shall be laid down in such a
   way as to render unnecessary the lodging of a security for the issue
   of the import certificate in respect of the products in question .
   Also , such detailed rules of application shall provide that the
   competent Austrian authority shall communicate periouicaU / to the
   competent authority of the Community the quantities in respect of
   which export certificates are issued , broken down , where appropriate ,
   according to destination .
 ---pagebreak--- 8.   A Consultative Committee shall be set up composed of representatives
     from the Community and from Austria .    The Committee shall ensure that
     the arrangement is being properly applied and is functioning smoothly .
     It will ensure that the proper application of the arrangement is not
     affected by the export of mutton and lamb and goatmeat-based products
     to the Community under customs headings not referred to by the
     arrangement .
     The Committee will discuss all questions which could arise in applying
     the arrangment and will recommend appropriate solutions to the
     competent authorities .
9.   The provisions of this arrangement shall be agreed without prejudice
     to the parties' rights and obligations under GATT .
10 . The annual quantity fixed in clause 2 refers to the period running
     from 1 January to 31 December .   The quantity applicable as of the
     implementation of the present arrangement and until 1 January of the
     following year will be fixed on a pro rata basis in relation to the
     total annual quantity and will take into account the seasonality of
     the trade .
11 . This arrangement shall apply, on the one hand , to the territories in
     which the Treaty establishing the European Economic Community is
     applied and, under the conditions laid - down in that Treaty and , on the
     other hand , to the territory of Austria .
12 . The arrangement shall enter into force on 1.1.1981 .    It shall remain
     in force until 31 March 1984 , and shall continue in force thereafter
     subject to each party having the right to denounce it by giving one
     year 's notice in writing .  In any case the provisions of this    »
     arrangement will be examined by the two parties before 1 April 1984
     with a view to making any adjustment which'they agree is necessary .
I should be obliged if you would kindly confirm the agreement of .your
Government to the foregoing .
Please accept , Sir , the assurance of my highest consideration .
 ---pagebreak---                                     DRAFT
                            EXCHANGE OF LETTERS
          comprising an understanding relevant to clause 2 of the
          exchange of Letters comprising an Agreement between the
      European Economic Community and Austria on trade in mutton-
                            lamb and goatmeat .
I have the honour to refer to the Agreement in the form of an exchange of
letters between the European Economic Community and the Republic of Austria
on trade in mutton , lamb and goatmeat .
Further to that exchange of letters and to your request , I would advise you
that the Authorities of Austria will ensure that for the period 1 January
1981 to 31 March 1984 , there will be no change in the traditional trade
                      %
flows of mutton , lamb and goatmeat to the market areas in the European
Economic Community determined as sensitive .
The authorities of Austria will adopt the necessary measures for this
purpose .
 ---pagebreak---                                           DRAFT
                  EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC
       COMMUNITY AND THE REPUBLIC OF ICELAND ON TRADE IN SHEEPMEAT AND GOATMEAT
I have the honour to refer to negotiations recently undertaken between our
 respective delegations for the purpose of drawing up the provisions concerning
import into the Community of mutton , lamb and goatmeat , and live sheep and
goats other than purebred breeding animals from Iceland , in, connection with
implementation by the Community of the common organization of the market in
sheepmeat and goatmeat .
During these negotiations , bothe parties agreed as follcws :
     r                                                       -    I   • .
1 . This arrangement shall relate to :
    - fresh or chilled mutton , lamb and goatmeat ( 02.01 A IV a )
    - frozen mutton , lamb and goatmeat ( 02.01 A IV b )
2 . Within the terms of this arrangement , the Republic of Iceland undertakes to
    ensure that exports to the Community of the products referred to in
    clause 1 shall not exceed the 'following annual quantity :                  ■ -
 Τ
    600 tonnes , expressed in carcass weight ( 1 ) of which a maximum of 10 % may
    consist of fresh or chilled meat .
           '    -              v                                    .
                                                                            \  -
    ( 1 ) Carcass weight ( bone-in equivalent weigit ).  By this term is understood
    the weight of bone-in meat presented as such as well as boned meat
    converted by a coefficient into bone- in weight . For this purpose 55 kg of
    boned mutton corresponds to 100 kg of bone-in mutton and 60 kg of boned
    lamb corresponds to 100 kg of bone-in lamb .
 ---pagebreak---                                          - 2 -
      For this purpose , the appropriate procedures shall be implemented by the
      competent authorities of the Republic of Iceland .
 3 . Provided that Iceland 's exports do not exceed the quantity agreeed , the
      Community shall not apply any quantitative restriction nor measure of
     equivalent effect .
     Should the Community have recourse to the safeguard clause , it undertakes
     that the provisions of this arrangement will not be affected .
ij . If imports in any one year exceed the quantity agreed , the Community
      reserves the right to suspend imports from Iceland for the remainder of
     that year .  The quantity overshipped shall be offset against Iceland 's
     export entitlement for the following year .
5 . The Community undertakes to limit the levy applicable to imports of
     products covered by the present arrangement to a maximum amount of 10$ ad
     valorem .
6 . At the time of accession of new Member states , the Community , in
     consultation with Iceland , will alter the quantity set out in paragrah 2 ,
     in accordance with Iceland 's trade with each new Member state .
     The charges applicable to imports for the said new Member States shall be
     fixed in accordance with the rules in the Treaty of Accession ; the maximum
     level of the levy specified in point 5 of this arrangement being taken into
     account .
 ---pagebreak---                                          - 3 -
 7 . Iceland shall ensure that this arrangement is observed , in particular , by
      issuing export licences covering the products referred to in paragraph 1
     within the limits of the quantity covered by this arrangement .
     For its part , the Community shall undertake to adopt all necessary
     provisions to make the issue of the import licence for the products
     referred to above , originating in Iceland , subject to the presentation of
     an export licence , issued by the competent authority designated by the
     Iceland Government .
     Detailed rules for applying this system shall be laid down in such a way as
     to render unnecessary the lodging of a security for the issue of the import
     lioence in respect of the products in question .
     Also , such detailed rules of application shall provide that the competent.
     Iceland authority shall communicate periodically to the competent authority
     of the Community the quantities in respect of which export licences are
     issued , broken down , where appropriate , according to destination .
8 . Both parties agree that steps should be taken by Iceland to ensure that the
     smooth operation of the arrangement is not affected by deliveries of mutton
     and lamb and goatm eat- based products falling under customs headings not
     referred to by the arrangement .
9 . In order to ensure the smooth functioning of the arrangement , both parties
     agree to remain in close contact and to be ready to undertake consult
     ations on any matter relating to its application .    The said consultations
     shall be commenced within a maximum period of 14 days following request by
     one of the parties .
10 . The annual quantity fixed in paragraph 2 refers to the period running
       from 1 January to 31 December .
 ---pagebreak---                                                                                   I V
                               /
                                       - il -
     The quantity applicable in the period between the entry into force of this
     arrangement and 1 January of the following year shall be fixed on a pro
     rata basis in relation to the total annual quantity .
11 . This arrangement shall apply , on the one hand , to the territories in which
     the Treaty establishing the European Economic Community is applied and
     under the conditions laid down in that Treaty and , on the other hand , to
     the territory of the Republic of Iceland .
12 . The arrangement shall enter into force on 1 January 1981 .   It shall remain
     in force until 31 March 1984 , and shall continue in force thereafter
     subject to each party having the ri^it to denounce it by giving one year 's
     notice in writing . Xp any case the provisions of this arrangement shall
     be examined by the two parties before 1 April 1984 with a view to making
     any adjustment which they agree is necessary .
 ---pagebreak---                                          DRAFT
                                                       *
                                EXCHANGE OF LETTERS
              comprising an understanding relevant to clause 2 of the
              exchange of letters comprising an Agreement between the
            European Economic Community and Iceland on trade in mutton .
                                 lamb and goatneat
I have the honour to refer to the Agreement in the form of an exchange of
letters ^between the European Economic Community and the Republic of Iceland on
trade in mutton , lamb and goatmeat .  .
Further to that exchange of letters and to your request , I would advise you
that the Authorities of Iceland will ensure that for the period 1 January 1981
to 31 March 1984 , there will be no change in the traditional trade flows of
mutton , lamb and goatmeat to the market areas in the European Economic
Commmity determined as sensitive .
The authorities of Iceland will adopt the necessary measures for this purpose ,
it being understood that the quantities fixed in the Agreement shall not
thereby be affected .
 ---pagebreak---                                        DRAFT
                            EXCHANGE OF LETTERS BETWEEN
      THE EUROPEAN ECONOMIC COMMUNITY AND THE PEOPLE 'S REPUBLIC OF POLAND
                        ON TRADE IN SHEEPMEAT AND GOATMEAT
      I have the honour tc refer to the negotiations recently undertaken
between our respective delegations for the purpose of drawing up provisions
concerning import into the European Economic Community of mutton , lamb and
goatmeat , and live sheep and goats other than pure-bred breeding animals from
the People '3 Republic of Poland , in connection with implementation by the
Community of the common organisation of the market in sheepmeat and goatmeat .
      During these negotiations which took place between the two parties who
are participants in C?ATT , our delegations agreed as follows :
1.    This Arrangement covers :
      - live sheep and goats other than pure-bred breeding animals ( 01.04 B );
      - fresh or chilled mutton , lamb and goatmeat ( 0P.01 A IV a );
      - frozen mutton , lamb , and goatmeat ( 02.01' A IV h ),
      The two parties agree that steps should be taken to ensure that the
smooth operation of the Agreement should not be upset by delivery of sheepmeat
and goatmeat products falling under tariff headings not covered by the
Arrangement .
 ---pagebreak---      2.        Within this Arrangement , the scope for imports of she jpmeat and goatraeat
     and for live sheep and goats from Poland into the Community shall be fixed at
     the following annual quantities :                                 i                                                    >
                                                                      -              .                    . Π)        . '
     5,800 tons of- live animals , /expressed as carcass weight bone-in                                        , 200 tons
                        '                  .                     .               „      . . . .         . f?r;–
     of fresh or chilled meat , expressed as carcass weight bone-in
               In order to ensure the smooth operation of the Arrangement , the
     competent Polish authorities undertake to implement; the appropriate procedures
     to ensure that , the quantities actually exported do not exceed the
    above-mentioned figures .                                                                                           f     ,
     3.       In the case of imports of the products covered by this Arrangement and
    up to the quantity limits therein laid down , the Community will not apply new
    quantitative restrictions or measures of equivalent effect nor levy customs
    duties or taxes of equivalent effect to levies or customs duties exceeding
    those agreed at Point 5 .                                  '             .                                            -
    Were the! Community to invoke the protective clause , it is hereby agreed that
    the provisions of this Arrangement would not be affected .
                                                                      \                          -
    4.        If imports from Poland exceed the agreed quantities , the Community ,
    reserves the right to suspend further imports from that country until the end
    of the current year .               However , in any event , quantities beyond those agreed -
    for the current year shall be deducted f^om the quantities agreed for the
 >  following year .
    5.        The Community undertakes , on import of products covered by this                                      -
    Arrangement , to limit the amounts levied to the following ad valorem levels :
    10 ? for live animals
    10$ for meat                                                   '                                                              ■
                                    1   S                                                                    «
    ( 1 ) . 100kg live weight shall correspond to '17kg carcas© weight (
(£) Carcass weight (bone-in equivalent weight). By this term is understood the weight of bone-in meat '
    presented as such as well as boned meat converted by a coefficient into bone-in weight. For this
    purpose 55 kg of boned mutton corresponds to 100 kg of bone-in mutton and 60 kg of boned lamb                               j
    corresponds to 100 kg of bone-in lamb.                                                                                      !
 ---pagebreak---  5.     On accession of new Member States to the Community , the quantities
 referred to at Point 2 shall he , as appropriate , adapted by the Community , in
 consultation between the two parties , to reflect the t~ade between the
 People 's Republic of Poland and each such new Member State .  The quantities
shall not be reduced .
       The charges to be levied on imports in respect of the said new Member
States shall be fixed in accordance with the rules in the Treaty of Accession ;
 the limit on the levy set out in Point 5 of this Arrangement shall be taken
into account .
7.     The competent Polish authorities shall ensure compliance with this
Arrangement , in particular through issue by the competent agency which they
shall designate for the purpose , of export licences applicable to the products
referred to at Point 1 , up to the maximum arreed quantity .
                       «
         The Community agrees to take all the necessary measures to make
automatic issue of an impct licence , no later than release from customs bond ,
for the above-mentioned products originating in Poland subject to production
of an export licence issued by the competent Polish authority .
       Detailed rules for the implementation of this system shall be drawn up
so that the lodging of a security for the issue of import licences in respect
of the products in question shall be unnecessary .    These detailed rules shall
also provide that the competent Polish authoriti.es and the competent Community
authorities shall undertake periodical exchanger? of information in respect of
the quantities in respect of which export and import licences have been
issued , broken down according to destination as appropriate .              ^
 ---pagebreak---             It is hereby agreed that export licences will be valid for three months
  with effect from their date of issue .                  The corresponding import licences shall
  be valid until the date of expiry of the export licences .
            Quantities delivered under an export licence shall be deducted fron the
 quantity agreed in respect of the year during which the export licence was
  issued .          ,                                                                      ,
 8.         In order to ensure the smooth operation of this Arrangement , the two
 parties shall take the appropriate measures and agree to remain in . close
 contact and to be ready to undertake consultation in respect of any question
 which might arise while this Arrangement applies .                      Consultation must commence
 within a maximum of 11 days after a request by one of the parties .                              ,
 9.        The annual quantity fixed at Point 2 shall cover the period 1 January to
 31 December . ■                                         •
           The quantity applicable as from the date of implementation of this
 Arrangement up to 1 January of the following year shall be fixed by
 consultation between the; two parties in proportion to the total annual .
 quantity , adjusted to reflect the seasonal trend in Polish deliveries of the
 products in question during the year .                                                        ,
 (0.
     This Agreement shall apply, on the one hand, to the territories in which the Treaty              f
     establishing the European Economic Community is applied and under the conditions laid                    \
     down in that Treaty and, on the other hand, to the          op     e.            £ Rip-tc-lrftc.   fcfan
                                                                                      * '
/•f .      This Arrangements shall enter into force on                            . It shall apply until
 31 March 198'J . It shall thereafter be automatically extended for periods of 1
 year , subject to the right of either party to terminate it by notice in
 writing giverr six months before the date of expiry of any one of the said
 periods . In the case of termination , the Arrangement shall expire at the date
 of expiry of the period in question .                  In any case , the provisions of this
 Arrangement shall be reviewed by the two parties before 1 April f98M for the
 purpose of incorporating any adaptation which might seem necessary for its
 extension .                                                                                 ^
           I would be grateful to you if you would confirm to me that the foregoing
 correctly expresses what our two delegations ag^ee in this respect .                                       ,
 Formal ending .
 ---pagebreak---                                                                                      \7
                                  D R A F T
            EXCHANGE OF LETTERS RELEVANT TO THE CONSULTATIONS FORESEEN AT
            POINT 8 OF THE EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC
            COMMUNITY AND THE PEOPLE 'S REPUBLIC OF POLAND ON TRADE IN
                              SHEEPMEAT AND GOATMEAT
          Since it was not possible to reach sufficiently precise solutions to ■
  some questions raised by Poland during the negotiations for this Arrangement ,
  it was agreed during the negotiations that , during the consultations provided
  for in Point 8 of the exchange of letters , If Poland were to raise any
  concrete problems , the following points could be covered by the said
  consultations without prejudice to the terms of Point R :
   1.      cases of force majeure ;
  2.       supply of live animals within the quantity agreed for meat ;
  3.       in cases where the quantity agreed for a given v ear was entirely taken
          up , advance use , at the end of the current vear , of a limited proportion
          of the quantity agreed for the following year ;
  't .     use of the agreed quantities for the purposes of c-xport of frozen meat
          of Polish origin to the Community ;
  5.       the possibility of allowing imports of quantities over and above those
           fixed in Point 2 of the Arrangement if the Community market were to
          require additional imports .
6.         the possibility of delivering export and import certificates for quantities
           above those agreed , in no far as the quantities actually imported are
           below those for which imoort certificates have been delivered .
          For it3 part , the Community would be p^epa^ed to undertake the said
 consultations in a spirit of cooperation in respect of any requests put
 forward by Poland .
         Furthermore , I can hereby confirm to you the following declaration made
 by the Community during the above-mentioned negotiations :
         imports into the Community of products covered by th <* A - ranpenent shall
         not be subject to the quantitative limits set out in Point 2 of that
         Arrangement provided that they are re-exported from the Community either
         without further processing c after processing under the relevant ,
         Community system .
F ortna 1 ending .
 ---pagebreak---                                                                   Ί
                  ■ .0 R A F T
                                                         «
       EXCHANGE OF LETTERS RELEVANT TO CLAUSE 2
   OF THE EXCHANGE OF LETTERS BETWEEN THE EUROPEAN
   EXONOMIC COMMUNITY AND THE PEOPLE 'S REPUBLIC OF <
   POLAND ON TRADE IN SHEEPMEAT AND GOATMEAT
I have the honour to refer to the exchange of letters between
the European Economic Community and Poland on trade in mutton ,
 lamb and goatmeat .
Further to that exchange of letters and to your request , I would
advise you that the Polish authorities will ensure that for the
period 1 January 1981 to 31 March 1984 , there will be no change
in the traditional trade flows of mutton , lamb and goatmeat and
live sheep and goats to the market areas in the European Economic
Community determined as sensitive .
             I  1             '             '
The Polish authorities will adopt the necessary measures for this
purpose .                             ''
Formal ending .
 ---pagebreak---                                          DRAFT
                              EXCHANGE OF LETTERS BETWEEN
       THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST REPUBLIC OF ROMANIA
                          ON TRADE IN SHEEPMEAT AND GOATMEAT
      During the negotiations recently undertaken between our respective
delegations for the purpose of drawing up provisions concerning import into
the European Economic Community of mutton , lamb and goatmeat , and live sheep
and goats other than pure-bred breeding animals from the Socialist Republic o
Romania , in connection with implementation by the Community of the common
organisation of the market in sheepmeat and goatmeat , our delegations agreed
as follows :
1.    This Arrangement covers :
                           «
      - live sheep and goats other than pure-bred breeding animals ( 01.04 B );
      - fresh or chilled mutton , lamb and goatmeat ( 02.01 A IV a );
      - frozen mutton , lamb , and goatmeat ( 02.01 A IV b ).
2.    Within the terms of this arrangement , the competent authorities of the
      Socialist Republic of Romania undertake to ensure that exports to the
      Community of the products referred to in clause 1 shall not exceed the
      following annual quantities :
      475 tonnes of live animals , expressed in carcass weight bone-in^ ^
       75 tonnes of fresh or chilled meat , expressed in carcass weight
            . (2)
      bone-m
( 1 ) 100 kg live weight shall correspond to 47 kg carcass weight ( bone-in
equivalent weight ).
( 2 ) Carcass weight ( bone-in equivalent weight ). By this term is understood
the weight of bone-in meat presented as such as well as boned meat converted
by a coefficient into bone-in weight . For this purpose 55 kg of boned mutton
corresponds to 100 kg of bone-in mutton and 60 kg of boned lamb corresponds t
100 kg of bone-in lamb .
 ---pagebreak---                                        - 2 -   -
 - , For this purpose , the appropriate procedures shall be implemented by the
     competent authorities of the Socialist Republic of Romania .
  3. Provided that Romania 's exports do not exceed the quantities mentioned in
     point 2 , the Community shall not apply any quantitative restriction nor
     measure of equivalent effect .                              "
     Should the Community have recourse to the safeguard clause , it undertakes
     that the provisions of this arrangement will hot be affected .
 4.  If imports from Romania exceed the agreed quantities , the Community
     reserves the right to suspend further imports from that country until the
     end of the current year . However , in any event , quantities beyond those
     agreed for the current year shall be deducted from the quantities agreed
     for the following year . .                              -
 5.  The Community undertakes , on import of products covered by this
     Arrangement , to limit the amounts levied to the following ad valorem
     levels :
     10% for live animals
     10% for meat                       /
     The Community will not charge apart from the above mentioned levies ,
     customs duties or other taxes of equivalent effect to levies or to customs
     duties .
                                               /
 6.  On accession of new Member States to the Community , and if justified by
     the trade between the Socialist Republic of Romania and each such new
     Member State , the Community accepts consultations between the two parties
. , in order to adapt , if appropriate , the quantities set out in point 2 . The
     quantities set out in point 2 shall not be reduced .
     The charges to be levied on imports in respect of the said new Member
     States shall be fixed in accordance with the rules in the Treaty of
     Accession ; the limit on the levy set out in Point 5 of this Arrangement
     shall be taken into account .
                                                                             \
 ---pagebreak---                                                                                Zo
                                      - 3 -
7. In taking account of the objectives and provisions of this arrangement the
   Community agrees that any actual implementation of refunds or any other
   form of assistance with respect to exports of mutton , lamb and live sheep
   and lamb intended for slaughter will apply only at prices and on
   conditions which comply with existing international obligations and in
   respect of the traditional shares of the Community of world export trade
   in these products . These words shall be interpreted in a manner
   consistent with Article XVI of GATT and in particular in conformity with
   Article 10(2)(c ) of the Agreement on interpretation and application of
   Articles VI , XVI and XXIII of the General Agreement on tariffs and trade .
8. The competent authorities of Romania shall ensure that this arrangement is
   observed , in particular , by issuing export licences covering the products
   referred to in paragraph 1 within the limits of the quantity covered by
   this arrangement .
   For its part , the Community shall undertake to adopt all necessary
   provisions to make the issue of the import licence for the products
   referred to above , originating in Romania , subject to the presentation of
   an export licence , issued by the competent Romanian authority .
   Detailed rules for applying this system shall be laid down in such a way
   as to render unnecessary the lodging of a security for the issue of the
   import licence in respect of the products in question .
   Also , such detailed rules of application shall provide that the competent
   authority of Romania shall communicate periodically to the competent
   authority of - the Community the quantities in respect of which export
   licences are issued , broken down , where appropriate , according to
   destination .
   It is hereby agreed that export licences will be valid for three months
   with effect from their date of issue . The corresponding import licences
   shall be valid until the date of expiry of the export licences .
   Quantities delivered under an export licence shall be deducted from the
   quantity agreed in respect of the year during which the export licence was
    issued .
9. Both parties agree that steps should be taken by Romania to ensure that
    the smooth operation of the arrangement is not affected by deliveries of
   mutton and lamb and goatmeat-based products falling under customs headings
    not referred to by the arrangement .
 ---pagebreak--- 10 . In order to ensure that smooth operation of this Arrangement , the two
     parties shall take the appropriate measures and agree to remain in close
     contact and to be ready to undertake consultation in respect of any
     question which might arise while this Arrangement applies . Consultation
     must commence within a maximum of 14 days after a request by one of the
     parties .                                                            ■ ^
11 . The provisions of this arrangement shall be agreed without prejudice to
     the parties' rights and obligations under GATT .            x
12 . The annual quantity fixed at Point 2 shall cover the period 1 January to
     31 December .
                                * ,                                v
     The quantity applicable as from the date of implementation of this
     Arrangement up to 1 January of the following year shall be fixed by
     consultation between the two parties in proportion to the total annual
     quantity .             "                              -
13 . This arrangement shall apply , on the one hand , to the territories in which
     the Treaty establishing the European Economic Community is applied and
     under the conditions laid down in that Treaty and , on the other hand , to
     the territory of the Socialist Republic of Romania .
14 . This Arrangement shall enter into force on 1 January 1981 . It shall apply
     until 31 March 1984 . It shall thereafter be automatically extended for
     periods of 1 year , subject to the right of either party to terminate it by
     notice in writing given six months before the date of expiry of any one of
     the said periods . In the case of termination , the Arrangement shall
     expire at the date of expiry of the period in question . In any case , the
     provisions of this Arrangement shall be reviewed by the two parties before
     1 April 1984 for the purpose of incorporating any adaptation which might
     seem necessary for its . extension .
     I would be grateful to you if you would confirm to me that the foregoing
correctly expresses what our two delegations agree in this respect .
Formal ending .
 ---pagebreak---                                    DRAFT
            . EXCHANGE OF LETTERS RELEVANT TO CLAUSE 10 OF THE
       EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AND THE SOCIALIST REPUBLIC OF ROMANIA ON TRADE IN SHEEPMEAT AND GOATMEAT
With reference to the exchance of letters between the European Economic
Community and the Socialist Republic of Romania on trade in sheepmeat and
goatmeat , the two parties agreed that the following specific point could be
covered by the consultation foreseen in clause 10 of that exchange of
letters , without prejudice to the terms of that clause :
   the possibility of allowing , at the conditions laid down in the
   arrangement , imports of quantities over and above those fixed in clause
   2 of the arrangement if the Community market were to require additional
   imports .
Formal ending .
 ---pagebreak---                                    D R A F T
                    EXCHANGE OF LETTERS RELEVANT TO CLAUSE 2
                                                 I
               OF THE EXCHANGE OF LETTERS BETWEEN THE EUROPEAN
               ECONOMIC COMMUNITY AND THE . SOCIALIST REPUBLIC OF
                  ROMANIA ON TRADE IN SHEEPMEAT AND GOATMEAT
  I have the honour to refer to the exchange of letters between the European
  Economic Community and Romania on trade in mutton , lamb and goatmeat .
  Further to that exchange of letters and to your request , I would advise
  you that the competent Romanian authorities will ensure that for the
  pericfd 1 January 1981 to 31 March 1984 , there will be no change in the
* traditional trade flows of mutton , lamb and goatmeat and live sheep and
  goat from Romania to the market areas in the European Economic Community
  determined as sensitive .
                              ' •                                         *
  The Romanian authorities will adopt the necessary measures for this
  purpose .             i                     (
  Formal ending .                                             f
                                                                        #
 ---pagebreak---                          FINANCIAL            STATEMENT
                                                                                       DATE I    3.12.1980
    1 . BUDGET LINS CO.-ICLTL'.'KD J
                                             736
j 2. ACTION : Conclusion of voluntary restraint agreements for exports from Austria ,
| Iceland , Poland and Romania of sheepmeat and goatmeat including the limitation of
1 imDort charges to the maximum ad valorem amounts of 10% for live animals and 10%
rfor fresh and chilled meat .                                                    .
S   3 . LEGAL BASIS :
                           Art .  113
    4 . OBJECTIVES : Limiting the levies charged to the maximum ad valorem amounts of 10 /4
   for the products covered by Regulation 1837 / 80 from the four countries referred
   to under 2 , which agree not to export greater quantities than those under 5.2 .
  WWMWWMA–––W––WW–
    5 . FINANCIAL CCI.'SEQUIJNCS
    5.0 EXPENDI TUHE
                                                 FOR THE MARKKTINO YEAH j   CURRENT FINANCIAL YEAS
                                                                                   (    )
                                                                                                     FCLL0WINC FINANCIAL TEAR
                                                                                                            (      )
                                                                                                                              i
       x x x^£^^*^jfVx$cfck
         X-BMX XX)XDOXOOTXCX« K XISBMFLQFK .
    5.1 RECEIPTS
         -C'.-TN RES CUR CIS CF THE EC
                                                                               - 963 000 ECU               - 963 000 ECU
           ( LEVIES/ CUOTORS DUTIES )
         -NATIONAL
                                          J-
                                                 YEAR                       YE&R                     vfi »                    !
   5.0.1 PLURIA.VNUAL PATTERN OF EXPENDITURE
   5.1.1 PLURI ANNUAL PATTERN OF RECEIPTS
   5*2 METHOD OF CALCULATIOK ( Base : world price for meat and live animals 2 400 ECU per tonne
                                                             for . frozen meat :                   1 800    ECU per tonne
                                                     Fresh / frozen meat                    Live animals loss of re-
                                                    Loss of revenue : 10%                   venue : 5% from the customs
                                                     from customs duty app­-                duty applicable until 20.1
                                                     licable until 20.10.80
     AUSTRIA : 300 tonnes live animals                                                              36 000 ECU
      ICELAND : 600 tonnes frozen meat                         108 000 ECU
   POLAND              :5 800 tonnes . live animals                                                696 000 ECU
                          200 tonnes fresh meat         •        48 000 ECU
      Romania : 475 tonnes live animals                                                             57 000 ECU
                     .     75 tonnes fresh meat               ...18...Q0.CL.ECU
                                                                 18 000 . ECU
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