CELEX: 51982PC0228
Language: en
Date: 1982-05-05 00:00:00
Title: Recommendation for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Economic Community and the Czechoslovak Socialist Republic on trade in the sheepmeat and goatmeat sector (submitted to the Council by the Commission)

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COM (82) 228
Vol. 1982/0093
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COΜ(82)228 final
                                                    Brussels , 5 May 1982
                             Recommendation for a
                               COUNCIL DECISION
    on the conclusion of an Agreement in the form of an exchange of letters
    between the European Economic Community and the Czechoslovak Socialist
    Republic on trade in the sheepmeat and goatmeat sector
                               /V. I - ,
                                         -,    >-v,
            ( submitted to the Council by the Commission )
                                            >»
C0MC82 ) 228 final
 ---pagebreak---                      EXPLANATORY MEMORANDUM
 Following the negotiating mandate given by the Council to the Commission
 on 20 December 1979 and pursuant to Regulation ( EEC ) No 1837 / 80 on the
 common organization of the market in sheepmeat and goatmeat , voluntary
 restraint agreements in respect of exports of products in the sector in
question have been made with , the following non-member countries :
Argentina, Australia, Austria, Bulgaria, Hungary, Iceland, New Zealand, Poland,
 Rumania, Uruguay and Yougoslavia .
Although Czechoslovakia was the first non-member country to agree to
the principle of voluntary restraint for exports of sheepmeat and goatmeat
to the Community , negotiations on a formal and final agreement between
the Community and Czechoslovakia were not concluded until the end of .
                                                    t
March 1982 .
Since the provisions of the draft agreement finally accepted by the
competent Czechoslovak authorities are       the same as those contained in
the voluntary restraint agreements already concluded between the Community
and the non-member countries listed above , it is proposed that the
proposal for a Decisiorj/ on , the conclusion with Czechoslovakia of a
voluntary restraint agreement in respect of its exports to the Community
in the sheepmeat and goatmeat sector be approved .                          .
In application of this agreement , the Community undertakes to observe
a 10% ad valorem ceiling on the relevant levy charged and Czechoslovakia
undertakes to limit its exports to 800 tonnes of fresh or chilled meat
per year . This quantity is' the same as that accepted for import into the
Community in 1981 and corresponds to the amount envisaged by the Community
in the context of a possible agreement .
It should be pointed out that , since at the time a decision should have been
taken on the arrangements to apply to Czechoslovakia in 1982 that country
had not yet agreed to concl'ude an agreement , the Council - on a proposal
from the Commission - decided to limit the quantity benefiting from a 10$
ad valorem ceiling on the levy to 600 tonnes in 1982 pending the entry into
effect of a voluntary restraint agreement .
 ---pagebreak---                                                RECOMMENDATION FOR A
                                               COUNCIL DECISION
   / i>; V t
              on the conclusion of an Agreement in the form of an exchange of letters between tk*
              European Economic Community and the Czechoslovak Socialist Kepublic on
                                     trade in the sheepmeat arid goatmeat sector           - '
       Wi-
THE COUNCIL OF THE EUROPEAN                                  the Czechoslovak Socialist 'Hepubli <
 COMMUNIT4ES,                                  ,             trade in the sheepmeat and goatmeat sector is
                                                             hereby approved on behalf of the Community.
 Havtng xegard to- the .Treaty establishing the Euro:
pean Economic Community, and in particular                   The text of the Agreement isr attached to this Deci­
                                                             sion .                             -      -      •
Article 113 thereof,   ^                         ,
paving regard to th6 recommendation from the
Commission - -
                          •      conducted
 whereas the Commission has               negotiations                              Article 2 s
with non-member countries which supply sheep-
meat and goatmeat or live sheep and goats, with a
view to reaching agreement for voluntary restraint           The President of the Council is hereby authorized to
on their exports to the Community ;                          designate the person empowered to sign the Agree­
                                                             ment, in order to bind the Community.
Whereas the Commission has reached agreement
with . Czechoslovakia ;
Whereas the said agreement allows trade to be car­
ried on in a manner compatible with the common
organization of the market in the sector in question,
HAS DECIDED AS FOLLOWS :                                    Done at
                       Article 1                                                       For the Council
The Agreement in the form of an expl&nge
                                        y
                                     cfe?ngi of letters
                                                                                         The President
between the European Economic Community and
 ---pagebreak---                  DRAFT
          EXCHANGE OF LETTERS
                BETWEEN
   THE EUROPEAN ECONOMIC COMMUNITY
AND THE CZECHOSLOVAK SOCIALIST REPUBLIC
  ON TRADE IN SHEEPMEAT AND 60ATMEET
 ---pagebreak--- I have the honour to refer to the negotiations undertaken between our
respective delegations for the purpose of drawing up provisions concerning
imports into the European Economic Community from Czechoslovakia of mutton ,
lamb and-- goatmeat , and of live sheep and goats other than pure-bred breeding
animals , in connection with implementation by the Community of the common
organization of the market in sheepmeat and goatmeat .
During these negotiations , the two parties to which are participants in GATT ,
our delegations agreed as follows :
1 . This Arrangement covers :
      live sheep and goats other than pure-bred breeding animals ( subheading
      01.04 B 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 IV b of the Common
      Customs Tariff ).
 ---pagebreak---         2 . Within the terms of this Arrangement , the competent Czechoslovak
            authorities undertake to ensure that exports to the Community of the
            products referred to in point 1 do not exceed the following annual-
            quantity :
            800 .      tonnes of fresh or chilled meat , expressed as carcase weight
                       bone-in ( 1 ).
            For this purpose , the appropriate procedures will be implemented by the
            competent Czechoslovak authorities .
        3 . Provided that Czechoslovak exports do not exceed the quantities given
            in point 2 the Community will not apply any quantitative -restriction or
            measure having equivalent effect .                    *
            If the Community were to invoke the protective clause , the provisions of
            the Arrangement    would not be affected .              v
        4 . If imports for Czechoslovakia exceed the agreed quantities , the Community
            reserves the right to suspend further imports from that country until the
            end of the current year .
            In any case , however , quantities exceeding the agreed quantity for the
            current year will be deducted from the quantities agreed for the following
            year .
        5 . The Community undertakes , in respect of imports of products covered by
            this Arrangement ;, to restrict the charges levied to the ad valorem level
            of 10 % for meat and for live animals .
            The Community, will not charge, apart from the levies set out above , customs
            duties or charges having equivalent effect to levies or to customs duties .
( 1 ) Carcase 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
      to 100 kg of bone-in lamb .
 ---pagebreak--- When a new Member State accedes to the Community and if the pattern of
trade between Czechoslovakia and such Member State justifies it , the
Community shall agree to consultations between the two parties with a
view to possible adaptation of the quantities given in point 2 .
The quantities given in point 2 shall not be reduced .
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 .
                        ■I
The competent Czechoslovak authorities shall ensure compliance with the
terms of this Arrangement , in particular by means of the issue , by a
Czechoslovak body designated for the purpose , of export licences covering
the products listed in point 1 , within the limits of the quantities agreed .
For its part the Community undertakes to adopt all the necessary measures
to ensure that the automatic issue of an import licence for the above-
mentioned products originating in Czechoslovakia shall be subject to
production of an export licence issued by the competent Czechoslovak
authority .
Detailed rules for the implementation of this system shall be drawn up
in such a way that £ner,e is no requirement for a security for issue of
import licences in respect of the products in question . These detailed
rules shall also provide that the competent Czechoslovak authorities
and the competent Community authorities shall undertake periodical ex­
changes of information on the quantities in respect of which export and
import licences have been issued , broken down, as appropriate , according
to destination .
It is hereby agreed that export licences will be valid for a period of
three months 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 for the year during which the export licence was issued .
 ---pagebreak---                               - 4 -
 8 . The two parties agree that stepsshould be taken to ensure that the
     smooth operation of the Arrangement is not disturbed by deliveries
     of sheepmeat and goatmeat products falling under tariff headings not
     covered by this Arrangement .
           • ■              i
 9 . In order to ensure the smooth operation of this Arrangement , the two
     parties agree to remain in close contact and to be ready to undertake
     consultations on any question which might arise in the course of appli­
     cation of this Arrangement . The said consultations must be commenced
     within a maximum period of 14 days following request by one of the
     parties .
10 . The provisions of this Arrangement shall be accepted without prejudice
     to the rights and obligations of the parties under GATT .
11 . The annual quantity fixed in point 2 shall cover the period 1 January to
     31 December .
     The quantity applicable from 1 January 1984 to 31 March 1984 shall be
     fixed by means of the consultations referred to in point 9 in proportion
     to the overall annual quantity .
12 . This arrangement shall apply, on the one hand , to the teritories 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' Czechoslovak Socialist Republic.
 ---pagebreak---                              - 5 -
13 . This Arrangement shall enter into force on 1 January 1982 . It shall
     apply until . 31 March 1984 and , subsequently , for periods of two years ,
     subject to the right of either of the parties to terminate it by giving
     notice in writing six months before the date of expiry of any one of the
     said periods . In the case of termination , the Arrangement shall come to
     an end at the date of expiry of the period in question . In any event ,
     the provisions of this Arrangement shall be reviewed by the two parties
     during the six months preceding 1 April 1984 , so that any adaptations
     which might be necessary can be made to it\
 I should be grateful to you if you would confirm to me that the above sets
 out correctly the substance of the agreement between our two delegations .
 Formal ending .
                                                                        I
 ---pagebreak---                     DRAFT
             EXCHANGE OF  LETTERS
CONCERNING POINT 2 OF THE EXCHANGE OF LETTERS
 BETWEEN THE EUROPEAN ECONOMIC  COMMUNITY AND
     THE CZECHOSLOVAK SOCIALIST REPUBLIC
      ON TRADE IN SHEEPMEAT AND GOATMEAT
 ---pagebreak--- I have the honour to refer tb the exchange of Letters between the
European Economic Community and the Czechoslovak Socialist Republic
on t rade in sheepmeat and goatmeat .
Further to this exchange of letters and in response to your request ,
I would ask you to note that the competent Czechoslovak authorities
will ensure that there is no change in traditional export flows as
regards sheepmeat , goatmeat and live sheep and goats between the
Czechoslovak Socialist Republic and Community markets considered to
be sensitive , for the period from 1 January 1982 to 31 March 1984 .
The competent authorities of the Czechoslovak Socialist Republic will
introduce the necessary measures to this end .
            -V
 ---pagebreak---                        DRAFT
                EXCHANGE OF LETTERS
CONCERNING THE CONSULTATIONS PROVIDED FOR IN POINT 9
         OF THE EXCHANGE OF LETTERS BETWEEN
     • THE EUROPEAN ECONOMIC COMMUNITY AND THE
          CZECHOSLOVAK SOCIALIST REPUBLIC
         ON TRADE IN SHEEPMEAT AND GOATMEET
 ---pagebreak--- With reference to certain specific questions raised during the negotiations
for this Arrangement , I have the honour to point out that it was agreed
during these negotiations that , within the context of this Arrangement ,
if Czechoslovakia were to raise any concrete problems , they could be
covered by the consultations provided for in point 9 without prejudice
to the general provisions of that point . These problems include :
1 . supply of live animals within the quantity agreed for meat ;
2 . the possibility of advance use , during the current year , of a limited
    proportion of the quantity agreed for the following year ;
3 . the possibi lity of allowing imports of quantities over and above those
    fixed in point 2 of the Arrangement if the Community market situation
    no permits .
For its part , the Community would be prepared to undertake the said consul­
tations in a spirit of cooperation in respect of any requests put forward
by Czechoslovakia .       ,
Formal ending .
 ---pagebreak---                           FINANCIAL               STATEMENT
                                                                                              Date :
                                                                                                        5 April 19&2
   I. BUDGET HEADING : 100 ( revenue )                                                        APPROBATIONS S 1 899.1 M ECU
   f. TJTi-g • flrn ft Council Decision on the conclusion of a.n Agreement in the form
          of an exchange of letters between the EEC and the Czechoslovak Socialist
         He-nublic on trade" in the shee -omeat "and eoatneat sector
    3 . LEGAL BASIS : Article 113 of the '^SC Treaty •
   4 . AIMS OF PROJECT
                                       Conclusion* of a voluntary restraint agreement between the SEC
                                     • and Czechoslovakia
   5 . FINANCIAL IMPLICATIONS                           PERIOD Of 12 MONTHS  CURRENT FINANCIAL YEAR      FOLLOWING FINANCIAL YEAR
                                                                                        (   R5 5               Î   £3    1
   5.0 EXPEN3ITURE
         - CHARGED TO THE EC BUDGET
            C REFUNDS / INTERVENTIONS )
         - NATIONAL ADMINISTRATION
         - OTHER
   5.1 RECEIPTS
         - OWN RESOURCES OF THE EC
            ( L E V I E l ! aScT30*S!Cîi«J#:3t >           r-O.V m ECU          - 0.1 m ECU                    O.k m ECU
         - NATIONAL
                                                          1984
    J.0.1 ESTIMATED EXPENDITURE                            - 0.1 m ECU
    5.1.1 ESTIMATED RECEIPTS
* '£.2 METHOD OF CALCULATION                          •'                                        .• V
 .:'.i         «                                     *                     "       •' '   '         '  }                          '
   '■ Th6 Agreement covers a total of 800 tonnes of meat^, of which 600 tonnes
         have already been approved for 1982 ..
   *. Normal levy at present V                                     ' 700 -ECU/t '                                              , •
         Reduced levy ( 10^ ad valorem ) " 264 ECU/t
                   . Loss m revenue                                       ECU/t x 800 t = - 0.35m 'ECU .
     4-o
     6.2 IS A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                                                             Xffi / NO
     6.3 WILL FUTURE BUDGET APPRQBIATiONS BE NECESSARY ?
                                                                                                                              YES / LJFFLC
                 I
      OBSERVATIONS î             -j"
                                       up to 31 Mar.ch 198 ^
                                                         1