CELEX: 51973PC0568
Language: en
Date: 1973-04-11
Title: DRAFT FOR A COUNCIL DECISION providing for accession to Protocol concerning Milk Fats negotiated in G.A.T.T. (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 568
Vol. 1973/0113
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(73)568 final
                                               Brussels , 11 April 1973
                               DRAFT FOR A
                            COUNCIL DECISION
   providing for accession to Protocol concerning Milk Fats negotiated
                              in G.A.T.T.
                ( submitted to the Council "by the Commission)
    COM(73 ) 568 final
 ---pagebreak---                                                           7I/1139/T3-E
                                                          Orig.î F
     1 . By its decision of 30 and 31 October last , the Council authorized
the Commission to negotiate within the framework of the G.A.T.T. Working
Group on Milk Products , the text of an international agreement on milk fats .
     2 . The members of the G.A.T.T. Group agreed on the 2nd of April 1973 *
to submit , with a recommendation for its approval , the text of the Protocol
concerning Milk Pats to their respective national authorities .
     3«  The priorities of the Protocol being in accordance wit'i the inte­
rests of the Community , compatible with the Common Agricultural Policy and
in conformity with the instructions given for the negotiations , the
Commission proposes to the Council that the Community should accede the
Protocol annexed in this report . For this purpose it submits th« Irs.ft
decision annexed hereto .
 ---pagebreak---    \
                                                          VI/1139/73-E
                                                          Orig .; F
                               DRAFT PDR A
                            COUNCIL DECISION
        providing for accession to Protocol concerning Milk Pats
                         negotiated in G.A.T.T.
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
having refard to the Treaty establishing the European Economic Community ,
and in particular Articles 113 , 114 » and 223 thereof ;
having regard to the report from the Commission ;
Whereas the G.A.T.T. Group on Milk Products has agreed upon a Protocol
concerning Milk Pats ;
Whereas this Protocol generally seems to promote international co-operation
and contribute to the achievement of Community aims as regards milk pro­
ducts under the Common Agricultural and Commercial Policies ;
Whereas the last date for the depositing of the instructions of final
acceptance of the Protocol is the 14th of May 1973 •
HAS DECIDED AS FOLLOWS :
                                  Article 1
The European Economic Community shall accede to the Protocol concerning
Milk Fats negotiated in G.A.T.T. , the text of which is annexed to this
Decision .
                                ι
                                  Article 2
The President of the Council es empowered to appoint the person authorized
to sign on behalf of the Community , the Protocol referred to in Article 1 .
Done at Brussels ,                                 For the Council ,
                                                    The President .
 ---pagebreak---                                     - 1 -
                                   ANNEXE
                         PROTOCOL RELATING TO MILK FAT
      The participants to the present Protocol ,
      Having considered that paragraph 1 of Article I of the Arrangement Concerning
Certain Dairy Products , done at Geneva on 12 January 1970 , provides that the said
Arrangement applies to skimmed milk powder and to such other products as may be
added at a later date ,
     Have , through their representative?, agreed as follows :
                        Article I - Product Coverage
1.   This Protocol applies to :
     - anhydrous milk fat , anhydrous . butteroil or anhydrous butterfat, having a
        fat content' of not less than. 99.8 per cent by weight ;-
     - ghee, having a milk fat content of not less than 99 per cent by weight ; •
     - butteroil and'' butterfat , having a fat content of not less than 99.3 per cent
        by weight .
                          Article II - Pilot Product
1 . For the purpose of this Protocol a minimum export price shall be established :
for the pilot product «f the following description .
     Designation :   butteroil or butterfat .
     Fat content :   99*3 per cent by weight .
     Packaging :     in packaged normally used in the trade of a net content by weight
                     of not less than 25,kgs . or 50 lb ., as appropriate .
     Terms of       f.o.b . from the exporting countryer , for a land-locked country,
   . sale :         f.o.b . from one maritime port of its choice to be designated at
                    the time it signifies its acceptance; or free at frontier
                     exporting country. * Prompt payment against documents .
 ---pagebreak---                                                  - 2 -
                           Article III - Minimum Price
Level and observance of minimum -price
1 . Participants undertake to take the steps necessary to . ensure that the export
price of the product defined in Article II shall not be less than the minimum
price applicable under the present Protocol . The participants shall take the
steps necessary to avoid the circumvention of the price provisions of this .
Protocol if the product is exported in the form of goods in which it has been
incorporated , or if because of its quality or fat content it differs from the
pilot product defined in Article II .
2.   The minimum price-provided for in paragraph 1 of the present Article
applicable at the date of entry into force of this Protocol is fixed at
US$68 per 100 kgs .                   :             ........
3 . The level of the minimum price specified in the "present Article can be            ■
modified by the Management Committee established in terms of Article VII . However ,
any such modification may be decid'ed upon only at the time when the question of
extension of the duration of this Protocol is being considered in terms of*
paragraph 2 of Article VIII,. or, at other times , only when an emergency situation
is deemed to exist .                                                           .,.
Adiustment of minimum nrice
A.   If the product actually exported differs from the pilot product type with
regard to packaging or terms of sale as specified in Article II , the minimum price
shall be adjusted so as to protect the minimum price established in this Protocol ,
for the product specified in Article 'II according to the following provisions :
     Packaging :       if the product is offered otherwise than in packages normally
                       used in the trade of a net content by weight of not less than
                       25 kgs ., cr 50 lb,, as appropriate , the application of the
                      minimum price shall be adjusted so as to reflect the difference
             • '       in the co^t of packaging from the type of package specified above .
     Terms
     Terms of
            of   .•• '•if sold on terms other than f.o.b . from the' exporting country
     sale *
     saler             or , for a land-locked country, f.o.b . from the maritime port
                       of its choice or free - at frontier exporting country, the
                      minimum price shall be calculated on the basis of the minimum
                      f.o.b . price specified in paragraph 2 above plus the real and
                       justified costs of the services provided ; if the terms of the
                      sale include credit , this shall be charged for at the prevailing
                      commercial rate .
 ---pagebreak---                                           - 3 -
 Spécial conditions of saj.cs
 5 . Participants undertake within the limit of " their institutional possibilities
 to ensure that practices such as sales in association with sales of other products
 special rebates or discounts , do not have the effec/t of directly or indirectly
 bringing the export price of the products subject to the minimum price provisions
 below the agreed xaininuiii price .
 Field of arrolication
 6 . For each participant this Protocol is applicable to exports of the products
 specified in Article I manufactured or repacked inside its own customs- territory,
 whether the destination is temporary or final .
                 \
 Transactions other than normal commercial transactions
 7.     The provisions of paragraphs 1 to 6 of this Article shall not be regarded
 as applying to donated     exports to developing countries or to exports destined
 for relief purposes or     welfare purposes in developing countries . Such exports ,
 and other transactions     which are not normal commercial transactions , shall be
 effected in accordance     with the FAO Principles of Surplus Disposal and shall be
 subject to the procedures for notification, consultation and establishment of
 usual marketing requirements agreed upon in FAO .
                        Article IV - Provision of' Information
 1 . All participants agree to provide regularly and promptly to the Management
 Committee established in terms of Article VII of this Protocol details of exports
 and imports of the products covered by this Protocol , and any other information
 the Committee requires in order to assess the functioning of this Protocol and
.Jh.e situation in and the evolution of the international market .                    ...
                 Article V - Co-operation of Importing Countries                          .
 1 . Participants which import the products covered by this Protocol undertake
 in particular :                                                          -
      . ( a ) to co-operate in implementing the minimum price objective of this
              Protocol and to ensure as far as possible "that the products covered by
              this Protocol are not imported at less than the appropriate customs
              valuation equivalent to the prescribed minimum price; and
        (b ) to supply information concerning imports of the products covered by this
              Protocol from non-participants j  and
        ( c ) to consider sympathetically proposals for appropriate remedial action
              if imports at prices inconsistent with the mi ni T.Tnm price threaten the
              functioning of this Protocol .
 ---pagebreak---                             Article VI - Food Aid
      The participants agree :
 1 . In co-operation with FAO and other interested organizations , to foster
 recognition of the value of dairy products in improving nutritional levels and
 of ways and means through which they may be made available for the benefit- of
 developing countries .
 2 . Where possible and appropriate , to incorporate the donation or sale on
 concessional terms of dairy products or related equipment in their respective aid
programmes . Participants should notify the Committee in advance each year of the
 scale of their proposed contributions of such food aid . It would be understood
 that contributions could be made bilaterally 'or through joint projects or through
 the World Food Programme .
3.    Recognizing the desirability of harmonizing their efforts in this field ,
as well as the need to avoid harmful interference with normal patterns of
production and international trade , to exchange views in the Management Committee
 established in terms of Article VII on their arrangements for the supply of dairy
products as food aid or on concessional terms .
               Article VII - Administration of this Protocol ,
Management Corrmittee
1.    A Management Committee shall be established within the framework of the
 General Agreement on Tariffs and Trade .  The Committee shall comprise represen-
tees of all participants to this Protocol and shall carry out all the functions
which are necessary to implement the provisions of this Protocol . The Committee
shall be serviced by the GATT secretariat .
Review of market
2.    The Committee shall keep under constant review the situation in and the
evolution of the international market for the products covered by this Protocol
and the conditions under which the provisions of this Protocol are applied by
participants , taking into account the evolution of prices in international trade
in each of the other dairy products having implications for the trade in products
covered by this Protocol .
Regular and special meetings
3 . The Committee shall normally meet at least once each quarter . However , the
Chairman may call a special meeting of the Committee . on his own initiative . Any
participant which considers that its commercial interests are being seriously
threatened and which is unable to reach a mutually satisfactory solution with the
 ---pagebreak---                                            - 5 -
 other participant or participants concerned , may request the Chairman to convene
 a special iaec ting of the Committee on an urgent, basis so- as to determine as
 rapidly as possible , and -within four working days if requested , any measures which
may be required to meet the situation .
Emergency action
4 . Any participant , which,. considers that- its interests are seriously endangered
by a country not bound by •this' Protocol , can- request the Chairman to convene an
emergency meeting of the Committee within two working days to determine and
decide whether measures would be required to meet the situation . If such a
meeting ' cannot -be arranged within, -the tw© working . days and the commercial interests
of the participant concerned are likely to be materially prejudiced , that
participant may take unilateral action to safeguard the position ,- on the condition
that any other participants likely to be affected are immediately notified . The
Chairman of the Committee shall also be formally advised immediately of the full
circumstances of the case and shall be requested to call a special meeting of the
Committee at the earliest possible moment .
                         Article VIII - Other Provisions
1.    Entry into force
      ( a ) This Protocol shall enter into force', for those participants having
            accepted it , on 14 May 1973 . For participants accepting this        ;
            Protocol after that date , it shall be effective from the date of their
            acceptance .
      (b ) The validity of contracts entered into before the date of entry into
            force of this Protocol is not affected by this Protocol .
2.    Duration
      This Protocol shall rem in in force for one year . The duration of this
Protocol shall be extended for futher periods of one year at a time , unless the
Management Committee , at least eighty days prior to each date of expiry, decides
otherwise .
                                                                              «
3.    Aner.dnent
      The provisions of this Protocol may be amended by the Management Committee
established in terms of Article VII .
                                                              >
L. r Ac ceptance
      ( a ) This Protocol is open for acceptance , by signature or otherwise , to
            governments ( including the competent authorities of the European
            Communities ) members of the United Nations or of one of its specialized
            agencies .      '
 ---pagebreak---                                         - 6 -
     (b )   This Protocol shall be deposited with the Director-General to the
            C QNTRACTING PARTIES viho shall promptly furnish a certified copy
            thereof and a notification of each acceptance thereof to each
            participant to the Protocol .
5.   Withdraw al
     Any government ( including the competent authorities of the European
Communities ) may withdraw from this Protocol upon the expiration of sixty days
from the day on which written notice of such withdrawal is received by the
Director-General to the CONTRACTING PARTIES .
     DONE at Geneva this second' day of April one thousand nine hundred and
seventy-three , s in a single copy, in the English and French languages , both
texts being authentic .