CELEX: 51996PC0039
Language: en
Date: 1996-02-01
Title: Proposal for a COUNCIL DECISION concerning the conclusion of the results of negotiations with certain third countries under GATT article XXIV:6 and other related matters (Republic of Argentina)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           Brussels, 01.02 1996
                                           COM(%) V) final
                                           96/0036 (ACC)
                            Proposal for a
                        COUNCIL DECISION
Concerning the conclusion of the results of negotiations with certain third
   countries under GATT Article XXIV:6 and other related matters
                         (Republic of Argentina)
                    (presented by the Commission)
 ---pagebreak---  ---pagebreak---                              EXPLANATORY MEMORANDUM
The Commission has now concluded negotiations with Argentina under GATT Article
XXIV.6. The results of the negotiations are contained in the Proposal for a Council
Decision concerning the conclusion of the results of negotiations with Argentina under
GATT Article XXIV:6 and other related matters.
The agreement covers agricultural issues and includes commitments on tariffs, tariff
quotas, export commitments and domestic support. The phasing in of the duty reductions
foreseen in the agreement needs to be specified.
As regards the EC's import regime for cereals, an exchange of letters has been negotiated
under which Argentina agrees not to request GATT consultations provided the terms of
the agreement are respected.
 ---pagebreak---                              Proposal for a Council Decision
     Concerning the conclusion of the results of negotiations with certain third
          countries under GATT Article XXIV:6 and other related matters
The Council of the European Union,
having regard to the Treaty establishing the European Community, and in particular
Article 113, in conjunction with Article 228 (2), first sentence thereof,
having regard to the proposal from the Commission,
whereas the Community has entered into negotiations under GATT Article XXIV:6;
whereas these negotiations have resulted in an agreement with Argentina.
whereas the phasing in of the duty reductions foreseen in the agreement should be
specified,
whereas the Community has entered into discussions with Argentina relating to the
Community's import regime for cereals. Whereas the result of these discussions are
contained in an agreement in the form of an exchange of letters,
whereas it is in the interest of the Community to approve these agreements,
has decided as follows :
                                        Article 1
1. The following agreements are hereby approved on behalf of the Community:
        Agreement for the conclusion of negotiations between Argentina and the European
        Community under Article XXIV:6 of the GATT 1994 (Annex I).
        Exchange of letters between Argentina and the European Community on cereals
        (Annex II).
2. The texts of the agreements referred to in this Article are attached to this Decision.
3. The President of the Council is hereby authorised to designate the person empowered
    to sign the agreements in order to bind the Community.
4. The phasing in of the duty reductions foreseen in the Agreement is laid down in
    Annex III.
                                              Done at Brussels,
                                              For the Council
                                              The President
                                                   J
 ---pagebreak---                                                                                      Annex I
                                       AGREEMENT
              FOR THE CONCLUSION OF NEGOTIATIONS BEI WEEN
     THE REPUBLIC OF ARGENTINA AND THE EUROPEAN COMMUNITY
                                UNDER ARTICLE XXIV:6
The Republic of Argentina and the European Community,
    desiring to bring their GATT Article XXIV:6 negotiations, following the enlargement
    of the European Community which took place on 1 January 1995, to conclusion on
    the basis of a reasonable and mutually satisfactory compromise, and
    further desiring to strengthen the close partnership in commercial and economic
    matters between the European Community and the Republic of Argentina,
agree to the following provisions:
A. The European Community shall incorporate in its new Schedule CXL, for the customs
    territory of the EC-15, the concessions that were included in the previous Schedule
    LXXX as modified by the European Community Schedule annexed to the Marrakech
    Protocol to the General Agreement, 1994 (dated 15 April 1994) and additions thereto
    as set out in document G/SP/2 (dated 3 August 1994).
B. To settle the current GATT Article XXIV:6 negotiations on agriculture the following
     has been agreed and will apply with effect from 1 January 1996 :
               08081093 Fresh Apples (1/1-31/3) :
              two additional steps (10%, 12%) before the full tariff equivalent is applied
               in the period 15/2-31/3.
              08081099 Fresh apples (1/4-31/7) :
              - reduction of the final tariff rate from 3% to 0%.
               - one additional step (14%) before the full tariff equivalent is applied in the
                 period 1/4-30/6.
               - three additional steps (10%, 12%, 14 %) before the full tariff equivalent
                 is applied in the period 1-15/7.
               08082031 Fresh Pears (1/1-31/3) :
               reduction of the final tariff rate from 8% to 5% for pears respecting the
               entry price for the period 1/2 - 31/3.
               08082033 Fresh pears (1/4-30/4 and 1-15/7) :
               - reduction of the final tariff rate from 2.5% to 0%.
               - one additional step (14%) before the full tariff equivalent is applied in the
                 period 1/4-30/4.
               - three additional steps (10%, 12%, 14 %) before the full tariff equivalent
                 is applied in the period 1-15/7.
                                                       2
 ---pagebreak---               08053010 Lemons :
             - four additional steps (10%, 12%, 14 %, 16 %) before the full tariff
                equivalent is applied in the period 1/5 - 31/7.
             - three additional steps (10 %, 12 %, 14 %) before the full tariff equivalent
                is applied in the period 1 - 15/8.
             Grape juice and grape must. Tariff rate quota for 14.000 t (erga omnes).
              See Annex 1. This tariff rate quota will apply with effect from 1 September
              1996 '.
              15081010 Ground-nut oil, crude : reduction of the final tariff rate (3.2%) to
             zero.
    The Republic of Argentina accepts the basic components of the European
    Community's approach to adjusting the GATT obligations of EC 12 and those of
    Austria, Sweden and Finland, following the recent enlargement of the Community :
              netting out of export commitments
              netting out of tariff quotas
              aggregation of domestic support commitments.
    The appropriate legal modalities of implementation remain to be agreed.
C.   Final provisions:
    This Agreement shall enter into force on the date of signature.
    Consultations will be held with regard to the matters in this Agreement at any time
    at the request of either party.
Signed at                 this           day of          in the year one thousand nine
hundred and ninety-six.
For the Republic of Argentina
For the Council of the European Union
    In accordance with present EC regulations imports for inward processing will not be
    counted against the TRQ. Taking into account the fact that in the past imports of
    products covered by the TRQ were sometimes higher than 14 000 t the European
    Community is prepared to open up, on an autonomous basis, additional import
    opportunities if it emerges, after assessing relevant data (domestic supply and
    demand situation including market assessment by operators), that the internal market
    situation in the European Community necessitates additional import of grape juice
    and grape must used for the production of grape juice and/or non-wine sector
    products.
                                                   4-
 ---pagebreak---                                                                Tariff quota for grape juice and grape must
                  Description of product           Tariff item        Initial quota            Final quota                     Other terms and
                                                    number      quantity and in-quota quantity and in-quota                        conditions
                                                                       tariff rate               tariff rate
    Grape juice (including grape must) :                                14.0001                   14.0001       The products imported will be used for
                                                                                                                the production of grape juice and/or
    - Of a density exceeding 1.33 g/cm3 at 20° C :                                                              non-wine sector products such as vinegar,
    - - Of a value not exceeding 22 ECU per 100 kg 2009 6011           46.7 % +           The initial in-quota  non-alcoholic drinks, jams and sauces.
        net weight                                              24.0 ECU/100 kg/net       tariff rates shall be
                                                                                        reduced as committed
    - - Other                                      2009 6019            46.7 %          in the Uruguay Round
                                                                                          for out-quota rates
    - Of a density not exceeding 1.33 g/cm3
       at 20° C :                                                                                               Qualification for the quota is subject to
    - - Of a value exceeding 18 ECU/100 kg net                                                                  conditions laid down in the relevant
i/i     weight :                                                                                                Commmunity provisions.
    - Concentrated                                 2009 60 51            26.1 %
    - - Of a value not exceeding 18 ECU/100 kg
        net weight :
    - - - Other                                    2009 60 90            26.1 %
 ---pagebreak---                                                                                       Annex II
Exchange of letters
I have the honour to confirm the following understanding reached between the delegations
of the Republic of Argentina and the European Community:
The European Community agrees to make the following adustment to its import rules for
"flint maize" (within tariff line 10059000) from 1 January to 30 June 1996:
      The abatement for flint maize (within tariff line 10059000) will be increased
      from 8 ECU/tonne to 14 ECU/tonne.
Flint maize will be certified by the Instituto Argentino de Sanidad y Calidad Vegetal as
being in conformity with the specifications for "maiz Colorado o plata".
The two parties will enter into consultations before 1 March 1996 with a view to
determining whether the level of the abatement is reflecting prevailing market conditions.
It is agreed that the two parties will enter into discussions in the first half of 1996 with
a view to examing what measures might be necessary in view of the European
Community commitments, under Schedule LXXX, for subsequent marketing years. If the
outcome of those consultations is mutually satisfactory, its results may be implemented
starting 1 July 1996.
Subject to the foregoing being implemented, the Republic of Argentina will not request
consultations under Article XXII or XXIII of the GATT 1994 on this issue.
                                                      (a
 ---pagebreak---                       o ««au               fjLs&wzmm                                 Hiinex i n
          Summary description                  CN Code    Rate of duty to be applied
              UR Code                            1996        in 1996 and in later
                                                                years indicated
                   1                                                  3' "
 Fresh apples. 1 April - 31 July
 0808 10 99                               1/4-30/6
                                          0808 10 61    1996    5.0 %
                                                   63   1997    4.0 %
                                                   69   1998    3.0 %
                                                        1999    2.0 %
                                                        2000    1.0%
                                                        2001    0.0 %
                                          1:31/7
                                          0808 10 71    1996    4.0 %
                                                   73   1997    3.0 %
                                                   79   1998    2.0 %
                                                        1999    1.0%
                                                        2000    0.0%
Fresh pears. 1 February - 31 March
ex 0808 20 31                             ex 0808 20 31 1996    9.2%
                                                        1907    6.3%
                                                        1996    7.5%
                                                        1999    6.7%
                                                        2000    5.8%
                                                        2001    5.0%
Fresh^pMrs. 1 - 30 April a M 1 - 1 5 July
ex 0808 20 33
                                          0808 20 37    1996    4.2 %
                                                        1997    3.3 %
                                                        1998    2.5 %
                                                        1999    1.7%
                                                        2000    0.8 %
                                                        2001    0.0 %
                                          1 -15/7
                                          0808 20 47    1996    3.3 %
                                                        1997    2.5 %
                                                        1998    1.7%
                                                        1999    0.8 %
                                                        2000    0.0 %
Ground nut oil, crude
11508 10 10                               1508 10 10    1/1/1996    4.2 %
                                                        1/7/1996    3.3 %
                                                        1/7/1997    2.5 %
                                                        1/7/1998    1.7%
                                                        1/7/1999    0.8 %
                                                        1/7/2000    0.0 %
                                                           1-
 ---pagebreak---                                 FINANCIAL STATEMENT
Section 1.     Financial Implications
1.     Proposal for a Council Regulation providing for offers of compensation made in
       the Article XXIV.6 Negotiations to be implemented from 1 January 1996.
2.     Budget heading:         (loss of revenue: not known)
3.     Legal basis:            Article 113
4.     Description: The application of the Common External Tariff duty rates by the
       three new Member States from 1 January 1995 has resulted in increases in duty
       payments on imports from third countries beyond levels previously in force.
       The proposed regulation is intended to implement the compensation offered for
       the adverse effects experienced by third countries as a result of changed duty rates
       in the three new Member States.
5.     Type of revenue:        Loss of revenue for duties paid on third country imports.
6.     Change in level of revenue:
       It is estimated that the maximum loss of revenue will be in the order of 6 MECU
       in the period 1996 until final UR rates are reached.
                                                     <*
 ---pagebreak---  ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(96) 39 final
                                              DOCUMENTS
EN                                                                             11
                                     Catalogue number : CB-CO-96-051-EN-C
                                                              ISBN 92-78-00192-9
Office for Official Publications of the European Communities
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