CELEX: 51981PC0082
Language: en
Date: 1981-03-09 00:00:00
Title: Recommendation for a COUNCIL DECISION on the conclusion of a voluntary restraint Agreement with Hungary in the sheepmeat and goatmeat sector (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (81) 82
Vol. 1981/0023
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 ---pagebreak---                      »
COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(81)82 final
                                                   Brussels , 9 March 1981
                               Recommendation for a
                                 COUNCIL DECISION
          on the conclusion of a voluntary restraint Agreement with
                  Hungary in the sheepmeat and goatmeat sector
                  ( submitted to the Council by the Commission )
            /•-<?
            &. ,         :V
                                 - '/
C0M(81 ) 82 final
 ---pagebreak---                                                . g
                               EXPLANATORY MEMORANDUM
                                           W •
^ b Pursuant to 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 .
                     *
     The Council is expected to approve similar agreements with Austria ,
     Iceland, Poland and Romania .
2 . It was not possible to complete negotiation of comparable agreements at
                                                                                   »
     that date with non-member supplier countries which were either waiting
                           m
     for details as to the licence arrangements or - were not 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
                                ,
                                1                        *
     Hungary, it is proposed that approval be given to the proposal for a
- Council Decision on the conclusion of a voluntary restraint agreement
     in respect of exports of sheepmeat and goatmeat from that non-member
     country .                ,
4 . The agreement covers the following annual quantities for the Community
                                                        %
     of Ten, expressed as carcase weight ( bone-in equivalent weight ) :
        • '                                                  .        / -
                             r i         '
                           Live animals          Fresh or chilled meat .  Frozen meat
     Hungary           ,     10.050 t .                    1.150 t .          0 t.
 ---pagebreak---                                     Recommendation
                            '  FOR A COUNCIL DECISION
       on the conclusion of a voluntary restraint Agreement with Hungary
                       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 Community ;
Whereas the Commission has reached agreement with Hungary ;
Whereas the said Agreement allows trade to be carried on in a manner compatible
with the common organization of the market' in the sector . in question ,-
HAS DECIDED AS FOLLOWS :
                              Article 1
1 . The Agreement drawn up in the form of an Exchange of Letters on trade in
    the sheepmeat and goatmeat sector with Hungary is hereby approved on behalf
    of the European Economic Community .
2 . The text of the Agreement is annexed to this Decision .
                              Article 2
The President of the Council is hereby authorized to designate the person
empowered to sign the Agreement referred to in Article 1 , in order to bind
the Community .
Done at                                                      For the Council
                                                               The President
 ---pagebreak---                                          DRAFT
                       .      EXCHANGE OF LETTERS BETWEEN
      THE EUROPEAN ECONOMIC COMMUNITY AND THE PEOPLE 'S REPUBLIC OF HUNGARY'
                         " ON TRADE IN SHEEPMEAT AND GOATMEAT
          \                                           -
      I have the honour to refer to the negotiations recently undertaken
                                 Γ /
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
Hungary , in connection with implementation by the Community of the common
organisation of the market in sheepmeat and goatmeat .
                                <    î '
      During these negotiation ^ which took place between the two parties who
are participants in GATT , 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 ) .
 ---pagebreak---                                                                                          7.
   2.       Within the terms of this Arrangement , the competent Hungarian authorities
   undertake to ensure that exports to the Community of the products referred to
   in point 1 shall not exceed the following annual quantities :
   - 10 050 tons of live animals , expressed as carcase weight bone-in ^
                                                                                      ?
        1 150 tons of fresh or chilled meat , expressed as carcase weight bone-in "
            For this purpose , the appropriate procedures shall be implemented by the
   competent Hungarian authorities.'                                      '    :
   3.       Provided that Hungarian exports do not exceed the quantities given in
   point 2 the Community will not apply any quantitative restriction or measures having
        equivalent effect .              '
   If the Community were to invoke the protective clause ,        the provisions of this
   Arrangement would not be affected .
   4.       If imports from Hungary exceed the agreed quantities , the Community
   reserves the ri.ght to suspend further imports from that country until the end
   of the current year .      However , in any case , quantities exceeding the agreed
   quantity for the current year shall be subtracted from the quantities agreed
   for the following year .
   5.       The Community undertakes , in respect of import? of products covered by
   this Arrangement , to restrict the charges levied to the following ad valorem
   levels :
    10 % for live animals     „
    10% , for meat
            The Community will not charge , apart from the levies set out above ,
   customs duties or other changes having an effect equivalent to levies or to customs
   duties .
(1)     100 kg Live weight shall compound to 47 kg carcase weight ( bone-in
        equivalent weight ) JJl )
(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--- 6.    wWhen a new Member State     accedes to the Community and if the pattern of
trade ,, between Hungary and such Member State were to justify it ,, the Community
shall agree to consultations between the two parties with a view to possible
adaptation of the quantities given at point 2 .
         The quantities given at point 2 shall not be reduced .
         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 point 5 of this Arrangement being taken into
account.       -                             ;    . *
7. •     The competent Hungarian authorities shall ensure compliance with the '
terms of this Arrangement , in particular by means of the issue by a Hungarian
agency designated f&r the purpose , of export licences covering the products
listed in point 1 , within the agreed quantity limits .
         For its part the Community undertakes to adopt all the necessary
measures to ensure that the automatic issue of an import licence for the
abovementioned products originating in Hungary 3hall be sQbject to production
of an export licence issued by the competent Hungarian authority .
         Detailed rules for the implementation of this system shall be drawn up
in such a way that no security need be Lodged                > for issue of import
licences in respect of the products in question .     These detailed rules shall
also provide that the competent Hungarian authorities and the competent
Community authorities shall undertake periodical exchanges 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 frpm their date of issue .     The corresponding import licences
shall be valid until the date of expiry of the export licences .           '
                              τ  /        <
         Quantities delivered under an export licence shall be . subtracted from
 the quantity agreed for the year during which the export licence was issued .
 ---pagebreak---  8.        The two partie3 agree that steps should 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 .
 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 application
 of this Arrangement . The said . consultations must be commenced within a
 maximum period of         days following^eque3t 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 .
                                  I
  11 .     The annual quantity fixed at Point 2 shall cover the period 1 January to
  31 December .                                                                  -
           The quantity applicable from 1 janusry 1984 until 31 march 1934           /
  • ■ ■                                                  jshall be fixed by means of
the consultations referred to at point 9 -in proportion to the overall annual
  quantity .                             ...
         This arrangement shall ''apply, on the one Jian<^> 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 People 's Republic of Hungary .
  13 ..     This Arrangement , shall enter into force on 4. -i. €1 . Tt shall qpplv until
   31 March 1S3'J , and subsequently , for period of 2 " 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 event
  of termination , the Arrangement shall come to an end at the date of expirv 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
   192*1 » in order to incorporate in it any adaptations which might be necessary .
            I should be grateful         if you would confirm           that the above
  sets out correctly the substance of the agreement between our two delegations .
  Formal ending .
 ---pagebreak---                                           Draft
                                   EXCHANGE OF LETTERS
                                                              .Λ
          concerning the consultations for which provisions is made at
             point 9 of the Exchange of Letters between the European
              Economic Community and the People 's Repulic of Hungary
                          on trade in sheepmeat and goatmeat
            With reference to certain specific questions raised during the nego­
tiations for this Arrangement , I have the honour to point out that it was
agreed during the negotiations that , within the context of this . Arrangement ,
if Hungary were to raise any concrete problems , they could be covered by the
consultations provided for in point 9 , without prejudice to the scope 6f that
provision .   These problems include :
1 ^ supply of live animals in relation to the quantity agreed for meat ;
2 . supply of meat in relation to the quantity agreed for live animals ;
                      »          i                        ..
3 . possibility of advance use , during a given year , of a limited proportion
    of the quantity agreed for the following year ;
4 . possibility in point 2 of the Arrangement where the Community market situa­
    tion so permits .   •
            For its part , the Community would be prepared to undertake the said
consultations in a spirit of co-operation in respect of any requests put for­
ward by Hungary .
Formal ending .
 ---pagebreak---                                                                             r
                            D R A F T
        EXCHANGE OF LETTERS RELEVANT TO CLAUSE 2 OF THE
        EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC
        COMMUNITY AND THE PEOPLE 'S REPUBLIC OF HUNGARY ON
       TRADE IN SHEEPMEAT AND GOATMEAT
      I have the honour to refer to the exchange of letters on the
conditions governing Hungarian exports to the Community in the sheepmeat
and goatmeat sector .
      Further to that exchange of letters and to your request , I would
advise you that the Hungarian authorities will ensure that for the period
1 January 1981 to 31 March 1984 , there will be no sensitive change in
the traditional trade flows of mutton, lamb and goatmeat and live sheep and
goats to the two market areas in the European Economic Community determined
as sensitive .
      The Hungarian authorities will adopt the necessary measures for this
purpose .
Formal ending .
                 *
 ---pagebreak---                                                                                                         VI / 811 / 81
                    FINANCIAL                STATEMENT
                                                                                               | DATE I   January 1981
 1 . BUMCT 1.IKS COÎICLUVSD L           1 00
 2. ACTICT : Conclusion of a voluntary export restraint agreement with Hungary lp
      the sheepmeat and goatmeat sector , Limiting' import charges to a maximum of
      10 % ad valorem on live animals and on fresh or chilled meat .
     LEGAL BASIS :       Article 113
 4 . OBJECTIVES : To limit the levy charged to a maximum ad valorem amount of 10 % for
      products subject to Regulation ( EEC ) No' 1837 / 80, imported from Hungary * which
      undertakes to restrain exports to the levels indicated in box 5.2 .
                                                  ? « :»r;    t j :, -i it: m "      :; t'
 5 . FIÍIAIÍCIAL CC;;SE3'JD)C3                       KOR TH2 t-'JLHKETIF .'G YEAJl CURRSRR FINANCIAL YEAR      FCLLCWINC PI   CICIAL TEAR
                                                                                            UH                        rJ
x x x x (ailQrj<x«/kxx»iaij*K3SJ(>< x
χχ χ *«*χο£*χοοχοαοεχ χχακχχ χχουρχ
 5.1 RECEIPTS                                                                              1,225 Million            - 1,47 Mi l lion
      -O.CI RSSCUHCIS OF T. ts EC
                                                                                                      ECU                             ECU
        ( LEVI ES/CJARC:U5 DUTIES )
      -HATIC.'IAL
                                                     YEAR ...1923                  YEAR         3384.          YEAR
5.0.1 >mtftXXXXIXXâGXX3SX0n(X»fX3CXXXft
5.1.1 PLURI A-'OfUAL PATTEHif OP RECEIPTS                 - 1,47 M. ECU                      - 0,61 M. ECU
5*2 METHOD OF CALCULATIOX           ( Base : world price for meat and live animals . 2 400 ECU/ t .
                                                                            Fresh meat , loss           Live animals , loss ,
                                                                           of revenue' : 10 %           of revenue .: 5 X against
                                                                            against customs             customs duty applicable
                                                                            duty applicable             until 20.10.80
                                                                            until 20.10.80
      Hungary .: 10 050 tonnes live animals .....                                                                  1,2 mi llion ECU
                         1 150 tonnes fresh meat ..... 276 000 ECU
                          UB WITH CREDITS IKSGMDSD IN FLSLSVAKT ClIAPrnD 0i» CUnJUI'tT DUMCT ?                            IB3/W~
6 »! flNJUJClNC POSSIBLE) 3Y TKANGl-'CTl I3U£r.., ^C:i 0iLAPTH7D 0? CUIULMT DU DOUT ?                                     vrr» AVtV
                                                                                                                          J LIJ i 1>V > *
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