EL CONSEJO DE LAS COMUNIDADES EUROPEAS,

Visto el Tratado constitutivo de la Comunidad Económica Europea y, en particular, su artículo 113,

Vista la Recomendación de la Comisión,

Considerando que, como consecuencia de la ampliación de la Comunidad a España y a Portugal, han tenido lugar negociaciones con la República Argentina con arreglo al artículo XXIV. 6 del Acuerdo General sobre Aranceles Aduaneros y Comercio (GATT) a fin de que pueda resolverse el desacuerdo comercial que existe entre la Comunidad y Argentina;

Considerando que en dichas negociaciones se ha llegado a un acuerdo ad referendum y que su aprobación interesa a la Comunidad,

DECIDE:

Artículo 1

Queda aprobado en nombre de la Comunidad el Acuerdo entre la Comunidad Económica Europea y la República Argentina referente a la celebración de negociaciones con arreglo al artículo XXIV. 6 del GATT.

El texto del Acuerdo se adjunta a la presente Decisión.

Artículo 2

Se autoriza al Presidente del Consejo para designar a las personas facultadas para firmar el Acuerdo a fin de obligar a la Comunidad.

Hecho en Luxemburgo, el 20 de octubre de 1987.

Por el Consejo

El Presidente

U. ELLEMANN-JENSEN

AGREEMENT

on the conclusion of negotiations between the Republic of Argentina and the European Community under GATT Article XXIV.6

I. The Republic of Argentina and the European Community:

- desiring to bring their GATT Article XXIV.6 negotiations to conclusion on the basis of a reasonable and mutually satisfactory compromise, and

- recognizing that the present agreement is concluded without prejudice to the views of either party in respect of Article XXVI.6,

agree to the following provisions:

II. As regards the withdrawal of Spanish and Portuguese GATT concessions, the Community will implement the following dispositions:

A. The GATT bindings of the Community of 10 as set out in Schedules LXXII and LXXII bis will be restored and extended to Spain and Portugal, in view of recognition by the Republic of Argentina of the benefits which would result for certain exports (1). For the products listed in Annex I, Schedule LXXII will be modified as indicated. Improvements granted to third countries shall also be applied to the Republic of Argentina. The duties applied in Spain and Portugal during the transitional period will be those set out in the Treaty of Accession.

B. As regards corn and sorghum (other than for sowing) (2):

1. The Community will ensure a minimum annual level of imports of two million metric tonnes of corn and of 300 000 metric tonnes of sorghum into Spain for consumption from non-EEC sources (MFN). To achieve this, reduced-levy quotas shall be applied in Spain and/or direct purchases on the

world market shall be made under the Commission's authority. The detailed modalities are set out in Annex II.

3. In order to ensure that such imports of corn and sorghum into Spain are not diverted to other markets, appropriate measures will be taken.

III. The Republic of Argentina and the European Community also agree that:

(i) Consultations will be held on this agreement at any time at the request of either party, including the effects of management measures implemented by the European Community in respect of II.B.

(ii) During July 1990, consultations will be held, taking into account, inter alia:

(a) general trade developments, with particular reference to the evolution of Argentine exports to Spain and Portugal;

(b) agreements on agriculture reached in the Uruguay Round;

(c) the status of implementation of the Treaty of Accession,

with the objective of determining at that time what new action, if any, might be appropriate.

IV. This agreement is without prejudice to the legal interpretations of Article XXIV of either party. Upon approval of, and subject to, the above provisions, both parties declare that this agreements constitutes a mutually satisfactory conclusion of this Article XXIV.6 negotiation.

1.2 // For the European Economic Community // For the Republic of Argentina

(1) Subject to a reservation for certain products which are still under negotiation with other countries. The Community does not consider that Argentina has negotiating rights for any of these products.

(2) NIMEXE codes 10.05-92 and 10.07-59.

ANNEX I

1. The Community undertakes to raise from 29 800 to 34 300 metric tonnes the overall annual tariff quota of high-quality beef (CCT subheading ex 02.01 A II) eligible for customs duty at a rate of 20 % without levy. The quota for meat, as referred to below, imported from Argentina shall be 17 000 metric tonnes:

'special or good-quality beef cuts obtained from exclusively pasture-grazed animals aged between 22 and 24 months, having two permanent incisors and presenting a slaughter live weight not exceeding 460 kilograms, referred to as "special boxed beef", cuts of which may bear the letters "sc" (special cuts).'

2. The European Community shall take action to ensure that, within a limit of 550 000 metric tonnes, the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling of other working of cereals, other than maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff shall be as calculated in accordance with Community rules, less a standard amount corresponding to 40 % of the variable component of the levy.

The provisions of the first subparagraph shall apply provided that the supplier country levies on exports of the products referred to in that subparagraph a special charge which is equal to the amount by which the variable component of the levy is reduced and is reflected in the Community import price.

The detailed rules for the application of these measures shall be laid down by way of exchange of letters between the Community and the supplier countries.

3. The European Community shall take action to ensure that the overall Community tariff quota of a total of 50 000 metric tonnes, expressed as boneless meat, of frozen beef falling within subheading 02.01 A II b) of the Common Customs Tariff, which was opened under GATT and which is eligible for customs duty at a rate of 20 %, is raised to 53 000 metric tonnes.

4. Frozen fillets of hake (Merluccius spp.) falling within subheading 03.01 B II b) 9 of the Common Customs Tariff:

- duty bound at 15 %, subject to compliance with the reference price,

- duty reduced to 10 %, subject to compliance with the reference price, within an annual quota of 5 000 metric tonnes, for industrial blocks with bones ('standard'), within the period from 1 July to 31 December, to be granted by the competent authorities of the Community.

Consultations may take place at the request of either party to the Agreement.

ANNEX II

With reference to paragraph II.B.1 of the Agreement on the conclusion of negotiations between Argentina and the European Community under GATT Article XXIV.6, the following modalities shall apply:

1. In order to ensure the minimum level of imports of two million metric tonnes of corn and 300 000 metric tonnes of sorghum into Spain, the Community will establish as a general mechanism a system consisting of an import tender for a reduced levy for corn and for sorghum imports into Spain.

2. In order to guarantee the import of the total quantities negotiated, a back-up mechanism will be established, enabling direct purchases of corn and sorghum on world markets for Spain, under the control of the Commission. The Commission will proceed to such purchases on a regular basis if it proves necessary and following bilateral consultations where appropriate.

3. The Commission will ensure that the minimum annual import levels are fully met not later than two months after each calendar year concerned.

4. The quantities of the non-grain feed ingredients imported into Spain and listed below will be deducted proportionally from the global yearly quantities which have been negotiated for corn and for sorghum:

1.2 // // // CCT heading No // Product description // // // 23.03 A II // Corn gluten feed // 23.03 B II // Brewing and distilling dregs and waste // 23.06 A II // Citrus peels and pellets // //

EXCHANGE OF LETTERS

Relating to paragraph 2 of Annex I to the Agreement on the conclusion of the

negotiations between the Argentine Republic and the European Economic

Community pursuant to Article XXIV.6 of GATT and concerning the import into the

Community of bran and sharps originating in Argentina

A. Letter from the Community

Brussels . . . . . .

Sir,

I have the honour to inform you as follows:

For the implementation of paragraph 2 of Annex I to the Agreement on the conclusion of the negotiations between the Argentine Republic and the European Economic Community it is agreed that the following provisions be adopted:

1. The variable component of the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling or other working of cereals, other than of maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff and originating in Argentina shall be as calculated in accordance with Article 2 of Council Regulation (EEC) No 2744/75 of 29 October 1975 on the import and export system for products processed from cereals and from rice, as last amended by Regulation (EEC) No 1588/86, less the amount specified in paragraph 3 below.

2. Paragraph 1 shall apply provided that Argentina levies on exports of the products referred to a special charge which is equal to the amount by which the variable component of the levy is reduced and is reflected in the Community import price.

3. The amount by which the variable component of the levy is reduced shall be equal to 40 % of the average of the variable components of the levies in force during the three months preceding the month in which the amount in question was fixed.

The amount shall be fixed by the Commission not later than the 10th day of the month preceding the quarter during which the amount shall apply.

'Quarter' shall mean a period of three months beginning on 1 February, l May, l August or 1 November in each year.

However, should the entry into force of the Agreement not coincide with the beginning of one of these quarters, the first reduction in the levy shall be applicable for the month or months of the current quarter.

4. Proof that the special charge on exports has been collected shall be provided by the insertion by the customs authorities under 'Remarks' on the movement certificate of one of the following endorsements:

Taxe spéciale à l'exportation appliquée

Saerlig udfoerselsafgift opkraevet

Sonderausfuhrabgabe erhoben

Special export charge collected

Applicata tassa speciale all'esportazione

Bijzondere uitvoerheffing voldaan

Tasa especial a la exportación aplicada

Aplicada taxa especial à exportaçào

Eidikós fóros poy échei efarmostheí katá tin exagogí

(signature and official stamp)

I should be grateful if you would acknowledge this letter and confirm the agreement of your Gouvernment with its contents.

Please accept, Sir, the assurance of my highest consideration.

On behalf of

the Council of the European Communities

B. Letter from the Government of the Argentine Republic

Brussels . . . . . .

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'For the implementation of paragraph 2 of Annex I to the Agreeement on the conclusion of the negotiations between the Argentine Republic and the European Economic Community it is agreed that the following provisions be adopted:

1. The variable component of the levy on imports into the Community of bran, sharps and other residues derived from the sifting, milling or other working of cereals, other than of maize and rice, falling within subheading 23.02 A II of the Common Customs Tariff and originating in Argentina shall be as calculated in accordance with Article 2 of Council Regulation (EEC) No 2744/75 of 29 October 1975 on the import and export system for products processed from cereals and from rice, as last amended by Regulation (EEC) No 1588/86, less the amount specified in paragraph 3 below.

2. Paragraph 1 shall apply provided that Argentina levies on exports of the products referred to a special charge which is equal to the amount by which the variable component of the levy is reduced and is reflected in the Community import price.

3. The amount by which the variable component of the levy is reduced shall be equal to 40 % of the average of the variable components of the levies in force during the three months preceding the month in which the amount in question was fixed.

The amount shall be fixed by the Commission not later than the 10th day of the month preceding the quarter during which the amount shall apply.

"Quarter" shall mean a period of three months beginning on 1 February, 1 May, 1 August or 1 November in each year.

However, should the entry into force of the Agreement not coincide with the beginning of one of these quarters, the first reduction in the levy shall be applicable for the month or months of the current quarter.

4. Proof that the special charge on exports has been collected shall be provided by the insertion by the customs authorities under "Remarks" on the movement certificate of one of the following endorsements:

Taxe spéciale à l'exportation appliquée

Saerlig udfoerselsafgift opkraevet

Sonderausfuhrabgabe erhoben

Special export charge collected

Applicata tassa speciale all'esportazione

Bijzondere uitvoerheffing voldaan

Tasa especial a la exportación aplicada

Aplicada taxa especial à exportação

Eidikós fóros poy échei efarmostheí katá tin exagogí

(signature and official stamp)

I should be grateful if you would acknowledge this letter and confirm the agreement of your Government with its contents.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of

the Government of the Argentine Republic

1.2.3 // COMMISSION OF THE EUROPEAN COMMUNITIES Directorate-General External Relations // // Brussels . . . . . . 1.2 // // // // H. E. Luis Ramiro Alfonsin Ambassador Mission of Argentina Avenue Louise 225 B-1050 Brussels

Sir,

I can inform you that the Community will take the necessary measures in order to open, for the period 1987/88, on an autonomous basis, a special Community import tariff quota at a duty of 20 % without levy for 1 000 metric tonnes of high-quality fresh, chilled beef falling within subheading 02.01 A II a) of the Common Customs Tariff, corresponding to the following specifications:

'Special or good-quality beef cuts obtained from exclusively pasture-grazed animals, aged between 22 and 24 months, having two permanent incisors and presenting a slaughter live weight not exceeding 460 kilograms, referred to as "special boxed beef", cuts of which may bear the letters "sc" (special cuts).'

Detailed rules for the application of this measure shall be determined by the competent authorities.

Yours faithfully,