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

Letter No 1

Brussels,

Sir,

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 delegations of the two parties, which are participants in GATT, 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).

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 an annual quantity of 800 tonnes of fresh or chilled meat, expressed as carcase weight bone-in [1].

[1] Carcase weight (bone-in equivalent weight). This shall be taken to mean 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. events, however, quantities exceeding the quantity agreed for the current year will be deducted from the quantity agreed for the following year.

For this purpose, the appropriate procedures will be implemented by the competent Czechoslovak authorities.

3. Provided that Czechoslovak exports do not exceed the quantity given in point 2 the Community will not apply any quantitative restriction or measure having equivalent effect.

Should the Community invoke the protective clause, the provisions of this Arrangement would not be affected.

4. If imports from Czechoslovakia exceed the agreed quantity, the Community reserves the right to suspend further imports from that country until the end of

5. The Community undertakes, in respect of imports of products covered by this Arrangement, to restrict the charges levied to a maximum 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.

6. 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 quantity given in point 2.

The quantity 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 maximim level of the levy specified in point 5 of this Arrangement being taken into account.

7. 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 abovementioned 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 will be drawn up in such a way that there is no requirement for a security for issue of import licences in respect of the products in question. These rules shall also provide that the competent Czechoslovak 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 from their date of issue. The corresponding import licences shall be valid until the date on which validity of the export licences expires.

Quantities delivered under an export licence shall be deducted from the quantity agreed for the year during which the export licence was issued.

8. The two parties agree that steps should be taken to ensure that the smooth operation of this 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 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 territories in which the Treaty establishing the European Economic Community is applied, under the conditions laid down in that Treaty, and, on the other hand, to the territory of the Czechoslovak Socialist Republic.

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.

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

For the Council of the European Communities

Letter No 2

Brussels,

Sir,

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

"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 delegations of the two parties, which are participants in GATT, 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).

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 an annual quantity of 800 tonnes of fresh or chilled meat, expressed as carcase weight bone-in [1].

[1] Carcase weight (bone-in equivalent weight). This shall be taken to mean 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 bone-in lamb. products in question. These rules shall also provide that the competent Czechoslovak 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.

For this purpose, the appropriate procedures will be implemented by the competent Czechoslovak authorities.

3. Provided that Czechoslovak exports do not exceed the quantity given in point 2 the Community will not apply any quantitative restriction or measure having equivalent effect.

Should the Community invoke the protective clause, the provisions of this Arrangement would not be affected.

4. If imports from Czechoslovakia exceed the agreed quantity, the Community reserves the right to suspend further imports from the country until the end of the current year. At all events, however, quantities exceeding the quantity agreed for the current year will be deducted from the quantity 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 a maximum 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.

6. 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 quantity given in point 2.

The quantity 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 maximim level of the levy specified in point 5 of this Arrangement being taken into account.

7. 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 abovementioned 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 will be drawn up in such a way that there is no requirement for a security for issue of import licences in

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 on which validity of the export licences expires.

Quantities delivered under an export licence shall be deducted from the quantity agreed for the year during which the export licence was issued.

8. The two parties agree that steps should be taken to ensure that the smooth operation of this 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 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 territories in which the Treaty establishing the European Economic Community is applied, under the conditions laid down in that Treaty, and, on the other hand, to the territory of the Czechoslovak Socialist Republic.

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."

I have the honour to confirm that the above sets out correctly the substance of the agreement between our two delegations.

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

For the Government of the Czechoslovak Socialist Republic