EXCHANGE OF LETTERS between the European Economic Community and the People's Republic of Poland on trade in sheepmeat and goatmeat

Letter No 1

Sir,

I have the honour to refer to the negotiations recently undertaken 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 the People's Republic of Poland, in connection with implementation by the Community of the common organization of the market in sheepmeat and goatmeat.

During these negotiations 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 (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).

The two Parties agree that steps should be taken to ensure that the smooth operation of the agreement should not be upset by delivery of sheepmeat and goatmeat products falling under tariff headings not covered by the arrangement.

2. Within this arrangement, the scope for imports of sheepmeat and goatmeat and for live sheep and goats from Poland into the Community shall be fixed at the following annual quantities: - 5 800 tonnes of live animals, expressed in carcase weight bone-in (1),

- 200 tonnes of fresh or chilled meat, expressed in carcase weight bone-in (2).

In order to ensure the smooth operation of the arrangement, the competent Polish authorities undertake to implement the appropriate procedures to ensure that the quantities actually exported do not exceed the abovementioned figures.

3. In the case of imports of the products covered by this arrangement and up to the quantity limits therein laid down, the Community will not apply new quantitative restrictions or measures of equivalent effect nor levy customs duties or taxes of equivalent effect to levies or customs duties exceeding those agreed in clause 5.

Were the Community to invoke the protective clause, it is hereby agreed that the provisions of this arrangement would not be affected.

(1) 100 kilograms live weight shall correspond to 47 kilograms carcase weight (bone-in equivalent weight). (2) Carcase 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 55 kilograms of boned mutton corresponds to 100 kilograms of bone-in mutton and 60 kilograms of boned lamb corresponds to 100 kilograms of bone-in lamb. 4. If imports from Poland exceed the agreed quantities, the Community reserves the right to suspend further imports from that country until the end of the current year. However, in any event, quantities beyond those agreed for the current year shall be deducted from the quantities agreed for the following year.

5. The Community undertakes, on import of products covered by this arrangement, to limit the amounts levied to the following ad valorem levels: - 10 % for live animals,

- 10 % for meat.

6. On accession of new Member States to the Community, the quantities referred to in clause 2 shall be, as appropriate, adapted by the Community, in consultation between the two Parties, to reflect the trade between the People's Republic of Poland and each such new Member State. The quantities shall not be reduced.

The charges to be levied on imports in respect of the said new Member States shall be fixed in accordance with the rules in the Treaty of Accession ; the limit on the levy set out in clause 5 shall be taken into account.

7. The competent Polish authorities shall ensure compliance with this arrangement, in particular through issue by the competent agency, which they shall designate for the purpose, of export licences applicable to the products referred to at clause 1, up to the maximum agreed quantity.

The Community agrees to take all the necessary measures to make automatic issue of an import licence, no later than release from customs bond, for the abovementioned products originating in Poland subject to production of an export licence issued by the competent Polish authority.

Detailed rules for the implementation of this system shall be drawn up so that the lodging of a security for the issue of import licences in respect of the products in question shall be unnecessary. These detailed rules shall also provide that the competent Polish authorities and the competent Community authorities shall undertake periodical exchanges of information in respect of the quantities in respect of which export and import licences have been issued, broken down according to destination as appropriate, as well as in respect of quantities which have actually been shipped.

It is hereby agreed that export licences will be valid for three months with effect from their date of issue. The corresponding import licences shall be valid until the date of expiry of the export licences.

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

8. In order to ensure the smooth operation of this arrangement, the two Parties shall take the appropriate measures and agree to remain in close contact and to be ready to undertake consultation in respect of any question which might arise while this arrangement applies. Consultation must commence within a maximum of 14 days after a request by one of the Parties.

9. The annual quantity fixed in clause 2 shall cover the period 1 January to 31 December.

The quantity applicable as from the date of implementation of this arrangement up to 1 January of the following year shall be fixed by consultation between the two Parties in proportion to the total annual quantity, adjusted to reflect the seasonal trend in Polish deliveries of the products in question during the year.

10. This Agreement shall apply, on the one hand, 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 Poland.

11. This arrangement shall enter into force on 1 January 1981. It shall apply until 31 March 1984. It shall thereafter be automatically extended for periods of one year, subject to the right of either Party to terminate it by notice in writing given six months before the date of expiry of any one of the said periods. In case of termination, the arrangement shall expire at the date of expiry of the period in question. In any case, the provisions of this arrangement shall be reviewed by the two Parties before 1 April 1984 for the purpose of incorporating any adaptation which might seem necessary for its extension.

I would be grateful to you if you would confirm to me that the foregoing correctly expresses what our two delegations agree in this respect.

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

For the Council of the European Communities

Letter No 2

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 recently undertaken 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 the People's Republic of Poland, in connection with implementation by the Community of the common organization of the market in sheepmeat and goatmeat.

During these negotiations 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 (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).

The two Parties agree that steps should be taken to ensure that the smooth operation of the agreement should not be upset by delivery of sheepmeat and goatmeat products falling under tariff headings not covered by the arrangement.

2. Within this arrangement, the scope for imports of sheepmeat and goatmeat and for live sheep and goats from Poland into the Community shall be fixed at the following annual quantities: - 5 800 tonnes of live animals, expressed in carcase weight bone-in (1),

- 200 tonnes of fresh or chilled meat, expressed in carcase weight bone-in (2).

In order to ensure the smooth operation of the arrangement, the competent Polish authorities undertake to implement the appropriate procedures to ensure that the quantities actually exported do not exceed the abovementioned figures.

3. In the case of imports of the products covered by this arrangement and up to the quantity limits therein laid down, the Community will not apply new quantitative restrictions or measures of equivalent effect nor levy customs duties or taxes of equivalent effect to levies or customs duties exceeding those agreed in clause 5.

Were the Community to invoke the protective clause, it is hereby agreed that the provisions of this arrangement would not be affected.

4. If imports from Poland exceed the agreed quantities, the Community reserves the right to suspend further imports from that country until the end of the current year. However, in any event, quantities beyond those agreed for the current year shall be deducted from the quantities agreed for the following year.

5. The Community undertakes, on import of products covered by this arrangement, to limit the amounts levied to the following ad valorem levels: - 10 % for live animals,

- 10 % for meat.

6. On accession of new Member States to the Community, the quantities referred to in clause 2 shall be, as appropriate, adapted by the Community, in consultation between the two Parties, to reflect the trade between the People's Republic of Poland and each such new Member State. The quantities shall not be reduced.

The charges to be levied on imports in respect of the said new Member States shall be fixed in accordance with the rules in the Treaty of Accession ; the limit on the levy set out in clause 5 shall be taken into account.

7. The competent Polish authorities shall ensure compliance with this arrangement, in particular through issue by the competent agency, which they shall designate for the purpose, of export licences applicable to the products referred to at clause 1, up to the maximum agreed quantity.

The Community agrees to take all the necessary measures to make automatic issue of an import licence, no later than release from customs bond, for the abovementioned products originating in Poland subject to production of an export licence issued by the competent Polish authority.

Detailed rules for the implementation of this system shall be drawn up so that the lodging of a security for the issue of import licences in respect of the products in question shall be unnecessary. These detailed rules shall also provide that the competent Polish authorities and the competent Community authorities shall undertake periodical exchanges of information in respect of the quantities in respect of which export and import licences have been issued, broken down according to destination as appropriate, as well as in respect of quantities which have actually been shipped.

(1) 100 kilograms live weight shall correspond to 47 kilograms carcase weight (bone-in equivalent weight). (2) Carcase 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 55 kilograms of boned mutton corresponds to 100 kilograms of bone-in mutton and 60 kilograms of boned lamb corresponds to 100 kilograms of bone-in lamb. It is hereby agreed that export licences will be valid for three months with effect from their date of issue. The corresponding import licences shall be valid until the date of expiry of the export licences.

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

8. In order to ensure the smooth operation of this arrangement, the two Parties shall take the appropriate measures and agree to remain in close contact and to be ready to undertake consultation in respect of any question which might arise while this arrangement applies. Consultation must commence within a maximum of 14 days after a request by one of the Parties.

9. The annual quantity fixed in clause 2 shall cover the period 1 January to 31 December.

The quantity applicable as from the date of implementation of this arrangement up to 1 January of the following year shall be fixed by consultation between the two Parties in proportion to the total annual quantity, adjusted to reflect the seasonal trend in Polish deliveries of the products in question during the year.

10. This Agreement shall apply, on the one hand, 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 Poland.

11. This arrangement shall enter into force on 1 January 1981. It shall apply until 31 March 1984. It shall thereafter be automatically extended for periods of one year, subject to the right of either Party to terminate it by notice in writing given six month before the date of expiry of any one of the said periods. In the case of termination, the arrangement shall expire at the date of expiry of the period in question. In any case, the provisions of this arrangement shall be reviewed by the two Parties before 1 April 1984 for the purpose of incorporating any adaptation which might seem necessary for its extension.

I would be grateful to you if you would confirm to me that the foregoing correctly expresses what our two delegations agree in this respect."

I have the honour to confirm to you that the foregoing correctly expresses what our two delegations agree in this respect.

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

For the Government of the People's Republic of Poland

EXCHANGE OF LETTERS relevant to the consultations foreseen in clause 8 of the exchange of letters between the European Economic Community and the People's Republic of Poland on trade in sheepmeat and goatmeat

Letter No 1

Sir,

Since it was not possible to reach sufficiently precise solutions to some questions raised by Poland during the negotiations for this arrangement between the European Economic Community and the People's Republic of Poland on trade in sheepmeat and goatmeat, it was agreed during the negotiations, that, during the consultations provided for in clause 8 of the arrangement, if Poland were to raise any concrete problems, the following points could be covered by the said consultations without prejudice to the terms of clause 8: 1. cases of force majeure;

2. supply of live animals within the quantity agreed for meat;

3. in cases where the quantity agreed for a given year was entirely taken up, advance use, at the end of the current year, of a limited proportion of the quantity agreed for the following year;

4. use of the agreed quantities for the purposes of export of frozen meat of Polish origin to the Community;

5. the possibility of allowing imports of quantities over and above those fixed in clause 2 of the arrangement if the Community market were to require additional imports;

6. the possibility of delivering export and import certificates for quantities above those agreed, in so far as the quantities actually imported are below those for which import certificates have been delivered.

For its part, the Community would be prepared to undertake the said consultations in a spirit of cooperation in respect of any requests put forward by Poland.

Furthermore, I have the honour hereby to confirm to you the following declaration made by the Community during the abovementioned negotiations: - imports into the Community of products covered by the arrangements shall not be subject to the quantitative limits set out in point 2 of that arrangement provided that these products are re-exported from the Community either without further processing or after inward processing under the relevant Community system.

I should be obliged if you would kindly acknowledge receipt of this letter.

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

For the Council of the European Communities