ARRANGEMENT in the form of an exchange of letters between the European Economic Community and the Republic of Iceland on trade in sheepmeat and goatmeat

Letter No 1

Sir,

I have the honour to refer to negotiations recently undertaken between our respective delegations for the purpose of drawing up the provisions concerning import into the Community of mutton, lamb and goatmeat, and live sheep and goats other than pure-bred breeding animals from Iceland, in connection with implementation by the Community of the common organization of the market in sheepmeat and goatmeat.

During these negotiations, both Parties agreed as follows: 1. This arrangement shall relate to: - 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 Republic of Iceland undertakes to ensure that exports to the Community of the products referred to in clause 1 shall not exceed the following annual quantity: - 600 tonnes, expressed in carcase weight (1), of which a maximum of 10 % may consist of fresh or chilled meat.

For this purpose, the appropriate procedures shall be implemented by the competent authorities of the Republic of Iceland.

3. Provided that Iceland's exports do not exceed the quantity agreed, the Community shall not apply any quantitative restriction or measure of equivalent effect.

Should the Community have recourse to the safeguard clause, it undertakes that the provisions of this arrangement will not be affected.

4. If imports in any one year exceed the quantity agreed, the Community reserves the right to suspend imports from Iceland for the remainder of that year. The quantity overshipped shall be offset against Iceland's export entitlement for the following year.

5. The Community undertakes to limit the levy applicable to imports of products covered by this arrangement to a maximum amount of 10 % ad valorem.

6. At the time of accession of new Member States, the Community, in consultation with Iceland, will alter the quantity set out in clause 2, in accordance with Iceland's trade with each new Member State.

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 maximum level of the levy specified in clause 5 being taken into account.

(1) 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. 7. The Republic of Iceland shall ensure that this arrangement is observed, in particular, by issuing export licences covering the products referred to in clause 1 within the limits of the quantity covered by this arrangement.

For its part, the Community shall undertake to adopt all necessary provisions to make the issue of the import licence for the products referred to above, originating in Iceland, subject to the presentation of an export licence issued by the competent authority designated by the Iceland Government.

Detailed rules for applying this system shall be laid down in such a way as to render unnecessary the lodging of a security for the issue of the import licence in respect of the products in question.

Also, such detailed rules of application shall provide that the competent Iceland authority shall communicate periodically to the competent authority of the Community the quantities in respect of which export licences are issued, broken down, where appropriate, according to destination.

8. Both Parties agree that steps should be taken by the Republic of Iceland to ensure that the smooth operation of the arrangement is not affected by deliveries of mutton- and lamb- and goatmeat-based products falling under customs headings not referred to by the arrangement.

9. In order to ensure the smooth functioning of the arrangement, both Parties agree to remain in close contact and to be ready to undertake consultations on any matter relating to its application. The said consultations shall be commenced within a period of 14 days following request by one of the Parties.

10. The annual quantity fixed in clause 2 refers to the period running from 1 January to 31 December.

The quantity applicable in the period between the entry into force of this arrangement and 1 January of the following year shall be fixed on a pro rata basis in relation to the total annual quantity.

11. This arrangement 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 Republic of Iceland.

12. This arrangement shall enter into force on 1 January 1981. It shall remain in force until 31 March 1984, and shall continue in force thereafter subject to each Party having the right to denounce it by giving one year's notice in writing. In any case, the provisions of this arrangement shall be examined by the two Parties before 1 April 1984 with a view to making any adjustment which they agree is necessary.

I should be obliged if you would kindly confirm the agreement of your Government to the foregoing.

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 negotiations recently undertaken between our respective delegations for the purpose of drawing up the provisions concerning import into the Community of mutton, lamb and goatmeat, and live sheep and goats other than pure-bred breeding animals from Iceland, in connection with implementation by the Community of the common organization of the market in sheepmeat and goatmeat.

During these negotiations, both Parties agreed as follows: 1. This arrangement shall relate to: - 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 Republic of Iceland undertakes to ensure that exports to the Community of the products referred to in clause 1 shall not exceed the following annual quantity: - 600 tonnes, expressed in carcase weight (1), of which a maximum of 10 % may consist of fresh or chilled meat.

For this purpose, the appropriate procedures shall be implemented by the competent authorities of the Republic of Iceland.

3. Provided that Iceland's exports do not exceed the quantity agreed, the Community shall not apply any quantitative restriction or measure of equivalent effect.

Should the Community have recourse to the safeguard clause, it undertakes that the provisions of this arrangement will not be affected.

4. If imports in any one year exceed the quantity agreed, the Community reserves the right to suspend imports from Iceland for the remainder of that year. The quantity overshipped shall be offset against Iceland's export entitlement for the following year.

5. The Community undertakes to limit the levy applicable to imports of products covered by this arrangement to a maximum amount of 10 % ad valorem.

6. At the time of accession of new Member States, the Community, in consultation with Iceland, will alter the quantity set out in clause 2, in accordance with Iceland's trade with each new Member State.

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 maximum level of the levy specified in clause 5 being taken into account.

(1) 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. 7. The Republic of Iceland shall ensure that this arrangement is observed, in particular, by issuing export licences covering the products referred to in clause 1 within the limits of the quantity covered by this arrangement.

For its part, the Community shall undertake to adopt all necessary provisions to make the issue of the import licence for the products referred to above, originating in Iceland, subject to the presentation of an export licence issued by the competent authority designated by the Iceland Government.

Detailed rules for applying this system shall be laid down in such a way as to render unnecessary the lodging of a security for the issue of the import licence in respect of the products in question.

Also, such detailed rules of application shall provide that the competent Iceland authority shall communicate periodically to the competent authority of the Community the quantities in respect of which export licences are issued, broken down, where appropriate, according to destination.

8. Both Parties agree that steps should be taken by the Republic of Iceland to ensure that the smooth operation of the arrangement is not affected by deliveries of mutton- and lamb- and goatmeat-based products falling under customs headings not referred to by the arrangement.

9. In order to ensure the smooth functioning of the arrangement, both Parties agree to remain in close contact and to be ready to undertake consultations on any matter relating to its application. The said consultations shall be commenced within a period of 14 days following request by one of the Parties.

10. The annual quantity fixed in clause 2 refers to the period running from 1 January to 31 December.

The quantity applicable in the period between the entry into force of this arrangement and 1 January of the following year shall be fixed on a pro rata basis in relation to the total annual quantity.

11. This arrangement 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 Republic of Iceland.

12. This arrangement shall enter into force on 1 January 1981. It shall remain in force until 31 March 1984, and shall continue in force thereafter subject to each Party having the right to denounce it by giving one year's notice in writing. In any case the provisions of this arrangement shall be examined by the two Parties before 1 April 1984 with a view to making any adjustment which they agree is necessary.

I should be obliged if you would kindly confirm the agreement of your Government to the foregoing."

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.

For the Government of the Republic of Iceland

EXCHANGE OF LETTERS relevant to clause 2 of the arrangement in the form of an exchange of letters between the European Economic Community and the Republic of Iceland on trade in sheepmeat and goatmeat

Letter No 1

Sir,

I have the honour to refer to the arrangement in the form of an exchange of letters between the European Economic Community and the Republic of Iceland on trade in sheepmeat and goatmeat.

Further to that exchange of letters and to your request, I would advise you that the competent authorities of the Republic of Iceland will ensure that for the period 1 January 1981 to 31 March 1984, there will be no change in the traditional trade flows of mutton, lamb and goatmeat from Iceland to the market areas in the Community determined as sensitive.

The competent authorities of the Republic of Iceland will adopt the necessary measures for this purpose, it being understood that the quantities fixed in the arrangement shall not thereby be affected.

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

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

For the Government of the Republic of Iceland

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 arrangement in the form of an exchange of letters between the European Economic Community and the Republic of Iceland on trade in sheepmeat and goatmeat.

Further to that exchange of letters and to your request, I would advise you that the competent authorities of the Republic of Iceland will ensure that for the period 1 January 1981 to 31 March 1984, there will be no change in the traditional trade flows of mutton, lamb and goatmeat from Iceland to the market areas in the Community determined as sensitive.

The competent authorities of the Republic of Iceland will adopt the necessary measures for this purpose, it being understood that the quantities fixed in the arrangement shall not thereby be affected.

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