EXCHANGE OF LETTERS

between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in the sheepmeat and goatmeat sector

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 Yugoslavia, in connection with implementation by the Community of the common organization of the markets in sheep-meat and goatmeat.

During the negotiations the Parties agreed as follows:

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).

Within this arrangement, the scope for exports from Yugoslavia to the Community of the products referred to in point 1 shall be fixed at the following annual quanti- ties:

— 200 tonnes of live animals, expressed in carcase weight bone-in(1) (2),

— 4 800 tonnes of fresh or chilled meat, expressed in carcase weight bone-in(2).

In order to ensure the smooth operation of the arrangement, Yugoslavia undertakes to implement the appropriate procedures to ensure that the quantities actually exported annually do not exceed the abovementioned figures.

Should the Community have recourse to the safeguard clause, it undertakes to see that Yugoslavia's access to the Community under the terms of this arrangement is not affected.

If imports from Yugoslavia in a given year exceed the agreed quantities, the Community reserves the right to suspend further imports from that country until the end of that year.

Quantities exported in excess of these quantities shall be deducted from the quantities agreed for the following year.

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

ad valorem.

The Community will not charge, apart from the levy indicated above, customs duties or other taxes of equivalent effect to levies or to customs duties.

At the time of accession of new Member States, the Community, after consultation with Yugoslavia, will alter the quantities set out in point 2, in accordance with Yugoslavia'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 point 5 of this arrangement being taken into account.

The Community will endeavour to avoid market developments which might hinder the sale on the Community market, up to the agreed quantities, of products from Yugoslavia covered by this arrangement.

Having regard to the aims and provisions of this arrangement, the Community agrees that no refund or other form of aid to exports of mutton and lamb or live sheep and lambs for slaughter shall be given effect except at prices and on conditions meeting existing international obligations and in line with the Community's traditional share of the world export trade in those products. These terms must be interpreted in a manner compatible with Article XVI of the General Agreement on Tariffs and Trade and in particular in accordance with Article 10 (2) (c) of the Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on Tariff and Trade.

Yugoslavia shall ensure that this arrangement is observed, in particular by issuing export licences covering the products referred to in point 1 within the limits of the quantities 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 Yugoslavia, subject to the presentation of an export licence, issued by the competent authority designated by Yugoslavia.

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 Yugoslav authorities shall communicate periodically to the competent authorities of the Community the quantities in respect of which import and export licences have been issued, broken down, where appropriate, according to destination.

10.

An Advisory Committee shall be set up, composed of representatives of the Com munity and of Yugoslavia. The Committee shall supervise the correct application and smooth functioning of this arrangement.

It shall ensure that proper application of this arrangement is not affected by the exportation to the Community of mutton-, lamb- and goatmeat-based products falling under tariff headings not covered by this arrangement.

The Committee shall discuss all questions arising in connection with the application of this arrangement and recommend appropriate solutions to the competent authorities.

11.

The provisions of this arrangement are accepted without prejudice to the rights and obligations of the Parties under GATT.

12.

The annual quantity fixed in point 2 shall cover the period 1 January to 31 Decem ber.

The quantity to apply from the implementation of this arrangement until 31 December of the same year shall be set as a proportion of the overall annual quantity and shall take account of the seasonal nature of the trade.

13.

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 Socialist Federal Republic of Yugoslavia.

14.

This arrangement shall enter into force on 1 January 1981. It shall apply until 31 March 1984, and subsequently remain in force subject to the right of either of the Parties to terminate it by giving one year's notice in writing. In any event, the provisions of this arrangement shall be reviewed by the two Parties before 1 April 1984, in order to incorporate in it any adaptations which they might jointly consider 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

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 Yugoslavia, in connection with implementation by the Community of the common organization of the markets in sheepmeat and goatmeat.

During the negotiations the Parties agreed as follows:

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).

Within this arrangement, the scope for exports from Yugoslavia to the Com munity of the products referred to in point 1 shall be fixed at the following annual quantities:

— 200 tonnes of live animals, expressed in carcase weight bone-in(3) (4),

— 4 800 tonnes of fresh or chilled meat, expressed in carcase weight bone-in(4).

Should the Community have recourse to the safeguard clause, it undertakes to see that Yugoslavia's access to the Community under the terms of this arrangement is not affected.

If imports from Yugoslavia in a given year exceed the agreed quantities, the Community reserves the right to suspend further imports from that country until the end of that year.

Quantities exported in excess of these quantities shall be deducted from the quantities agreed for the following year.

The Community undertakes to limit the levy applicable to imports of prod ucts covered by this arrangement to a maximum amount of 10 %

ad valorem.

The Community will not charge, apart from the levy indicated above, customs duties or other taxes of equivalent effect to levies or to customs duties.

At the time of accession of new Member States, the Community, after consul tation with Yugoslavia, will alter the quantities set out in point 2, in accord ance with Yugoslavia's trade with each new Member State.

The Community will endeavour to avoid market developments which might hinder the sale on the Community market, up to the agreed quantities, of products from Yugoslavia covered by this arrangement.

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.

10.

An Advisory Committee shall be set up, composed of representatives of the Community and of Yugoslavia. The Committee shall supervise the correct application and smooth functioning of this arrangement.

The Committee shall discuss all questions arising in connection with the application of this arrangement and recommend appropriate solutions to the competent authorities.

11.

The provisions of this arrangement are accepted without prejudice to the rights and obligations of the Parties under GATT.

12.

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

13.

14.

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 Federal Executive Council of the Assembly of the Socialist Federal Republic of Yugoslavia

(1) 100 kilograms live weight shall compound 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 coresponds to 100 kilograms of bone-in mutton and 60 kilograms of boned lamb corresponds to 100 kilograms of bone-in lamb.

(3) 100 kilograms live weight shall compound to 47 kilograms carcase weight (bone-in equivalent weight).

(4) 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 à coefficient into bone-in weight. For this purpose 55 kilograms of boned mutton corresponds to 100 kilo grams of bone-in mutton and 60 kilograms of boned lamb corresponds to 100 kilograms of bone-in lamb.

EXCHANGE OF LETTERS

concerning point 2 of the exchange of letters between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in the sheepmeat and goatmeat sector

Sir,

I have the honour to refer to the exchange of letters between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in the sheep-meat and goatmeat sector.

Further to that exchange of letters and to your request, I would advise you that for the period 1 January 1981 to 31 March 1984, the traditional export flows of sheepmeat and goatmeat and live sheep and goats from the Socialist Federal Republic of Yugoslavia to those markets in the European Economic Community which are considered sensitive will be respected.

The competent authorities of the Socialist Federal Republic of Yugoslavia will adopt the necessary measures for this purpose.

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

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

For the Federal Executive Council of the Assembly of the Socialist Federal Republic of Yugoslavia

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 exchange of letters between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in the sheepmeat and goatmeat sector.

The competent authorities of the Socialist Federal Republic of Yugoslavia will adopt the necessary measures for this purpose.

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