21995A1230(21)

Agreement for the conclusion of negotiations between the European Community and the United States of America under Article XXIV:6

Official Journal L 334 , 30/12/1995 P. 0027 - 0029

AGREEMENT for the conclusion of negotiations between the European Community and the United States of America under Article XXIV:6

THE EUROPEAN COMMUNITY and THE UNITED STATES,

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

FURTHER DESIRING to strengthen the close partnership in commercial and economic matters between the European Community and the United States,

AGREE TO THE FOLLOWING PROVISIONS:

I. Market access concessions

A. The European Community shall incorporate in its new Schedule CLX, for the customs territory of the EUR 15, the concessions that were included in the previous Schedule LXXX as modified by the European Community Schedule annexed to the Marrakesh Protocol to the General Agreement, 1994 (dated 15 April 1994).

B. As provided in Annex (a) (1) to this Agreement, the European Community shall reduce and bind tariffs effective 1 January 1996 except as noted, shall open tariff quotas as indicated, and shall accelerate the staging of Uruguay Round tariff concessions.

C. Improvements granted to third countries in the European Community's Article XXIV:6 negotiations shall also be applied to the US.

II. Information technology Agreement

The parties to this Agreement approve and endorse the principles and commitments stated in Annex (b) to this Agreement.

III. Agricultural matters

A. The United States Government accepts the basic components of the European Community's approach to adjusting the obligation of the European Community of 12 and those of Austria, Finland and Sweden following the recent enlargement of the Community:

- netting out of export commitments,

- netting out of tariff quotas,

- aggregation of domestic support commitments.

The appropriate legal modalities of implementation remain to be agreed.

B. Both sides agree to the following provisions relating to trade in cheese

1. The tariff-rate quotas for cheese('cheese TRQ's') granted to Austria, Finland and Sweden by the United States in its Uruguay Round Schedule XX will be merged as soon as administratively possible, with the cheese TRQ granted to the European Community of 12 by the United States. During the period between the effective date of that merger and 1 January 1998, the TRQ quantities originally granted to Austria, Finland, Sweden and the EUR 12 will be reserved for those countries. If, during that period, the United States Government permits access of products of other countries to those quantities, such access will first be granted to products of the EUR 15.

2. The cheese TRQ's shall be subject to the terms of paragraphs 3 and 4 of the Tokyo Round Arrangement between the US and the Community concerning cheeses and Section 702 of Title VII of US Public Law 96-39 as amended, which establishes certain procedures and remedies in cases where subsidized imported cheese undercuts US domestic prices.

IV. Final provisions

A. This Agreement shall enter into force on the date of signature.

B. Consultations will be held with regard to the matters in this Agreement at any time at the request of either party.

Signed at Brussels this twenty-second day of December in the year one thousand nine hundred and ninety-five.

For the Government of the United States of America

For the Council of the European Union

Annex (a)

Agricultural items (agreed concessions format to be modified)

- TRQ 63 000 tonnes of semi-milled and wholly milled rice

1006 30 00 at 0 ECU/t (erga omnes)

- TRQ 20 000 tonnes of husked (brown) rice

1006 20 55 at 88 ECU/t (erga omnes)

- increase in the existing TRQ for almonds

in shell 0802 11 90, shelled 0802 12 90, at 2 % from 45 000 tonnes to 90 000 tonnes

- a reduction in the duty rate for petfood to zero

2309 10 11

2309 10 31

- Fresh (sweet) cherries 0809 20 10/2

TRQ 800 tonnes (21 May to 15 July) at 4 % erga omnes and a reduction in the end rate from 12 % to 6 % for the period 16 June to 15 July

- a reduction in the duty rate for fresh foliage from 2,5 to 2 %

0604 91 50

The management system for the TRQ for 63 000 tonnes of semi-milled and wholly-milled rice and 20 000 tonnes of husked (brown) rice will include allocation to traditional suppliers. The European Community may also designate ports of entry in order to maintain traditional trade patterns and supply relationships at the request of the exporting country. The United States has requested that European Community imports from the United States of rice under the above two TRQs be for traditional patterns of trade with the new Member States. The European Community will take the actions necessary to meet this US request, within the limits of Community law. Further consultations will take place on how to implement this agreement.

Annex (b)

Information technology Agreement

The European Community has, in the context of its compensation under Article XXIV:6 of GATT 1994, substantially reduced its tariffs on the whole range of semiconductors and integrated circuits. In addition, all such reductions will be implemented from 1 January 1996, well ahead of the phasing timetable foreseen at the end of the Uruguay Round.

The offers made in the Article XXIV:6 negotiations should facilitate the early discussion of how to approach the proposed ultimate goal of an Information technology Agreement which includes the elimination of tariffs by the year 2000 in the information technology sector. The European Community and the United States will, once the Article XXIV:6 negotiations have been completed, attempt to conclude such an agreement with Quad partners and with other major producers of such products in the WTO.

(1) See Annexes to Regulation (EC) No 3093/95, page 1 of this Official Journal.