COOPERATION AGREEMENT

between the European Economic Community and the Kingdom of Thailand on manioc production, marketing and trade

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

on the one hand,

THE GOVERNMENT OF THE KINGDOM OF THAILAND,

on the other hand,

RECOGNIZING the dependence of Thailand's economy on the production of manioc and its export to the Community and the problems on the Community market arising from the increasing imports of manioc,

CONSCIOUS that manioc production in Thailand is concentrated in the poorest and most politically sensitive areas,

TAKING into account the objectives of agricultural development and crop diversification in Thailand and the common interest of stabilizing the manioc markets in Thailand and the Community,

AFFIRMING their willingness to cooperate on matters concerning manioc production, marketing and trade on the basis of mutual benefit,

CONSCIOUS that such cooperation should be realized in a progressive and pragmatic way,

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

THE GOVERNMENT OF THE KINGDOM OF THAILAND:

HAVE AGREED AS FOLLOWS:

Article 1

Taking into account the objectives of agricultural development and crop diversification in Thailand and of stabilizing the manioc markets in Thailand and the Community, Thailand undertakes to manage its exports of manioc within subheading 07.06 A of the Common Customs Tariff to the Community during the five-year period from 1982 to 1986, divided in such a way as to ensure that these exports do not exceed quantities agreed between Thailand and the Community.

For the year 1982 the export quantity shall be five million tonnes.

Phase I

For the years 1983 and 1984, export quantities shall be:

(a) 5.0 million tonnes per year;

and

(b) an additional quantity of not more than 10 % of the annual quantity mentioned in subparagraph (a) which shall be allowed for this two-year period and which may be utilized in full, either wholly in one year or partially in both years, in order to accommodate the usual fluctuation in the production of primary commodities and to facilitate the stabilization of manioc markets in Thailand and the Community.

Phase II

For the years 1985 and 1986 export quantities shall be:

(a) 4.5 million tonnes per year;

and

(b) an additional quantity of not more than 10 % of the annual quantity mentioned in subparagraph (a) which shall be allowed for this two-year period and which may be utilized in full, either wholly in one or partially in both years, in order to accommodate the usual fluctuation in the production of primary commodities and to facilitate the stabilization of manioc markets in Thailand and the Community.

It is understood that the quantities referred to in this Article shall not cover quantities in transit or re-exported to destinations outside the Community, or those subject to inward-processing arrangements.

Article 2

If serious additional balance of payments difficulties due to the control of exports of manioc, or major difficulties in the sensitive manioc production regions arise in Thailand, or if serious difficulties arise on the Community's markets for agricultural products, the two parties shall enter into consultation with a view to establishing whether such difficulties exist and, if necessary, shall agree on appropriate measures to be applied for the duration of these difficulties.

Article 3

The Community undertakes to limit the levy applicable to imports of manioc covered by the Agreement to a maximum amount of 6 %

ad valorem

and to ensure that Thailand enjoys MFN treatment with respect to the rate of the levy. For the agreed quantities, the other import conditions shall be those existing under the present GATT binding.

Article 4

Taking into account its international rights and obligations, the Community shall take appropriate measures to ensure that Thailand's position on the Community manioc market during the period covered by the Agreement will not be significantly undermined by a substantial increase in the quantities of manioc imported from other countries. In this context the Community will also bear in mind the importance of imports of carbohydrate products which could compete directly with manioc.

Article 5

Thailand shall ensure that the quantities covered by the Agreement do not exceed the limits specified therein by ensuring that export certificates are not issued for any amount beyond such limits.

For its part, the Community shall undertake to adopt all necessary provisions to issue import licences for the products referred to above originating in Thailand, subject to the presentation of an export certificate, issued by the competent authority designated by the Thai Government. The import licence shall be issued within seven days of such presentation.

The date of issue of export certificates shall determine the year to which the quantities shipped are to be attributed.

The competent authorities of both parties shall periodically exchange information necessary for verifying the actual quantities exported and imported so as to facilitate the implementation of the Agreement.

Article 6

The Community shall do its utmost to provide assistance for projects aimed at rural development and crop diversification in Thailand, and particularly in the poorest cassava-producing regions of the country. It is to be understood that projects under crop diversification shall also include research projects on the marketing of diversified crops as well as on the utilization of manioc.

In providing this assistance, the Community shall, apart from its own financial resources, seek the cooperation of the bilateral and multilateral donors, including, in particular, Member States of the Community.

The Community shall also consider means of promoting the realization of mutually advantageous projects relating to diversification of agricultural production.

Article 7

When the proper functioning of this Agreement so requires meetings shall be held at ministerial level between the Government of the Kingdom of Thailand and the Commission of the European Communities.

A permanent joint working group shall be set up, composed of representatives of the Community and of Thailand.

The group shall ensure that the Agreement is being properly applied and is functioning smoothly.

It shall review regularly the progress of rural development and crop diversification in Thailand as well as the trends of production, trade and consumption of manioc in Thailand, the Community and the world, and market developments of carbohydrate products directly competitive with manioc.

The group shall discuss any matter relating to the application of the Agreement that may be put forward by either Party and shall recommend appropriate solutions to the competent authorities.

Meetings of the group shall be held as often as is found necessary, and in any case at least once a year, at a time and place to be agreed.

Article 8

This Agreement shall apply to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in the said Treaty, on the one hand and to the territories of the Kingdom of Thailand, on the other hand.

Article 9

The Agreement is concluded for the period running from 1 January 1982 to 31 December 1986.

It shall continue to run for subsequent three-year periods based on the quantities established for 1985 and 1986 if it is not denounced by either party at least one year before expiry of the initial five-year period or of any subsequent three-year period.

However, before notifying the denunciation of the Agreement, either party should enter into consultation with the other party in order to seek solutions or to agree upon amendments, which would make it possible to continue the Agreement.

Article 10

This Agreement is drawn up in two copies in the Danish, Dutch, English, French, German, Greek, Thai and Italian languages, each text being equally authentic.