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TRADE AGREEMENT

BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE FEDERAL REPUBLIC OF BRAZIL

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

OF THE ONE PART ,

THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL ,

OF THE OTHER PART ,

DETERMINED TO CONSOLIDATE AND EXTEND THE TRADITIONAL ECONOMIC AND TRADE RELATIONS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE FEDERAL REPUBLIC OF BRAZIL ,

ADHERING TO THE SPIRIT OF COOPERATION WHICH INSPIRES THEM ,

CONSCIOUS OF THE IMPORTANCE OF THE HARMONIOUS DEVELOPMENT OF TRADE BETWEEN THE CONTRACTING PARTIES ,

DESIRING TO CONTRIBUTE TO THE EXPANSION OF TRADE AND THE DEVELOPMENT OF ECONOMIC COOPERATION ON A BASIS ADVANTAGEOUS TO BOTH CONTRACTING PARTIES ,

HAVE DECIDED TO CONCLUDE A TRADE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE FEDERAL REPUBLIC OF BRAZIL AND TO THIS END HAVE DESIGNATED AS THEIR PLENIPOTENTIARIES :

THE COUNCIL OF THE EUROPEAN COMMUNITIES :

HIS EXCELLENCY MR NIELS ERSBOELL ,

AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY ,

CHAIRMAN OF THE PERMANENT REPRESENTATIVES COMMITTEE ;

MR WOLFGANG ERNST ,

DIRECTOR-GENERAL OF THE DIRECTORATE-GENERAL FOR EXTERNAL TRADE OF THE COMMISSION OF THE EUROPEAN COMMUNITIES ;

THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL :

HIS EXCELLENCY MR ANTONIO CORREA DO LAGO ,

AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY ,

HEAD OF THE MISSION OF BRAZIL TO THE EUROPEAN COMMUNITIES ;

WHO , HAVING EXCHANGED THEIR FULL POWERS , FOUND IN GOOD AND DUE FORM ,

HAVE AGREED AS FOLLOWS :

ARTICLE 1

1 . THE COMMUNITY AND BRAZIL SHALL , IN THEIR TRADE RELATIONS , GRANT EACH OTHER MOST-FAVOURED-NATION TREATMENT IN ALL MATTERS RELATING TO :

- CUSTOMS DUTIES AND CHARGES OF ALL KINDS ON IMPORTS OR EXPORTS , INCLUDING THE PROCEDURES FOR COLLECTING SUCH DUTIES AND CHARGES ;

- REGULATIONS CONCERNING CUSTOMS CLEARANCE , TRANSIT , WAREHOUSING OR TRANSHIPMENT OF IMPORTED OR EXPORTED PRODUCTS ;

- TAXES AND OTHER INTERNAL CHARGES DIRECTLY OR INDIRECTLY IMPOSED ON IMPORTED OR EXPORTED GOODS OR SERVICES ;

- REGULATIONS CONCERNING PAYMENTS IN RESPECT OF TRADE OR EXCHANGE OF SERVICES , INCLUDING THE ALLOCATION OF CURRENCY AND THE TRANSFER OF SUCH PAYMENTS ;

- REGULATIONS AFFECTING THE SALE , PURCHASE , TRANSPORT , DISTRIBUTION AND USE OF GOODS AND SERVICES ON THE INTERNAL MARKET .

2 . PARAGRAPH 1 SHALL NOT APPLY TO :

( A ) ADVANTAGES GRANTED BY THE CONTRACTING PARTIES TO NEIGHBOURING COUNTRIES TO FACILITATE FRONTIER-ZONE TRAFFIC ;

( B ) ADVANTAGES GRANTED BY THE CONTRACTING PARTIES WITH THE OBJECT OF ESTABLISHING A CUSTOMS UNION OR A FREE TRADE AREA ;

( C ) OTHER ADVANTAGES WHICH THE CONTRACTING PARTIES GRANT TO PARTICULAR COUNTRIES IN CONFORMITY WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE .

ARTICLE 2

THE COMMUNITY , IN APPLICATION OF ITS COMMON LIBERALIZATION ARRANGEMENTS , AND BRAZIL SHALL GRANT EACH OTHER THE HIGHEST DEGREE OF LIBERALIZATION OF IMPORTS AND EXPORTS WHICH THEY GENERALLY APPLY TO THIRD COUNTRIES .

ARTICLE 3

1 . THE COMMUNITY AND BRAZIL SHALL ESTABLISH MUTUAL COOPERATION IN AGRICULTURAL MATTERS .

TO THIS END :

( A ) THEY SHALL REGULARLY INFORM EACH OTHER OF DEVELOPMENTS IN THEIR MARKETS AND IN THEIR RECIPROCAL TRADE ;

( B ) THEY SHALL GIVE SYMPATHETIC CONSIDERATION TO THE AVAILABILITY OF EXPORTS BY WHICH SHORTAGES MAY BE ALLEVIATED ;

( C ) THEY SHALL COOPERATE IN THE STUDY OF PROBLEMS WHICH MIGHT ARISE FROM THE APPLICATION OF HEALTH PROTECTION OR PLANT PROTECTION MEASURES ;

( D ) THEY SHALL COOPERATE AT INTERNATIONAL LEVEL IN THE SOLUTION OF PROBLEMS OF COMMON INTEREST .

THE MEASURES REFERRED TO IN ( A ) , ( B ) AND ( C ) SHALL BE IMPLEMENTED BY THE JOINT COMMITTEE PROVIDED FOR IN ARTICLE 7 .

2 . TAKING INTO ACCOUNT THE INFORMATION REFERRED TO IN PARAGRAPH 1 ( A ) , THE COMMUNITY AND BRAZIL SHALL ENDEAVOUR TO TAKE STEPS TO AVOID SITUATIONS CALLING FOR PROTECTIVE MEASURES IN THEIR RECIPROCAL TRADE IN AGRICULTURAL PRODUCTS .

IF SUCH A SITUATION SHOULD ARISE OR THREATEN TO ARISE FOR AN AGRICULTURAL PRODUCT IN WHICH EITHER PARTY HAS A SUBSTANTIAL INTEREST , THE PARTIES SHALL , IN CONFORMITY WITH THEIR INTERNATIONAL OBLIGATIONS , ENTER INTO CONSULTATIONS WHICH SHOULD , SO FAR AS POSSIBLE , PRECEDE THE APPLICATION OF PROTECTIVE MEASURES . SUCH MEASURES MUST BE CONSISTENT WITH THE INTERNATIONAL OBLIGATIONS OF THE PARTIES .

ARTICLE 4

WITHIN THE FRAMEWORK OF COOPERATION IN AGRICULTURAL MATTERS BETWEEN THE CONTRACTING PARTIES :

1 . THE PROVISIONS OF ANNEX I SHALL APPLY TO IMPORTS INTO THE COMMUNITY OF CERTAIN BEEF AND VEAL PRODUCTS .

2 . BRAZILIAN EXPORTS OF BEEF AND VEAL TO THE COMMUNITY SHALL COMPLY WITH THE PROCEDURES SET OUT IN ANNEX I .

ARTICLE 5

THE COMMUNITY AND BRAZIL AGREE TO COOPERATE IN THE MARKETING OF BRAZILIAN COCOA BUTTER AND SOLUBLE COFFEE .

TO THIS END :

- UNDER THE COMMUNITY SCHEME OF GENERALISED PREFERENCES IN FAVOUR OF DEVELOPING COUNTRIES , THE PROVISIONS SET OUT IN ANNEX II SHALL APPLY TO IMPORTS INTO THE COMMUNITY OF THESE TWO PRODUCTS ;

- BRAZILIAN EXPORTS TO THE COMMUNITY OF THESE TWO PRODUCTS SHALL BE SUBJECT TO THE PROVISIONS SET OUT IN ANNEX II , WHOSE PURPOSE INTER ALIA IS TO PREVENT ANY DISTURBANCE TO THE COMMUNITY MARKET OR TO THE COMMUNITY'S TRADITIONAL PATTERNS OF TRADE .

ARTICLE 6

THE CONTRACTING PARTIES AGREE TO EXAMINE WITHIN THE JOINT COMMITTEE PROVIDED FOR IN ARTICLE 7 MEASURES WHICH WOULD MAKE FOR AN EXPANSION OF TRADE BETWEEN THEM . IN PARTICULAR THEY WILL CONSIDER WAYS AND MEANS OF ELIMINATING TARIFF AND NON-TARIFF TRADE BARRIERS .

ARTICLE 7

A JOINT COMMITTEE SHALL BE ESTABLISHED CONSISTING OF REPRESENTATIVES OF THE COMMUNITY AND OF BRAZIL . THE JOINT COMMITTEE SHALL MEET ONCE A YEAR AT AN AGREED DATE AND PLACE . EXTRAORDINARY MEETINGS MAY BE CONVENED BY AGREEMENT .

THE JOINT COMMITTEE SHALL ENSURE THE PROPER FUNCTIONING OF THIS AGREEMENT AND SHALL EXAMINE ALL MATTERS WHICH MAY ARISE IN THE COURSE OF ITS IMPLEMENTATION .

THE JOINT COMMITTEE SHALL ALSO ENDEAVOUR TO FIND WAYS AND MEANS OF FURTHERING ECONOMIC AND COMMERCIAL COOPERATION BETWEEN THE COMMUNITY AND BRAZIL , TO THE EXTENT THAT THIS PROMOTES TRADE RELATIONS AND BENEFITS BOTH PARTIES .

IT MAY PUT FORWARD ANY SUGGESTIONS SERVING THE OBJECTIVES OF THIS AGREEMENT .

THE JOINT COMMITTEE MAY SET UP SPECIALIZED SUBCOMMITTEES TO ASSIST IT IN THE PERFORMANCE OF ITS TASKS .

ARTICLE 8

THE PROVISIONS OF THIS AGREEMENT SHALL BE SUBSTITUTED FOR THOSE PROVISIONS OF AGREEMENTS CONCLUDED BETWEEN MEMBER STATES OF THE COMMUNITY AND BRAZIL WHICH ARE INCOMPATIBLE OR IDENTICAL WITH THEM .

ARTICLE 9

THE AGREEMENT SHALL APPLY TO THE TERRITORIES WHERE THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY APPLIES IN ACCORDANCE WITH THE TERMS OF THAT TREATY , AND TO THE TERRITORY OF THE FEDERAL REPUBLIC OF BRAZIL .

ARTICLE 10

THE ANNEXES SHALL FORM AN INTEGRAL PART OF THE AGREEMENT .

ARTICLE 11

1 . THIS AGREEMENT SHALL ENTER INTO FORCE ON THE FIRST DAY OF THE MONTH FOLLOWING THE DATE ON WHICH THE PARTIES HAVE NOTIFIED EACH OTHER OF THE COMPLETION OF THE PROCEDURES NECESSARY FOR THIS PURPOSE . IT IS CONCLUDED FOR THREE YEARS .

2 . IT SHALL BE EXTENDED FROM YEAR TO YEAR IF NEITHER PARTY DENOUNCES IT AT THE LATEST THREE MONTHS BEFORE ITS EXPIRY DATE .

ARTICLE 12

THIS AGREEMENT IS DRAWN UP IN TWO COPIES IN THE DANISH , DUTCH , ENGLISH , FRENCH , GERMAN , ITALIAN AND PORTUGUESE LANGUAGES , EACH OF THESE TEXTS BEING AUTHENTIC .

TIL BEKRAEFTELSE HERAF HAR UNDERTEGNEDE BEFULDMAEGTIGEDE UNDERSKREVET DENNE HANDELSAFTALE .

ZU URKUND DESSEN HABEN DIE UNTERZEICHNETEN BEVOLLMAECHTIGTEN IHRE UNTERSCHRIFTEN UNTER DIESES HANDELSABKOMMEN GESETZT .

IN WITNESS WHEREOF , THE UNDERSIGNED PLENIPOTENTIARIES HAVE AFFIXED THEIR SIGNATURES BELOW THIS TRADE AGREEMENT .

EN FOI DE QUOI , LES PLENIPOTENTIAIRES SOUSSIGNES ONT APPOSE LEURS SIGNATURES AU BAS DU PRESENT ACCORD COMMERCIAL .

IN FEDE DI CHE , I PLENIPOTENZIARI SOTTOSCRITTI HANNO APPOSTO LE LORO FIRME IN CALCE AL PRESENTE ACCORDO COMMERCIALE .

TEN BLIJKE WAARVAN DE ONDERGETEKENDE GEVOLMACHTIGDEN HUN HANDTEKENING ONDER DIT HANDELSAKKOORD HEBBEN GESTELD .

EM FE DO QUE , OS PLENIPOTENCIARIOS ABAIXO-ASSINADOS FIRMARAM O PRESENTE ACORDO COMERCIAL .

UDFAERDIGET I BRUXELLES , DEN NITTENDE DECEMBER NITTEN HUNDREDE TREOGHALVFJERDS

GESCHEHEN ZU BRUESSEL AM NEUNZEHNTEN DEZEMBER NEUNZEHNHUNDERTDREIUNDSIEBZIG

DONE AT BRUSSELS ON THIS NINETEENTH DAY OF DECEMBER IN THE YEAR ONE THOUSAND NINE HUNDRED AND SEVENTY-THREE

FAIT A BRUXELLES , LE DIX-NEUF DECEMBRE MIL NEUF CENT SOIXANTE-TREIZE

FATTO A BRUXELLES , ADDI' DICIANNOVE DICEMBRE MILLENOVECENTOSETTANTATRE

GEDAAN TE BRUSSEL , DE NEGENTIENDE DECEMBER NEGENTIENHONDERDDRIEENZEVENTIG

FEITO EM BRUXELAS , EM DEZENOVE DE DEZEMBRO DE MIL NOVECENTOS E SETENTA E TRES .

FOR RAADET FOR DE EUROPAEISKE FAELLESSKABER

IM NAMEN DES RATES DER EUROPAEISCHEN GEMEINSCHAFTEN

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

POUR LE CONSEIL DES COMMUNAUTES EUROPEENNES

PER IL CONSIGLIO DELLE COMUNITA EUROPEE

VOOR DE RAAD DER EUROPESE GEMEENSCHAPPEN

PELO CONSELHO DAS COMUNIDADES EUROPEIAS

FOR REGERINGEN FOR FORBUNDSREPUBLIKKEN BRASILIEN

FUER DIE REGIERUNG DER FOEDERATIVEN REPUBLIK BRASILIEN

FOR THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL

POUR LE GOUVERNEMENT DE LA REPUBLIQUE FEDERATIVE DU BRESIL

PER IL GOVERNO DELLA REPUBBLICA FEDERALE DEL BRASILE

VOOR DE REGERING VAN DE FEDERATIEVE REPUBLIEK BRAZILIE

PELO GOVERNO DA REPUBLICA FEDERATIVA DO BRASIL

ANNEX I

APPLICATION OF ARTICLE 4 OF THE AGREEMENT

A . APPLICATION OF ARTICLE 4 ( 1 )

ARTICLE 1

1 . WHEN IMPLEMENTING ITS MARKET ORGANIZATION FOR BEEF AND VEAL THE COMMUNITY SHALL ENDEAVOUR TO FIX THE SUSPENSION OF THE LEVY ON IMPORTS OF THE PRODUCTS DEFINED BELOW AT THE HIGHEST POSSIBLE LEVEL .

THIS SUSPENSION SHALL BE SO FIXED THAT THE LEVY ON THOSE PRODUCTS DOES NOT EXCEED 55 % OF THE TOTAL LEVY .

CCT HEADING NO*DESCRIPTION*

02.01*MEAT AND EDIBLE OFFALS OF THE ANIMALS FALLING WITHIN HEADING NO 01.01 , 01.02 , 01.03 , OR 01.04 , FRESH , CHILLED OR FROZEN : *

*A . MEAT : *

*II . OF BOVINE ANIMALS : *

* ( A ) OF DOMESTIC BOVINE ANIMALS : *

*2 . FROZEN : *

* ( BB ) FOREQUARTERS*

* ( DD ) OTHER : *

*22 . BONED OR BONELESS : *

* ( AAA ) FOREQUARTERS , *

*WHOLE OR CUT INTO A MAXIMUM OF FIVE PIECES , EACH QUARTER BEING A SINGLE BLOCK ; COMPENSATED QUARTERS IN TWO BLOCKS , ONE OF WHICH CONTAINS THE FOREQUARTER , WHOLE OR CUT INTO A MAXIMUM OF FIVE PIECES , AND THE OTHER , THE HINDQUARTERS , EXCLUDING THE TENDERLOIN , IN ONE PIECE*

* ( BBB ) CROP , CHUCK AND BLADE AND BRISKET CUTS ( 1 )*

* ( CCC ) OTHER ( 1 )*

( 1 ) MEAT FALLING UNDER THIS SUBHEADING MAY QUALIFY FOR THE SUSPENSION OF THE LEVY ONLY IF IT IS SUBJECT TO CUSTOMS OR ADMINISTRATIVE CONTROL TO ENSURE THAT IT IS PROCESSED .

2 . THE COOPERATION IN AGRICULTURAL MATTERS BETWEEN THE CONTRACTING PARTIES SHALL INCLUDE THE EXCHANGE OF INFORMATION ON THEIR TRADE IN , AND MARKETS FOR , THE PRODUCTS LISTED IN PARAGRAPH 1 .

3 . IF DISTURBANCES OCCUR OR THREATEN TO OCCUR ON THE COMMUNITY MARKET AS A RESULT OF MEASURES TAKEN UNDER PARAGRAPH 1 , THE COMMUNITY MAY , AFTER CONSULTATION WITH BRAZIL , SUSPEND THE APPLICATION OF THAT PARAGRAPH UNTIL THE SITUATION IS RESTORED . SUCH CONSULTATION MUST BE CONCLUDED WITHIN 15 DAYS FROM THE DATE OF THE REQUEST FOR CONSULTATION .

ARTICLE 2

THE CONTRACTING PARTIES SHALL EACH YEAR EXCHANGE INFORMATION IN THE JOINT COMMITTEE TO ENABLE THE YEARLY ESTIMATE OF THE MEAT INTENDED FOR THE PROCESSING INDUSTRY TO BE DRAWN UP BY THE COMMUNITY , AS PROVIDED FOR IN ITS MARKET ORGANIZATION FOR BEEF AND VEAL .

ARTICLE 3

FOR THE PURPOSE OF CHARGING AGAINST THE ANNUAL TARIFF QUOTA AT THE 20 % RATE OF DUTY WHICH THE COMMUNITY HAS BOUND , IN RESPECT OF THE OTHER CONTRACTING PARTIES , TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE , QUANTITIES OF THE PRODUCTS LISTED BELOW SHALL BE CALCULATED IN TERMS OF BONELESS MEAT .

CCT HEADING NO*DESCRIPTION*

02.01*MEAT AND EDIBLE OFFALS OF THE ANIMALS FALLING WITHIN HEADING NO 01.01 , 01.02 , 01.03 OR 01.04 , FRESH , CHILLED OR FROZEN : *

*A . MEAT : *

*II . OF BOVINE ANIMALS : *

* ( A ) OF DOMESTIC BOVINE ANIMALS : *

*2 . FROZEN*

ARTICLE 4

1 . IN ORDER TO PLACE BRAZIL IN A POSITION NO LESS FAVOURABLE THAN THAT OF EUROPEAN SUPPLYING COUNTRIES IN RESPECT OF THE LEVY , THE COMMUNITY SHALL , BEARING IN MIND THE LENGTH OF THE SEA PASSAGE , TAKE MEASURES UNDER ITS MARKET ORGANIZATION FOR BEEF AND VEAL TO ENSURE THAT THE LEVY ON THE PRODUCTS LISTED BELOW MAY , ON REQUEST , BE FIXED IN ADVANCE .

CCT HEADING NO*DESCRIPTION*

02.01*MEAT AND EDIBLE OFFALS OF THE ANIMALS FALLING WITHIN HEADING NO 01.01 , 01.02 , 01.03 OR 01.04 , FRESH , CHILLED OR FROZEN : *

*A . MEAT : *

*II . OF BOVINE ANIMALS : *

* ( A ) OF DOMESTIC BOVINE ANIMALS : *

*1 . FRESH OR CHILLED*

TO THAT END THE COMMUNITY SHALL INTRODUCE A CERTIFICATE OF ADVANCE FIXING OF VALIDITY LIMITED TO 30 DAYS AND WHICH FIXES THE LEVY ON THE BASIS OF THE AMOUNT APPLICABLE ON THE DAY ON WHICH THE CERTIFICATE IS APPLIED FOR . THE ISSUE OF A CERTIFICATE SHALL BE CONDITIONAL ON THE LODGING , AT THE TIME OF APPLICATION , OF A DEPOSIT EQUAL TO EIGHT UNITS OF ACCOUNT PER 100 KILOGRAMMES NET .

2 . IF DISTURBANCES OCCUR OR THREATEN TO OCCUR ON THE COMMUNITY MARKET AS A RESULT OF MEASURES TAKEN UNDER PARAGRAPH 1 , THE COMMUNITY MAY , AFTER CONSULTATION WITH BRAZIL , SUPEND THE APPLICATION OF THAT PARAGRAPH UNTIL THE SITUATION IS RESTORED . SUCH CONSULTATIONS MUST BE CONCLUDED WITHIN 10 DAYS FROM THE DATE OF THE REQUEST FOR CONSULTATION .

B . APPLICATION OF ARTICLE 4 ( 2 )

ARTICLE 5

IN ORDER TO CONTRIBUTE TO THE STABILIZATION OF THE INTERNAL COMMUNITY MARKET IN BEEF AND VEAL , BRAZIL SHALL MAINTAIN AN APPROPRIATE RATE OF DELIVERY AND SHALL TAKE ALL MEASURES ENSURING AN ORDERLY DEVELOPMENT OF ITS EXPORTS TO THE COMMUNITY .

IN ACCORDANCE WITH PROCEDURES LAID DOWN BY ADMINISTRATIVE COOPERATION BETWEEN THEIR COMPETENT AUTHORITIES , BRAZIL SHALL PROVIDE THE COMMUNITY WITH ALL RELEVANT INFORMATION ON EXPORTS OF BEEF AND VEAL AND ON RULING PRICES .

ANNEX II

APPLICATION OF ARTICLE 5 OF THE AGREEMENT

1 . AS SOON AS THE AGREEMENT HAS BEEN SIGNED AND AT THE EARLIEST ON 1 JANUARY 1974 , THE COMMUNITY SHALL , IN PURSUANCE OF ITS OFFER OF GENERALIZED PREFERENCES AS NOTIFIED TO UNCTAD AND IN ACCORDANCE WITH ARRANGEMENTS BASED ON THE CONCLUSIONS REACHED WITHIN THAT BODY , SUSPEND THE COMMON CUSTOMS TARIFF DUTIES ON THE FOLLOWING PRODUCTS , ORIGINATING IN DEVELOPING COUNTRIES , AND SUBSTITUTE THE RATE SHOWN AGAINST EACH ONE .

CCT HEADING NO*DESCRIPTION*RATE OF DUTY*

EX 18.04*COCOA BUTTER ( FAT OR OIL ) : **

* - COCOA BUTTER*8 % *

21.02*EXTRACTS , ESSENCES OR CONCENTRATES OF COFFEE , TEA OR MATE ; PREPARATIONS WITH A BASIS OF THESE EXTRACTS , ESSENCES OR CONCENTRATES : **

*EX A . EXTRACTS , ESSENCES OR CONCENTRATES OF COFFEE ; PREPARATIONS WITH A BASIS OF THESE EXTRACTS , ESSENCES OR CONCENTRATES : **

* - SOLUBLE COFFEE*9 % *

2 . PREFERENTIAL IMPORTS UNDER POINT 1 SHALL BE LIMITED TO COMMUNITY TARIFF QUOTAS AMOUNTING , FOR 1974 , TO 21 600 METRIC TONS FOR COCOA BUTTER FALLING WITHIN HEADING NO EX 18.04 AND 18 750 METRIC TONS FOR SOLUBLE COFFEE FALLING WITHIN TARIFF SUBHEADING NO 21.02 EX A .

AFTER THE FIRST YEAR OF APPLICATION OF THE AGREEMENT , THE ABOVE QUOTAS SHALL BE INCREASED ANNUALLY , UNDER THE COMMUNITY SYSTEM OF GENERALIZED PREFERENCES , ON THE BASIS OF THE COMMUNITY'S NEEDS AND IMPORTS ; THEY MAY BE AMENDED FOR ANY CHANGES MADE IN THE LIST OF COUNTRIES TO WHICH THAT SYSTEM APPLIES .

3 . IF THE COMMUNITY FINDS THAT PRODUCTS TO WHICH THE ARRANGEMENTS DESCRIBED IN POINT 1 APPLY ARE IMPORTED INTO THE COMMUNITY IN SUCH QUANTITIES OR AT SUCH PRICES THAT THESE IMPORTS ARE OR ARE LIKELY TO BE PARTICULARLY HARMFUL TO THE INTERESTS OF COMMUNITY PRODUCERS OF LIKE PRODUCTS OR OF PRODUCTS IN DIRECT COMPETITION , OR IF THEY HAVE ADVERSE EFFECTS ON THE SITUATION IN THE ASSOCIATED COUNTRIES , THE COMMON CUSTOMS TARIFF DUTIES MAY BE REIMPOSED IN PART OR IN WHOLE FOR THE PRODUCTS IN QUESTION IN RESPECT OF THE COUNTRY OR COUNTRIES , OR TERRITORY OR TERRITORIES , WHERE SUCH HARMFUL EFFECT ORIGINATES . SUCH MEASURES MAY ALSO BE TAKEN IN THE EVENT OF SERIOUS HARM , OR ITS LIKELIHOOD , TO A SINGLE REGION OF THE COMMUNITY .

4 . BRAZIL SHALL TAKE ALL APPROPRIATE STEPS TO ENSURE THAT ITS POLICY REGARDING PRICES AND OTHER CONDITIONS FOR THE MARKETING OF COCOA BUTTER AND SOLUBLE COFFEE DISTURBS NEITHER THE INTERNAL MARKET OF THE COMMUNITY NOR ITS TRADITIONAL PATTERNS OF TRADE .

5 . IN THE CONTEXT OF THE TRADE COOPERATION PROVIDED FOR IN ARTICLE 5 OF THE AGREEMENT , BRAZIL IS PREPARED , WITHIN THE JOINT COMMITTEE ESTABLISHED BY THE AGREEMENT , TO UNDERTAKE A PERIODIC REVIEW OF THE EFFECT ON THE COMMUNITY MARKET OF ITS EXPORT PRICE POLICY FOR COCOA BUTTER AND SOLUBLE COFFEE .

6 . SHOULD ANY DIFFICULTIES ARISE IN THE IMPLEMENTATION OF THE PROVISIONS OF THIS ANNEX , THE TWO PARTIES WILL DISCUSS THEM IN THE JOINT COMMITTEE WITH A VIEW TO FINDING MUTUALLY SATISFACTORY SOLUTIONS .

ANNEX III

JOINT DECLARATION NO 1 ON ARTICLE 2 OF THE AGREEMENT

THE CONTRACTING PARTIES ARE PREPARED TO EXAMINE , IN THE JOINT COMMITTEE , THE PROBLEM OF THE PROGRESSIVE ELIMINATION OF QUANTITATIVE OR OTHER RESTRICTIONS WHICH MAY HINDER THE IMPORTS OF EITHER PARTY .

JOINT DECLARATION NO 2 ON ARTICLE 7 OF THE AGREEMENT

THE COMMUNITY AND BRAZIL AGREE TO EXAMINE IN THE JOINT COMMITTEE , WITH A VIEW TO MAKING PROPOSALS , MEASURES OF COOPERATION WHICH WOULD PROMOTE TRADE RELATIONS AND BENEFIT BOTH PARTIES , INCLUDING IN PARTICULAR MEASURES RELATING TO :

( A ) THE PROMOTION OF RECIPROCAL EXPORTS , AND

( B ) STEPS WHICH MIGHT BE TAKEN IN THE LIGHT OF THE DESIRABILITY OF IMPROVED COORDINATION AND HAVING REGARD TO THE OBJECTIVES OF BRAZIL'S DEVELOPMENT PLAN .

DECLARATION NO 1 BY THE COMMUNITY ON ARTICLE 3 OF ANNEX I TO THE AGREEMENT

IN RESPONSE TO A REQUEST BY BRAZIL , THE COMMUNITY IS PREPARED TO EXAMINE EACH YEAR , AFTER EXCHANGING INFORMATION WITH BRAZIL IN THE JOINT COMMITTEE , WHETHER ADDITIONAL IMPORTS OPENINGS SHOULD BE PROVIDED , BY AN APPROPRIATE METHOD , UNDER THE TARIFF QUOTA REFERRED TO IN ARTICLE 3 OF ANNEX I TO THE AGREEMENT .

THE COMMUNITY IS PREPARED TO CARRY OUT THIS ANNUAL EXAMINATION BY A DATE SUCH THAT THE ADDITIONAL IMPORT OPPORTUNITIES WHICH IT ALLOWS MAY BE AVAILABLE FROM THE BEGINNING OF THE FOLLOWING YEAR . FOR THE YEAR 1974 , THE EXAMINATION MAY BE MADE AS SOON AS POSSIBLE AFTER THE ENTRY INTO FORCE OF THE AGREEMENT .

DECLARATION NO 2 BY THE COMMUNITY ON TARIFF ADJUSTMENTS

THE COMMUNITY CONFIRMS THAT THE SYSTEM OF GENERALIZED PREFERENCES WHICH IT INTRODUCED UNILATERALLY FROM 1 JULY 1971 , PURSUANT TO RESOLUTION 21 ( II ) OF THE SECOND UNCTAD OF 1968 , COVERS A NUMBER OF PRODUCTS WHICH HAVE BEEN INCLUDED FOLLOWING THE REQUEST FOR TARIFF CONCESSIONS PUT FORWARD BY BRAZIL DURING THE NEGOTIATIONS WHICH LED TO THE AGREEMENT SIGNED TODAY .

THE COMMUNITY IS PREPARED , DURING PERIODICAL REVIEWS OF THE SYSTEM OF GENERALIZED PREFERENCES , TO CONTINUE TO TAKE INTO ACCOUNT THE INTERESTS OF BRAZIL .

THE COMMUNITY IS ALSO READY TO EXAMINE , IN THE JOINT COMMITTEE , THE QUESTION OF FURTHER TARIFF ADJUSTMENTS IN FAVOUR OF BRAZILIAN PRODUCTS .

THE COMMUNITY UNDERSTANDS THAT BRAZIL IS IN A LIKE SPIRIT READY TO EXAMINE , IN THE JOINT COMMITTEE , THE POSSIBILITY OF TARIFF ADJUSTMENTS IN FAVOUR OF COMMUNITY PRODUCTS .

DECLARATION NO 3 BY THE COMMUNITY ON COTTON TEXTILES

IN RESPONSE TO BRAZIL'S REQUEST TO BE INCLUDED AMONG THE COUNTRIES TO WHICH THE COMMUNITY'S SYSTEM OF GENERALIZED PREFERENCES IN COTTON TEXTILES APPLIES , THE COMMUNITY DECLARES THAT IT IS WILLING , AS SOON AS THE CURRENT NEGOTIATION FOR CONCLUSION OF A MULTIFIBRE AGREEMENT IS SUFFICIENTLY ADVANCED , TO RESUME DISCUSSION OF THIS PROBLEM WITH BRAZIL .

DECLARATION NO 1 BY BRAZIL ON TARIFF ADJUSTMENTS

HAVING TAKEN NOTE OF DECLARATION NO 2 BY THE COMMUNITY , BRAZIL DECLARES THAT IT IS IN A LIKE SPIRIT READY TO EXAMINE IN THE JOINT COMMITTEE , THE POSSIBILITY OF TARIFF ADJUSTMENTS IN FAVOUR OF COMMUNITY PRODUCTS .

DECLARATION NO 2 BY BRAZIL ON VALUES FOR CUSTOMS PURPOSES

HAVING NOTED THE INTEREST EXPRESSED BY THE COMMUNITY AS REGARDS THE FIXING OF VALUES FOR CUSTOMS PURPOSES , AND IN ORDER TO MEET THE COMMUNITY'S REQUEST , BRAZIL WILL , WITH REFERENCE TO ARTICLE 6 OF THE TRADE AGREEMENT SIGNED THIS DAY :

1 . COMMUNICATE TO THE COMMUNITY , AT THE LATEST 45 DAYS AFTER THE ENTRY INTO FORCE OF THE SAID AGREEMENT , THE LIST OF PRODUCTS TO WHICH MINIMUM PRICES OR REFERENCE PRICES APPLY IN BRAZIL ;

2 . GIVE SYMPATHETIC CONSIDERATION , IN THE JOINT COMMITTEE , TO CASES OF PRODUCTS INCLUDED IN THE LISTS REFERRED TO IN POINT 1 , EXPORTS OF WHICH WOULD , IN THE COMMUNITY'S OPINION , BE AFFECTED BY THE APPLICATION OF ONE OR OTHER OF THESE MEASURES ;

3 . BE PREPARED TO EXAMINE IN THE JOINT COMMITTEE , AT THE REQUEST OF THE COMMUNITY :

- THE INCLUSION IN THE LISTS REFERRED TO IN POINT 1 OF ADDITIONAL PRODUCTS OF PARTICULAR INTEREST TO COMMUNITY OPERATORS ;

- CASES WHERE THE APPLICATION OF THE MINIMUM PRICES OR THE REFERENCE PRICES TO COMMUNITY PRODUCTS WOULD , IN THE COMMUNITY'S OPINION , ADVERSELY AFFECT A PARTICULAR SECTOR OF COMMUNITY EXPORTS IN PARTICULAR WHERE THE COMMUNITY CONSIDERS THE EXPORT PRICES TO BE AT A NORMAL LEVEL .

DECLARATION NO 3 BY BRAZIL ON ARTICLE 5 OF ANNEX I TO THE AGREEMENT

BRAZIL UNDERTAKES TO SUPPLY THE COMPETENT AUTHORITIES OF THE COMMUNITY WITH ALL RELEVANT INFORMATION ON ITS EXPORTS OF BEEF AND VEAL , AND IN PARTICULAR ON SHIPMENTS MADE , SUCH AS DATES OF SHIPMENTS AND NAMES OF SHIPS , AND ON THE PRICES OBTAINING , SUCH AS PRICES ON THE REPRESENTATIVE MARKET OR MARKETS , PRICES OF THE REFRIGERATING FIRMS , EXPORT PRICES AND EXPORT CHARGES . THE REPRESENTATIVE MARKET OR MARKETS OF BRAZIL WILL BE DETERMINED BY COMMON ACCORD BETWEEN THE COMPETENT BRAZILIAN AUTHORITIES AND THE COMPETENT AUTHORITIES OF THE COMMUNITY .

DECLARATION NO 4 BY BRAZIL ON CALVES INTENDED FOR BREEDING

HAVING NOTED THE COMMUNITY'S INTEREST IN THE IMPORTATION OF BREEDING CALVES FROM BRAZIL , BRAZIL DECLARES THAT IT IS PREPARED TO CONSIDER SYMPATHETICALLY THE POSSIBILITIES OF ACCEDING TO THE COMMUNITY'S REQUEST , IN THE LIGHT OF TRENDS IN THIS SECTOR OF THE BRAZILIAN ECONOMY AND OF ITS INTERNAL SYPPLY REQUIREMENTS .

DECLARATION NO 5 BY BRAZIL ON INVESTMENTS

1 . BRAZIL HAS EMPHASIZED , WITH REGARD TO THE DEVELOPMENT OF THE BRAZILIAN ECONOMY , THAT FOREIGN PARTICIPATION , IN THE FORM OF FINANCIAL COOPERATION MEASURES OR PRIVATE INVESTMENT , OFFERS INCREASING SCOPE FOR TRANSFERS OF TECHNOLOGICAL EXPERTISE WHICH IN TURN INFLUENCE AND STIMULATE TRADE ; THIS APPLIES PARTICULARLY TO THE IMPORTATION OF MODERN CAPITAL GOODS .

2 . UNDER CONDITIONS OF FREE ENTERPRISE , OF BALANCE BETWEEN THE PUBLIC AND PRIVATE SECTORS , BETWEEN FOREIGN AND NATIONAL UNDERTAKINGS , FOREIGN CAPITAL PLAYS AND WILL CONTINUE TO PLAY AN IMPORTANT ROLE IN THE DEVELOPMENT OF BRAZIL , A COUNTRY IN WHICH ALL THE ESSENTIAL CONDITIONS FOR ATTRACTING PRODUCTIVE INVESTMENT ARE TODAY COMBINED .

3 . BRAZILIAN LAW OFFERS FOREIGN PROPERTY AND CAPITAL THE SAME GUARANTEES INCLUDING GUARANTEES AS REGARDS EXPROPRIATION , AS THOSE ENJOYED BY PRIVATE PROPERTY AND CAPITAL OF BRAZILIAN ORIGIN .

4 . IN THE CONTEXT OF MUTUALLY ADVANTAGEOUS COOPERATION BRAZIL WOULD THEREFORE WELCOME AN INCREASE IN INVESTMENTS BY COMMUNITY FINANCIAL INTERESTS SUCH AS WOULD CONTRIBUTE TO THE DEVELOPMENT OF THE BRAZILIAN ECONOMY .