*****

Temporary arrangement for a concerted discipline between the European Economic Community and the Republic of Finland concerning reciprocal trade in cheese

I

The European Economic Community and the Republic of Finland have held consultations concerning their reciprocal trade in cheese.

During these consultations, both parties noted, each for its part, that the development of reciprocal imports and exports of cheese was not satisfactory, and that certain import arrangements, agreed between them, no longer corresponded to the current situation on the market in cheese.

They concluded, by common accord, that the trade arrangements for cheese should be adapted to the requirements of their respective markets, account also being taken of the accession of the Hellenic Republic to the Communities.

They considered that, under the present circumstances, it would be preferable to seek a practical solution for a limited period rather than to adapt these arrangements on a definitive basis.

II

The European Economic Community and the Republic of Finland have agreed to conclude a temporary arrangement, the provisions of which are as follows:

1. The European Economic Community and the Republic of Finland shall temporarily suspend, for an initial period of three years from 1 January 1982 to 31 December 1984, the following provisions of the arrangements for the importation of cheeses into the Community:

- the value limits included in the binding under GATT (Schedule LXXII - EEC) of the following tariff lines of the Common Customs Tariff:

- 04.04 A I a) ex 1,

- 04.04 A I b) 1 ex aa);

- the value limits included in the Community's autonomous concession for Tilsit and Butterkaese falling within subheading 04.04 E I b) 2 of the Common Customs Tariff;

- the value limits included in the Community's autonomous concession for processed cheese falling within subheading 04.04 D I of the Common Customs Tariff.

2. The European Economic Community and the Republic of Finland will establish for the same period as the suspensions mentioned in paragraph 1 the following trade arrangements:

for the period from 1 January 1982 to 31 December 1984, for the cheeses listed below, the quantities traded each year and the duties to be levied on importation may not exceed the following levels:

(a) on importation into the European Economic Community:

Cheese falling within heading No 04.04 of the Common Customs Tariff originating in and coming from Finland, accompanied by an approved certificate:

1.2.3 // // Quantities // Import duty // - Finlandia, of a minimum fat content of 45 % by weight, in the dry matter, matured for at least 100 days, in rectangular blocks, of a net weight of not less than 30 kg, falling within subheading 04.04 E I b) 5 of the Common Customs Tariff - Emmentaler, Gruyère, Sbrinz and Bergkaese, not grated or powdered, of a minimum fat content of 45 % by weight in the dry matter, matured for at least three months. falling within subheading 04.04 A I and II of the Common Customs Tariff - whole cheeses // 5 850 tonnes, including a maximum of 2 900 tonnes for Finlandia // 18;13 ECU/100 kg // - pieces packed in vacuum or in inert gas with rind on at least one side, of a net weight of not less than 1 kg but less than 5 kg // 1 350 tonnes // 18;13 ECU/100 kg // - Processed cheese, not grated or powdered, in the blending of which only Emmentaler, Gruyèrre and Appenzell have been used and which may contain, as an addition, Glarus herb cheese (known as Schabziger), put up for retail sale, of a fat content, by weight, in the dry matter, not exceeding 56 %, falling within subheading 04.04 D I and D II a) 1 of the Common Customs Tariff // 500 tonnes // 36;27 ECU/100 kg // - Other // 0 tonne // -

(b) on importation into Finland:

Cheese falling within heading No 04.04 of the Finnish Customs Tariff, originating in and coming from the European Economic Community, and accompanied by an approved certificate of quality and origin:

1.2.3 // // Quantity // Import duty // 04.04.150 fresh cheese, curd 200 processed cheese 300 whey cheese 400 mould-cured cheese 901 Emmentaler-type cheeses 902 Edam-type cheeses 909 other cheeses // overall quantity of 400 tonnes for 1982 500 tonnes for 1983 600 tonnes for 1984 with no restrictions as to type or quality // 2 / 3 of the levy 1 / 3 of the levy 2 / 3 of the levy 2 / 3 of the levy full levy full levy 1 / 3 of the levy

3. The Republic of Finland undertakes to take the necessary measures to ensure that:

- the quantities agreed for export from Finland to the European Economic Community (see 2 (a)) will not be exceeded;

- import licences will be granted regularly and in such a way that the quantities agreed to be imported from the Commuity to Finland (see 2 (b)) can be reached.

The European Economic Community and the Republic of Finland will take steps to ensure that the benefits which they grant each other will not be jeopardized by other import measures.

4. The European Economic Community and the Republic of Finland undertake, each on its own behalf, to ensure that the prices charged by their exporters are not such as to create difficulties on the importing country's market.

They agree, in this connection, to set up the system for cooperation and the exchange of information described in the Annex to this Arrangement.

If difficulties arise concerning the prices charged, consultations will be held at the request of either party, as promptly as possible, with a view to the adoption of appropriate corrective measures;

5. The two parties may consult each other at any stage concerning the operation of this Arrangement and may, by common accord, alter it if necessary by reference in particular to the trend of market prices, production, marketing or consumption of home-produced and imported cheeses.

6. In order to ensure constant cooperation in the day-to-day running of export and import operations, the Finnish and the Community authorities shall each appoint a Delegate. These Delegates will exchange information on the development of trade as regards prices and quantities marketed.

7. During the first half of 1984, consultations will be held in order to decide whether this Arrangement should be extended, and if so, on what terms.

8. All the provisions contained in this Arrangement will enter into force on the same date.

III

This Arrangement is drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian and Finnish languages, each text being equally authentic.

Done at Brussels, . . . 1981.

1.2 // For the Government of the Republic of Finland // On behalf of the Council of the European Communities

ANNEX

With a view to preventing the prices charged by exporters from being such as to create difficulties on the importing country's market, the following information and cooperation system has been set up:

1. The Commission of the European Communities will at regular intervals provide the Republic of Finland with price quotations and any other useful information concerning the market in home-produced and imported cheeses;

2. The Republic of Finland will provide the Commission of the European Communities with the following information on each category of cheese covered by the Arrangement:

- two weeks before the beginning of each quarter, prospective Finnish exports to the Community for the next quarter (anticipated quantities, free-at-Finnish-frontier prices, probable markets);

- three weeks following the end of each quarter, actual Finnish exports to the Community during the past quarter (quantities and free-at-Finnish-frontier prices, importing Community member countries).

EXCHANGE OF LETTERS

on the result of negotiations between the European Economic Community and the Republic of Finland under Article XXIV (6) of the GATT following the accession of the Hellenic Republic to the European Communities

Letter No 1

Sir,

I have the honour to refer to the note which the Permanent Mission of the Republic of Finland in Geneva addressed to the Permanent Representative of the Commission of the European Communities in Geneva on 11 June 1981 concerning the request of the Republic of Finland for the initiation of negotiations with the Community under Article XXIV (6) of the GATT, following the accession of the Hellenic Republic to the European Communities.

I have noted the claim of the Republic of Finland that, for the following tariff headings, listed in Schedule XXV - Greece which has been withdrawn, it was Greece's main supplier outside the Community:

- 04.04 B 5 'Dutch cheeses',

- 04.04 B 9 Other prepared cheeses.

As a result of the negotiations held on this subject between our delegations during the consultations concerning cheese, concessions were included in the 'Temporary arrangement for a concerted discipline on reciprocal trade in cheese' as compensation for the rights which the Republic of Finland has under Article XXIV (6) of the GATT.

The Community gives an undertaking to enter into consultations with the Republic of Finland, when this temporary arrangement expires, in order to give it compensation equivalent to its rights under Article XXIV (6) of the GATT.

I should be obliged if you would confirm that your Government is in agreement with the above.

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

On behalf of the Council

of the European Communities

Letter No 2

Sir,

I have the honour to confirm the agreement of my Government to the content of your letter of . . . which reads as follows:

'I have the honour to refer to the note which the Permanent Mission of the Republic of Finland in Geneva addressed to the Permanent Representative of the Commission of the European Communities in Geneva on 11 June 1981 concerning the request of the Republic of Finland for the initiation of negotiations with the Community under Article XXIV (6) of the GATT, following the accession of the Hellenic Republic to the European Communities.

I have noted the claim of the Republic of Finland that, for the following tariff headings, listed in Schedule XXV - Greece which has been withdrawn, it was Greece's main supplier outside the Community:

- 04.04 B 5 "Dutch cheeses",

- 04.04 B 9 Other prepared cheeses.

As a result of the negotiations held on this subject between our delegations during the consultations concerning cheese, concessions were included in the "Temporary arrangement for a concerted discipline on reciprocal trade in cheese" as compensation for the rights which the Republic of Finland has under Article XXIV (6) of the GATT.

The Community gives an undertaking to enter into consultations with the Republic of Finland, when this temporary arrangement expires, in order to give it compensation equivalent to its rights under Article XXIV (6) of the GATT.

I should be obliged if you would confirm that your Government is in agreement with the above.'

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

For the Government

of the Republic of Finland