*****

AGREEMENT

in the form of an exchange of letters between the European Economic Community and the Federative Republic of Brazil concerning imports of manioc from Brazil and from other supplier countries which are members of the General Agreement on tariffs and trade (GATT)

1. On 11 March 1981, the European Economic Community notified the Director-General of GATT of its intention to negotiate a modification of its concession regarding imports of manioc and similar products under Common Customs Tariff subheading 07.06 A.

2. In this respect the European Economic Community and the Federative Republic of Brazil, in its quality as direct beneficiary of the existing binding laid down in schedule LXXII, have agreed to the following:

(a) a suspension of the existing binding laid down in schedule LXXII in respect of manioc and similar products under Common Customs Tariff subheading 07.06 A;

(b) the European Economic Community will establish annual tariff quotas for imports of manioc and similar products under Common Customs Tariff subheading 07.06 A from GATT suppliers as follows:

1982 588 235 tonnes

1983 882 355 tonnes

1984 882 355 tonnes

1985 970 590 tonnes

1986 970 590 tonnes

Of the abovementioned quantities, 85 % will be reserved for the principal GATT supplier. The remaining quantity will be available to all other present GATT members.

(c) for imports of manioc GATT suppliers within the quota limits at 2 (b) above, the import levy will be fixed at a maximum of 6 % ad valorem. Imports over and above these limits will be subject to the variable levy foreseen in the European Economic Community common organization of the cereals market;

(d) bearing in mind its international rights and obligations, the Community undertakes to ensure that the position of GATT suppliers on the European Economic Community manioc market during the period covered by the present arrangements is not undermined by imports from non-GATT members. In this context the European Economic Community intends to fix an autonomous quota for imports of manioc from non-GATT members who are not already the subject of alternative bilateral arrangements;

(e) the arrangements at 2 (a), (b), (c) and (d) above will remain in force until 31 December 1986 and shall continue to run for subsequent three-year periods unless denounced by either party at least one year before expiry of the initial period or of any subsequent three-year period. However, before notifying the denunciation of the Agreement, either party will enter into consultations with the other party in order to seek solutions or to agree upon amendments, which would make it possible to continue the Agreement. Furthermore, at the request of either party, consultations on trade in manioc may be held if deemed necessary.

In the case of accession of new members to the General Agreement on tariffs and trade, the tariff quotas for present GATT members resulting from the provisions of paragraph 2 (b) above will not be undermined.