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AGREEMENT

in the form of exchanges of letters between the European Economic Community and the Kingdom of Norway concerning reciprocal trade in cheese

A. Letter from the Community

Sir,

I have the honour to refer to the consultations held between the European Economic Community and Norway under paragraph 9 of the Arrangement on joint discipline in their trade in cheese, signed on 11 April 1983. In view of the common interest of the Community and Norway in promoting the harmonious development of trade in this sector and offering consumers, in addition to home-produced cheese, other types of imported cheese, I propose that with effect from 1 January 1986 this Arrangement be replaced by the following provision:

1. For the annual quantities of cheese listed below, the import duties may not exceed the following levels:

(a) on importation into the Community

Cheese falling within subheading 04.04 E I b) 2 of the Common Customs Tariff, originating in and coming from Norway, and accompanied by an approved certificate (1):

1.2,4.5 // // // // // Quantity (in tonnes) // Import duty (in ECU/100 kg) // // 1.2.3.4.5 // // 1986 // 1987 // 1988 // // // // // // // // // // // // - Jarlsberg, of a minimum fat content of 45 %, by weight, in the dry matter and of a dry matter content, by weight, of not less than 56 %, matured for at least three months: // // // // // - whole cheeses with rind (1) weighing from 8 kg to 12 kg // // // // // - rectangular blocks of a net weight not exceeding 7 kg (2) // // // // // - pieces packed in vacuum or in inert gas, of a net weight of not less than 150 g but not exceeding 1 kg (2) // 1 700 // 1 800 // 1 900 // 55 // - Ridder, of a minimum fat content of 60 %, by weight, in the dry matter and matured for at least four weeks: // // // // // - whole cheese with rind (1) weighing from 1 kg to 2 kg // // // // // - pieces packed in vacuum or in inert gas, with rind on at least one side (1), of a net weight of not less than 150 g (2) // // // // // // // // //

(1) The expression 'whole cheeses with rind' means cheeses of the conventional flat cylindrical shape. For the purposes of these provisions, the rind is defined as follows: the rind of such cheeses is the outer layer formed from the cheese itself, having a distinctly more solid consistency and a distinctly darker colour.

(2) The wording on the packing must be such as to enable this cheese to be identified by the consumer.

(b) on importation into Norway

1.2,4.5 // // // // // Quantity (in tonnes) // Import duty (Nkr/kg) // // 1.2.3.4.5 // // 1986 // 1987 // 1988 // // // // // // // - Cheese of all types and varieties, originating in and coming from the Community // 1 960 // 2 060 // 2 160 // 1,20 // // // // //

2. Norway will take the necessary steps in order to:

- limit the issue of the certificates referred to in 1 (a) to the quantities agreed in this Agreement,

- ensure that the autonomous system of import licence allocation will be managed taking into account market requirements and in such a way that imports may take place regularly and that the quantities agreed for import into Norway from the Community can be effectively imported.

3. The Community and Norway will take steps to ensure that the benefits which they grant each other will not be jeopardized by other import measures.

4. The Community and Norway 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 a system of information and mutual cooperation as described in the Annex to this Agreement.

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. Consultations will be held at the request of either party on any question relating to the operation of this Agreement. The two parties may, by common accord, alter it by reference in particular to the trend of market prices, production, marketing or consumption of home-produced and imported cheeses.

6. During the first half of 1988, consultations will be held to determine the quantities and import duties applicable for the subsequent years.

7. This Agreement may be terminated by a year's notice in writing.

If this provision is applied, each party shall retain the rights it had before the conclusions of the Agreement.

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

(1) The certificate will be issued by Norske Meieriers Salgssentral (Norwegian Dairies).

ANNEX

Mutual information procedures

In order to ensure that the prices charged by exporters are not such as to cause problems on the market of the importing country, the following information procedures shall be established:

1. Norway shall provide the Commission of the European Communities with the following information:

- two weeks before the start of each quarter of the calendar year, a forecast of Norwegian exports to the Community for the following quarter (quantities envisaged, Norwegian free-at-frontier prices envisaged, foreseeable end markets),

- three weeks after the close of each quarter of the calendar year, actual Norwegian exports to the Community in the preceding quarter, giving quantities exported, Norwegian free-at-frontier prices actually applied and importing Community countries.

2. The Commission of the European Communities shall provide, every quarter, price quotations and any other relevant information concerning the market in home-produced and imported cheeses.