AGREEMENT

in the form of an Exchange of Letters between the European Economic Community and the Kingdom of Sweden concerning agriculture and fisheries

Brussels, 14 July 1986

Sir,

The signature of the Adaptation Protocol to the Agreement between the Kingdom of Sweden and the European Economic Community, consequent on the enlargement of the Community, has given the two parties the opportunity to examine the appropriate means to reinforce their cooperation in the agricultural and fisheries sector.

A. Agricultural sector

Referring to the Exchange of Letters of 21 July 1972 between the European Economic Community and the Kingdom of Sweden and the Agreements of 16 July 1980 and of 23 June 1982 under Article XXVIII of the GATT, and to the negotiations which have taken place between the two parties with a view to adjusting the said agreements and to establishing trade arrangements for certain agricultural products, in the spirit of Article 15 of the EEC-Sweden Free Trade Agreement, consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the Community, I confirm that the results of the negotiations were as follows:

II. The Kingdom of Sweden and the Community agree that, from 1 March 1986, the reciprocal concessions covered by the abovementioned Exchange of Letters and Agreements shall be extended to the enlarged Community.

II. From 1 March 1986, the Community will grant on a unilateral basis, on the terms set out below, a tariff concession in respect of frozen peas falling within subheading ex 07.02 B of the Common Customs Tariff originating in Sweden:

(a) until 31 December 1992:

An annual tariff quota of 6 000 tonnes, of which 4 500 tonnes will be reserved for Spain.

The duty applicable under this quota will be 4,5 % on imports into Spain and 6 % on imports into the other Member States of the Community.

(b) from 1 January 1993:

A Community tariff quota of 6 000 tonnes at a rate of duty of 6 %.

B. Fisheries sector

In view of their mutual interests and responsibilities in this sector and in the spirit of Article 15 of the Agreement, the Community has decided to suspend totally or partially the duty on certain fishery products originating in Sweden and imported into the Community, within the limits and under the conditions set out in Annex I to this letter. These suspensions will take effect on 1 March 1986.

The preferences specified above are subject to the maintenance of the present conditions of general competition in the fisheries sector.

Moreover, imports into the Community of these products shall benefit from the preferential rate only on condition that the free-at-frontier price for the products concerned, ascertained by the Member States in accordance with Article 21 of Regulation (EEC) N° 3796/81, is at least equal to the reference price fixed by the Community for the products concerned.

Following consultations between the two parties, the Community shall open the annual tariff quota at 20 000 tonnes of herring as referred to in Annex I. These consultations shall take place before 1 May each year.

I note that in the same spirit the Kingdom of Sweden undertakes to suspend totally the customs

duty and all taxes having an equivalent effect for the following products originating in the Community:

Swedish Customs Tariff heading No

Description of goods

ex 03. 01

Frozen fish fillets

ex 16. 04

Prepared or preserved fish, including caviar and caviar substitutes

ex 16. 05

Crustaceans and molluscs, prepared or preserved

These suspensions will take effect on 1 March 1986 for imports from the Community for which Sweden currently applies neither customs duty nor taxes having an equivalent effect. For imports into Sweden originating in any Member State on which Sweden currently applies such duty or taxes, these shall be reduced in accordance with the timetable in Annex II.

I further understand that in the light of the close cooperation on conservation between the Kingdom of Sweden and the Community, the two parties will seek to establish the balance in their reciprocal fishing arrangement under the Fisheries Agreement at a level conserving, subject to unforeseeable biological circumstances, the current fishing pattern. Furthermore, the Government of Sweden will provide to vessels flying the flag of Member States of the Community the opportunity to fish certain quantities of cod and herring in the Swedish fishery zone in the Baltic Sea, supplementary to those agreed annually in the framework of the Fisheries Agreement between Sweden and the Community; these supplementary quantities shall be established as follows:

- Baltic cod

2 500 tonnes

To the extent that the TAC for cod in the Swedish fishery zone in the Baltic Sea should exceed 50 000 tonnes, an increased quota above 2 500 tonnes could be agreed, it being understood that such an increase should not exceed 10 % of the amount by which the TAC exceeds 50 000 tonnes.

If such an increase is decided upon, compensation should be given in the form of an increased zero tariff quota for herring and/or cod originating in Sweden and exported to the Community.

If the TAC for cod in the Swedish fishery zone should be set at a level below 40 000 tonnes, the quota of 2 500 tonnes should be reduced by the same percentage.

- Baltic herring

1 500 tonnes

Fishing by Community vessels for the quotas referred to above shall be subject to the same terms and conditions as those applied to Community fishing in that area for quotas agreed under the Fisheries Agreement between the Kingdom of Sweden and the Community.

C. Regime to be applied concerning the Canary Islands, Ceuta and Melilla

With regard to the Canary Islands, Ceuta and Melilla, the two parties have agreed as follows:

(a) The Kingdom of Sweden shall apply to imports from those territories both the tariff concessions deriving from the Exchange of Letters of 21 July 1972 and from the Agreements of 16 July 1980 and 23 June 1982, and those deriving from this letter.

(b) Should amendments occur in the import regime for agricultural and fishery products in the Canary Islands, Ceuta and Melilla, which might affect the exports of Sweden, the Community and the Kingdom of Sweden shall enter into consultations in order to adopt the appropriate measures to remedy the situation.

(c) The Joint Committee shall adopt any adaptations to the rules of origin which may be necessary for the application of points (a) and (b).

I should be grateful 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

Brussels, 14 July 1986

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'The signature of the Adaptation Protocol to the Agreement between the Kingdom of Sweden and the European Economic Community, consequent on the enlargement of the Community has given the two parties the opportunity to examine the appropriate means to reinforce their cooperation in the agricultural and fisheries sectors.

A. Agricultural sector

Referring to the Exchange of Letters of 21 July 1972 between the European Economic Community and the Kingdom of Sweden and the Agreements of 16 July 1980 and of 23 June 1982 under Article XXVIII of the GATT, and to the negotiations which have taken place between the two parties with a view to adjusting the said agreements and to establishing trade arrangements for certain agricultural products, in the spirit of Article 15 of the EEC-Sweden Free Trade Agreement, consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the Community, I confirm that the results of the negotiations were as follows:

II. The Kingdom of Sweden and the Community agree that, from 1 March 1986, the reciprocal concessions covered by the abovementioned Exchange of Letters and Agreements shall be extended to the enlarged Community.

II. From 1 March 1986, the Community will grant on a unilateral basis, on the terms set out below, a tariff concession in respect of frozen peas falling within subheading ex 07. 02 B of the Common Customs Tariff originating in Sweden:

(a) until 31 December 1992:

An annual tariff quota of 6 000 tonnes, of which 4 500 tonnes will be reserved for Spain.

The duty applicable under this quota will be 4,5 % on imports into Spain and 6 % on imports into the other Member States of the Community.

(b) from 1 January 1993:

A Community tariff quota of 6 000 tonnes at a rate of duty of 6 %.

B. Fisheries sector

In view of their mutual interests and responsibilities in this sector and in the spirit of Article 15 of the Agreement, the Community has decided to suspend totally or partially the duty on certain fishery products originating in Sweden and imported into the Community, within the limits and under the conditions set out in Annex I to this letter. These suspensions will take effect on 1 March 1986.

The preferences specified above are subject to the maintenance of the present conditions of general competition in the fisheries sector.

Moreover, imports into the Community of these products shall benefit from the preferential rate only on condition that the free-at-frontier price for the products concerned, ascertained by the Member States in accordance with Article 21 of Regulation (EEC) N° 3796/81, is at least equal to the reference price fixed by the Community for the products concerned.

Following consultations between the two parties, the Community shall open the annual tariff quota at 20 000 tonnes of herring as referred to in Annex I. These consultations shall take place before 1 May each year.

I note that in the same spirit the Kingdom of Sweden undertakes to suspend totally the customs duty and all taxes having an equivalent effect for the following products originating in the Community:

Swedish Customs Tariff heading No

Description of goods

ex 03. 01

Frozen fish fillets

ex 16. 04

Prepared or preserved fish, including caviar and caviar substitutes

ex 16. 05

Crustaceans and molluscs, prepared or preserved

These suspensions will take effect on 1 March 1986 for imports from the Community for which Sweden currently applies neither customs duty nor taxes having an equivalent effect. For imports into Sweden originating in any Member State on which Sweden currently applies such duty or taxes, these shall be reduced in accordance with the timetable in Annex II.

I further understand that in the light of the close cooperation on conservation between the Kingdom of Sweden and the Community, the two parties will seek to establish the balance in their reciprocal fishing arrangement under the Fisheries Agreement at a level conserving, subject to unforeseeable biological circumstances, the current fishing pattern. Furthermore, the Government of Sweden will provide to vessels flying the flag of Member States of the Community the opportunity to fish certain quantities of cod and herring in the Swedish fishery zone in the Baltic Sea, supplementary to those agreed annually in the framework of the Fisheries Agreement between Sweden and the Community; these supplementary quantities shall be established as follows:

- Baltic cod

2 500 tonnes

To the extent that the TAC for cod in the Swedish fishery zone in the Baltic Sea should exceed 50 000 tonnes, an increased quota above 2 500 tonnes could be agreed, it being understood that such an increase should not exceed 10 % of the amount by which the TAC exceeds 50 000 tonnes.

If such an increase is decided upon, compensation should be given in the form of an increased zero tariff quota for herring and/or cod originating in Sweden and exported to the Community

If the TAC for cod in the Swedish fishery zone should be set at level below 40 000 tonnes, the quota of 2 500 tonnes should be reduced by the same percentage.

- Baltic herring

1 500 tonnes

Fishing by Community vessels for the quotas referred to above shall be subject to the same terms and conditions as those applied to Community fishing in that area for quotas agreed under the Fisheries Agreement between the Kingdom of Sweden and the Community

C. Regime to be applied concerning the Canary Islands, Ceuta and Melilla

With regard to the Canary Islands, Ceuta and Melilla, the two parties have agreed as follows:

(a) The Kingdom of Sweden shall apply to imports from those territories both the tariff concessions deriving from the Exchange of Letters of 21 July 1972 and from the Agreements of 16 July 1980 and 23 June 1982, and those deriving from this letter.

(b) Should amendments occur in the import regime for agricultural and fishery products in the Canary Islands, Ceuta and Melilla, which might affect the exports of Sweden, the Community and the Kingdom of Sweden shall enter into Community and the Kingdom of Sweden

shall enter into consultations in order to adopt the appropriate measures to remedy the situation.

(c) The Joint Committee shall adopt any adaptations to the rules of origin which may be necessary for the application of points (a) and (b).

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

I have the honour to confirm that my Government is in agreement with the contents of your letter.

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

For the Government

of the Kingdom of Sweden

SPA:L666UMBE58.95

FF: 6UEN; SETUP: 01; Hoehe: 1270 mm; 211 Zeilen; 13639 Zeichen;

Bediener: MARL Pr.: C;

Kunde: ................................

ANNEX I

>TABLE>

The customs duties indicated above shall be applied on imports into the Community, as constituted on

31 December 1985, originating in Sweden from 1 March 1986.

For the products mentioned above, when imported into Spain and Portugal, the following timetable for the tariff alignment shall apply:

PORTUGAL

Timetable for tariff alignment

>TABLE>

SPAIN

Timetable for tariff alignment

>TABLE>

ANNEX II

SPAIN

Timetable for tariff and import levy reduction

on 1 March 1986, each duty and import levy shall be reduced to 87,5 % of the basic duty or import levy

on 1 January 1987, each duty and import levy shall be reduced to 75,0 % of the basic duty or import levy

on 1 January 1988, each duty and import levy shall be reduced to 62,5 % of the basic duty or import levy

on 1 January 1989, each duty and import levy shall be reduced to 50,0 % of the basic duty or import levy

on 1 January 1990, each duty and import levy shall be reduced to 37,5 % of the basic duty or import levy

on 1 January 1991, each duty and import levy shall be reduced to 25,0 % of the basic duty or import levy

on 1 January 1992, each duty and import levy shall be reduced to 12,5 % of the basic duty or import levy

zero duty and levy shall apply on 1 January 1993.