SUPPLEMENTARY PROTOCOL to the Agreement between the European Economic Community and the Swiss Confederation concerning the elimination of existing and prevention of new quantitative restrictions affecting exports or measures having equivalent effect

THE EUROPEAN ECONOMIC COMMUNITY

of the one part, and

THE SWISS CONFEDERATION

of the other part,

HAVING REGARD to the Agreement between the European Economic Community and the Swiss Confederation signed in Brussels on 22 July 1972, hereinafter called the 'Agreement', and in particular to Article 32 thereof,

RECALLING the objective of creating a European Economic Space in accordance with the Joint Declaration adopted by Ministers of the EFTA countries and the Member States of the Community and the Commission of the European Communities in Luxembourg on 9 April 1984,

MINDFUL of the need to develop their trade relations in the interests of both their economies by eliminating existing and preventing any new barriers affecting their exports of products covered by the Agreement,

AWARE nonetheless that under certain exceptional circumstances a Contracting Party may be forced to take safeguard measures on exports and that specific provisions should be introduced to this end,

HAVE DECIDED TO CONCLUDE THIS PROTOCOL:

Article 1

The following Articles are inserted into the Agreement:

'Article 13a

1. No new quantitative restriction on exports or measures having equivalent effect shall be introduced in trade between the Community and Switzerland.

2. Quantitative restrictions on exports and any measures having equivalent effect shall be abolished on

1 January 1990, except for those applied on 1 January 1989 to products listed in Protocol 6 which shall be eliminated in accordance with the provisions of the said Protocol.

Article 13b

A Contracting Party which is considering a change in the arrangements which it applies to exports to third countries shall, as far as may be practicable, notify the Joint Committee not less than 30 days before the proposed change comes into effect. It shall take note of any representations by the other Contracting Party regarding any distortions which may result therefrom.

Article 24a

Where compliance with the provisions of Articles 7 and 13a leads to

1. re-export towards a third country against which the exporting Contracting Party maintains, for the

product concerned quantitative export restrictions, export duties or measures or charges having equivalent effect; or

2. a serious shortage, or threat thereof, of a product essential to the exporting Contracting Party;

and where the situations referred to above give rise or

are likely to give rise to major difficulties for the

exporting Contracting Party, that Contracting Party

may take appropriate measures under the conditions

and in accordance with the procedures laid down in Article 27.'

Article 2

1. Paragraph 2 of Article 7 of the Agreement is replaced by the following:

'2. In the case of products listed in Annex III, customs duties on exports and charges having equivalent effect shall be abolished in accordance with the provisions of the said Annex.'

2. Annex III to the Agreement is replaced by the following:

'ANNEX III

List of products referred to in Article 7 of the Agreement

Customs duties applied by Switzerland to exports to the Community of the products listed below shall be eliminated in accordance with the following timetable.

Harmonized

system

Heading No

Product description

Date of elimination

ex 26.20

Ash and residues containing mainly aluminium

1 January 1993

ex 74.04

Copper waste and scrap

1 January 1993

ex 76.02

Aluminium waste and scrap

'1 January 1993'

Article 3

The text of Article 27 of the Agreement is replaced by the following:

'Article 27

1. In the event of a Contracting Party subjecting imports or exports of products liable to give rise to the

difficulties referred to in Articles 24, 24a and 26 to an administrative procedure, the purpose of which is to provide rapid information on the trend of trade flows, it shall inform the other Contracting Party.

2. In the cases specified in Articles 22 to 26, before taking the measures provided for therein or, in cases to which paragraph 3 (e) applies, as soon as possible, the Contracting Party in question shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties. In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement.

The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

3. For the implementation of paragraph 2, the following provisions shall apply:

(a) As regards Article 23, either Contracting Party may refer the matter to the Joint Committee if it considers that a given practice is incompatible with the proper functioning of the Agreement within the meaning of Article 23 (1).

The Contracting Parties shall provide the Joint Committee with all relevant information and shall give it the assistance it requires in order to examine the case and, where appropriate, to eliminate the practice objected to.

If the Contracting Party in question fails to put an end to the practice objected to within the period fixed by the Joint Committee, or in the absence of agreement in the Joint Committee within three months of the matter being referred to it, the Contracting Party concerned may adopt any safeguard measures it considers necessary to deal with the serious difficulties resulting from the practices in question; in particular it may withdraw tariff concessions.

(b) As regards Article 24, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Joint Committee, which may

take any decision needed to put an end to such difficulties.

If the Joint Committee or the exporting Contracting Party has not taken a decision putting an end to the difficulties within 30 days of the matter being referred, the importing Contracting Party is authorized to levy a compensatory charge on the product imported.

The compensatory charge shall be calculated according to the incidence on the value of the goods in question of the tariff disparities in respect of the raw materials or intermediate products incorporated therein.

(c) As regards Article 24a, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Joint Committee. With regard to subparagraph (ii) of Article 24a, the threat of shortage shall be duly evidenced by appropriate quantitative and price indicators.

The Joint Committee may take any decision needed to put an end to the difficulties. If the Joint Committee has not taken such a decision within 30 days of the matter being referred to it, the exporting Contracting Party is authorized to apply temporarily appropriate measures on the exportation of the product concerned.

(d) As regards Article 25, consultation in the Joint Committee shall take place before the Contracting Party concerned takes the appropriate measures.

(e) Where exceptional circumstances requiring immediate action make prior examination impossible, the Contracting Party concerned may, in the situations specified in Articles 24, 24a, 25 and 26 and also in the case of export aids having a direct and

immediate incidence on trade, apply forthwith the precautionary measures strictly necessary to remedy the situation.'

Article 4

The following text shall be appended to the Agreement as Protocol 6:

'PROTOCOL 6

concerning the elimination of certain quantitative restrictions on exports

Quantitative restrictions applied by the Community on exports to Switzerland of the products listed below shall be eliminated at the latest on the dates indicated.

Harmonized system

Heading No

Product description

Date of elimination

ex 74.04

Copper waste and scrap

1. 1. 1993

ex 44.01

Fuel wood, of coniferous wood and pine and fir shavings

1. 1. 1993

ex 44.03

Wood in the rough, whether or not stripped of its bark or merely roughed down

- Other, not including poplar

1. 1. 1993

Wood, roughly squared or half squared but not further manufactured

- Other, not including poplar

1. 1. 1993

ex 44.07

Wood sawn lengthwise, sliced or peeled but not further prepared, of a thickness exceeding 6 mm

- Of coniferous wood not including small boards for the manufacture of boxes, sieves or riddles and the like

1. 1. 1993

ex 41.01

Raw hides and skins of bovine animals weighing less than 6 kg per skin

1. 1. 1992

ex 41.02

Raw skins of sheep and lambs

1. 1. 1992

ex 41.03

Raw hides and skins of goats and kids

Raw hides and skins of goats and kids

1. 1. 1992

ex 43.01

Raw furskins of rabbits

'1. 1. 1992'

Article 5

This Supplementary Protocol shall likewise apply to the principality of Liechtenstein for so long as the Treaty of

29 March 1923, establishing a customs union between the Swiss Confederation and the Principality of Liechtenstein, remains in force.

Article 6

This Supplementary Protocol shall be approved by the Contracting Parties in accordance with their own procedures.

It shall enter into force on 1 January 1990 provided that the Contracting Parties have notified each other before that date

that the procedures necessary to this end have been completed.

If the Contracting Parties have not notified the completion of the procedures by that date, this Protocol shall be applied provisionally as from 1 January 1990.

Article 7

This Supplementary Protocol is drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese, and Spanish languages, each of these texts being equally authentic.

Hecho en Bruselas, a doce de julio de mil novecientos ochenta y nueve.

Udfaerdiget i Bruxelles, den tolvte juli nitten hundrede og niogfirs.

Geschehen zu Bruessel am zwoelften Juli neunzehnhundertneunundachtzig.

iEgine stis Vryxelles, stis dodeka Ioylioy chilia enniakosia ogdonta ennea.

Done at Brussels on the twelfth day of July in the year one thousand nine hundred and eighty-nine.

Fait à Bruxelles, le douze juillet mil neuf cent quatre-vingt-neuf.

Fatto a Bruxelles, addì dodici luglio millenovecentottantanove.

Gedaan te Brussel, de twaalfde juli negentienhonderd negenentachtig.

Feito em Bruxelas, em doze de Julho de mil novecentos e oitenta e nove.

Por el Consejo de las Comunidades Europeas

For Raadet for De Europaeiske Faellesskaber

Fuer den Rat der Europaeischen Gemeinschaften

Gia to Symvoylio ton Evropaikon Koinotiton

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen

Pelo Conselho das Comunidades Europeias

Por el Gobierno de la Confederación Suiza

For regeringen for Schweiz

Fuer die Regierung der Schweizerischen Eidgenossenschaft

Gia tin kyvernisi tis Elvetikis Synomospondias

For the Government of the Swiss Confederation

Pour le gouvernement de la Confédération suisse

Per il governo della Confederazione svizzera

Voor de Regering van de Zwitserse Bondsstaat

Pelo Governo da Confederaçao Suíça

JOINT DECLARATION BY THE CONTRACTING PARTIES to the Supplementary Protocol to the Agreement between the European Economic Community and the Swiss Confederation concerning the elimination of existing and prevention of new quantitative restrictions affecting exports or measures having equivalent effect

The Contracting Parties declare that Articles 7, 13a and 13b of the Agreement shall apply to products specified in Article 2 of the Agreement,

- including the petroleum products specified in Article 14 of the Agreement,

- excluding the products covered by the Agreement between the Member States of the European Coal and Steel Community and the European Coal and Steel Community, of the one part, and the Swiss Confederation of the other part.