ANNEX I

AGREEMENT for the conclusion of negotiations between the European Community and the Republic of Argentina under GATT Article XXIV:6

THE EUROPEAN COMMUNITY AND THE REPUBLIC OF ARGENTINA,

Desiring to bring their GATT Article XXIV:6 negotiations, following the enlargement of the European Community which took place on 1 January 1995, to conclusion on the basis of a reasonable and mutually satisfactory compromise, and

Further desiring to strengthen the close partnership in commercial and economic matters between the European Community and the Republic of Argentina,

AGREE TO THE FOLLOWING PROVISIONS:

A. The European Community shall incorporate in its new Schedule CXL, for the customs territory of the EC-15, the concessions that were included in the previous Schedule LXXX as modified by the European Community Schedule annexed to the Marrakesh Protocol to the General Agreement, 1994 (dated 15 April 1994) and additions thereto as set out in document G/SP/2 (dated 3 August 1994).

B. To settle the current GATT Article XXIV:6 negotiations on agriculture the following has been agreed and will apply with effect from 1 January 1996:

- 0808 10 93 Fresh apples (1 January to 31 March):

- two additional steps (10 %, 12 %) before the full tariff equivalent is applied in the period 15 February to 31 March.

- 0808 10 99 Fresh apples (1 April to 31 July):

- reduction of the final tariff rate from 3 to 0 %,

- one additional step (14 %) before the full tariff equivalent is applied in the period 1 April to 30 June,

- three additional steps (10 %, 12 %, 14 %) before the full tariff equivalent is applied in the period 1 to 15 July.

- 0808 20 31 Fresh pears (1 January to 31 March):

- reduction of the final tariff rate from 8 to 5 % for pears respecting the entry price for the period 1 February to 31 March.

- 0808 20 33 Fresh pears (1 to 30 April and 1 to 15 July):

- reduction of the final tariff rate from 2,5 to 0 %,

- one additional step (14 %) before the full tariff equivalent is applied in the period 1 to 30 April,

- three additional steps (10 %, 12 %, 14 %) before the full tariff equivalent is applied in the period 1 to 15 July.

- 0805 30 10 Lemons:

- four additional steps (10 %, 12 %, 14 %, 16 %) before the full tariff equivalent is applied in the period 1 May to 31 July,

- three additional steps (10 %, 12 %, 14 %) before the full tariff equivalent is applied in the period 1 to 15 August.

- Grape juice and grape must. Tariff rate quota for 14 000 tonnes (erga omnes).

See Annex I. This tariff rate quota will apply with effect from 1 September 1996 (1).

- 1508 10 10 Ground-nut oil, crude:

- reduction of the final tariff rate (3,2 %) to zero.

The Republic of Argentina accepts the basic components of the European Community's approach to adjusting the GATT obligations of EC-12 and those of Austria, Sweden and Finland, following the recent enlargement of the Community:

- netting out of export commitments,

- netting out of tariff quotas,

- aggregation of domestic support commitments.

The appropriate legal modalities of implementation remain to be agreed.

C. Final provisions:

This Agreement shall enter into force on the date of signature.

Consultations will be held with regard to the matters in this Agreement at any time at the request of either party.

Signed at . . . this . . . day of . . . in the year one thousand nine hundred and ninety-six.

For the Government of the Republic of Argentina

For the Council of the European Union

Tariff quota for grape juice and grape must

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(1) In accordance with present Community regulations, imports for inward processing will not be counted against the TRQ. Taking into account the fact that in the past imports of products covered by the TRQ were sometimes higher than 14 000 tonnes the European Community is prepared to open up, on an autonomous basis, additional import opportunities if it emerges, after assessing relevant data (domestic supply and demand situation including market assessment by operators), that the internal market situation in the European Community necessitates additional import of grape juice and grape must used for the production of grape juice and/or non-wine sector products.