AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS Between the European Community and Cyprus on the adjustment of the regime for imports into the European Community of oranges originating in Cyprus

A. Letter from the Community

Sir,

I have the honour to refer to the negotiations on agriculture between the Cypriot authorities and the European Commission concerning the impact of the Uruguay Round on the trade relations between the parties, in which certain adjustments to the import regime for oranges from Cyprus are foreseen; an agreement has been reached to put into force in advance on a provisional basis and pending the entry into force of the global package the provisions regarding the import regime for oranges as follows:

1. From 1 December to 31 May of each season for 48 200 tonnes of oranges originating in Cyprus and imported into the EC the specific duties will be reduced to zero if the following entry price levels are respected:

1996/97: ECU 273/tonne,

1997/98: ECU 271/tonne,

1998/99: ECU 268/tonne,

1999/2000: ECU 266/tonne,

2000/01 and following: ECU 264/tonne.

2. If the entry price of a particular lot is up to 2 %, 4 %, 6 % or 8 % below the entry price agreed upon under paragraph 1, the specific duty shall be 2 %, 4 %, 6 % or 8 % of the agreed entry price, as appropriate.

3. If the entry price of a particular lot is below 92 % of the agreed entry price, the specific duty bound within the WTO shall apply.

This Agreement shall enter into force upon the signature of both parties. It shall be applicable as from 1 December 1996 and until the entry into force of the global package.

I should be obliged if you would confirm that your Government is in agreement with the contents of this letter.

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

For the Council of the European Union

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B. Letter from Cyprus

Sir,

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

'I have the honour to refer to the negotiations on agriculture between the Cypriot authorities and the European Commission concerning the impact of the Uruguay Round on the trade relations between the parties, in which certain adjustments to the import regime for oranges from Cyprus are foreseen; an agreement has been reached to put into force in advance on a provisional basis and pending the entry into force of the global package the provisions regarding the import regime for oranges as follows:

1. From 1 December to 31 May of each season for 48 200 tonnes of oranges originating in Cyprus and imported into the EC the specific duties will be reduced to zero if the following entry price levels are respected:

1996/97: ECU 273/tonne,

1997/98: ECU 271/tonne,

1998/99: ECU 268/tonne,

1999/2000: ECU 266/tonne,

2000/01 and following: ECU 264/tonne.

2. If the entry price of a particular lot is up to 2 %, 4 %, 6 % or 8 % below the entry price agreed upon under paragraph 1, the specific duty shall be 2 %, 4 %, 6 % or 8 % of the agreed entry price, as appropriate.

3. If the entry price of a particular lot is below 92 % of the agreed entry price, the specific duty bound within the WTO shall apply.

This Agreement shall enter into force upon the signature of both parties. It shall be applicable as from 1 December 1996 and until the entry into force of the global package.

I should be obliged if you would confirm that your Government is in agreement with the contents of this letter.`

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 Cyprus

>REFERENCE TO A FILM>