PROTOCOL adjusting trade aspects of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part, to take account of the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the outcome of the Uruguay Round negotiations on agriculture, including improvements to the existing preferential arrangements

THE EUROPEAN COMMUNITIY, hereinafter referred to as 'the Community`,

of the one part, and

THE REPUBLIC OF ESTONIA, hereinafter referred to as 'Estonia`,

of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part (hereinafter referred to as 'the Agreement`, was signed in Luxembourg on 12 June 1995;

WHEREAS the Republic of Austria, the Republic of Finland and the Kingdom of Sweden acceded to the European Union on 1 January 1995;

WHEREAS, under the terms of Articles 76, 102 and 128 of the Act of Accession, the Republic of Austria, the Republic of Finland and the Kingdom of Sweden have to apply, as from 1 January 1995, the provisions of the preferential agreements concluded by the Community with certain third countries, among them Estonia;

WHEREAS the Community adopted, as from 1 January 1995, transitional measures in the form of autonomous tariff quotas taking into account the preferential tariff concessions applied by the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to Estonia, and Estonia adopted, as from 1 January 1995, transitional measures in the form of autonomous tariff quotas taking into account the preferential tariff arrangements applied by Estonia to the Republic of Austria, the Republic of Finland and the Kingdom of Sweden, notably with regard to processed agricultural products;

WHEREAS undertakings by the Community in the framework of the Uruguay Round negotiations require the amendment of the import tariff arrangements in the Community, notably with regard to basic and processed agricultural products;

WHEREAS the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the implementation of the Uruguay Round outcome are likely to affect the bilateral concessions granted under the Agreement, which should, therefore, be amended by means of a Protocol adjusting the trade aspects of the Agreement;

WHEREAS the Community adopted, as from 1 June 1996, transitional and autonomous measures establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for the adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Agreement on free trade and trade related matters with Estonia to take account of the Agreement on Agriculture concluded during the Uruguay Round multilateral trade negotiations; whereas the concessions concerned will be replaced on the date of entry into force of this Protocol by the concessions provided for herein;

WHEREAS the Council decided, by virtue of Decision 95/131/EC (1), to apply on a provisional basis, as from 1 January 1995, the bilateral Agreement negotiated by the Commission on behalf of the Community amending Protocol 1 to the Agreement to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union;

HAVE DECIDED to determine, by mutual agreement, the adjustments to be made to the trade aspects of the Agreement to take account, firstly, of the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and, secondly, of the entry into force of the outcome of the Uruguay Round negotiations on agriculture, and to this end have designated as their plenipotentiaries:

THE EUROPEAN COMMUNITY:

Manfred SCHEICH

Ambassador,

Permanent Representative of the Republic of Austria,

Chairman of the Permanent Representatives Committee

Günther BURGHARDT

Director-General of the Directorate-General for External Political Relations of the Commission of the European Communities

THE REPUBLIC OF ESTONIA:

Priit KOLBRE

Ambassador extraordinary and plenipotentiary,

Head of the Mission of the Republic of Estonia to the European Union

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Article 1

As regards processed agricultural products:

1. Protocol 2 to the Agreement shall be replaced by the text contained in Annex A to this Protocol.

2. Article 9(1) of the Agreement shall be replaced by the following:

'1. The provisions of this Chapter shall apply to products originating in the Community and in Estonia listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I and Protocol 2.`

3. Article 16 of, and Annex II to, the Agreement shall be repealed.

4. Article 17(2) of the Agreement shall be replaced by the following:

'2. The term "agricultural products" means the products listed in Chapters 1 to 24 of the Combined Nomenclature and the products listed in Annex I and Protocol 2, but excluding fishery products as defined by Regulation (EEC) No 3759/92.`

Article 2

As regards agricultural products:

1. Article 19(2) of the Agreement shall be replaced by the following:

'2. The concessions granted in this Agreement in relation to agricultural products are set out in Annex Va.`

2. the text of Annex Va to the Agreement appears in Annex B to this Protocol.

3. Annexes III, IV and V to the Agreement shall be repealed.

Article 3

Annex VI to the Agreement, relating to fishery products, shall be replaced by the text contained in Annex C to this Protocol.

Article 4

The Annex to this Protocol shall form an integral part thereof. This Protocol shall form an integral part of the Agreement.

Article 5

This Protocol shall be approved by the Community and Estonia in accordance with their own procedures. The Contracting Parties shall take the necessary measures to implement this Protocol.

Article 6

This Protocol shall enter into force on the first day of the second month following notification of the completion of the procedures referred to in Article 5 by the Contracting parties.

Article 7

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Estonian languages, each of those texts being equally authentic.

Hecho en Bruselas, el diez de diciembre de mil novecientos noventa y ocho.

Udfærdiget i Bruxelles den tiende december nitten hundrede og otteoghalvfems.

Geschehen zu Brüssel am zehnten Dezember neunzehnhundertachtundneunzig.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò äÝêá Äåêåìâñßïõ ÷ßëéá åííéáêüóéá åíåíÞíôá ïêôþ.

Done at Brussels on the tenth day of December in the year one thousand nine hundred and ninety-eight.

Fait à Bruxelles, le dix décembre mil neuf cent quatre-vingt-dix-huit.

Fatto a Bruxelles, addì dieci dicembre millenovecentonovantotto.

Gedaan te Brussel, de tiende december negentienhonderd achtennegentig.

Feito em Bruxelas, em dez de Dezembro de mil novecentos e noventa e oito.

Tehty Brysselissä kymmenentenä päivänä joulukuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkahdeksan.

Som skedde i Bryssel den tionde december nittonhundranittioåtta.

Koostatud Brüsselis kümnendal detsembril tuhande üheksasaja üheksakümne kaheksandal aastal.

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Ãéá ôçí ÅõñùðáúêÞ Êïéíüôçôá

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

>REFERENCE TO A FILM>

Eesti Vabariigi nimel

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(1) OJ L 94, 26. 4. 1995, p. 1.

ANNEX A

'PROTOCOL 2

on trade between the Community and Estonia in processed agricultural products

Article 1

1. The Community applies to processed agricultural products originating in Estonia the duties listed in the Annex in accordance with the conditions mentioned therein, whether limited by quota or not.

2. Imports into Estonia of processed agricultural products of Community origin shall be free of duty. However, in cases where Estonia wishes to apply a duty no such duty may be applied without the approval of the Association Council. Any duty approved shall not exceed the duty applicable to the quantity of agricultural products incorporated in the processed agricultural product in question.

3. The Association Council will decide on:

- any extension of the list of processed agricultural products under this Protocol,

- any amendment of the duties mentioned in the Annex,

- any increase or abolition of tariff quotas.

4. The Association Council may replace the duties established by this Protocol by a regime established on the basis of the respective market prices of the Community and Estonia of the agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol. It will establish the list of goods subject to these amounts and, as a consequence, the list of basic products; to this end, it will decide the general rules of application.

Article 2

The duties applied conforming to Article 1 may be reduced by decision of the Association Council:

- when in trade between the Community and Estonia the duties applied to the basic products are reduced, or

- in response to reductions resulting from mutual concessions relating to processed agricultural products.

The reductions provided for under the first indent of the first subparagraph will be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deducted from the duties applied to these basic agricultural products.

Article 3

The Community and Estonia will inform each other of the administrative arrangements adopted for the products covered by this Protocol.

Such arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

ANNEX

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ANNEX B

'ANNEX Va

Imports into the Community of the following products originating in Estonia shall be subject to the concessions set out below (MFN = most favoured nation duty)

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Annex

Minimum import price arrangement for certain soft fruit for processing

1. Minimum import prices are fixed as follows for the following products for processing originating in Estonia:

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2. The minimum import prices, as set out in point 1, will be respected on a consignment by consignment basis. In the case of a customs declaration value being lower than the minimum import price, a countervailing duty will be charged equal to the difference between the minimum import price and the customs declaration value.

3. If the import prices of a given product covered by this Annex show a trend suggesting that the prices could go below the level of the minimum import prices in the immediate future, the European Commission will inform the Estonian authorities in order to enable them to correct the situation.

4. At the request of either the Community or Estonia, the Association Council shall examine the functioning of the system or the revision of the level of the minimum import prices. If appropriate, the Association Council shall take the necessary decisions.

5. To encourage and promote the development of trade and for the mutual benefit of all parties concerned, a consultation meeting will be organised three months before the beginning of each marketing year in the European Community. This consultation meeting will take place between the European Commission and the interested European producers' organisations for the products concerned, on the one part and the authorities', producers' and exporters' organisations of all the associated exporting countries, on the other part.

During this consultation meeting, the market situation for soft fruit including, in particular, forecasts for production, stock situation, price evolution and possible market development, as well as possibilities to adapt supply to demand, will be discussed.`

ANNEX C

'ANNEX VI

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