Agreement in the form of an Exchange of Letters

between the European Community and the People's Republic of China pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union

A. Letter from the European Community

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Brussels,

Sir,

Following the initiation of negotiations between the European Communities (EC) and the People's Republic of China under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EU, the following is agreed between the EC and the People's Republic of China in order to close the negotiations opened following the EC's notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its schedule for the customs territory of EC 25 the concessions that were included in its previous schedule.

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained in the annex to this agreement.

This Agreement shall enter into force on the date on which the EC receives from the People's Republic of China a duly executed letter of agreement, following consideration by the parties in accordance with their own procedures. The EC undertakes to use its best endeavours to ensure that the appropriate implementing measures enter into force no later than 1 January 2006 and under no circumstances later than 1 July 2006.

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

On behalf of the European Community

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ANNEX

03042085 (frozen fillets of Alaska Pollack): a lowering of the current bound EC duty of 15 % to 13,7 %.

Add 20500 tonnes to the allocation for China under the EC tariff rate quota for garlic, fresh or chilled, tariff item number 07032000, in quota rate 9,6 %, out of quota rate 9,6 + EUR 120/100 kg/net.

Add 5200 tonnes (drained net weight) in EC tariff rate quota for mushroom of species agaricus, prepared or preserved otherwise than by vinegar (tariff item number 20031030, out of quota rate 18,4 + EUR 222/100 kg/net eda) and mushroom of species agaricus, provisionally preserved or preserved otherwise than by vinegar (tariff item number 20031020, out of quota rate 18,4 + EUR 191/100 kg/net eda), in quota rate 23 %; inclusion of tariff line 07119040 (out of quota rate 9,6 + EUR 191/100 kg/net eda) in the quota.

64021900 (sports footwear): a lowering of the current bound EC duty of 17 % to 16,9 %.

64029100 (footwear covering the ankle): a lowering of the current bound EC duty of 17 % to 16,9 %.

64041100 (sports footwear): a lowering of the current bound EC duty of 17 % to 16,9 %.

64041910 (slippers and other indoor footwear): a lowering of the current bound EC duty of 17 % to 16,9 %.

640299 (the category: footwear other): a lowering of the current bound EC duty of 17 % to 16,8 %.

84829190 (balls, needles and rollers): a lowering of the current bound EC duty of 8 % to 7,7 %.

85219000 (video recording apparatus, other): a lowering of the current bound EC duty of 14 % to 13,9 %.

87120030 (bicycles not motorised): a lowering of the current bound EC duty of 15 % to 14 %.

Open a tariff rate quota of 7 tonnes (erga omnes) for paddy rice (tariff item number 100610), in quota rate 15 %, out of quota rate EUR 211/tonne.

Open a tariff rate quota of 1634 tonnes (erga omnes) for husked rice (tariff item number 100620), in quota rate 15 %, out of quota rate EUR 65/tonne.

Add 25516 tonnes (erga omnes) in EC tariff rate quota for milled and semi-milled rice (tariff item number 100630), in quota rate 0 %, out of quota rate EUR 175/tonne.

Add 31788 tonnes (erga omnes) in EC tariff rate quota for broken rice (tariff item number 100640), in quota rate 0 %, out of quota rate EUR 128/tonne.

Open a tariff rate quota of 2838 tonnes (erga omnes) for preserved pineapples, citrus fruit, pears, apricots, cherries, peaches and strawberries, in quota rate 20 %. Tariff item numbers and out of quota rates as follows:

20082011: 25,6 + 2,5 EUR/100 kg/net

20082019: 25,6

20082031: 25,6 + 2,5 EUR/100 kg/net

20082039: 25,6

20082071: 20,8

20083011: 25,6

20083019: 25,6 + 4,2 EUR/100 kg net

20083031: 24

20083039: 25,6

20083079: 20,8

20084011: 25,6

20084019: 25,6 + 4,2 EUR/100 kg/net

20084021: 24

20084029: 25,6

20084031: 25,6 + 4,2 EUR/100 kg/net

20084039: 25,6

20085011: 25,6

20085019: 25,6 + 4,2 EUR/100 kg/net

20085031: 24

20085039: 25,6

20085051: 25,6 + 4,2 EUR/100 kg/net

20085059: 25,6

20085071: 20,8

20086011: 25,6

20086019: 25,6 + 4,2 EUR/100 kg/net

20086031: 24

20086039: 25,6

20086060: 20,8

20087011: 25,6

20087919: 25,6 + 4,2 EUR/100 kg/net

20087031: 24

20087039: 25,6

20087051: 25,6 + 4,2 EUR/100 kg/net

20087059: 25,6

20088011: 25,6

20088019: 25,6 + 4,2 EUR/100 kg/net

20088031: 24

20088039: 25,6

20088070: 20,8

The exact tariff description of the EC 15 shall apply to all tariff lines above.

B. Letter from the People's Republic of China

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Beijing,

Sir,

Reference is made to your letter stating:

"Following the initiation of negotiations between the European Communities (EC) and the People's Republic of China under Article XXIV:6 and Article XXVIII of GATT 1994 for the modification of concessions in the schedules of Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the EU, the following is agreed between the EC and the People's Republic of China in order to close the negotiations opened following the EC's notification of 19 January 2004 to the WTO pursuant to Article XXIV:6 of GATT 1994.

The EC agrees to incorporate in its schedule for the customs territory of EC 25, the concessions that were included in its previous schedule.

The EC agrees that it will incorporate in its schedule for the EC 25 the concessions contained in the annex to this agreement.

This Agreement shall enter into force on the date on which the EC receives from the People's Republic of China a duly executed letter of agreement, following consideration by the parties in accordance with their own procedures. The EC undertakes to use its best endeavours to ensure that the appropriate implementing measures enter into force no later than 1 January 2006 and under no circumstances later than 1 July 2006."

I hereby have the honour to express my Government's agreement.

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

On behalf of the People's Republic of China

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