Agreement

in the form of an Exchange of Letters between the European Community and the Republic of Iceland concerning additional trade preferences in agricultural products undertaken on the basis of Article 19 of the Agreement on the European Economic Area

A. Letter from the European Community

Brussels,

Sir,

I have the honour to refer to the trade negotiations between the European Community and the Republic of Iceland on agricultural products, held from 6 March 2005 to 14 December 2006, undertaken on the basis of Article 19 of the Agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between the Parties, the European Community and the Republic of Iceland have agreed to additional bilateral trade preferences concerning agricultural products, with due consideration to the respective agricultural policies and circumstances, including the evolution of the bilateral trade and trade with other partners.

I hereby confirm that the results of the negotiations were as follows:

1. From 1 March 2007, the European Community and the Republic of Iceland will reciprocally consolidate at bilateral level the existing zero duty lines, be it applied duties or existing concessions, and, if not already at zero level, to reciprocally eliminate duties on bilateral imports, for all products originating in the parties, which are listed in Annex I.

2. From 1 March 2007, the European Community will provide tariff quotas on imports into the Community of products originating in Iceland, which are listed in Annex II.

3. From 1 March 2007, the Republic of Iceland will provide tariff quotas on imports into Iceland of products originating in the Community, which are listed in Annex III.

4. From 1 March 2007 the Republic of Iceland will grant the European Community the preferential tariffs listed in Annex IV.

These bilateral concessions replace and consolidate all existing bilateral concessions in agricultural products that are currently in force, in application of Article 19 of the Agreement on the European Economic Area [1].

5. The Republic of Iceland agrees to end its unilateral and temporary erga omnes reductions in applied tariffs on agricultural products put in place in 2002 and prolonged so far on a yearly basis.

6. The provisions of Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland [2] concerning the definition of the concept of "originating products" and methods of cooperation shall apply mutatis mutandis to the products mentioned in Annexes I, II, III and IV.

7. The Parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other restrictive import measures.

8. The Parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported.

9. The Parties agree to strive for promoting trade of eco-friendly products and products with a geographical indication. The Parties agree to engage in further bilateral discussion with a view to better understanding respective legislation and registration procedures, in order to identify ways to enhance the protection of geographical indications in the territories of both Parties.

10. The Parties agree to exchange at regular intervals information on traded products, tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of the results of these negotiations.

11. Consultations will be held at the request of either party on any question relating to the implementation of the results of these negotiations. In case of difficulty in the implementation of the results of these negotiations, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

12. The first consultations relating to the results of these negotiations will be held before those implementing arrangements are put in place, with a view to facilitating the smooth implementation of these negotiations.

13. The results of these negotiations will be implemented as from 1 March 2007 [3]. Where necessary, tariff quotas will be opened on a pro-rata basis.

14. The Parties agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years' time, with particular consideration to the outcome of the WTO negotiation process in agriculture.

I have the honour to confirm that the European Community is in agreement with the contents of this letter.

I should be obliged if you would confirm that the Government of the Republic of Iceland is in agreement with the above.

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

Съставено в Брюксел на двадесет и втори февруари две хиляди и седма година

Hecho en Bruselas, el veintidós de febrero del dos mil siete.

V Bruselu dne dvacátého druhého února dva tisíce sedm.

Udfærdiget i Bruxelles den toogtyvende februar to tusind og syv.

Geschehen zu Brüssel am zweiundzwanzigsten Februar zweitausendsieben.

Kahe tuhande kuuenda aasta veebruarikuu kaheteistkümnendal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις είκοσι δύο Φεβρουαρίου δύο χιλιάδες επτά.

Done at Brussels, on the twenty-second day of February in the Year two thousand and seven.

Fait à Bruxelles, le vingt-deux février deux mille sept.

Fatto a Bruxelles, addì ventidue febbraio duemilasette.

Briselē, divtūkstoš septītā gada divdesmit otrajā februārī.

Priimta du tūkstančiai septintų metų vasario dvidešimt antrą dieną Briuselyje.

Kelt Brüsszelben, a kettőezer hetedik év február huszonkettedik napján.

Magħmul fi Brussel, fit- tnejn u għoxrin jum ta' Frart tas-sena elfejn u sebgħa

Gedaan te Brussel, de tweeëntwintigste februari tweeduizend zeven.

Sporządzono w Brukseli, dnia dwudziestego drugiego lutego roku dwa tysiące siódmego.

Feito em Bruxelas, em vinte e dois de Fevereiro de dois mil e sete.

Întocmit la Bruxelles, douăzeci și doi februarie două mii șapte.

V Bruseli dňa dvadsiateho druhého februára dvetisícsedem.

V Bruslju, dvaindvajsetega februarja leta dva tisoč sedem.

Tehty Brysselissä kahdentenakymmenentenätoisena päivänä helmikuuta vuonna kaksituhattaseitsemän.

Som skedde i Bryssel den tjugoandra februari tjugohundrasju.

За Европейската общност

Por la Comunidad Europea

Za Evropské společenství

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Eiropas Kopienas vārdā

Europos bendrijos vardu

az Európai Közösség részéről

Għall-Kominità Ewropea

Voor de Europese Gemeenschap

W imieniu Wspólnoty Europejskiej

Pela Communidade Europeia

Pentru Comunitatea Europeană

Za Európske spoločenstvo

za Evropsko skupnost

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

+++++ TIFF +++++

ANNEX I

Bilateral trade in products of the following chapters or parts of chapters is freed:

ex Chapter 1, Live animals:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

0101 | Live horses, asses, mules and hinnies | 0101 | Live horses, asses, mules and hinnies |

ex Chapter 2, Meat and edible meat offal:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

ex 0208.9008 | carcasses and half-carcasses of reindeer meat, frozen | ex02089060 | carcasses and half-carcasses of reindeer meat, frozen |

ex Chapter 4, Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

0409 | Natural honey | 04090000 | Natural honey |

0410 | Edible products of animal origin, not elsewhere specified or included | 04100000 | Edible products of animal origin, not elsewhere specified or included |

Chapter 5 [1], Products of animal origin, not elsewhere specified or included |

ex Chapter 6, Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage:

Icelandic Code | Icelandic description of products | CN Code | CN Description of products |

0601 | Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of heading 1212 | 0601 | Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of heading 1212 |

ex 0602 | Other live plants (including their roots), cuttings and slips; mushroom spawn: | ex0602 | Other live plants (including their roots), cuttings and slips; mushroom spawn: |

- Other than other potted indoor plants not exceeding 1 m in height (tariff heading 0602.9095) | ex06029091 ex06029099 | Other indoor plants, other than cacti and thickleaves, potted plants of the genus Bromelia, the plants Erica gracilis and calluna, orchids and other potted plants not exceeding 1 m in height |

ex 0603 | Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared: | ex0603 | Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared: |

0603.1001 | - - Imported from 1 December to 30 April | ex06031020 | Carnations, fresh, other than imported from 1 May to 30 November |

0603.1003 | - Of the genera Protea, Banksis, Leucadendron and Brunia | 06031030 | Orchids |

ex06031080 | Fresh flowers of the genera Protea, Banksia, Leucadendron, Brunia and Forsythia |

0603.1004 | - Cut branches with berries or fruit on, not edible, of the genera: Ligustrum, Callicarpa, Gossypium, Hypericum, Ilex or Symphoricarpos | | |

0603.1005 | - Flowers of Orchids | | |

0603.1006 | - Forsythia | | |

0603.9000 | - Other | 06039000 | Other |

0604 | Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared | 0604 | Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared |

ex Chapter 7, Edible vegetables and certain roots and tubers:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

0702 | Tomatoes, fresh or chilled | 07020000 | Tomatoes, fresh or chilled |

ex 0703 | Onions, shallots, garlic and other alliaceous vegetables, fresh or chilled | ex0703 | Onions, shallots, garlic and other alliaceous vegetables, fresh or chilled |

ex 0704 | Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled: | ex0704 | Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled: |

0704.2000 | - Brussels sprouts | 07042000 | Brussels sprouts |

0704.9005 | - - Curly kale (brassica oleracea acepjala) | ex07049090 | Other, excluding Chinese cabbage |

0704.9009 | - - Other | |

0705 | Lettuce (lactuca sativa) and chicory (Cichorium spp.), fresh or chilled: | 0705 | Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled |

ex 0706 | Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled: | ex0706 | Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled: |

0706.9009 | - Other | 070690 | Other |

0707 | Cucumbers and gherkins, fresh or chilled: | 0707 | Cucumbers and gherkins, fresh or chilled |

0708 | Leguminous vegetables, shelled or unshelled, fresh or chilled | 0708 | Leguminous vegetables, shelled or unshelled, fresh or chilled |

ex 0709 | Other vegetables, fresh or chilled | ex0709 | Other vegetables, fresh or chilled: |

0709.10 | - Globe artichokes, fresh or chilled | 07091000 | Globe artichokes |

0709.20 | - Asparagus, fresh or chilled | 07092000 | Asparagus |

0709.30 | - Aubergines (eggplants) | 07093000 | Aubergines (eggplants) |

0709.52 | - - Truffles, fresh or chilled | 07095200 | Truffles |

0709.60 | - Fruits of the genus Capsicum or of the genus Pimenta | 070960 | Fruits of the genus Capsicum or of the genus Pimenta |

0709.70 | - Spinach, N-Z spinach and orache spinach (garden spinach), fresh or chilled | 07097000 | Spinach, New Zealand spinach and orache spinach (garden spinach) |

0709.9001 | - - Sweet corn | 07099060 | Sweet corn |

0709.9002 | - - Courgettes | 07099070 | Courgettes |

0709.9003 | - - Olives | | Olives: |

07099031 | - For uses other than the production of oil |

07099039 | - Other |

0709.9004 | - - Parsley (percille) | 07099090 | Other |

0709.9009 | - - Other |

ex 0710 [1] | Vegetables (uncooked or cooked by steaming or boiling in water), frozen: | ex0710 [1] | Vegetables (uncooked or cooked by steaming or boiling in water), frozen: |

| Other than potatoes | 07102100 | Peas (Pisum sativum) |

07102200 | Beans (Vigna spp., Phaseolus spp.) |

07102900 | Other |

07103000 | Spinach, New Zealand spinach and orache spinach (garden spinach) |

07104000 | Sweetcorn |

071080 | Other vegetables |

07109000 | Mixtures of vegetables |

0711 [1] | Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption | 0711 [1] | Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption |

0712 | Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared | 0712 | Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared |

0713 | Dried leguminous vegetables, shelled, whether or not skinned or split | 0713 | Dried leguminous vegetables, shelled, whether or not skinned or split |

0714 | Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith | 0714 | Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith |

Chapter 8, Edible fruit and nuts; peel of citrus fruit or melons |

Chapter 9 [1], Coffee, tea, maté and spices |

Chapter 10 [2], Cereals |

Chapter 11 [2], Products of the milling industry; malt; starches; inulin; wheat gluten |

Chapter 12 [2], Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder |

Chapter 13 [1], Lac; gums, resins and other vegetable saps and extracts |

Chapter 14 [1], Vegetable plaiting materials; vegetable products not elsewhere specified or included |

Chapter 15 [1] [3], Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes |

ex Chapter 18 [1], Cocoa and cocoa preparations:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

1801 | Cocoa beans, whole or broken, raw or roasted | 1801 | Cocoa beans, whole or broken, raw or roasted |

1802 | Cocoa shells, husks, skins and other cocoa waste | 1802 | Cocoa shells, husks, skins and other cocoa waste |

ex Chapter 20, Preparations of vegetables, fruit, nuts or other parts of plants:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

ex 2001 [1] | Vegetable, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: | ex2001 [1] | Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: |

2001.1000 | - Cucumbers and gherkins | 20011000 | Cucumbers and gherkins |

- Other | 200190 | Other |

2001.9005 | - - Onion | 20019093 | Onions |

2001.9009 | - - Other | 20019099 | Other, excluding potatoes and products thereof |

2002 | Tomatoes prepared or preserved otherwise than by vinegar or acetic acid | 2002 | Tomatoes prepared or preserved otherwise than by vinegar or acetic acid |

2003 | Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid | 2003 | Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid |

2004 [1] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen: | 2004 [1] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006: |

2004.9002 | - - Globe artichokes | ex20049098 | Globe artichokes |

2004.9003 | - - Green or black olives | ex20049030 | Green or black olives |

2004.9004 | - - Green peas and beans | 20049050 | Peas (Pisum sativum) and immature beans of the species Phaseolus spp., in pod |

2004.9005 | - - Preparations with a basis of flours of leguminous plants | ex20049098 | Preparations with a basis of flours of leguminous plants |

2004.9009 | - - Other | ex20049098 | Other, excluding products containing meat in a proportion of 3 % up to and including 20 % by weight |

2005 [1] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen: | 2005 [1] | Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006: |

2005.1000 | - Homogenised vegetables | 20051000 | Homogenised vegetables |

2005.4000 | - Peas (Pisum sativum) | 20054000 | Peas (Pisum sativum) |

- Beans (Vigna spp., Phaseolus spp.): | Beans (Vigna spp., Phaseolus spp.): |

2005.5100 | - Beans, shelled | 20055100 | Beans, shelled |

2005.5900 | - - Other | 20055900 | Other |

2005.6000 | - Asparagus | 20056000 | Asparagus |

2005.7000 | - Olives | 200570 | Olives |

- Other vegetables and mixtures of vegetables: | 200590 | Other vegetables and mixtures of vegetables: |

2005.9009 | - Other | ex20059080 | Other, excluding products containing meat in a proportion of 3 % up to and including 20 % by weight |

2008 [1] | Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included | 2008 [1] | Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included |

2009 | Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter | 2009 | Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter |

ex Chapter 22, Beverages, spirits and vinegar:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

2201 | Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow | 2201 | Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow |

2204 | Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 | 2204 | Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 |

ex Chapter 23, residues and waste from the food industries; prepared animal fodder:

Icelandic Code | Icelandic Description of products | CN Code | CN Description of products |

ex 2309 | Preparations of a kind used in animal feeding: | ex2309 | Preparations of a kind used in animal feeding: |

ex 2309.1000 | - Dog or cat food, put up for retail sale, containing no starch or containing not more than 30 % by weight of starch and containing no milk products or containing less than 10 % by weight of such products | 23091011 23091031 | Dog or cat food, put up for retail sale, containing no starch or containing not more than 30 % by weight of starch and containing no milk products or containing less than 10 % by weight of such products |

Chapter 24 [1], Tobacco and manufactured tobacco substitutes |

ANNEX II

Tariff quotas granted by the European Community

The European Community will open the following annual tariff quota for the following products originating in Iceland [1]

CN custom tariff heading | Description of products | Annual quantity | Rate of duty |

ex0204 | meat of sheep, fresh, chilled or frozen sheepmeat, smoked | 1850 tons (net weight) | 0 |

ex0210 | 0 |

ex0405 | natural butter | 350 tons (net weight) | 0 |

ex0403 [2] | "Skyr" | 380 tons (net weight) | 0 |

ex1601 | sausages | 100 tons (net weight) | 0 |

ANNEX III

Tariff quotas granted by Iceland

Iceland will open the following annual tariff quotas for the following products originating in the European Community [1]

Icelandic custom tariff heading | Description of products | Annual quantity | Rate of duty |

0201 and 0202 | meat of bovine animals, fresh, chilled or frozen | 100 tons (net weight) | 0 |

0203 | meat of swine, fresh, chilled or frozen | 200 tons (net weight) | 0 |

0207 | meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen | 200 tons (net weight) | 0 |

0208.9003 | ptarmigans, frozen | 20 tons (net weight) | 0 |

ex 0210 | meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat offal; with protected designation of origin or protection geographical indication [2] | 50 tons (net weight) | 0 |

ex 0406 | cheese with protected designation of origin or protection geographical indication [2] | 20 tons (net drained weight) | 0 |

0406 | cheese | 80 tons (net drained weight) | 0 |

0701.9001 | potatoes, fresh or chilled, with a minimal length of 65 mm | 100 tons (net weight) | 0 |

ex 1601 | sausages | 50 tons (net weight) | 0 |

1602 | other prepared or preserved meat, meat offal or blood | 50 tons (net weight) | 0 |

ANNEX IV

Tariff concessions granted by Iceland

Iceland will grant the following preferential tariffs for products originating in the European Community:

| % | ISK/kg |

0201 | | Meat of bovine animals, fresh or chilled: | | |

0201.1000 | - | Carcasses and half-carcasses | 18 | 214 |

| - | Other cuts with bone in: | | |

0201.2001 | - | Loins and cuts thereof | 18 | 422 |

0201.2002 | - | Round and cuts thereof | 18 | 300 |

0201.2003 | - | Shoulders and cuts thereof | 18 | 189 |

0201.2009 | - | Other | 18 | 189 |

| - | Boneless: | | |

0201.3001 | - | Minced | 18 | 306 |

0201.3002 | - | Tenderloin | 18 | 877 |

0201.3003 | - | Top loin | 18 | 652 |

0201.3004 | - | Round | 18 | 608 |

0201.3009 | - | Other | 18 | 359 |

0202 | | Meat of bovine animals, frozen: | | |

0202.1000 | - | Carcasses and half-carcasses | 18 | 214 |

| - | Other cuts with bone in: | | |

0202.1001 | - | Loins and cuts thereof | 18 | 422 |

0202.1002 | - | Round and cuts thereof | 18 | 300 |

0202.1003 | - | Shoulders and cuts thereof | 18 | 189 |

0202.1009 | - | Other | 18 | 189 |

| - | Boneless: | | |

0202.3001 | - | Minced | 18 | 306 |

0202.3002 | - | Tenderloin | 18 | 877 |

0202.3003 | - | Top loin | 18 | 652 |

0202.3004 | - | Round | 18 | 608 |

0202.3009 | - | Other | 18 | 359 |

0203 | | Meat of swine, fresh, chilled or frozen: | | |

| - | Fresh or chilled: | | |

0203.1100 | - | Carcasses and half-carcasses | 18 | 217 |

| - | Hams, shoulders and cuts thereof, with bone in: | | |

0203.1201 | - | Round and cuts thereof | 18 | 302 |

0203.1209 | - | Shoulders and cuts thereof | 18 | 278 |

| - | Other: | | |

| - | With bone: | | |

0203.1901 | - | Loins and cuts thereof | 18 | 465 |

0203.1902 | - | Other | 18 | 217 |

| - | Boneless: | | |

0203.1903 | - | Minced | 18 | 274 |

0203.1904 | - | Tenderloin | 18 | 717 |

0203.1905 | - | Top loin | 18 | 664 |

0203.1906 | - | Round | 18 | 613 |

0203.1909 | - | Other: | 18 | 274 |

| - | Frozen: | | |

0203.2100 | - | Carcasses and half-carcasses | 18 | 217 |

| - | Hams, shoulders and cuts thereof, with bone in: | | |

0203.2201 | - | Round and cuts thereof | 18 | 302 |

0203.2209 | - | Shoulders and cuts thereof | 18 | 278 |

| - | Other: | | |

| - | With bone: | | |

0203.2901 | - | Loins and cuts thereof | 18 | 465 |

0203.2902 | - | Other | 18 | 217 |

| - | Boneless: | | |

0203.2903 | - | Minced | 18 | 274 |

0203.2904 | - | Tenderloin | 18 | 717 |

0203.2905 | - | Top loin | 18 | 664 |

0203.2906 | - | Round | 18 | 613 |

0203.2909 | - | Other | 18 | 274 |

0204 | | Meat of sheep or goats, fresh, chilled or frozen: | | |

0204.1000 | - | Carcasses and half-carcasses of lamb, fresh or chilled | 18 | 164 |

| - | Other meat of sheep, fresh or chilled: | | |

0204.2100 | - | Carcasses and half-carcasses | 18 | 164 |

| - | Other cuts with bone in: | | |

0204.2201 | - | Loins and cuts thereof | 18 | 229 |

0204.2202 | - | Round and cuts thereof | 18 | 229 |

0204.2203 | - | Shoulders and cuts thereof | 18 | 145 |

0204.2209 | - | Other | 18 | 145 |

| - | Boneless: | | |

0204.2301 | - | Minced | 18 | 234 |

0204.2302 | - | Tenderloin | 18 | 568 |

0204.2303 | - | Top loin | 18 | 530 |

0204.2304 | - | Round | 18 | 530 |

0204.2309 | - | Other | 18 | 234 |

0204.3000 | - | Carcasses and half-carcasses of lamb, frozen | 18 | 164 |

| - | Other meat of sheep, frozen: | | |

0204.4100 | - | Carcasses and half-carcasses | 18 | 164 |

| - | Other cuts with bone in: | 0 | 0 |

0204.4201 | - | Loins and cuts thereof | 18 | 229 |

0204.4202 | - | Round and cuts thereof | 18 | 229 |

0204.4203 | - | Shoulders and cuts thereof | 18 | 145 |

0204.4209 | - | Other | 18 | 145 |

| - | Boneless: | | |

0204.4301 | - | Minced | 18 | 234 |

0204.4302 | - | Tenderloin | 18 | 568 |

0204.4303 | - | Top loin | 18 | 530 |

0204.4304 | - | Round | 18 | 530 |

0204.4309 | - | Other | 18 | 234 |

0204.5000 | - | Meat of goats | 18 | 229 |

0205 | 0205.0000 | Meat of horses, asses, mules or hinnies, fresh, chilled or frozen | 18 | 154 |

0206 | | Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen: | | |

0206.1000 | - | Of bovine animals, fresh or chilled | 18 | 253 |

| - | Of bovine animals, frozen: | | |

0206.2100 | - | Tongues | 18 | 253 |

0206.2200 | - | Livers | 18 | 146 |

0206.2900 | - | Other | 18 | 210 |

0206.3000 | - | Of swine, fresh or chilled | 18 | 121 |

| - | Of swine, frozen: | | |

0206.4100 | - | Livers | 18 | 121 |

0206.4900 | - | Other | 18 | 121 |

| - | Other, fresh or chilled: | | |

0206.8001 | - | Sheep heads | 18 | 130 |

0206.8009 | - | Other | 18 | 130 |

| - | Other, frozen: | | |

0206.9001 | - | Sheep heads | 18 | 130 |

0206.9009 | - | Other | 18 | 130 |

0207 | | Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen: | | |

| - | Of fowls of the species Gallus domesticus: | | |

0207.1100 | - | Not cut in pieces, fresh or chilled | 18 | 362 |

0207.1200 | - | Not cut in pieces, frozen | 18 | 263 |

| - | Cuts and offal, fresh or chilled: | | |

0207.1301 | - | Boneless | 18 | 299 |

0207.1302 | - | Liver | 18 | 299 |

0207.1309 | - | Other | 18 | 299 |

| - | Cuts and offal, frozen: | | |

0207.1401 | - | Boneless | 18 | 540 |

0207.1402 | - | Liver | 12 | 299 |

0207.1409 | - | Other | 18 | 263 |

| - | Of turkeys: | | |

0207.2400 | - | Not cut in pieces, fresh or chilled | 18 | 362 |

0207.2500 | - | Not cut in pieces, frozen | 18 | 362 |

| - | Cuts and offal, fresh or chilled: | | |

0207.2601 | - | Boneless | 18 | 299 |

0207.2602 | - | Liver | 18 | 299 |

0207.2609 | - | Other | 18 | 299 |

| - | Cuts and offal, frozen: | | |

0207.2701 | - | Boneless | 18 | 600 |

0207.2702 | - | Liver | 12 | 299 |

0207.2709 | - | Other | 18 | 362 |

| - | Of ducks, geese or guinea fowls: | | |

0207.3200 | - | Not cut in pieces, fresh or chilled | 18 | 362 |

0207.3300 | - | Not cut in pieces, frozen | 18 | 362 |

0207.3400 | - | Fatty livers, fresh or chilled | 18 | 154 |

| - | Other, fresh or chilled: | | |

0207.3501 | - | Boneless | 18 | 299 |

0207.3502 | - | Liver | 18 | 299 |

0207.3509 | - | Other | 18 | 299 |

| - | Other, frozen: | | |

0207.3601 | - | Boneless | 18 | 600 |

0207.3602 | - | Liver | 12 | 299 |

0207.3609 | - | Other | 18 | 362 |

0208 | | Other meat and edible meat offal, fresh, chilled or frozen: | | |

0208.1000 | - | Of rabbits or hares | 18 | 236 |

| - | Other: | | |

0208.9001 | - | Pigeons | 18 | 218 |

0208.9002 | - | Pheasants | 18 | 218 |

0208.9003 | - | Ptarmigans, frozen | 18 | 268 |

0208.9004 | - | Deer | 18 | 218 |

0208.9007 | - | Boneless reindeer meat, frozen | 18 | 608 |

0208.9008 | - | Reindeer meat with bone, frozen [1] | 18 | 608 |

0208.9009 | - | Frogs' legs | 18 | 236 |

0208.9019 | - | Other | 18 | 218 |

0209 | 0209.0000 | Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked | 18 | 60 |

0210 | | Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal: | | |

| - | Meat of swine: | | |

0210.1100 | - | Hams, shoulders and cuts thereof, with bone in | 18 | 302 |

0210.1200 | - | Bellies (streaky) and cuts thereof | 18 | 217 |

| - | Other: | | |

| - | Smoked: | | |

0210.1901 | - | Boneless | 30 | 447 |

0210.1902 | - | Other | 18 | 717 |

0210.1909 | - | Other | 18 | 465 |

| - | Meat of bovine animals: | | |

0210.2001 | - | Boneless | 18 | 877 |

0210.2009 | - | Other | 18 | 422 |

| - | Other: | | |

0210.9910 | - | Poultry liver, dried or smoked | 18 | 299 |

| - | Sheep meat, salted: | | |

0210.9921 | - | Boneless | 18 | 568 |

0210.9929 | - | Other | 18 | 270 |

| - | Sheep meat, smoked (hangikjöt): | | |

0210.9931 | - | Boneless | 18 | 568 |

0210.9939 | - | Other | 18 | 270 |

0210.9990 | - | Other | 30 | 363 |

B. Letter from the Republic of Iceland

Reykjavik,

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 trade negotiations between the European Community and the Republic of Iceland on agricultural products, held from 6 March 2005 to 14 December 2006, undertaken on the basis of Article 19 of the Agreement on the European Economic Area.

With the aim of fostering a harmonious development of trade between the Parties, the European Community and the Republic of Iceland have agreed to additional bilateral trade preferences concerning agricultural products, with due consideration to the respective agricultural policies and circumstances, including the evolution of the bilateral trade and trade with other partners.

I hereby confirm that the results of the negotiations were as follows:

1. From 1 March 2007, the European Community and the Republic of Iceland will reciprocally consolidate at bilateral level the existing zero duty lines, be it applied duties or existing concessions, and, if not already at zero level, to reciprocally eliminate duties on bilateral imports, for all products originating in the parties, which are listed in Annex I.

2. From 1 March 2007, the European Community will provide tariff quotas on imports into the Community of products originating in Iceland, which are listed in Annex II.

3. From 1 March 2007, the Republic of Iceland will provide tariff quotas on imports into Iceland of products originating in the Community, which are listed in Annex III.

4. From 1 March 2007 the Republic of Iceland will grant the European Community the preferential tariff listed in Annex IV.

These bilateral concessions replace and consolidate all existing bilateral concessions in agricultural products that are currently in force, in application of Article 19 of the Agreement on the European Economic Area [4].

5. The Republic of Iceland agrees to end its unilateral and temporary erga omnes reductions in applied tariffs on agricultural products put in place in 2002 and prolonged so far on a yearly basis.

6. The provisions of Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland [5] concerning the definition of the concept of "originating products" and methods of cooperation shall apply mutatis mutandis to the products mentioned in Annexes I, II, III and IV.

7. The Parties will take steps to ensure that the benefits, which they grant each other, will not be jeopardised by other restrictive import measures.

8. The Parties agree to take the necessary steps in order to ensure that tariff quotas will be managed in such a way that imports may take place regularly and that the quantities agreed for import can effectively be imported.

9. The Parties agree to strive for promoting trade of eco-friendly products and products with a geographical indication. The Parties agree to engage in further bilateral discussion with a view to better understanding respective legislation and registration procedures, in order to identify ways to enhance the protection of geographical indications in the territories of both Parties.

10. The Parties agree to exchange at regular intervals information on traded products, tariff quota management, price quotations and any useful information concerning the respective domestic markets and the implementation of the results of these negotiations.

11. Consultations will be held at the request of either party on any question relating to the implementation of the results of these negotiations. In case of difficulty in the implementation of the results of these negotiations, these consultations will be held as promptly as possible, with a view to the adoption of appropriate corrective measures.

12. The first consultations relating to the results of these negotiations will be held before those implementing arrangements are put in place, with a view to facilitating the smooth implementation of these negotiations.

13. The results of these negotiations will be implemented as from 1 March 2007 [6]. Where necessary, tariff quotas will be opened on a pro-rata basis.

14. The Parties agree to resume bilateral negotiations in the framework of Article 19 of the Agreement on the European Economic Area in two years' time, with particular consideration to the outcome of the WTO negotiation process in agriculture.

I have the honour to confirm that the European Community is in agreement with the contents of this letter.

I should be obliged if you would confirm that the Government of the Republic of Iceland is in agreement with the above.".

I have the honour to confirm that the Government of the Republic of Iceland is in agreement with the content of your letter.

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

Done at Brussels, on the twenty-second day of February in the Year two thousand and seven.

Съставено в Брюксел на двадесет и втори февруари две хиляди и седма година

Hecho en Bruselas, el veintidós de febrero del dos mil siete.

V Bruselu dne dvacátého druhého února dva tisíce sedm.

Udfærdiget i Bruxelles den toogtyvende februar to tusind og syv.

Geschehen zu Brüssel am zweiundzwanzigsten Februar zweitausendsieben.

Kahe tuhande kuuenda aasta veebruarikuu kaheteistkümnendal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις είκοσι δύο Φεβρουαρίου δύο χιλιάδες επτά.

Fait à Bruxelles, le vingt-deux février deux mille sept.

Fatto a Bruxelles, addì ventidue febbraio duemilasette.

Briselē, divtūkstoš septītā gada divdesmit otrajā februārī.

Priimta du tūkstančiai septintų metų vasario dvidešimt antrą dieną Briuselyje.

Kelt Brüsszelben, a kettőezer hetedik év február huszonkettedik napján.

Magħmul fi Brussel, fit- tnejn u għoxrin jum ta' Frart tas-sena elfejn u sebgħa

Gedaan te Brussel, de tweeëntwintigste februari tweeduizend zeven.

Sporządzono w Brukseli, dnia dwudziestego drugiego lutego roku dwa tysiące siódmego.

Feito em Bruxelas, em vinte e dois de Fevereiro de dois mil e sete.

Întocmit la Bruxelles, douăzeci și doi februarie două mii șapte.

V Bruseli dňa dvadsiateho druhého februára dvetisícsedem.

V Bruslju, dvaindvajsetega februarja leta dva tisoč sedem.

Tehty Brysselissä kahdentenakymmenentenätoisena päivänä helmikuuta vuonna kaksituhattaseitsemän.

Som skedde i Bryssel den tjugoandra februari tjugohundrasju.

For the Government of the Republic of Iceland

За правителството на Република Исландия

Por el Gobierno de la República de Islandia

Za vládu Islandské republiky

For regeringen for Republikken Island

Für die Regierung der Republik Island

Islandi Vabariigi Valitsuse nimel

Για την Κυβέρνηση της Δημοκρατίας της Ισλανδίας

Pour le gouvernement de la République d'Islande

Per il governo della Repubblica d'Islanda

Islandes Republikas valdības vārdā

Islandijos Respublikos Vyriausybės vardu

az Izlandi Köztársaság Kormánya részéről

Għall-Gvern tar-Repubblika ta' l-Islanda

Voor de Regering van de Republiek IJsland

W imieniu Rządu Republiki Islandii

Pelo Governo da República da Islândia

Pentru Guvernul Republicii Islanda

Za vládu Islandskej republiky

Za Vlado Republike Islandije

Islannin rasavallan hallituksen puolesta

På Republiken Islands regerings vägnar

+++++ TIFF +++++

[1] Council Decision 81/359/EEC of 28 April 1981 (OJ L 137, 23.5.1981, p. 1).Council Decision 93/239/EEC of 15 March 1993 (OJ L 109, 1.5.1993, p. 1).Council Decision 93/736/EC of 13 December 1993 (OJ L 346, 31.12.1993, p. 16).Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

[2] Decision No 2/2005 of the EC-Iceland Joint Committee of 22 December 2005 (OJ L 131, 18.5.2006, p. 1).

[3] The opening of the EC tariff quotas will be made as from 1 July, on the basis of nine months quantities for 2007.

[1] Other than products covered by Protocol 3 to the Agreement on the European Economic Area.

[2] Other than for animal feeding.

[3] Other than fish product.

[*] the quotas shall apply annually unless otherwise specified.

[**] custom code subject to modification, pending confirmation of classification of the product

[*] the quotas shall apply annually unless otherwise specified.

[**] registered under Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs (OJ L 93, 31.3.2006, p. 12).

[1] Tariff concession for products not already covered by the duty free concession granted in Annex I for ex 0208.9008 "carcasses and half-carcasses of reindeer meat, frozen".

[4] Council Decision 81/359/EEC of 28 April 1981 (OJ L 137, 23.5.1981, p. 1).Council Decision 93/239/EEC of 15 March 1993 (OJ L 109, 1.5.1993, p. 1).Council Decision 93/736/EC of 13 December 1993 (OJ L 346, 31.12.1993, p. 16).Council Decision 95/582/EC of 20 December 1995 (OJ L 327, 30.12.1995, p. 17).

[5] Decision No 2/2005 of the EC-Iceland Joint Committee of 22 December 2005 (OJ L 131, 18.5.2006, p. 1).

[6] The opening of the EC tariff quotas will be made as from 1 July, on the basis of nine months quantities for 2007.

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