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COM (74) 1841

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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning the opening to the public of the historical archives of the European Economic Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this file have been declassified in conformity with Article 5 of the aforementioned regulation. In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar 1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003 (ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben. Γη^/^/ΠΓΓ^ϊΠΜ OFΟΡ 7ΉΠΠTHE EUROPEANΕΥΤ&ΟΡΕΑΝ' COMMUNITIESαΟΜΤΛΉΝ^Ύί^

COM(74)1841 final Brussels . 13 November 1974

COMMISSION COMMUNICATION TO THE COUNCIL

Consultations with Spain , under Article XIX o? GATT , on the subject of certain cheeses

Recommendation for Council Regulation on the conclusion of an agreement with Spain on the subject of certain cheeses

( submitted to the Council by the Commission )

COM ( 74 ) 1841 final 1/2^7/7^-F

COMMISSION COMMUWICATIOH TO THE COUNCIL

Consultations with Spain , under Article XIX of GATT , on the subject of certain cheeses .

The Commission hereby presents to the Council :

1 . A report on the consultations which it has held with Spain ( Annex I ). 2 . A recommendation for a Council regulation on the conclusion of the Agreement negotiated with Spain following the consultations ( Annex II ).

The Commission recommends that the Council conclude this Agreement . I/2^7/7^-F

. REPORT .

Results of the consultations between Spam and the EEC on the subject of ^ certain cheeses '

1 . At Spain 's request , consultations were held on 10 and 11 June 197 ^ and on 1 and 2 July 1*97^ in Geneva under Article 8 of the Agreement concluded on 5 tfune 1970 between the EEC and Spain . Spain made requests for the following : ( a ) An across- the - board, increase in the threshold prices of : - 20 pesetas per kg ( 27 u.a . per 100 kg ) for processed cheeses ; 25 pesetas per kg ( J1 u.a . per 100 kg ) for other cheeses ; , - i and «, proportional increase in the - specific customs duties and , • the pripes tc> be observed free at Spanish frontier . - - As grounds for this request the Spanish Delegation cited the ave- i - i increase in, - the price of milk of rpore than 16. $ since 1972- : f, r ( date of thfe last adjustment ) and the appreciable increase in j processing , costs , wages , and energy and transport costs o-ver the >v ; x , last few yearjs . * . -j • .•> • •• .. . j . .. ■* 1 l ;- ( b ) The introduction of a threshold price for blue-veined cheese , to be written into the Agreement , at the threshold " price leveli laid .. down for the group comprising . Edam , Gouda , etc . - , ' : The Spanish Delegation maintained that this was necessary in view * of the si2eablie increase in recent months of imports of cheeses ' from certain third countries at very low prices . The Spanish Delegation took the view that to extend the arrangements adopted for the other . cheeses dealt with . in the Agreement to include this class of cheeses would be the most appropriate way of avoiding- disturbances of the internal market .

2 . The Commission Delegation took this opportunity of reminding the v Spanish Delegation of' the it&portance witich the Community attached to finding solutions to a number of problems resulting from the imple~ ' mentation of the said agreement , particularly in connection with the following - -

• • •/ • - 2 - I/2^7/74-F

{ ( k ) The recognition , by the Spanish^ aj^tljQrities , of the bodies issuing the certificates for the new Member States . For goods to be admitted into~Spaitt at the'flxed regulatory duty , '& ■ certificate issued by an approved body must be presented to the Spa­ nish customs . Since the accession of the new Member jStates , the .<.■ relevant bodies in those States have not yet been recognized in res­ pect of the cheeses listed in the Agreement . ( b ) The conversion of the % ad valorem duty into a specific duty not exceeding ^5 % of the price to be observed free at Spanish frontier before customs clearance , for cheeses in the group comprizing jSdam , Gouda , etc . , Which come under the Spanish Customs Tariff subheading N° 0^.04 G I b ) 3v The Community exports to Spain cheeses of this type which have undergone a long maturing process and , which are there fore much more expensive than the cheeses for which the , minimum price is provided . ( c ) Inclusion of cheeses from the new Member States , i.e. ; " Danablu" , " Mycella and " Blue Stilton' ! under subheading l0k*0k $ 2 of the Spa­ , nish Customs Tariff , which will thus entitle them to 'the Special treatment given by Spain to imports of cheeses from the . Community .

. Resuit of the consultations ' . ■ , ■ , After the Management Committee for Mills .$nd Milk Products had carried out a technical examination and voted , on 27 June 197^» to reduce the export refunds in order to comply with the new free-at-Spanish- frentier prices , the Article 113 Committee declared itself to be in favour of concluding " J" ; v . .• t 5 f - *v A • ' * ' " * . the Agreement . ' The two Delegations have therefore reached agreement on . the following points (.which they have recprded in approved minutes - see Annex I ( a )) : ( a ) The new threshold prices , customs duties and prices to be observed free at Spanish frontier ( see Annex I ( c )). However , opinions still differ as to how the Agreement should be in­ terpreted with regard to revising the principles involved in the ; spe- ci'fic - customs duties' in lihe with the increase in the threshold price The' positions adopted by the two delegations are recorded in the approved minutes . I/247/74-F

( b ) The introduction of threshold prices fort the blue-veined cheeses of heading Ob . Ob C 2 of the Spanish Customs Tariff ( threshold price : 16 900.82 pesetas/100 kg;' price to be observed free at . Spanish fron­ tier before customs' clearance : 10 149 pesetas/100 kg ) and inclusion of Danablu , Mycella and Blue Stilton cheeses under this subheading . ( c ) The customs duty applicable to cheeses of the group comprizing Edam , Gouda , etc . will be modified to a specific duty which will not exceed b$ % of the price to be observed free at Spanish frontier before cus­ toms clearance .

( d ) The Spanish Government will recognize , as soon as possible , the of­ ficial Danish , Irish and United Kingdom bodies which will be entitled to issue certificates in accordance with the provisions of the Agree­ ment . b . Outstanding problems The two delegations reiterated the following requests : - The Commission Delegation requested that the Spanish Customs Tariff be amended as follows : i ) Saint-Marcellin : to be added to the of subheading Ob.Ob G I b ) M-; ii ) Other caascbert-type cheeses ( for example , the following trade marks Caprice des Dieux , Supreme des Dues , Petit Patre , Creme des Pres , Coeur de Normandie , etc .) 1 a definition to be inserted enabling these - cheeses to be included under heading Ob.Ob G I b ) b . - The Spanish Delegation requested that the EEC amend the Common Customs Tariff as follows : Addition to CCT heading Ob . Ob E I b ) of a special subheading for " man- chego " cfcsese exempt from any levy or subject to a reduced levy . The two Delegations agreed to give sympathetic consideration to these problems in order to find solutions as soon as possible . ■ ' if k. -• I/2k7/7k-t

5 * Commission Recommendation; * ' ' ' i ' " · -' · ♦ ···■ ( . _ ··. / ίΥ'ί' \· ',ΐλ' V ' ' ! " 'ί· · '.' -· " ν 1 "■■' : ··' ί' ■ '··· : - The . Commission recommends that the , Council conclude , under Article 113 of the Treaty , an exchange of fetters of which, drafts are given in . Annex I ( b ) and I ( c ). These drafts . fully . reflect.' the pQints of agree­ ment noted in the minutes approved by the two Delegations following the consultations . To this end , the Commission presehts the draft regula­ tion . set out in Annex II .

• .>• : M / f .-

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'ί . .! ·· I/247/74-F

( in Ptas/lOQ kg )

i Spanish i Price free | Thx'eshold Customs j Customs | Product ] at Spanish ; i; price duty j Tariff N° j! i frontier L_ , , I r ; : 1 ι i i 04.04 !! i i i i ! ! i i I ! Al al ! Whole Emmentaler I 17.533,29 3.500 j 11.700 ! I cheeses 1 I ι I j Al a2 | Whole Qnmentaler j ; ! 1 i ¡ cheeses iI 18.386,24 | 2.800 ] 13.100 | t i i Al bl ii Emmentaler pieces ji 18.789,42 !! 3.430 12.850 ! 1 I i 1 _ . , . I ί ΑΙ ΐ>2 ίi Emmentaler pieces 1i 19.667,34 I 2,700 ι ι S 14.300 ! . . I i Al cl i! Erjnentaler pieces ji 19.509,94 i 1 1 | 3.400 j 13.500 ! _ . . . 1 i Al c2 i 20,478,81 i1 2.700 ! 15.000 ! 1 Ennentaler pieces \ i 1 1 1 i A2 jr Evirnentaler_ . , , other 1j' 17.545,43 1| 45% |! . M ! I 1! , i i C2 j! Blue-veined cheeses i 16.900,82 45 i |j 10.144 i j DI a i1 Frecessed Emmentaler : ; i and b ¡1 cneete iI 16.909,66 3.460 11.200 j 1 1 « I ! D1 c Processes Bnmentaler i! I !1 1 1 i cheese |! 17.2&W51 Ij 3.590 ii 11.400 j > ]i !I j D2 a j Other processed i i , !i . i i cheese i 16.114,65 1i 45 $ i! 9.669 I ! 1r D2 b j Other processed ι i cheese | 16.518,2 I 45 i 9.913 ι · I ! Iι I D2 c Other processed jI j i cheese ji 16.912,61 45 % | 10.151 I D3 Other processed 1 cheese 19.672,00 i 45 i ( 1 ) 1 i G1 «*2 i Other ( except 18.897,80 1 ! Parmesan ) 45 $ j! ( 1 ) | I 1 I G1 bl ! Cheddar ! 17.200,00 [ 45 1° 10.325 1 G1 bl j Processed Cheddar ! 15.741,00 ! 45 % !! 9.443 i ! G1 b3 : Edam ( erga omnes ) 1 16.900,82 j (2)45$ ji IO.144 i j Edam ( EEC ) i 16.270,82 i (3)45 i iί 9.763 ί j G1 b3 j 1 I \ 1 * ! G1 b4 Soft cheese I - i 45 $ i I 1 I ! G1 b5 Other i 19.119,83 I 45 $ I ( 1 ) i 1 ' 1 j G1 c2 !! Freeh cheese i 19.119,83 45 i \ ( 1 ) i i C-2 ! Other : 19.119,83 ( 1 ) 1 i 45 $ \ l ) Vs.Tif.ble regulatory duty (2 ) Specific duty of 4.565 Ptas/lOO kg 3 ) Spécifie duty of 4 .393 Ptas/ 100 kg ï/zk7nb-?

...... • ;; . - ANNEX I ( a )

APPROVED MINUTES

Following fconsultations which vrere entered into at the request of the Spanish Delegation under the Agreement of 5 June 1970 between Spain and the EEC ,. the Spanish and EEC Delegations reached agreement on the following points , subject to the approval of their respective authorities .

!• Alteration of the threshold price applied by Spain to imports of cheeses . ' .< # .■ .* The alterations approved by the two Delegations are annexed hereto * The Community considered that its acceptance of the specific cus- • . ' S toms duties being raised in line with the increase in the threshold price would in "tio way prejudice the Agreement being interpreted to include a revision, of the principles involved' in the specific customs duties'laid down- -. in the Agreement . ' ; ' The Spanish Delegation stated that the Spanish authorities might alter the specific duties if the latter expressed as a percentage of the free- at- Spanish frontier price before customs clearance , did not exceed the percentages which resulted from the Agreement of 3 June 1970 .

2 . Blue-veined cheese Subheading Ok.Ok C 2 of the Spanish Customs Tariff was , once the regulation had been passed , to be amended as follows : v regulatory duty Customs Threshold price pesetas per duty . pesetas per 100 kg/net Weight 100 kg/net weight Ok.Ok C : Blue-veined cheese 2 : - , , Bleu d' Auvergne , Bleu de Bresse , Fourme d' Ambert , Saingorlon , Edelpilzkase , Bleu- *> ■ fort , , Bleu du Jura et de Septmoncel , Danablu , Mycel- la et Blue Stilton , which fulfil the conditions stipulated in Note 1 100 k5 % 16 900.82 - 2 - I/247/74-F ϊ The" price to be observed free at Spanish frontier before customs clearance was to be fixed at 10 144 pesetas/100 kg . ;^"i'v : V Cr' -'SY' Acceptance by the Community of a threshold price being introduced for blUe-veined cheeses of subheading 04.04 C 2 of the Spanish Customs Tariff would be conditional upon" the * cheeses Danablu , My6ella and Blue " Stiltbn being included under this subheading . Pending completion bf the necessary administrative formalities , the Community stated that it was prepared to apply the corresponding free - at - frontier price unilaterally . The reciprocal ., commitments included uniier - points 1 and 2 - were - to enter into force on 10 July 1974 subject to these threshold prices being ap­ plied, to . all countries . . ..." ,<■ ■ -,-v

3 . Cheeses' of the group comprizing Edam , Gouda , etc . ^ The- customs duty applicable, to the, prpducts qf Subheading 04v04 /G I b 3 of . .the Spanish Customs Tariff were to 4 be amended,' once: the regulation had been passed , so as not to exceed 4-5 % of the price to be ob^erv^d freer r at Spanish frontier before customs clearance . „ , ,,

The commitments to be intered into, under points . 1 . 2 and 3 were to,..,. ( be the subject of appropriate exchange of letters .

4 . The relevant authorities were to inform the Spanish Delegation of the official Danish , Irish and United Kingdom bodies which were to be entitled to issue certificates in accordance with the provisions of the EEC/Spain Agreement of 5 June 1970 . The Spanish Government was to recog­ nize the said . bodies as soon as possible .

However , recognition would - not be extended to cheeses imported un­ der preferential arrangements ( Edam , Gouda and similar cheeses of sub­ heading 04.04 G I b 3 ). ■ . <

The Spanish Authorities were to make every effort . t6 complete as soon as possible the procedures enabling points 3 and 4 to be applied . > - 1/2^7/7^-1·

5 . Outstanding problems The two Delegations reiterated the following requests : The Commission Delegation requested that the Spanish Customs Tariff be amended as follows :

i ) Saint-Marcellin : to be added to the list of cheeses of sub­ heading 0*!.0 ^ Gib ) b . ii ) Other -type cheeses ( for example , the following trade marks î Caprice des Dieux , Suprême des Ducs , Petit Pâtre , Creme des Prés , Coeur de Normandie , etc. ) : a définition to be inserted enabling « these cheeses to be included under heading 04.04- Gib ) k . The Spanish Delegation requested that the EEC amend the Common Customs Tariff as follows : Addition to CCT heading 0^.0 ^ E I b ) of a special subheading for " manchego " cheese exempt from any levy or subject to a reduced levy . The two delegations agreed to give sympathetic consideration to these problems in order to find solutions as soon as possible .

Geneva , 2 July 197^

Head of the Delegation of the Commission Head of the Spanish of the European Communities Délégation I/247/74-F

Annex I ( b )

Ceneve

Sir .

With reference to the exchange of letters , initialled today by our Delegations , on the threshold and free-at-frontier prices to fee observed for certain cheeses , I note that , with regard to tariff subheading 04.04 G I b 3 ( Edam , Gouda , etc . ...), the preferential margin which separates the threshold price applicable to the Community has not beene amended and remains at 63O Ptas/lOO kg . The corresponding free-at-Spanish-frontier price to be observed by the Community is therefore fixed at 9.763 pesetas/lOO kg .

I should be obliged if you would kindly confirm that you are in agreement with the above .

Head of the Delegation of the Commission of the European Communities

Mr Francisco Botella Head of the Spanish Delegation I/247/74-F

Annex I ( c )

Geneva ,

Sir ,

Following the consultations which were entered into at the request of the Spanish Delegation with a view to altering the threshold prices for imports into Spain of certain cheeses , fixed by the Agreement of 5 June 1970 between Spain and the EEJC and amended on 14 June 1972 , I note that our Delegations have reached agreement on the following :

1 , The threshold prices applied by Spain to imports of cheeses , including regulatory duty ,

The prices to be observed free at Spanish frontier before customs clearance corresponding to the said threshold prices ,

and the custom duties for the relevant tariff headings are shown hereafter :

Mr Francisco Botella , Technical Deputy Secretary-General at the Ministry of Agriculture Head of the Spanish Delegation I/247/74-F

( in Ptss/lOO kg )

ι ! • Price free ! Spanish Customs i Customs j : Product j Threshold at Spanish ι i price duty i Tariff N° i ■ , frontier k . .. I ' •" ' - I ! ■ 04 .04 > !I

1 ! Al al Whole Emmentaler cheeses i 3.500 ii 11.700 ! I 17.533,29 | Al a2 : Whole Emmentaler cheeses ! 13.386,24, ! 2.800 . 1i 13.100 f ιι ι ! Al bl | Emmentaler pieces j 3.430; , ii 12.850 j 18.789,42 j « t Al b2 ; Emmentaler pieces ! 2.700 • iI • I4.3OO 1 19.667,34 j 1 1 j Al cl Emmentaler pieces ! 19*509,94 .!! 3.400 ï..i ι [-. 13 « 500 j ! Al c2 Enmentaler pieces j 20.478,81 jI 2.700 ,■ J! 15.000 1 ! . A2 Emmentaler , other j! 17.545.43 J '■■■ 45 £ ! - ( 1 ) I t1 1 ! C2 Blue-veined cheeses I6.900.o2 • i 1 I !■ ' - 45 1··· ι-ίj 10.144 j 11 lI 1 I PI a !J Processed Emmentaler |i . iI t , j . and b j! -.. cheese !i 16.909,66 !! 3.460 i 11.200 ! . 1 : . I 1 1 ■ « D1 c ! Processed Emmentaler | 1 | cheese 17 .2a;, 51 ! 3.590 ! 11.400 j I Dé a j Other processed cheese i 9.669 j j 16.114,65 !j 45 ?• iS < r | D2b i1 Other processed cheese ; 16.513,2 ; 9.913 > i : 45 % i I Other processed cheese ! 45 ί ίί 10.151 ί j D2 c j I| 16.912,61 I! ι ΐ 1)3 ιi Other processed cheese !! 19.672,00 ! 45 £ iI ( 1 ) i ■ • | G1 a2 j! Other ( except Parmesan ) iS 18.897,80 !! 45 f< !i CD ί 1 1ι * G1 bl ji Cheddar . !! 17.200,00 i! 45 % ! 10.325 ! 1 I G1 bl I Processed Cheddar • !! 15.741,00 ! 45 % I 9.443 | ι j Cl b3 ' j Edam 1 16.900,^2 i (2)45 1 ! 10.144 j 01 b4 | Soft cheese 1 i 45 i | Other 1 ( 1 ) i j G1 b5 j1 < | 19.119,33 ia 45 i j ! I | G1 c2 j Fresh cheese 1ί 19.119,33 j 45 i i ( i ) j Other I 19.119,83 i 45 f ! ( 1 ) ! 02 ; 1 1 1 i 1 I j I I i ( l ) Variable regulatory duty (2 ) Spécifie duty of 4.565 Ptas/ 100 kg I/247/74-F

2 . Subheading O4.O4 C 2 of the Spanish Customs Tariff is amended as follows : ( in ptas/100 kg ) ~ ta' f ■ ■ 1 «

" " - threshold regulatory customs free^-atr. ^ ... s . *-• , Price - - duty - - duty Spanish- . frontier - price O4..O4 C : -Blue-veined cheese "," , .• •*, 2 : Gorgpnzola » Bleu dej3 , ; Crusses , Bleu /l'Auvergne , Bleu de ; / $resse , Fourme d' Ambert , >• . . > ■ ( Saingorlon , EdelpilzkSse , Bleufort , - < .l'ir ; SIeu de G ex , >Bleu du Jura et de Septmoncel , Danablu , Mycella 'et Blue Stilton 1 which comply- wi'th ; 4 ot the conditions stipulated in . : • * . ; * tr* Note 1 16.900,82 100 ' 45 70 . v 10. 144

. . . - , ■ ν = . I should be obliged if you would kindly confirm that you are in agreement with the above#

*

Head of the Delegation of the Commission of the European Communities 4 ■ I/247/74-F

ANNEX II

Recommendation fop Council Regulation on the conclusion of an agreement with St>ain on the subject of certain cheeses

THE COUNCIL OP THE EUROPEAN COMMUNITIES , " Having regard to the Treaty establishing the European Economic Community , and in particular Article 113 thereof ;

Having regard to the Decision of the Council of 25 May 1970 » authorizing the Commission to enter into negotiation or consultation in given circum­ stances with third countries which sire contracting parties to GATT j

HaTing regard to the recommandation from the Commission ;

Whereas , at the request of Spain , the Commission has entered into conerflilta- tions with that country with a view to reexamining the price of certain cheeses listed in the Agreement of 5 June 1970 between the EEC and Spain , as modified on 12 June 1972 ; whereas the Delegation of the Commission and that of Spain have reached an agreement and the provisions of this agreement are acceptable ;

HAS ADOPTED THIS REGULATION : Article 1

The Agreement consisting of two exchanges of letters , the texts of which are annexed to this Regulation , is concluded on behalf of the European Economic Community .

Article 2

The President of the Council is hereby authorized to designate the person empowered to sign the exchanges of letters referred to in Article 1 and to confer on him the powers required in order to bind the Community .

For the Council , The President ,