------______ifii______-. .- co,,,c:ft90 OMN\UNITIES

.J..OM(78) 138 final

11 0urUSSe l Sp 14>C MprA."'1 ·1n.•7,~ U..:~, J NIVERSITVOfPnTSBURG~ IJ~A~t~ .2188 -,tHtAUi UNil

REPORT FROM THE COMMISSION TO THE COUNCIL

on the out come of the consul tat ions 1~i th Sp.::i n co:1Ct':"ni ng certain under the EEC-Spain Agreement of 5 June 1970

RECOMMENDATION FOR REGULATION OF THE COUNCIL

on the conclusion of the Agreement amending the Agreement of 5 June 1970 between the European Economic Community and Spain on certain cheeses

(submitted to the Council by the Commission)

COM(78> 138 final • -----"-----·------·--

CONSULTATIONS WITH SPAIN CONCERNING CER~AIN CHEESES UNDER THE EEC-SPAIN AGREEMENT OF .5 JUNE 1970 CONCLUDED UNDER ARTICLE XJX OF THE GATT

The Commission ~erewith presents to the Coundil

1~ A report on the outcome of the consultations which it has held with Spain (Annex I).

2. A recommendation for a Council Regulation on the conclusion of the Agreement in the form of two exchanges of letters amending the Agreement of 5 June 1970 between the European Economic Community and Spain on certain cheeses (Annex II).

At its meeting in Geneva on 16 February 1978, the Article 113 Committee delivered a favourable opinion on'the outcome of the consultations.

The Commission recommends that the Council adopt the above mentioned Regulation. Annex I

R E P 0 R T on the outcome of the consultqtions ~lith Spain concerning certain cheeses under the EEC-Spain Agreement of 5 June 1970 concluded under Article XIX of the GATT

The consultations ~hich had begun on 15 February 1978 at t~e request of the Spanish Delegation under the Agreement of 5 June 1970 between Spain and the European Economic Community ended in agreement between the Spanish Delegation and the EEC Delegation on the foll.ot-Jing aaangements,. subject to appr-oval by their respective authorities.

I. Modificati2.!!. of threshold er'ices

The two Delegations agreed that the ~hreshold prices for the Spanish 1978/79 year would be fix~d on the basis of the prices indicated in the attached list and adjusted in line with variations in the price of milk in Spain by the application of the coefficients indicated in the same list.

The two Delegations recognized that it was advisable to pay special attention to the trend of trade in .1978 in order to evaluate, iri particular, the incidence of the coefficients applicable to

- blu~-veined cheeses falling within subheading 04 04 C2 of the Spanish Customs Tariff;

- Edam falling within subheading 04 04 G1 b3 of the Spanish Customs Tariff;

- soft cheese falling within subheadings 04 04 G1 b5, G1 b6, G1 c1, G1 c2 or G2 of the Spanish Customs Tariff.

The system of coefficients could be extended unchanged for the 1979/80 milk year, unless one of the two parties requested prior consultations •

• I~ ·- ··l~l:ll .~···t --·~· "...... ,, "~·._ .. __:__ .;.·.- _.::;...:· ___ ·_:.:,;:_;_ ..-. .. ·- 2 .-

II. Preferential margin·· and inclusion of certain cheeses in the Agre·ement of 5 .rune 1970

\ ... The Spanish Delegation formally undertook :

to apply for the 1978/79 milk year, the preferential margin of 6.30% for the threshold price of Edam cheese falt.ing within subheading 0.4 04 G1 b3 of the Spanish Customs Tariff;

- to include in the Spanish Customs Tar.iff the cheeses of the three new Member States - and in particular Elba, Molbo, and - among

the cheeses falling within subheading 04 04 G1 b3 of that Tariff.~

III. Amendment of the Agreement of S,June 1970

The two Delegations agree~ to propose that the Agreement of 5 June 1970 be amended to take account of all the amendments made since that date.

A draft of the new text w.ould be submitted to the relevant .authorities on both sides as soon as possible.

'

,. I . ---~------.... ·--.---....·~------·------····-·-...... --·--~ .. ··-·· -~--.... -._ ..' "' ______.,.,...... _....._,______.______

Spanish I Customs I Prodvcts I Basic pr'ice , 1 Tariff No. ---... -··-··----· '-·-·-----·-~-i" .. ~l.Q.9_ ~i;l~ Coe f f i c i en t_ A'l a1 Whole Emmentaler cheeses 25 570.29 14 A1 a2 Whole Emmentaler cheeses 26 623. 2L> A1 b1 Emmentaler pieces 27 026.1...2 14 A1 b2 Emmentaler pieces 27 90i: 0 34 14 A1 c1 Emmentaler oieces 27 746.2( '!4 A., ' I c2 Emmentaler pieces 28 715,.81 14 ,l\2 Emment a te;•" other·· 26 62:5 .. 2Li '14

C2 Blue-veined cheeses 24 558,. 8i~ 12 .. 25 D1 a and b Processed Emmentaler cheese 2ft 012"66 13 D1 c Processed Emmentaler cheese 24 387 .. 51

D2 a Other pro~essed cheese 23 217.65 13 D2 b Other processed cheese 23 621.32 13

D2 c Other processed cheese 24 015~ 60 D3 Other processed cheese 26 • 00 13 G1 a1 ParmigianoF Grana 25 413 ... 82 17 Gi a2 Other cheese (e~cept Parmigiano) 27 410.80 17 I \ I I G1 b1 -,,- I Cheddar c..: 056 .. 00 13 l I G1 b1 Chedda~ (processed) 22 944.00 13 I G1 b2 Provolone, Asiago 24 7!.,3.,82 14 G1 b3 Edam (erga omnes) 25 288~58 13.02 ,..,. IJI b3 Edam (EEC) 23 789.,82 '12. 25 G1 b4 Soft cheese (Camembert, etc.) G1 bS I Other soft cheese 26 6T1.83 .11. 25 1 G1 b6 Other cheese 26 677.83 1'1.25 26 677., 83 11.2~ ._ I :~ :~ 0F:ehesh1 cheese l 26 677 .. 83 11.25 L~ " , fresh cheese . ----··-, Othe.:____···--~------_L~~~-- 11.25 Annex II (a)

RECOMMENDATION FOR A COUNCIL R!:GULATION ... on the conclusion of th~ ~~r~;m,sr.~-· a.mending the Aareement of 5 June 1970 between the European Economic Community and Spain on ~ertain cheeses • THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic COmmunity, and in partfcular Article 113 th~reof, Hdving regard to the Recommendation from the Commission,

W~ereas at the request of Spain the Commission initiated consultations with that country with a view to re .. examin·ing the prices. of certain cheeses .covered by the Agreement of 5 June 1970 between the European Economic Community and Spain 1, as last amended on 22 July 1975 2; whereas the Commission Delegation and the Spanish· Delegation have.~eached an Agr~ement and whereas the provisions thereof are acceptable,

HAS ADOPTED THIS REGULATION

Article 1

The Agre~ment in the form of two exchanges 6f letter~ amending the Agreement of 5 June 1970 between the European Economic Community and Spain on certain

< cheeses is hereby concluded on behalf of th~ Community.

The text of the Agreement is annexed to this Regulation·~

1\ 1cle 2

The President of the Council 1s 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. This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, For the Council The President

1 .OJ No L 245, 11.11.1970, p. 22 2 OJ No L 198, 29.7.1975, P~ 1 __ ,____ ----·-· -----~----·---·- ... --~--•.P·---- ~ I • . ·------~----·:---~-:---·:---· _--_----~:-- --·-----:--:-·:- --

Annex II (b)

AGREE1'1ENT

in the form of t wo_~~ch_

' Geneva,. • (l. ~\,I".," .. ., to" Ill o

Sir,.

Upon the conclusion of the. consultations which were initiated at the request of the Spanish Delegation with a view to modifying the threshold prices for imports into Spain of certain cheeses laid down in the Agreement of 5 June 1970 between Spain and the EtJt'opean Economic Community,. 1 'note that the Spanish Delegation of the Commission of the European Communities have agreed on the following :

1 .. The description of the products ("ar'ticulos") falling within subheadir1g 04.04 G 1 b) 3 of the Spanish Customs Tariff shall be amended as follows

04.04 G 1 b) 3

Butterkise, Cantal, Edam, Fontal, Fontina, Gouda, ltalico, Kernhem, Mimolette, St Nectaire, St Paulin Tilsit, , , Samsoe, , Maribo, Elba, Molbo,, Tybo and Esrom.

.I . --·----·,-~-·----- ~ - 2.

2. The threshold prices appLied by Spain to imports of cheeses for the 1978/79. marketing year will be fixed on the basis of the prices indicated in the fonowing list and adjusted in line with variations in the price of milk in Spain by the application of the coefficients indicated in t~e same List

~

Spanish - C.ustoms Products Basic price · Coeff i C'i ent Tal"i ff No. (Pesetas/100 kg)

14 A1 a1 Wh ole Emmentaler cheeses ' 25 570.29 A1 a2 Wh ole Emmentaler cheeses 26 624.24 14 .. A1 b1 Em mental.er pieces 27 026.42 14 A1 b2 Em mentaler p1eces. 27 904.31-t 14 A1 c1 Ern mentaler pieces 27 746.24 14 A1 c2 Em mental.er pieces 28 715.81 14. A2 Em mentaler, other 26 623.24 14 C2 Bl ue-veined cheeses 24 558.82 12.25 01 a and b Pr ocessed Emmentaler cheese 24 012.66 13· D1 c Pr ocessed Emmentaler cheese 24 38?.5'1 '13 I 02 a Ot her processed cheese 23 217.65 13 02 b Ot her processed cheese 23 621.32 13 I D2 c Ot her processed cheese . 24 015.60 13 .. 03 Ot her processed cheese ; 26 775.00 13

G1 a1 Pa rmig·iano 1 G1·ana 25 413.82 17 G1 a2 Ot her cheese (except Parmigiano) ' 27 410.80 17 G1 b1 Ch eddar 25 056.00 13 G.1 b1 Ch eddar (processed) 22 944.00 13 G1 b2 Pr ovologne, Asi·ago 24 743.82 14 G1 b3 Ed am 25 288.58 13.02 G1 b4 So ft cheese (Camembert etc.) - - l • G1 bS 10t her sOft cheese 26 677.83 11.,25 G1 b6 Ot her cheese 26 677.83 11.25 G1 c1 Fr 'esh cheese 26 677.83 11..25 G1 c2 Ot her fresh cheese 26 6"77.83 11.25 Gl Ot her 26 677.83 11.25

4 3. The two Delegations recognized that it was advisable to pay special attention to the trend of trade in 1978 in order to evaluate, in particular, the incidence of the coefficients applicable to : -blue-veined cheeses falling within subheading 04 04 C2 of the Spanish Customs Tariff; - Edam cheese falling within subheading 04 04 G1 b3 of the Spanish Customs Tariff.: - soft cheese falling within subheadings 04 04 G1 bS, G1 b6, G1 c1, G1 c2 or G2 of the Spanish Customs Tariff.

The system of coefficients could be extended unchanged for the 1979/80 milk year, unless one of the two parties requested prior consultations.

4. The two Delegations agreed to propose that the Agreement of 5 June 1970 be amended to take account of all the amendments made since that date.

A draft of the new text would be submitted to the relevant authorities

on both sides as soon as possible~

I should be grateful if you would confirm whether you are in agreement with the foregoing.

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

•

0

.. 4.

·.

- Geneva, •••.••••••••••• ~. ·-·

',, .. Sir,·

1 have the honour to acknowledge receipt of your letter, the content of which is as follows : , Geneva, ......

Sir,

' Upon the conclusion of the consultations which were ~nitiated at the request of the Spanish Delegation with a view to modifying the threshold prices for imports into Spain of certain cheeses laid down i.n the Agreement of 5 June 1970 between Spain and the European ·economic Community, I note that the Spanish Delegation of the Commission of the European Communities have agreed on the following :

1. The de script ion of the products (" arti culos'') falling within subheading

04~04 G 1 b) 3 of the Spanish Customs T•riff shall be amended as follows 04.04 G 1 b) 3

Butterkise, Cant~l, Edam, Fontal, Fontina, Gouda, Italico, Kernhem,. Min1'olette, St Nectai re., St Paulin, Tilsit, Havarti" Danbo, Samsoe, Fynbo, Maribo, Elbo, Mqlbo; Tybo and Esrom.

• I •

• '. 5.

' 2. The threshold prices applied by Spain to imports of cheeses for the 1978/79 marketing year will be fixed on the basis of the prices indicated in the following list and adjusted in Line with variations in the price of milk

in Spain by the application of the coeffi~ients indicated in the same List •

~-~~:;!·~---~------~:~:c:-----l-· s_asi~~ric~ Coefficient l Tariff No. I , (Pesetas/'JOOkg) ~----···-·-1---~··""' __ .. __ ,. ______...______-t------··------1------i l A'l a'l ! I•Jhole Ernmentater· cheeses j 25 5?0.29 14 ! /~1 a2 j ~-!hoLe f.mmentzt(£'1~ cheeses I 26 621.1"2'+ 14 I I i 1\1 b1 : Emmentaler pieces 27 026.42 14 ! A1 b2 Emment a ler pieces 27 904.34 14 Emmentaler pieces 27 746.24 14 II :~ :~ Emmentaler pieces 28 715.81 14 I A2 Emmentaler, other 26 623.24 14 j C2 Blue~ve1ned cheeses 24 558.82 12.25 I D1 a and b Processed Emmentaler cheese 24 012.66 13

D1 c. Processed Emmentaler cheese 24 ~~87. 51 13 .. 02 a Other processed cheese 23 217.65 13 D2 b Other processed cheese 23 621.32 13 D2 c Other proces cheese 24 015.60 13 D3 Ot he<" processt!d .cheese 26 775.00 13 G1 a1 Parmigiano, Grana 25 413.82 17 G1 a2 Other sh~ese (except Parmigiano' 27 410.80 17 G1 b1 Chedda1' 25 056.00 •13 G1 b1 Cheddar (processed) 22 944.00 13 G1 b2 24 743.82 g G1 b3 tdam 25 288.58 13.02 G'1 bt,. Soft cheese (Camemb~rt et~~) G1 b5 Other soft cheese 26 677.83 ,.1..25 G1 b6 Other cheese 26 6"17.83 11.25 G1 c 'I Fresh cheese 26 677o83 11.25 G1 I c2 Other fresh cheese l 26 677.83 11.25 G2 ~------~--o_t_h_e_r·------~---~~--6_6_7_-~7._8~3-----J------~11.25 •

.1. ' ' 6.

. c 3. The two Delegations recognized that it was advisable to pay special attention to the trend of trade in 1978 in order to evaluate, in particular, the incidence of the coefficients applicable to

blue-veined cheeses falling within subheading 04 04 C2 of the Spanish

Customs Tariff;

- Edam cheese falliMg within subheading 04 04 G1 b3 of the Spanish

Customs Tariff;

soft cheese falling within subheadings 04 04 G1 bS, G1 b6, G1 c1,

G1 c2 or G~ of the Spanish Customs Tariff.

The system of coefficients co~ld be extended unchanged for the 1979/80

milk year, unless one of the two parties requested prior consultations.

4. The two Delegations agreed to propose that the Agreement of 5 June 1970

be amended to take account of all the amendments made since that date.

A draft of the new· 'text would be submitted to the relevant authorities

on ~oth sides as soon as possible.

I should be grateful if you wc~td confirm whether you are in agreement with

I am able to confirm on behalf of Spain my agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration. Annex II c

•

. 'I,' With reference to the exch,nge of letters initialled this day by our delegations concerning the fixi~g of the ba$iC prices and .. the adj~stment coefficients for the Spanish 1978/79 milk year in respect of ce~tain cheeses and the amendment . ' of certain Spanish Customs.Tariff headings, I note that with regard to tariff subheading ·a4u0~ G 1 b) 3, the ~ew wording of which is as follows, 1 Butterk~se, Cantal, Edam,. Fontal., Font ina, Gouda, !tali co, Kernhem, .Mimolette, St. Nectai re,

St. Paulin, Tilsit1 Havarti, Danbo, Samso, Fynbo, Maribo, Elbo, Molbo, Tybo . . and ~srom', the preferential margin separating the threshold price 'erga omnes' from tha:t applicable to the Community is changed from 6.69 pesetas per kg to

6.30 per cent. A basic price of 23 789.82 pese~as/100 kg and an .adjustment ' . coefficient of 12.25. are c~nsequen'tly applicable to imports from the Community. ' I would be grateful if you woul.d confirm whether you are .. in agreement with ' the foregoing.

·Please accept, Sir,th~ assuran~e of my highest consideration. ' '' ~ _';'"·-j-~.~~-..~··------~.,·---~- ... -,...-~ .•. , ...... """J'-~·~· It •

Gene\7a ... ~ ......

' . '' ·~ I .ij.. 'sir, • I have the. honour to acknowledge receipt of your letter, the content of which is as follows : "With reference to the exchange of letters initialled this day by our delegations

concerning the fixing of th~ basic prices and the adjustment coefficients for . ;tl the Spanish 1978/79 ~ilk year in r~spect of certain cheeses and the amendment of certain Spanish Customs Tariff headings, I note that with regard to tariff ~ subheading 04.04 G 1 b) 3, the new wor~ding of which i.s as follows, 1Butterkase, Cantal, Edam, Fontal, Fontina,.Gouda, Italico, Kernhem, M.imolette, St. Nectaire, St. Paulin, Tilsit, Havarti, Danbo, Samso, Fynbo, Maribo, Elbo, Molbo, Tybo and Esrom', the preferential margin separating the threshold price 'erga omnes' fr6m that applicable to the Community is changed from 6.69 ·pesetas per' kg 'to 6.30 per cent. A basic price of 23 789.82 pesetas/100 kg and an adjustment coefficient of 12.25 are consequently applicable to imports from the Community.

J would be g~ateful if you would confirm ~hether you are in agreement with the foregoing."

I am able to confirm, on behalf of Spain, my agreement with the contents oj your l.'etterc

P1tease accept, Sir, the assurance of my highest consideration.