Brussels, 15th December 2005

O/REF: Note N-045-2005-EN-REV.2

RE: EU Enlargement – GATT (WTO) Article XXIV:6 Procedure

Previous Notes: N-019-2004 / N-070-2004 / N-045-2005-REV.1

The negotiations with the third countries concerned are nearing final stage. The EU Commission Services’ ambition is to put the final touches thereto in December this year. The last agreement that has been concluded so far is with the USA.

The offers of compensation and adjustment of certain tariff quotas in the livestock and meat sector (cattle and beef, pigs and pig meat, sheep and sheep meat) are as follows:

BOVINE SECTOR / PORCINE SECTOR / OVINE SECTOR
1. specific origins / Argentina / High quality beef quota: adjustment of the definition [Regulation (EC) No 936/97, Art. 2.a.] /  / 
Australia /  /  / +136 t. (18,650 t. + 135 t. = 18,786 t.)
Brazil / High quality beef quota: adjustment of the definition [Regulation (EC) No 936/97, Art. 2.d.] /  / 
Canada /  / 3,939 t.
(products of Group G7) / 
New Zealand / High quality beef quota: +1,000 t. (300 t. + 1,000 t. = 1,300 t.) /  / +1,154 t. (226,700 t. + 1,154 t.= 227,854 t.)
USA /  / frozen boneless hams and loins:
4,722 t.
(250€/t) / 
2. all origins / Manufacturing beef quota: +4,003 t. (50,700 t. + 4,003 t. = 54,703 t.) / G2- frozen boneless hams and loins:
35.265 t.
(=+1,265 t.) / 35,676 t. of live sheep
other than pure-bred breeding animals
ad valorem duty = 10%
special duty = 0
Quota for heifers and cows of Mountain breeds: -4,290 head (5,000 head – 4,290 head = 710 head) / G4 – sausages and similar products:
3,002 t.
(= 3,000 t. + 2 t.) / 
Quota for bulls, heifers and cows of Alpine breeds: -4,289 head (5,000 head – 4,289 head = 711 head) / G5 – other preparations and preserves:
6,161 t.
(= 6,100 t. + 61 t.) / 
Quota for 169,000 male bovine animals intended for fattening: -144,930 head (169,000 head – 144,930 head = 24,070 head) / G6 – carcase, half carcase:
335 t.
(= 268 t. + 67 t.) / 
G7 – cuts,
fresh, chilled, frozen,
with bone in, boneless,
with the exception of the tenderloin:
5,535 t.
(= 5,500 t. + 35 t.)

Some concessions also in the poultry meat sector (eg. USA: 16,665 t.).

The above-mentioned figures are provisional and subject to modifications until the conclusion of the negotiations. If the above-mentioned deadline is met, the conclusions will be submitted to the Council for validation.

For the time being, the negotiations are finished except with Argentina, Canada and Malaysia.

Once the compensations are validated by the Council, they will be notified to the WTO for confirmation. The WTO gets three months’ time to respond.

When the procedure is closed, the Commission will adopt detailed implementing rules in accordance with the “Management Committee” procedure. The earliest entry into force will be 1st January 2006in the case of New Zealand, 1st July 2006 in the case of the other third countries.