Proposal for a COUNCIL DECISION Concerning the conclusion of the results of consultations with Thailand under GATT Article XXIII
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 03. 1996 COM(96) 107 final 96/ 0081 (ACC) Proposal for a COUNCIL DECISION Concerning the conclusion of the results of consultations with Thailand under- GATT Article XXIII (presented by the Commission) EXPLANATORY MEMORANDUM The Commission has now concluded the current consultations with Thailand, under GATT Article XXIII, concerning the EC's import regime for rice. The results of the consultations are contained in an agreement in the form of an exchange of letters between the European Community and Thailand. The agreement may be summarized as follows : - The EC and Thailand agree to suspend the current consultations under Article XXIII of the GATT. The EC would open an additional autonomous annual TRQ of 10. 500 t of manioc starch, of which 10. 000 t would be allocated to Thailand. The in- quota rate would be the prevailing MFN rate reduced by 100 Ecu t. The same in-quota rate would apply to the existing TRQ's for manioc starch. The end- use requirements would be waived. - The EC would open a TRQ of 80. 000 t of broken rice, of which 41. 600 t will be allocated to Thailand. The in-quota rate would be the prevailing MFN rate reduced by 28 Ecu t. - In addition, the agreement also foresees the possibility for the partners to review jointly the functioning of the representative price system. However, both parties consider that such a review should not be necessary before 1998. Both parties would not exercise their WTO rights so long as the annual tariff quotas are open and remain effective for the year concerned. However, by a two-month notice prior to the end of the quota year each party may resume the consultations or revoke the tariff concessions. i Proposal for a Council Decision Concerning the conclusion of the results of consultations with Thailand under GATT Article XXIII The Council of the European Union, having regard to the Treaty establishing the European Community, and in particular Article 113, in conjunction with Article 228 (2), first sentence thereof, having regard to the proposal from the Commission, whereas the Community has entered into consultations under GATT Article XXIII with Thailand on the Community's import regime for rice, whereas the result of these consultations are contained in an agreement in the form of an exchange of letters, whereas it is in the interest of the Community to approve this agreement, has decided as follows : Article 1 1. The agreement in the form of an exchange of letters between Thailand and the European Community on rice and manioc starch is hereby approved on behalf of the Community: 2. The text of the agreement referred to in this Article is attached to this Decision. 3. The President of the Council is hereby authorised to designate the person empowered to sign the agreement in order to bind the Community. Article 2 The Commission shall adopt the detailed rules as regards the tariff rate quotas for broken rice and manioc starch in accordance with the procedure laid down in Article 23 of Council Regulation (EEC) No. 1766/92 of 30 June 1992 on the common organization of the market in cereals. Done at Brussels, For the Council The President 3 Exchange of letters on Consultation under Article XXIII on Rice Excellency, I have the honour to confirm the understanding reached between the Kingdom of Thailand and the European Community on the European Community's tariff quotas on broken rice and manioc starch to be effective from 1 April 1996 as appeared in the note annexed to this Exchange of Letters. In addition to the above understanding, the two parties further agree that they shall review jointly, at the request of either party, the functioning of the "representative price" system for rice. If it appears to either party that the functioning of the system is materially impeding trade flows between the parties, the Commission of the European Communities in consultation with the Government of the Kingdom of Thailand shall examine significant problems identified with a view to implementing appropriate solutions. It is the expectation of the two parties that such a review should not be necessary before the year 1998. On the basis of the above understanding and agreement, the two parties agree to suspend the current consultations under Article XXIII of the GATT 1994. The aforementioned suspension agreement and the annex appertaining thereto shall be without prejudice to the rights and obligations of either party under the World Trade Organization (WTO). However, both parties will not exercise their rights so long as the annual tariff quotas are opened and remain effective for the year concerned; the party exercising the right will give a two-month notice prior to the end of the relevant quota year. This letter and Your Excellency's identical letter shall constitute the agreement between the two parties on the suspension of the current consultations under Article XXIII of the GATT 1994. Accept, Excellency, the assurances of my highest consideration. Note on Tariff Quotas Excellency, Following the discussions to further the common interest of the European Community and the Kingdom of Thailand, the following understanding between the European Community and the Kingdom of Thailand has been reached, effective from 1 April 1996 : 1. Manioc Starch (a) An additional autonomous annual TRQ of 10,500 t. will be opened by the European Community of which 10,000 t. will be allocated to Thailand. (b) The in-quota rate for this additional autonomous annual TRQ will be the prevailing MFN rate reduced by 100 Ecu/t. (c) The in-quota rate for the two TRQs for manioc starch included in the schedule of the European Community, to be applied on an autonomous basis, will be the prevailing MFN rate reduced by 100 Ecu/t. (d) The European Community will, on an autonomous basis, waive the end- use requirements for these three TRQs. 2. Broken Rice (a) A new annual TRQ of 80,000 t. will be opened by the European Community of which 41,600t. will be allocated to Thailand. (b) The in-quota rate will be the prevailing MFN rate reduced by 28 ECU/t. To the extent that the TRQs are allocated to Thailand, the European Community import licenses will be issued automatically within the agreed limits on the basis of export certificates issued by the Government of Thailand. ç FINANCIAL STATEMENT Section 1. Financial Implications 1. 2. 3. 4. 5. 6. Proposal for a Council Decision concerning the conclusion of the results of consultations with Thailand under GATT Article XXIII. Budget heading: (loss of revenue: not known) Legal basis: Article 113 Description: Opening of tariff rate quotas for manioc starch and broken rice. Type of revenue: Loss of revenue for duties paid on third country imports. Change in level of revenue: The maximum loss of revenue will be in the order of 3,5 MECU per year. Q ISSN 0254-1475 COM(96) 107 final DOCUMENTS EN 11 Catalogue number : CB-C0-96-115-EN-C ISBN 92-78-01633-0 Office for Official Publications of the European Communities L-2985 Luxembourg