AGREEMENT for the conclusion of negotiations between the European Community and Canada under Article XXIV:6

THE EUROPEAN COMMUNITY and THE GOVERNMENT OF CANADA,

DESIRING to bring their GATT Article XXIV:6 negotiations to conclusion on the basis of a reasonable and mutually satisfactory compromise, and

FURTHER DESIRING to strengthen the close partnership in commercial and economic matters between the European Community and Canada,

AGREE TO THE FOLLOWING PROVISIONS:

I. Market access concessions

A. The European Community shall incorporate in its new Schedule CLX, which will be valid for the customs territory of the EUR 15, the concessions that were included in the previous Schedule LXXX as modified by the European Community Schedule annexed to the Marrakesh Protocol to the General Agreement, 1994 (dated 15 April 1994).

B. In accordance with Annex A (1) attached to and forming an integral part of this Agreement, the European Community shall reduce and bind tariffs effective 1 January 1996 except as noted, shall open tariff quotas as indicated, and shall accelerate the staging of Uruguay Round tariff concessions.

C. Improvements granted to third countries in the European Community's Article XXIV:6 negotiations shall also be applied to Canada.

II. Agricultural matters

A. The Canadian Government accepts the basic components of the European Community's approach to adjusting the GATT obligations of the European Community of 12 and those of Austria, Finland and Sweden following the recent enlargement of the Community:

- netting out of export commitments,

- netting out of tariff quotas,

- aggregation of domestic support commitments.

The appropriate legal modalities of implementation remain to be agreed upon.

B. Both sides agree to the following:

To the extent that imports of pork and pork products are covered by both GATT TRQs and preferential TRQs at lower than GATT in-quota rates for Central and East European countries (CEECs) the Commission, in consultation with the countries concerned, will ensure that the imports in question from CEECs are counted in the first place against the preferential TRQs.

The sum of the EC TRQs for pigmeat and pigmeat preparations will remain at 75 600 tonnes at the end of Uruguay Round implementation.

As regards bilateral trade in cheese, Canada undertakes to increase the current EC 12 247 tonnes country reserve (60 % of the global tariff rate quota) to 66 % of the global tariff rate quota.

The EC undertakes to increase the existing tariff rate quota of Canadian aged Cheddar to 4 000 tonnes. The Canadian authorities will indicate to the Canadian Dairy Commission that 'certificates of authenticity` for 'aged Cheddar` should only be issued for in-quota quantities.

Canada will only permit imports of cheese from the EC under its tariff rate quota accompanied by an export certificate issued by the European Community.

The EC will limit export subsidies on fresh, chilled or frozen beef and veal destined for Canada to no more than 5 000 tonnes annually. On the basis of this undertaking European beef exporters may request the Canadian International Trade Tribunal (CITT) to undertake a review under Section 76 of the Special Import Measures Act (SIMA) of the 25 July 1986 finding of the Canadian Import Tribunal in respect of boneless manufacturing beef from the European Economic Community. Section 76 review may be requested by any interested party to the finding in question.

Canada agrees to bind at free its duty on pasta products currently subject to the 'pasta remission order` i. e. the pasta products classified under tariff items 1902 19 91, 1902 19 99 and 1902 19 92.

III. Final provisions

A. This Agreement shall enter into force on the date of signature.

B. Consultations will be held with regard to the matters in this Agreement at any time at the request of either party.

Signed at Brussels, this twenty-second day of December in the year one thousand nine hundred and ninety-five, in two copies in the English and French languages, each language version being equally authentic.

For the Government of Canada

For the Council of the European Union