Explanatory Memorandum to COM(2007)751 - Conclusion of an Agreement with New Zealand relating to the modification of the WTO tariff quota for New Zealand butter provided for in the EC Schedule CXL annexed to the GATT 1994

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This page contains a limited version of this dossier in the EU Monitor.

1. In its consultations with New Zealand on the new management system for imports, the Commission indicated that it would seek to introduce a reduction of the in-quota tariff rate and a modification of the butterfat specifications in the EC schedule CXL for agricultural products and negotiate these modifications in accordance with paragraph 6 of the Understanding on the Interpretation of Article XXVIII of the GATT 1994.

2. On 14 May 2007, the Council authorised the Commission to notify the WTO that the European Community intended to modify the WTO tariff quota for New Zealand butter for items 0405 10 11, 0405 10 19 and 0405 10 30 included in Schedule CXL of the European Community annexed to GATT. Accordingly, the European Community has notified the WTO on 3 August 2007 of its intention to modify the WTO tariff quota for New Zealand butter in EC Schedule CXL.

3. Negotiations have been conducted by the Commission in consultation with the Committee established by Article 133 of the Treaty and within the framework of the negotiating directives issued by the Council.

4. The Commission has negotiated an agreement in the form of an exchange of letters with New Zealand.

The exchange of letters was initialled by the Commission on …. November 2007.

5. This proposal asks the Council to approve the agreement in the form of an exchange of letters between the European Community and New Zealand. Once the Council adopts the present Decision, the Commission will notify the WTO of the necessary changes to the European Community’s Schedule CXL.