Explanatory Memorandum to COM(2010)466 - Conclusion of the Agreement in the form of the Exchange of Letters between the EU and Norway concerning additional trade preferences in agricultural products reached on the basis of Article 19 of the Agreement on the EEA

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CONTEXT OF THE PROPOSAL

Article 19 of the Agreement on the European Economic Area (EEA) provides for progressive liberalisation of agricultural trade between Contracting Parties. To that end, Parties will carry out, at two-yearly intervals, reviews of the conditions of trade in agricultural products and decide, within the framework of this agreement, on a preferential, bilateral or multilateral, reciprocal and mutually beneficial basis, on further reduction of any type of barriers to trade in the agricultural sector.

Last agreement in the form of an exchange of letters between the Kingdom of Norway and the European Community based on article 19 of the EEA Agreement came into force in July 2003. It comprised the arrangements for reciprocal trade in cheese and mutual concessions for a variety of agricultural products, including tariff quotas.

The present proposal is the result of bilateral trade negotiations in agriculture, conducted from March 2008 to January 2010. The arrangement provides for further liberalisation of agricultural trade. The new preferences will consist in additional full liberalisation for some sensitive products, thus allowing some 60% of agricultural trade between the Kingdom of Norway and the European Union being completely free. For more sensitive products such as meat, dairy, fruit, vegetable and ornamental plants, tariff quotas or tariff reductions have been agreed upon. Specific provisions are foreseen as regards the management of tariff rate quotas for cheese.

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BUDGETARY IMPLICATION



The loss of customs revenues is estimated at approximately 4.96 M€ (net amount after deduction of collection costs).

On the basis of the above mentioned, the Commission proposes the Council to designate the person(s) empowered to conclude the Agreement on behalf of the European Union.