Annexe V. Trade regime applicable during the preparatory period referred to in article 37 (1)
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Page 36
Products originating in the ACP States shall be imported into the Community free of customs duties and charges having equivalent effect.
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For products originating in the ACP States:
- listed in Annexe I to the Treaty where they come under a common organisation of the market within the meaning of Article 34 of the Treaty, or
- subject, on import into the Community, to specific rules introduced as a result of the implementation of the common agricultural policy, the Community shall take the necessary measures to ensure more favourable treatment than that granted to third countries benefiting from the most-favoured-nation clause for the same products.
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If, during the application of this Annexe, the ACP States request that new lines of agricultural production or agricultural products which are not the subject of specific arrangements when this Annexe enters into force should benefit from such arrangements, the Community shall examine these requests in consultation with the ACP States.
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Notwithstanding the above, the Community shall, in the context of thePage 37 special relations and special nature of ACP-EC cooperation, examine on a case-by-case basis the requests from the ACP States for preferential access for their agricultural products to the Community market and shall notify its decision on these reasoned requests if possible within four months, and in any case not more than six months after the date of their submission.
Within the context of subparagraph (a), the Community shall take its decisions in particular with reference to concessions granted to developing third countries. It shall take account of the possibilities offered by the off-season market.
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The arrangements referred to in subparagraph (a) shall enter into force at the same time as this Agreement and shall remain applicable for the duration of the preparatory period defined in Article 37(1) of the Agreement.
However, if during this period, the Community:
- subjects one or more products to common organization of the market or to specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to adapt the import treatment for those products originating in the ACP States, following consultations within the Council of Ministers. In such cases, the provisions of subparagraph (a) shall be applicable;
- modifies the common organisation of the market in a particular product or the specific rules introduced as a result of the implementation of the common agricultural policy, it shall reserve the right to modify the arrangements laid down for products originating in the ACP States, following consultations within the Council of Ministers. In such cases the Community shall undertake to ensure that products originating in the ACP States continue to enjoy an advantage comparable to that previously enjoyed in relation to products originating in third countries benefiting from the most-favored-nation clause.
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Where the Community intends to conclude a preferential agreement with third States it shall inform the ACP States thereof. Consultations shall take place where the ACP States so request in order to safeguard their interests.
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The Community shall not apply to imports of products originating in the ACP States any quantitative restrictions or measures having equivalent effect.
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Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, the protection of health and life of humans, animals and plants, the protection of national treasures possessing artistic, historic or archaeological value, conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption, or the protection of industrial and commercial property.
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Such prohibitions or restrictions shall in no case constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of trade generally.
In cases where implementation of the measures referred to in paragraph 2 affects the interests of one or more ACP States, consultation shall be held at the request of the latter, in accordance with the provisions of Article 12 of this Agreement, with a view to reaching a satisfactory solution.
Page 38
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Where new measures or measures stipulated in programmes adopted by the Community for the approximation of laws and regulations in order to facilitate the movement of goods are likely to affect the interests of one or more ACP States, the Community shall, prior to adopting such measures, inform the ACP States thereof through the Council of Ministers.
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In order to enable the Community to take into consideration the interests of the ACP State concerned, consultations shall be held at the request of the latter in accordance with the provisions of Article 12 of this Agreement, with a view to reaching a satisfactory solution.
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Where existing Community rules or regulations adopted in order to facilitate the movement of goods affect the interests of one or more ACP States or where these interests are affected by the interpretation, application or administration of such rules or regulations, consultations shall be held at the request of the ACP States concerned with a view to reaching a satisfactory solution.
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With a view to finding a satisfactory solution, the ACP States may also bring up within the Council of Ministers any other problems relating to the movement of goods which might result from measures taken or envisaged by the Member States.
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The relevant institutions of the Community shall, to the greatest possible extent, inform the Council of Ministers of such measures in order to ensure effective consultations.
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The ACP States shall not be required to assume, in respect of imports of products originating in the Community, obligations corresponding to the commitment entered into by the Community under this Annexe in respect of imports of the products originating in the ACP States
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In their trade with the Community, the ACP States shall not discriminate among the Member States and shall grant to the Community treatment no less favourable than most-favoured nation treatment.
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The most-favoured-nation treatment referred to in subparagraph (a) shall not apply in respect of trade or economic relations between ACP States or between one or more ACP States and other developing countries.
Each Party shall communicate its customs tariff to the Council of Ministers within three months of the entry into force of this Annexe. Each Party shall also communicate any subsequent amendments to its tariff as and when they come into force.
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The concept of "originating products" for the purposes of implementing this Annexe, and the methods of administrative cooperation relating thereto, are defined in Protocol 1 annexed hereto.
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The Council of Ministers may adopt any amendment to Protocol 1.
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Where the concept of "originating products" has not yet been defined for a given product pursuant to paragraphs 1 or 2, each Contracting Party shall continue to apply its own rules.
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Where any product is being imported into the Community in such increased quantities and under such conditionsPage 39 as to cause or threaten to cause serious injury to its domestic producers of like or directly competitive products or serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region, the Community may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 9.
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The Community undertakes not to use other means for protectionism purposes or to hamper structural development. The Community will refrain from using safeguard measures having the same effect.
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Safeguard measures shall be restricted to those which would least disturb trade between the Contracting Parties in implementing the objectives of this Agreement and must not exceed the scope of what is strictly necessary to remedy the difficulties that have arisen.
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When applied, safeguard measures shall take into account the existing level of the ACP exports concerned to the Community and their potential for development. Particular attention shall be paid to the interests of the leastdeveloped, landlocked and island ACP States.
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Prior consultation shall take place concerning the application of the safeguard clause, both when such measures are first adopted and when they are extended. The Community shall provide the ACP States with all the information required for such consultations and shall provide the data from which to determine to what extent imports from an ACP State of a specific product have caused the effects referred to in Article 8(1).
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Where consultations have taken place, safeguard measures, or arrangements jointly agreed upon by the ACP States concerned and the Community, shall enter into force thereafter.
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However, the prior consultations provided for in paragraphs 1 and 2 shall not prevent any immediate decisions which the Community, in accordance with Article 8(1), might take where special factors have necessitated such decisions.
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In order to facilitate the examination of factors that may cause market disturbances, a mechanism shall be instituted for the statistical surveillance of certain ACP exports to the Community.
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The Parties undertake to hold regular consultations with a view to finding satisfactory solutions to problems which might result from the application of the safeguard clause.
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The prior consultations as well as the regular consultations and the surveillance mechanism referred to in paragraphs 1 to 5 shall be implemented in accordance with Protocol 2 annexed hereto.
The Council of Ministers shall, at the request of any Party concerned, consider the economic and social effects of the application of the safeguard clause.
When safeguard measures are being taken, modified or removed, particular attention shall be paid to the interests of the least-developed, landlocked and island ACP States.
Page 40
In order to ensure the effective implementation of this Annexe, the Parties agree to inform and consult each other.
In addition to the cases for which consultations are specifically provided for in Articles 2 to 9 of this Annexe, consultations shall also take place, at the request of the Community or the ACP States, and in accordance with the conditions provided for in the procedural rules in Article 12 of this Agreement, particularly in the following cases:
1) where Parties intend to take any trade measures affecting the interests of one or more Parties under this Annexe, they shall inform the Council of Ministers thereof. Consultations shall take place, where the Parties concerned so request, in order to take account of their respective interests;
2) if, during the application of this Annexe, the ACP States consider that agricultural products covered by Artic1e 1(2)(a) other than those subject to special treatment should benefit form such treatment, consultations may take place within the Council of Ministers;
3) where a Party considers that obstacles to the movement of goods arise as a result of the existing rules of another Party or the interpretation, application or administration thereof;
4) where the Community takes safeguard measures in accordance with the provisions of Article 8, consultations on these measures may take place within the Council of Ministers, where the Parties concerned so request, notably with a view to ensuring compliance with Article 8(3).
Such consultations must be completed within three months.
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In accordance with Article 25 of the ACP-EEC Convention of Lom signed on 28 February 1975 and with Protocol 3 annexed thereto, the Community has undertaken for an indefinite period, notwithstanding the other provisions of this Annexe, to purchase and import, at guaranteed prices, specific quantities of cane sugar, raw or white, which originates in the ACP States producing and exporting cane sugar and which those States have undertaken to deliver to it.
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The conditions for the implementation of the aforementioned Article 25 have been laid down by Protocol 3 referred to in paragraph 1. The text of the Protocol is attached to this Annexe as Protocol 3.
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Article 8 of this Annexe shall not apply within the framework of the said Protocol.
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For the purpose of Article 8 of the said Protocol the institutions established under this Agreement may be used during the period of application of this Agreement.
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Article 8(2) of the said Protocol shall apply should this Agreement cease to be operative.
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The declarations contained in Annexes XIII, XXI and XXII of the Final Act to the ACP-EEC Convention of Lom signed on 28 February 1975 are reaffirmed and their provisions shall continue to apply.
These declarations are annexed as such to Protocol 3.
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This Article and Protocol 3 shall not apply to relations between the ACP States and the French overseas departments.
Page 41
The special undertaking on beef and veal, defined in Protocol 4 annexed hereto shall apply.
The Protocols attached to this Annexe shall form an integral part thereof.
