I. Preamble back to top
A. Text of the Preamble
The Parties to this Agreement,
Recognizing the importance of milk and dairy
products to the economy of many countries(1) in terms of production, trade and consumption;
(footnote original)
1 In this Agreement and in
the Annex thereto, the term “country” is deemed to include the
European Communities as well as any separate customs territory Member of
the World Trade Organization.
Recognizing the need, in the mutual interests of
producers and consumers, and of exporters and importers, to avoid
surpluses and shortages, and to maintain prices at an equitable level;
Noting the diversity and interdependence of dairy
products;
Noting the situation in the dairy products market,
which is characterized by very wide fluctuations and the proliferation
of export and import measures;
Considering that improved cooperation in the dairy
products sector contributes to the attainment of the objectives of
expansion and liberalization of world trade, and the implementation of
the principles and objectives concerning developing countries agreed
upon in the Tokyo Declaration of Ministers dated 14 September 1973;
Determined to respect the principles and
objectives of the General Agreement on Tariffs and Trade 1994(2) and, in
carrying out the aims of this Agreement, effectively to implement the
principles and objectives agreed upon in the said Tokyo Declaration;
(footnote original)
2 This provision shall apply
only among Parties that are Members of the World Trade Organization.
Hereby agree as follows:
B. Interpretation and
Application of the Preamble
No jurisprudence or decision of a competent WTO
body.
II. Article I
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A. Text of
Article I
Article I: Objectives
The objectives of this Agreement shall be, in
accordance with the principles and objectives agreed upon in the Tokyo
Declaration of Ministers dated 14 September 1973,
-
to achieve the expansion and ever greater
liberalization of world trade in dairy products under market
conditions as stable as possible, on the basis of mutual benefit to
exporting and importing countries;
-
to further the economic and social development
of developing countries.
B.
Interpretation and Application of Article I
1. The International Dairy Agreement replaced
the International Dairy Arrangement that had operated since 1 January
1980.
III. Article II
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A. Text of
Article II
Article II: Product Coverage
1. This Agreement applies to the dairy
products sector. For the purpose of this Agreement, the term “dairy
products” is deemed to include the following products, as defined in
the Harmonized Commodity Description and Coding System (“Harmonized
System”) established by the Customs Co-operation Council:(3)
(footnote original)
3 For those Parties which
have not yet implemented the Harmonized System, the following Customs
Cooperation Council Nomenclature applies with respect to Article II of
this Agreement and Article 1 of the Annex:
|
CCCN |
Milk and cream, fresh, not concentrated or sweetened |
04.01 |
Milk and cream, preserved, concentrated or sweetened |
04.02 |
Butter |
04.03 |
Cheese and curd |
04.04 |
Casein |
ex 35.01 |
HS Code |
|
04.01.10-30 |
Milk and cream, not concentrated nor
containing added sugar or other sweetening matter |
04.02.10-99 |
Milk and cream, concentrated or
containing added sugar or other sweetening matter |
04.03.10-90 |
Buttermilk, curdled milk and cream,
yoghurt, kephir and other fermented or acidified milk and cream, whether
or not concentrated or containing added sugar or other sweetening matter
or flavoured or containing added fruit or cocoa |
04.04.10-90 |
Whey, whether or not concentrated or
containing added sugar or other sweetening matter; products consisting
of natural milk constituents, whether or not containing added sugar or
other sweetening matter, not elsewhere specified or included |
04.05.00 |
Butter and other fats and oils derived
from milk |
04.06.10-90 |
Cheese and curd |
35.01.10 |
Casein |
2. The International Dairy Council,
established under paragraph 1(a) of Article VII (hereinafter referred to
as “the Council”), may decide that the Agreement is to apply to
other products in which dairy products referred to in paragraph 1 have
been incorporated, if it deems their inclusion necessary for the
implementation of the objectives and provisions of this Agreement.
B.
Interpretation and Application of Article II
No jurisprudence or decision of a competent
WTO body.
IV. Article III
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A. Text of
Article III
Article III: Information and Market Monitoring
1. Each Party shall provide regularly and
promptly to the Council the information required to permit the Council
to monitor and assess the overall situation of the world market for
dairy products and the world market situation for each individual dairy
product.
2. Developing country Parties shall furnish
the information available to them. In order that these Parties may
improve their data collection mechanisms, developed Parties, and any
developing Parties able to do so, shall consider sympathetically any
request to them for technical assistance.
3. The information that the Parties undertake
to provide pursuant to paragraph
1, according to the modalities that the
Council shall establish, shall include data on past performance, current
situation and outlook regarding production, consumption, prices, stocks
and trade, including transactions other than normal commercial
transactions, in respect of the products referred to in Article
II, and
any other information deemed necessary by the Council. Parties shall
also provide information on their domestic policies and trade measures,
and on their bilateral, plurilateral or multilateral commitments, in the
dairy sector and shall make known, as early as possible, any changes in
such policies and measures that are likely to affect international trade
in dairy products. The provisions of this paragraph shall not require
any Party to disclose confidential information which would impede law
enforcement or otherwise be contrary to the public interest or would
prejudice the legitimate commercial interests of particular enterprises,
public or private.
4. The Secretariat of the World Trade
Organization (hereinafter referred to as “the Secretariat”), shall
draw up, and keep up to date, an inventory of all measures affecting
trade in dairy products, including commitments resulting from bilateral,
plurilateral and multilateral negotiations.
B. Interpretation and Application of
Article III
1. Notification requirements
2. At its meeting of 20–21 March 1995, the
International Dairy Council adopted the notification requirements for
information to be provided by the Parties(1) and for the inventory of
measures to be kept by the WTO Secretariat under Article
III.(2)
V. Article IV
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A. Text of
Article IV
Article IV: Functions of the International Dairy Council
and Cooperation between the Parties
1. The Council shall meet in order to:
(a) make an evaluation of the situation in and
outlook for the world market for dairy products, on the basis of a
status report prepared by the Secretariat with the documentation
furnished by Parties in accordance with Article
III, information arising
from the operation of the Annex to this Agreement on Certain Milk
Products (hereinafter referred to as “the Annex”) and any other
information available to the Secretariat;
(b) review the functioning of this Agreement.
2. If after an evaluation of the world market
situation and outlook, referred to in paragraph
1(a), the Council finds
that a serious market disequilibrium, or threat of such a
disequilibrium, which affects or may affect international trade, is
developing for dairy products in general or for one or more products,
the Council will proceed to identify, taking particular account of the
situation of developing countries, possible solutions for consideration
by governments.
3. Depending on whether the Council considers
that the situation defined in paragraph 2 is temporary or more durable,
the measures referred to in paragraph 2 could include short-, medium- or
long-term measures to contribute to improve the overall situation of the
world market.
4. When considering measures that could be
taken pursuant to paragraphs 2 and 3, due account shall be taken of the
special and more favourable treatment to be provided for developing
countries, where this is feasible and appropriate.
5. Any Party may raise before the Council any
matter(4) affecting this Agreement, inter alia, for the same purposes
provided for in paragraph 2. Each Party shall promptly afford adequate
opportunity for consultation regarding such matter affecting this
Agreement.
(footnote original)
4 It is confirmed that
the term “matter” in this paragraph includes any matter which is
covered by Multilateral Trade Agreements annexed to the Agreement
Establishing the World Trade Organization, in particular those bearing
on export and import measures.
6. If the matter affects the application of
the specific provisions of the Annex, any Party which considers that its
trade interests are being seriously threatened and which is unable to
reach a mutually satisfactory solution with the other Party or Parties
concerned may request the Chairman of the Committee established under
paragraph 2(a) of Article VII, to convene a special meeting of the
Committee on an urgent basis so as to determine as rapidly as possible,
and within four working days if requested, any measures which may be
required to meet the situation. If a satisfactory solution cannot be
reached, the Council shall, at the request of the Chairman of the
Committee, meet within a period of not more than fifteen days to
consider the matter with a view to facilitating a satisfactory solution.
B. Interpretation and Application of
Article IV
1. Article IV:1(a)
(a) Preparation of status report
3. At its meeting of 20–21 March 1995, the
International Dairy Council adopted procedural requirements for the
status reports to be distributed by the Secretariat under Article
IV:1(a).(3)
2. Article IV:1(b)
(a) Review of the functioning of the Agreement
4. Pursuant to
Article IV:1(b), at its meeting
on 17 October 1995, the International Dairy Council adopted a decision
suspending the Annex on Certain Milk Products, with effect from 18
October 1995.(4)
VI. Article V
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A. Text of
Article V
Article V: Food Aid and Transactions other than Normal
Commercial Transactions
1. The Parties agree:
(a) In cooperation with FAO and other
interested organizations, to foster recognition of the value of dairy
products in improving nutritional levels and of ways and means through
which they may be made available for the benefit of developing
countries.
(b) In accordance with the objectives of this
Agreement, to furnish, within the limits of their possibilities, dairy
products by way of food aid. Parties should notify the Council in
advance each year, as far as practicable, of the scale, quantities and
destinations of their proposed contributions of such food aid. Parties
should also give, if possible, prior notification to the Council of any
proposed amendments to the notified food-aid contributions. It is
understood that contributions could be made bilaterally or through joint
projects or through multilateral programmes, particularly the World Food
Programme.
(c) Recognizing the desirability of
harmonizing their efforts in this field, as well as the need to avoid
harmful interference with normal patterns of production, consumption and
international trade, to exchange views in the Council on their
arrangements for the supply and requirements of dairy products as food
aid or on concessional terms.
2. Donated exports, exports destined for
relief purposes or welfare purposes, and other transactions which are
not normal commercial transactions shall be effected in accordance with
Article 10 of the Agreement on Agriculture. The Council shall cooperate
closely with the FAO Consultative Sub-Committee on Surplus Disposal.
3. The Council shall, in accordance with
conditions and modalities that it will establish, upon request, discuss
and consult on all transactions other than normal commercial
transactions and other than those covered by the Agreement on Subsidies
and Countervailing Measures.
B. Interpretation and Application of
Article V
1. Article V:3
(a) Information on transactions
5. At its meeting of 20–21 March 1995, the
International Dairy Council defined the procedural requirements in
respect of parties requested to furnish information on the transactions
defined in Article V:3.(5)
VII. Article VI
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A. Text of
Article VI
Article VI: Annex(6)
Without prejudice to the provisions of
Articles I to V, the products listed below shall be subject to the
provisions of the Annex:
Milk powder and cream powder, excluding whey
powder
Milk fat
Certain cheeses
B. Interpretation and Application of
Article VI
1. Annex
(a) Paragraph 3
6. At its meeting of 2–3 May 1994, the
Management Committee established by the participants to the Protocol
Relating to Milk Fat as of 2 April 1973,(7) decided
to suspend under the
previous International Dairy Arrangement the minimum prices for butter
and anhydrous milk fat contained in Article 3:2(b) of the Protocol for a
period of 12 months.(8)
(b) Paragraph 4
7. At its meeting of 20–21 March 1995, the
International Dairy Council adopted notification requirements for cases
where prices in international trade of the products covered approached
the minimum prices mentioned in Article 4 of the Annex.(9)
VIII. Article VII
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A. Text of
Article VII
Article VII: Administration
1. International Dairy Council
(a) An International Dairy Council shall be
established within the framework of the World Trade Organization
(hereinafter referred to as the “WTO”). The Council shall comprise
representatives of all Parties to the Agreement and shall carry out all
the functions which are necessary to implement the provisions of the
Agreement. The Council shall be serviced by the Secretariat. The Council
shall establish its own rules of procedure. The Council may, as
appropriate, establish subsidiary working groups or other bodies.
(b) Regular and special meetings
The Council shall normally meet as
appropriate, but not less than twice each year. The Chairman may call a
special meeting of the Council either on his own initiative, at the
request of the Committee established under paragraph
2(a), or at the
request of a Party to this Agreement.
(c) Decisions
The Council shall reach its decisions by
consensus. The Council shall be deemed to have decided on a matter
submitted for its consideration if no member of the Council formally
objects to the acceptance of a proposal.
(d) Cooperation with other organizations
The Council shall make whatever arrangements
are appropriate for consultation or cooperation with intergovernmental
and non-governmental organizations.
(e) Admission of observers
(i) The Council may invite any non-Party
government to be represented at any meeting as an observer and may
determine rules on the rights and obligations of observers, in
particular with respect to the provision of information.
(ii) The Council may also invite any of the
organizations referred to in paragraph 1(d) to attend any meeting as an
observer.
2. Committee on Certain Milk Products
(a) The Council shall establish a Committee on
Certain Milk Products (hereinafter referred to as “the Committee”)
to carry out all the functions which are necessary to implement the
provisions of the Annex. This Committee shall comprise representatives
of all Parties. The Committee shall be serviced by the Secretariat. It
shall report to the Council on the exercise of its functions.
(b) Examination of the market situation
The Council shall make the necessary
arrangements, determining the modalities for the information to be
furnished under Article III, so that the Committee may keep under
constant review the situation in and the evolution of the international
market for the products covered by the Annex, and the conditions under
which the provisions of the Annex are applied by Parties, taking into
account the evolution of prices in international trade in each of the
other dairy products having implications for the trade in products
covered by the Annex.
(c) Regular and special meetings
The Committee shall normally meet once each
quarter. However, the Chairman of the Committee may call a special
meeting of the Committee on his own initiative or at the request of any
Party.
(d) Decisions
The Committee shall reach its decisions by
consensus. The Committee shall be deemed to have decided on a matter
submitted for its consideration if no member of the Committee formally
objects to the acceptance of a proposal.
B. Interpretation and Application of
Article VII
1. Article VII:1(a)
8. The International Dairy Council was
established under the GATT framework according to Article VII:1(a) of
the International Dairy Agreement of 1979.(10)
9. At its First Session of 20–21 March 1995,
the International Dairy Council adopted its Rules of Procedure.(11)
2. Article VII:2(a)
10. At its meeting on 17 October 1995, the
International Diary Council decided to suspend the Application of the
Annex on Certain Milk Products and the functioning of the Committee on
Certain Milk Products, whose rules of procedures were set out in Rules
15 to 22,(12) with effect from 18 October
1995.(13)
IX. Article VIII
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A. Text of
Article VIII
Article VIII: Final Provisions
1. Acceptance
(a) This Agreement is open for acceptance, by
signature or otherwise, by any State or separate customs territory
possessing full autonomy in the conduct of its external commercial
relations and of the other matters provided for in the Agreement
Establishing the WTO (hereinafter referred to as the “WTO Agreement”),
and by the European Communities.
(b) Any government(5) accepting this Agreement
may at the time of its acceptance make a reservation with regard to the
application of the Annex with respect to any product(s) specified
therein. Reservations may not be entered in respect of any of the
provisions of the Annex without the consent of the other Parties.
(footnote original) 5 For the purpose of this
Agreement, the term “government” is deemed to include the competent
authorities of the European Communities.
(c) Acceptance of this Agreement shall carry
denunciation of the International Dairy Arrangement done at Geneva on 12
April 1979, which entered into force on 1 January 1980, for Parties
having accepted that Arrangement. Such denunciation shall take effect on
the date of entry into force of this Agreement for that Party.
2. Entry into force
(a) This Agreement shall enter into force, for
those Parties having accepted it, on the date of entry into force of the
WTO Agreement. For Parties accepting this Agreement after that date, it
shall be effective from the date of their acceptance.
(b) The validity of contracts entered into
before the date of entry into force of this Agreement shall not be
affected by this Agreement.
3. Validity
This Agreement shall remain in force for three
years. The duration of this Agreement shall be extended for further
periods of three years at a time, unless the Council, at least eighty
days prior to each date of expiry, decides otherwise.
4. Amendment
Except where provision for modification is
made elsewhere in this Agreement, the Council may recommend an amendment
to the provisions of this Agreement. The proposed amendment shall enter
into force upon acceptance by all Parties.
5. Relationship between the Agreement and the
Annex and Attachments
The following shall be deemed to be an
integral part of this Agreement, subject to the provisions of paragraph
1(b):
6. Relationship between the Agreement and
Other Agreements
Nothing in this Agreement shall affect the
rights and obligations of Parties under the General Agreement on Tariffs
and Trade and the WTO Agreement.(6)
(footnote original) 6 This provision shall
apply only among Parties that are Members of the WTO or GATT.
7. Withdrawal
(a) Any Party may withdraw from this
Agreement. Such withdrawal shall take effect upon the expiration of 60
days from the date on which written notice of withdrawal is received by
the Director-General of the WTO.
(b) Subject to such conditions as may be
agreed upon by the Parties, any Party may withdraw its acceptance of the
application of the provisions of the Annex with respect to any
product(s) specified therein. Such withdrawal shall take effect upon the
expiration of 60 days from the date on which written notice of
withdrawal is received by the Director-General of the WTO.
8. Deposit
Until the entry into force of the WTO
Agreement, the text of this Agreement shall be deposited with the
Director-General to the CONTRACTING PARTIES to GATT who shall promptly
furnish a certified copy thereof and a notification of each acceptance
thereof to each Party. The texts of this Agreement in the English,
French and Spanish languages shall all be equally authentic. This
Agreement, and any amendments thereto, shall, upon the entry into force
of the WTO Agreement, be deposited with the Director-General of the WTO.
9. Registration
This Agreement shall be registered in
accordance with the provisions of Article 102 of the Charter of the
United Nations.
Done at Marrakesh this fifteenth day of April
nineteen hundred and ninety-four.
B. Interpretation and Application of
Article VIII
1. Article VIII:2
11. On 12 December 1994, the parties to the
International Dairy Agreement(14) agreed:
“[A]ll decisions and procedures currently in
effect in the International Dairy Agreement will be applied on a de
facto basis during the period following the period following entry into
force of the International Dairy Agreement until such time as the
International Dairy Council adopts a definitive decision on these
matters.”(15)
2. Article VIII:3
12. Following a decision of the Parties to the
International Dairy Agreement on 30 September 1997,(16) the General
Council, at its meeting of 10 December 1997, decided to delete the
International Dairy Agreement from Annex 4 of the WTO Agreement, with
effect from 1 January 1998.(17)
X. Annex on Certain Milk Products
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A. Text of
Annex on Certain Milk Products
Annex on Certain Milk Products
Article 1: Product Coverage
1. This Annex applies to:
(a) milk powder and cream powder falling under
HS heading Nos. 04.02.10–99 and 04.03.10–90;
(b) milk fat falling under HS heading No.
04.05.00, having a milk fat content equal to or greater than 50 per cent
by weight; and
(c) cheeses falling under HS heading No.
04.06.10–90, having a fat content in dry matter, by weight, equal to
or more than 45 per cent and a dry matter content, by weight, equal to
or more than 50 per cent.
Field of application
2. For each Party, this Annex is applicable to
exports of the products specified in paragraph 1 manufactured or
repacked inside its own customs territory.
Article 2: Pilot Products
The minimum export prices established under
Article 3 shall be established with respect to the pilot products of the
following specifications:
(a) Designation: Skimmed milk powder
Milk fat content: less than or equal to 1.5
per cent by weight
Water content: less than or equal to 5 per
cent by weight
(b) Designation: Whole milk powder
Milk fat content: 26 per cent by weight
Water content: less than or equal to 5 per
cent by weight
(c) Designation: Buttermilk powder(7)
Milk fat content: less than or equal to 11 per
cent by weight
Water content: less than or equal to 5 per
cent by weight
(footnote original) 7 Derived from the
manufacture of butter and anhydrous milk fat.
(d) Designation: Anhydrous milk fat
Milk fat content: 99.5 per cent by weight
(e) Designation: Butter
Milk fat content: 80 per cent by weight
(f) Designation: Cheese
Packaging:
In packages normally used in the trade, of a
net content by weight of not less than 25 kgs. or 50 lbs., except for
cheese, of 20 kgs. or 40 lbs., respectively, as appropriate.
Terms of sale:
F.o.b. from the exporting Party or
free-at-frontier exporting Party.
By derogation from this provision, reference
points for the Parties listed in Attachment A may be as provided
therein.
Prompt payment against documents.
Article 3: Minimum Prices
Level and observance of minimum prices
1. Each Party shall take the steps necessary
to ensure that the export prices of the products defined in Article 2
shall not be less than the minimum prices applicable under this Annex.
If the products are exported in the form of goods in which they have
been incorporated, Parties shall take the steps necessary to avoid
circumvention of the price provisions of this Annex.
2. (a) The minimum price levels set out in
this Article take account, in particular, of the current market
situation, dairy prices in producing Parties, the need to ensure an
appropriate relationship between the minimum prices established in the
Annex, the need to ensure equitable prices to consumers, and the
desirability of maintaining a minimum return to the most efficient
producers in order to ensure stability of supply over the longer term.
(b) The minimum prices provided for in
paragraph 1 applicable at the date of entry into force of this Agreement
are fixed at:
(i) US$1,200 per metric ton for the skimmed
milk powder defined in Article 2(a);
(ii) US$1,250 per metric ton for the whole
milk powder defined in Article 2(b);
(iii) US$1,200 per metric ton for the
buttermilk powder defined in Article 2(c);
(iv) US$1,625 per metric ton for the anhydrous
milk fat defined in Article 2(d);
(v) US$1,350 per metric ton for the butter
defined in Article 2(e);
(vi) US$1,500 per metric ton for the cheese
defined in Article 2(f).
3. (a) The levels of the minimum prices
specified in this Article may be modified by the Committee, taking into
account, on the one hand, the results of the operation of the Annex and,
on the other hand, the evolution of the situation of the international
market.
(b) The levels of the minimum prices specified
in this Article shall be subject to review at least once a year by the
Committee. In undertaking this review the Committee shall take account
in particular, to the extent relevant and necessary, of costs faced by
producers, other relevant economic factors of the world market, the need
to maintain a long-term minimum return to the most economic producers,
the need to maintain stability of supply and to ensure acceptable prices
to consumers, and the current market situation and shall have regard to
the desirability of improving the relationship between the levels of the
minimum prices set out in paragraph 2(b) and the dairy support levels in
the major producing Parties.
Adjustment of minimum prices
4. If the products actually exported differ
from the pilot products in respect of the fat content, packaging or
terms of sale, the minimum prices shall be adjusted so as to protect the
minimum prices established in this Annex for the products specified in
Article 2 of this Annex, according to the following provisions:
Milk fat content:
Milk powders. If the milk fat content of the
milk powders falling under Article 1(a), excluding buttermilk powder,(8)
differs from the milk fat content of the pilot products as specified in
Article 2(a) and Article 2(b), then for each full percentage point of
milk fat as from 2 per cent, the minimum price shall be adjusted in
proportion to the difference between the minimum prices in force for the
pilot products as specified in
Article 2(a) and Article 2(b).(9)
(footnote original) 8 As defined in
Article
2(c) of this Annex.
(footnote original) 9 See Attachment B, “Schedule
of Price Differentials According to Milk Fat Content”.
Milk fats. If the milk fat content of the milk
fat falling under Article 1(b) differs from the milk fat content of the
pilot products as specified in Article 2(d) or Article 2(e) then, if the
milk fat content is equal to or greater than 82 per cent or less than 80
per cent, the minimum price of this product shall be, for each full
percentage point by which the milk fat content is more than or less than
80 per cent, increased or reduced in proportion to the difference
between the minimum prices in force for the pilot products as specified
in Article 2(d) or Article
2(e), respectively.
Packaging:
If the products are offered otherwise than in
packages normally used in the trade, of a net content by weight of not
less than 25 kgs. or 50 lbs., or for cheese, of not less than 20 kgs. or
40 lbs., respectively, as appropriate, the minimum prices shall be
adjusted so as to reflect the difference in the cost of packaging
relative to the cost of the type of package specified above.
Terms of sale:
If sold on terms other than f.o.b. from the
exporting Party or free-at-frontier exporting Party,(10) the minimum
prices shall be calculated on the basis of the minimum f.o.b. prices
specified in paragraph 2(b), plus the real and justified costs of the
services provided; if the terms of the sale include credit, this shall
be charged for at the prevailing commercial rates in the exporting Party
concerned.
(footnote original)
10 See Article 2 of this
Annex.
Exports and imports of skimmed milk powder and
buttermilk powder for purposes of animal feed
5. By derogation from the provisions of
paragraphs 1 to 4, a Party may, under the conditions defined below,
export or import, as the case may be, skimmed milk powder and buttermilk
powder for purposes of animal feed at prices below the minimum prices
provided for in this Annex for these products. A Party may make use of
this possibility only to the extent that it ensures that the products
exported or imported are subjected to the processes and control measures
which will be applied in the country of export or destination so as to
ensure that the skimmed milk powder and buttermilk powder thus exported
or imported are used exclusively for animal feed. These processes and
control measures shall have been approved by the Committee and recorded
in a register established by it.(11) A Party wishing to make use of the
provisions of this paragraph shall give advance notification of its
intention to do so to the Committee which shall meet, at the request of
any Party, to examine the market situation. The Parties shall furnish
the necessary information concerning their transactions in respect of
skimmed milk powder and buttermilk powder for purposes of animal feed,
so that the Committee may follow developments in this sector and
periodically make forecasts concerning the evolution of this trade.
(footnote original) 11 See Attachment C, “Register
of Processes and Control Measures”. It is understood that exporters
would be permitted to ship skimmed milk powder and buttermilk powder for
animal feed purposes in an unaltered state to importers which have had
their processes and control measures inserted in the Register. In this
case, exporters shall so inform the Committee.
Special conditions of sales
6. Parties undertake, within the limit of
their institutional possibilities, to ensure that practices such as
those referred to in Article 4 do not have the effect of directly or
indirectly bringing the export prices of the products subject to the
minimum price provisions below the agreed minimum prices.
Transactions other than normal commercial
transactions
7. The provisions of
paragraphs 1 to 6 shall
not be regarded as applying to donated exports or to exports destined
for relief purposes or food-related development purposes or welfare
purposes, provided these have been notified to the Council as provided
for in Article V of the Agreement.
Article 4: Provision of Information
In cases where prices in international trade
of the products covered by Article 1 are approaching the minimum prices
mentioned in paragraph 2(b) of Article 3, and without prejudice to the
provisions of Article III of the Agreement, Parties shall notify to the
Committee all the relevant elements for evaluating their own market
situation and, in particular, credit or loan practices, twinning with
other products, barter or three sided transactions, refunds or rebates,
exclusivity contracts, packaging costs and details of the packaging, so
that the Committee can make a verification.
Article 5: Obligations of Exporting Parties
Exporting Parties agree to use their best
endeavours, in accordance with their institutional possibilities, to
supply on a priority basis the normal commercial requirements of
developing importing Parties, especially those used for food-related
development purposes and welfare purposes.
Article 6: Cooperation of Importing Parties
1. Parties which import products covered by
Article 1 undertake in particular:
(a) to cooperate in implementing the minimum
price objective of this Annex and to ensure, as far as possible, that
the products covered by Article 1 are not imported at less than the
appropriate customs valuation equivalent to the prescribed minimum
prices;
(b) without prejudice to the provisions of
Article III of the Agreement and Article 4 of this Annex, to supply
information concerning imports of products covered by Article 1 from
non-Parties;
(c) to consider sympathetically proposals for
appropriate remedial action if imports at prices inconsistent with the
minimum prices threaten the operation of this Annex.
2. Paragraph 1 shall not apply to imports of
skimmed milk powder and buttermilk powder for purposes of animal feed,
provided that such imports are subject to the measures and procedures
provided for in paragraph 5 of Article 3.
Article 7: Derogations
1. Upon request by a Party, the Committee
shall have the authority to grant derogations from the provisions of
paragraphs 1 to 5 of Article 3 in order to remedy difficulties which
observance of minimum prices could cause certain Parties. The Committee
shall take a decision on such a request within three months from the
date of the request.
2. The provisions of
paragraphs 1 to 4 of
Article 3 shall not apply to exports, in exceptional circumstances, of
small quantities of natural unprocessed cheese which would be below
normal export quality as a result of deterioration or production faults.
Parties exporting such cheese shall notify the Secretariat in advance of
their intention to do so. Parties shall also notify the Committee
quarterly of all sales of cheese effected under this provision,
specifying in respect of each transaction the quantities, prices and
destinations involved.
Article 8: Emergency Action
Any Party which considers that its interests
are seriously endangered by a country not bound by this Annex can
request the Chairman of the Committee to convene an emergency meeting of
the Committee within two working days to determine and decide whether
measures would be required to meet the situation. If such a meeting
cannot be arranged within the two working days and the commercial
interests of the Party concerned are likely to be materially prejudiced,
that Party may take unilateral action to safeguard its position, on the
condition that any other Parties likely to be affected are immediately
notified. The Chairman of the Committee shall also be formally advised
immediately of the full circumstances of the case and shall call a
special meeting of the Committee at the earliest possible moment.
Footnotes:
1. IDA/1, Rule 23. back
to text
2. IDA/1, Rule 30. back to text
3. IDA/1, Rule 24. back to text
4. International Dairy Council, Second Session, adopted
13 February 1996, IDA/5. back to text
5. IDA/1, Rule 25. back to text
6. See Section X. back to text
7. L/3835, BISD 20S/11, Article
VII:1. back to text
8. DPC/PTL/40, para. 4. back to text
9. IDA/1, Rule 26. back to text
10. BISD 26S/91. back to text
11. IDA/1. back to text
12. IDA/1. back to text
13. IDA/3. back to text
14. Argentina, Australia, Bulgaria, Egypt, the European
Communities, Hungary, Japan, New Zealand, Norway, Poland, Romania,
Switzerland and Uruguay. back to text
15. L/7568. back to text
16. IDA/1. back to text
17. WT/L/251. back to text
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