AGREEMENT in the form of an exchange of letters between the European Economic Community and the Republic of Tunisia laying down the arrangements applicable from 1 January 1991 to imports into the Community of untreated olive oil originating in Tunisia

A. Letter from the Community

Sir,

The arrangements applicable from 1 January 1991 to imports into the Community of untreated olive oil originating in Tunisia have been reviewed by the Community and Tunisia in accordance with Article 4 of the Additional Protocol to the Cooperation Agreement between the European Economic Community and the Republic of Tunisia. The following was agreed:

(a) from 1 January 1991 to 31 December 1993 the provisions of Article 4 of the Additional Protocol to the Cooperation Agreement will continue to apply to imports of untreated olive oil falling within CN code 1509 10 10 or 1509 10 90 wholly obtained in Tunisia and transported direct from that country to the Community.

Renewal of the arrangements laid down in the Additional Protocol is intended to support Tunisia's efforts to restructure its olive oil sector with a view, in particular, to increasing domestic consumption of olive oil and exports of olive oil on the world market.

Tunisia will actively pursue its efforts within the framework of the structural adjustment measures relating to the agricultural sector and, in particular, will implement measures along the following lines:

Development of domestic consumption of olive oil:

- application of an appropriate price policy permitting the progressive establishment of a more favourable ratio between the price of olive oil and grain oils,

- amendment of the rules on supplies to the Tunisian market with a view to progressively increasing the proportion of olive oil mixed with imported grain oils;

Development of exports of olive oil on the world market:

- removal of the external monopoly of the Office National des Huiles (ONH) and implementation of rules designed to develop and diversify the export activities of private firms.

Implementation of measures intended to improve the quality and presentation of olive oil in order to encourage domestic consumption and exports on the world market;

(b) the Community and Tunisia will hold a dialogue within the appropriate bodies on developments on the world and Community markets for olive oil and developments on the Tunisian market (production, consumption, external trade) and the structural reforms referred to above.

Each year Tunisia will present a report on developments on the Tunisian market and structural reforms to the Community;

(c) Tunisia and the Community will review the arrangements for imports of olive oil originating in Tunisia before 1 January 1992 and again before 1 January 1994. These reviews will take particular account of the situation on the Community market and the Community's policy for olive oil.

I should be obliged if you would acknowledge receipt of this letter and confirm that your Government is in agreement with its contents.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council

of the European Communities

B. Letter from the Republic of Tunisia

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

'The arrangements applicable from 1 January 1991 to imports into the Community of untreated olive oil originating in Tunisia have been reviewed by the Community and Tunisia in accordance with Article 4 of the Additional Protocol to the Cooperation Agreement between the European Economic Community and the Republic of Tunisia. the following was agreed:

(a) from 1 January 1991 to 31 December 1993 the provisions of Article 4 of the Additional Protocol to the Cooperation Agreement will continue to apply to imports of untreated olive oil falling within CN code 1509 10 10 or 1509 10 90 wholly obtained in Tunisia and transported direct from that country to the Community.

Renewal of the arrangements laid down in the Additional Protocol is intended to support Tunisia's effort to restructure its olive oil sector with a view, in particular to increasing domestic consumption of olive oil and exports of olive oil on the world market.

Tunisia will actively pursue its efforts within the framework of the structural adjustment measures relating to the agricultural sector and, in particular, will implement measures along the following lines:

Development of domestic consumption of olive oil:

- application of an appropriate price policy permitting the progressive establishment of a more favourable ratio between the price of olive oil and grain oils,

- amendment of the rules on supplies to the Tunisian market with a view to progressively increasing the proportion of olive oil mixed with imported grain oils;

Development of exports of olive oil on the world market:

- removal of the external monopoly of the Office National des Huiles (ONH) and implementation of rules designed to develop and diversify the export activities of private firms.

Implementation of measures intended to improve the quality and presentation of olive oil in order to encourage domestic consumption and exports on the world market;

(b) the Community and Tunisia will hold a dialogue within the appropriate bodies on developments on the world and Community markets for olive oil and developments on the Tunisian market (production, consumption, external trade) and the structural reforms referred to above.

Each year Tunisia will present a report on developments on the Tunisian market and structural reforms to the Community;

(c) Tunisia and the Community will review the arrangements for imports of olive oil originating in Tunisia before 1 January 1992 and again before 1 January 1994. These reviews will take particular account of the situation on the Community market and the Community's policy for olive oil.

I should be obliged if you would acknowledge receipt of this letter and confirm that your Government is in agreement with its contents.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the

Republic of Tunisia