Agreement in the form of an Exchange of Letters

between the European Community and the United States of America pursuant to Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions in the schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union

A. Letter from the European Community

+++++ TIFF +++++

Geneva,

Sir,

Pursuant to negotiations under Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT) relating to the modification of the Schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union, and to bring those negotiations to a conclusion, the European Communities and the United States of America (United States) have agreed as follows:

No later than 1 April 2006, the EC shall incorporate and bind in its Schedule for the Customs territory of the EC-25 (the EC of 25 Countries) the concessions that were included in its schedule CXL for the customs territory of the EC-15 (the EC of 15 countries) with the modifications set out in the Annex to this letter.

The EC shall reduce tariffs and adjust tariff rate quotas as indicated in the Annex as soon as possible and no later than 1 July 2006.

As regards tariff quotas, the full year quota volume shall be available regardless of when the quotas are established.

Consultations shall be held with regard to matters in this agreement at any time at the request of either party.

I would be grateful if you would confirm, following consideration in accordance with your domestic procedures, that this agreement is shared by your Government, and that this letter and your affirmative reply shall constitute an agreement, which shall enter into force on the date of your letter.

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

+++++ TIFF +++++

On behalf of the European Community

ANNEX

03042058 (frozen fillets of hake) a bound duty of 6,1 %

03042085 (frozen fillets of Alaska Pollack): a bound duty of 14,2 %

03049005 (surimi): a bound duty of 14,2 %

39209100 (polyvinyl butyral): a bound duty of 6,1 %

76090000 (aluminium tube): a bound duty of 5,9 %

81029300 (molybdenum wire): a bound duty of 6,1 %.

- add 4003 tonnes (erga omnes) in EC tariff rate quota for "meat of bovine animals, frozen; un-separated or separated forequarters; boneless" and "edible offal of bovine animals, frozen; thick skirt and thin skirt. The meat imported shall be used for processing" (tariff item numbers 02022030, 020230, 02062991),

- adjust the EC tariff rate quota (erga omnes) for "live bovine animals, heifers and cows (other than for slaughter) of the following mountain breeds: grey, brown, yellow, spotted Simmental and Pinzgau" to 710 heads (tariff item numbers 01029005, 01029029, 01029049, 01029059, 01029069), in-quota rate 6 %,

- adjust the EC tariff rate quota (erga omnes) for "live bovine animals, bulls, cows and heifers (other than for slaughter) of the following mountain breeds: spotted Simmental, Schwyz and Fribourg" to 711 heads (tariff item numbers 01029005, 01029029, 01029049, 01029059, 01029069, 01029079), in-quota rate 4 %,

- adjust the EC tariff rate quota (erga omnes) for "live bovine animals weighing 300 kg or less intended for fattening" to 24070 heads (tariff item numbers 01029005, 01029029, 01029049), in-quota rate 16 % + EUR 582/t,

- a country allocated (US) tariff rate quota 16665 tonnes of poultry (tariff item numbers and in-quota rates)

02071110 (EUR 131/t)

02071130 (EUR 149/t)

02071190 (EUR 162/t)

02071210 (EUR 149/t)

02071290 (EUR 162/t)

02071310 (EUR 512/t)

02071320 (EUR 179/t)

02071330 (EUR 134/t)

02071340 (EUR 93/t)

02071350 (EUR 301/t)

02071360 (EUR 231/t)

02071370 (EUR 504/t)

02071410 (EUR 795/t)

02071420 (EUR 179/t)

02071430 (EUR 134/t)

02071440 (EUR 93/t)

02071450 (0 %)

02071460 (EUR 231/t)

02071470 (0 %)

02072410 (EUR 170/t)

02072490 (EUR 186/t)

02072510 (EUR 170/t)

02072590 (EUR 186/t)

02072610 (EUR 425/t)

02072620 (EUR 205/t)

02072630 (EUR 134/t)

02072640 (EUR 93/t)

02072650 (EUR 339/t)

02072660 (EUR 127/t)

02072670 (EUR 230/t)

02072680 (EUR 415/t)

02072710 (0 %)

02072720 (0 %)

02072730 (EUR 134/t)

02072740 (EUR 93/t)

02072750 (EUR 339/t)

02072760 (EUR 127/t)

02072770 (EUR 230/t)

02072780 (0 %)

- add 49 tonnes (erga omnes) in the EC tariff rate quota for "chicken carcass, fresh, chilled or frozen", (tariff item numbers 02071110, 02071130, 02071190, 02071210, 02071290),

- add 4070 tonnes (erga omnes) in the EC tariff rate quota for "chicken cuts, fresh, chilled or frozen" (tariff item numbers 02071310, 02071320, 02071330, 02071340, 02071350, 02071360, 02071370, 02071420, 02071430, 02071440, 02071460),

- add 1605 tonnes (erga omnes) in the EC tariff rate quota for "cuts of fowls" (tariff item number 02071410), in quota rate EUR 795/t,

- add 201 tonnes (erga omnes) in the EC tariff rate quota for "turkey meat, fresh, chilled or frozen" (tariff item numbers 02072410, 02072490, 02072510, 02072590, 02072610, 02072620, 02072630, 02072640, 02072650, 02072660, 02072670, 02072680, 02072730, 02072740, 02072750, 02072760, 02072770),

- add 2485 tonnes (erga omnes) in the EC tariff rate quota for "turkey cuts, frozen" (tariff item numbers 02072710, 02072720, 02072780),

- a country allocated (US) tariff rate quota 4722 tonnes of "frozen boneless hams and loins" (tariff item numbers ex02031955 and ex02032955), in-quota rate EUR 250/t,

- add 1265 tonnes (erga omnes) in the EC tariff rate quota for "frozen boneless hams and loins" (tariff item numbers ex02031955, ex02032955),

- add 67 tonnes (erga omnes) in the EC tariff rate quota for "carcasses and half carcasses of domestic swine, fresh, chilled or frozen" (tariff item numbers 02031110, 02032110),

- add 35 tonnes (erga omnes) in the EC tariff rate quota for "cuts of domestic swine, fresh, chilled or frozen, with or without bone, excluding tenderloin, presented separately" (tariff item numbers 02031211, 02031219, 02031911, 02031913, 02031955, 02031959, 02032211, 02032219, 02032911, 02032913, 02032915, 02032955, 02032959),

- add 2 tonnes (erga omnes) in the EC tariff rate quota for "sausages, dry or for spreading, uncooked" (tariff item numbers 16010091, 16010099),

- add 61 tonnes (erga omnes) in the EC tariff rate quota for "preserved meat of domestic swine" (tariff item numbers 16024110, 16024210, 16024911, 16024913, 16024915, 16024919, 16024930, 16024950),

- adjust the EC tariff rate quota for "live sheep, other than pure-bred breeding animals" to 5676 tonnes (tariff item numbers 01041030, 01041080, 01042090), in-quota rate 10 %,

- add 60 tonnes (erga omnes) in the EC tariff rate quota for "pizza cheese" (tariff item numbers ex04061020, ex04061080),

- add 38 tonnes (erga omnes) in the EC tariff rate quota for "emmentaler" (tariff item numbers ex04063010, 04069013),

- add 213 tonnes (erga omnes) in the EC tariff rate quota for "gruyere, sbrinz" (tariff item numbers ex04063010, 04069015),

- add 7 tonnes (erga omnes) in the EC tariff rate quota for "cheese for processing" (tariff item number 04069001),

- add 5 tonnes (erga omnes) in the EC tariff rate quota for "cheddar" (tariff item number 04069021),

- add 25 tonnes (erga omnes) in the EC tariff rate quota for "fresh cheeses" (tariff item numbers ex04061020, ex04061080, 04062090, 04063031, 04063039, 04063090, 04064010, 04074050, 04074090, 04069017, 04069018, 04069023, 04069025, 04069027, 04069029, 04069031, 04069033, 04069035, 04069037, 04069039, 04069050, ex04069063, 04069069, 04069073, ex04069075, ex04069076, 04069078, ex04069079, ex04069081, 04069082, 04069084, 04069086, 04069087, 04069088, 04069093, 04069099),

- open a tariff rate quota 7 tonnes (erga omnes) for paddy rice (tariff item number 100610), in-quota rate 15 %,

- open a tariff rate quota 1634 tonnes (erga omnes) for husked rice (tariff item number 100620), in-quota rate 15 %,

- add 25516 tonnes (erga omnes) in EC tariff rate quota for semi milled and wholly milled rice (tariff item number 100630), in-quota rate 0 %,

- add 31788 tonnes (erga omnes) in EC tariff rate quota for broken rice (tariff item number 100640), in-quota rate 0 %,

- add 6215 tonnes (erga omnes) in EC tariff rate quota for barley (tariff item number 100300), in-quota rate EUR 16/t,

- add 6787 tonnes (erga omnes) in EC tariff rate quota for common wheat (tariff item number 10019099), in-quota rate EUR 12/t,

- open a tariff rate quota 242074 tonnes (erga omnes) for maize (tariff item numbers 10051090, 10059000), in-quota rate 0 %,

- add 1413 tonnes (erga omnes) in EC tariff rate quota for raw cane sugar (tariff item number 17011110), in-quota rate EUR 98/t,

- open a tariff rate quota 1253 tonnes (erga omnes) for fructose (tariff item number 17025000), in-quota rate 20 %,

- add 44 tonnes (erga omnes) in EC tariff rate quota for carrots and turnips (tariff item number 07061000),

- add 34 tonnes (erga omnes) in EC tariff rate quota for cucumbers (tariff item number ex07070005),

- open a tariff rate quota 472 tonnes (erga omnes) for tomatoes (tariff item number 07020000),

- open a tariff rate quota 2838 tonnes (erga omnes) for preserved pineapples, citrus fruit, pears, apricots, cherries, peaches and strawberries (tariff item numbers 20082011, 20082019, 20082031, 20082039, 20082071, 20083011, 20083019, 20083031, 20083039, 20083079, 20084011, 20084019, 20084021, 20084029, 20084031, 20084039, 20085011, 20085019, 20085031, 20085039, 20085051, 20085059, 20085071, 20086011, 20086019, 20086031, 20086039, 20086060, 20087011, 20087019, 20087031, 20087039, 20087051, 20087059, 20088011, 20088019, 20088031, 20088039, 20088070), in-quota rate 20 %,

- open a tariff rate quota 7044 tonnes (erga omnes) for fruit juices (tariff item numbers 20091111, 20091119, 20091911, 20091919, 20092911, 20092919, 20093911, 20093919, 20094911, 20094919, 20097911, 20097919, 20098011, 20098019, 20098032, 20098033, 20098035, 20098036, 20098038, 20099011, 20099019, 20099021, 20099029), in-quota rate 20 %,

- add 29 tonnes (erga omnes) in EC tariff rate quota for grape juice (tariff item numbers 20096190, 20096911, 20096919, 20096951, 20096990),

- add 295 tonnes (erga omnes) in EC tariff rate quota for fresh or chilled new potatoes (tariff item number ex07019051),

- eliminate ad valorem duty of 9 % on protein concentrates (tariff item number 21061080),

- A country allocated (US) tariff rate quota 10000 tonnes of corn gluten (tariff item number 23031011), in-quota rate 16 %,

- open a tariff rate quota 532 tonnes (erga omnes) for pasta (tariff item number 1902; 19022010 and 19022030 excluded), in-quota rate 11 %,

- open a tariff rate quota 107 tonnes (erga omnes) for chocolate (tariff item number 1806), in-quota rate 43 %,

- open a tariff rate quota 921 tonnes (erga omnes) for food preparations (tariff item number 21069098), in-quota rate 18 %,

- open a tariff rate quota 191 tonnes (erga omnes) for food preparations with cereals (tariff item numbers 19019099, 19043000, 19049080, 19059020), in-quota rate 33 %,

- open a tariff rate quota 2058 tonnes (erga omnes) for dog and cat food (tariff item numbers 23091013, 23091015, 23091019, 23091033, 23091039, 23091051, 23091053, 23091059, 23091070), in-quota rate 7 %.

The exact tariff descriptions of the EC-15 shall apply to all tariff lines and quotas above.

B. Letter from the United States of America

+++++ TIFF +++++

Geneva,

Sir,

Reference is made to your letter stating:

"Pursuant to negotiations under Article XXIV:6 and Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT) relating to the modification of the Schedules of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the course of their accession to the European Union, and to bring those negotiations to a conclusion, the European Communities and the United States of America (United States) have agreed as follows:

No later than 1 April 2006, the EC shall incorporate and bind in its Schedule for the Customs territory of the EC-25 (the EC of 25 Countries) the concessions that were included in its schedule CXL for the customs territory of the EC-15 (the EC of 15 countries) with the modifications set out in the Annex to this letter.

The EC shall reduce tariffs and adjust tariff rate quotas as indicated in the Annex as soon as possible and no later than 1 July 2006.

As regards tariff quotas, the full year quota volume shall be available regardless of when the quotas are established.

Consultations shall be held with regard to matters in this agreement at any time at the request of either party.

I would be grateful if you would confirm, following consideration in accordance with your domestic procedures, that this agreement is shared by your Government, and that this letter and your affirmative reply shall constitute an agreement, which shall enter into force on the date of your letter."

I hereby have the honour to express my government's agreement.

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

+++++ TIFF +++++

On behalf of the United States of America

--------------------------------------------------