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Date: 17-May-2024 Category: Not Applicable State: Union Government Country: Europe

Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic amending the Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions on all the tariff-rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom’s withdrawal from the European Union

Issued by Argentina · European Union

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Executive Summary & Key Takeaways

What it means

  • The gazette notification details an agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic. This agreement amends a previous agreement (dated 10 May 2021) relating to tariff-rate quotas, specifically in light of the United Kingdom's withdrawal from the European Union.
  • The amendment adjusts the shares of two tariff-rate quotas for which Argentina has negotiating rights.

Key Changes

  • The agreement modifies the EU's share of two erga omnes tariff-rate quotas:
  • Tariff-rate quota 030 (skimmed-milk powder): The EU share is adjusted to 62,917 tonnes.
  • Tariff-rate quota 110 (fruit juices): The EU share is adjusted to 6,551 tonnes.
  • The agreement is a result of negotiations between the EU and other WTO members following the UK's withdrawal from the EU.
  • The agreement will enter into force once both the EU and Argentina notify each other of the completion of their internal procedures. For the EU, notification will be sent to the Secretary-General of the Council of the European Union.

Impact Analysis

Impact on EU Importers

  • EU importers of skimmed-milk powder and fruit juices from Argentina and other countries will need to be aware of the adjusted tariff-rate quotas.

Impact on Other WTO Members

  • The agreement highlights the complexities of adjusting trade agreements after a major geopolitical event like Brexit, requiring negotiations with multiple parties.

Suggested Action Items

  • Businesses should monitor further developments and potential adjustments to trade agreements related to Brexit.

Impact on Argentina

  • The Argentine government has agreed to the modifications, indicating a level of satisfaction with the negotiated terms.

Key Entities Referenced

European Union (EU): One of the parties to the agreement, responsible for adjusting tariff-rate quotas following the UK's withdrawal. Argentine Republic (Argentina): The other party to the agreement, whose trade with the EU is affected by the tariff-rate quota adjustments. United Kingdom (UK): The UK's withdrawal from the EU necessitated the renegotiation of tariff-rate quotas. World Trade Organization (WTO): The international organization under whose framework (GATT 1994 Article XXVIII) the negotiations and agreement were conducted. General Agreement on Tariffs and Trade (GATT) 1994: The legal framework under which the negotiations for adjusting the tariff-rate quotas were conducted, specifically Article XXVIII. Agreement of 10 May 2021: The original agreement between the EU and Argentina that is being amended by this new Exchange of Letters. Tariff-rate quota 030 (skimmed-milk powder): One of the specific tariff-rate quotas being adjusted in the agreement; the EU share is adjusted to 62,917 tonnes. Tariff-rate quota 110 (fruit juices): The other specific tariff-rate quota being adjusted in the agreement; the EU share is adjusted to 6,551 tonnes.
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Official Journal EN of the European Union L series 2024/1326 17.5.2024 Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic amending the Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions on all the tariff-rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom’s withdrawal from the European Union A. Letter from the European Union Sir/Madam, I would like to refer to the ongoing procedures under Article XXVIII of the GATT 1994, which were initiated by the European Union (the ‘Union’) by the notification contained in document G/SECRET/42 of 24 July 2018, proposing modifications of concessions on tariff-rate quotas included in the European Union Tariff Schedule CLXXV as a consequence of the United Kingdom's withdrawal from the European Union. On 10 May 2021 the Union and the Argentine Republic (‘Argentina’) signed an Agreement in the form of an Exchange of Letters to conclude the negotiations pursuant to Article XXVIII of the GATT 1994 (the ‘Agreement of 10 May 2021’), which entered into force on 13 July 2021. The Agreement of 10 May 2021 lays down that it ‘[…] does not prejudice negotiations between the EU and other WTO Members with rights under Article XXVIII of the GATT 1994 as regards the erga omnes tariff-rate quotas concerned […]’. The Union undertook to inform Argentina if the result of such negotiations would change the shares agreed in their bilateral negotiations. As a result of negotiations between the Union and other WTO Members with rights under Article XXVIII of the GATT 1994, the Union has agreed to change the shares of two tariff-rate quotas for which Argentina has negotiating rights, as follows: — Tariff-rate quota 030 (skimmed-milk powder): the Union share of the erga omnes quota shall be adjusted to 62 917 tonnes; — Tariff-rate quota 110 (fruit juices): the Union share of the erga omnes quota shall be adjusted to 6 551 tonnes. Following bilateral consultations, Argentina agrees with the modifications as set of in the previous paragraph of this Letter and the resulting quantitative commitments taken on by the Union that no longer includes the United Kingdom. I have the honour to propose that this Letter and your Government's confirmation shall together constitute an Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic, amending the Agreement of 10 May 2021 with regards to the apportionment of the two tariff-rate quotas listed above. The Union and Argentina shall notify each other of the completion of their internal procedures in respect of the entry into force of this Agreement. In the case of the Union, the written notification shall be sent to the Secretary-General of the Council of the European Union.This Agreement shall enter into force on the date of the last notification. This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each text being equally authentic. Please accept, Sir/Madam, the assurance of my highest consideration. ELI: http://data.europa.eu/eli/agree_internal/2024/1326/oj 1/4EN OJ L, 17.5.2024 2/4 ELI: http://data.europa.eu/eli/agree_internal/2024/1326/ojEN OJ L, 17.5.2024 B. Letter from the Argentine Republic Sir/Madam, I have the honour to acknowledge the receipt of your letter of today's date, which reads as follows: ‘I would like to refer to the ongoing procedures under Article XXVIII of the GATT 1994, which were initiated by the European Union (“the Union”) by the notification contained in document G/SECRET/42 of 24 July 2018, proposing modifications of concessions on tariff-rate quotas included in the European Union Tariff Schedule CLXXV as a consequence of the United Kingdom's withdrawal from the European Union. On 10 May 2021 the Union and the Argentine Republic (“Argentina”) signed an Agreement in the form of an Exchange of Letters to conclude the negotiations pursuant to Article XXVIII of the GATT 1994 (the “Agreement of 10 May 2021”), which entered into force on 13 July 2021. The Agreement of 10 May 2021 lays down that it “[…] does not prejudice negotiations between the EU and other WTO Members with rights under Article XXVIII of the GATT 1994 as regards the erga omnes tariff-rate quotas concerned […]”. The Union undertook to inform Argentina if the result of such negotiations would change the shares agreed in their bilateral negotiations. As a result of negotiations between the Union and other WTO Members with rights under Article XXVIII of the GATT 1994, the Union has agreed to change the shares of two tariff-rate quotas for which Argentina has negotiating rights, as follows: — Tariff-rate quota 030 (skimmed-milk powder): the Union share of the erga omnes quota shall be adjusted to 62 917 tonnes; — Tariff-rate quota 110 (fruit juices): the Union share of the erga omnes quota shall be adjusted to 6 551 tonnes. Following bilateral consultationsArgentina agrees with the modifications as set of in the previous paragraph of this Letter and the resulting quantitative commitments taken on by the Union that no longer includes the United Kingdom. I have the honour to propose that this Letter and your Government's confirmation shall together constitute an Agreement in the form of an Exchange of Letters between the European Union and the Argentine Republic, amending the Agreement of 10 May 2021 with regards to the apportionment of the two tariff-rate quotas listed above. The Union and Argentina shall notify each other of the completion of their internal procedures in respect of the entry into force of this Agreement. In the case of the Union, the written notification shall be sent to the Secretary-General of the Council of the European Union. This Agreement shall enter into force on the date of the last notification. This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each text being equally authentic.’ I hereby have the honour to express my Government's agreement with the above letter. ELI: http://data.europa.eu/eli/agree_internal/2024/1326/oj 3/4EN OJ L, 17.5.2024 4/4 ELI: http://data.europa.eu/eli/agree_internal/2024/1326/oj

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