This Protocol applies to milk fat falling under CCCN heading No 04.03, having a milk fat content equal to or greater than 50 per cent by weight.PART TWO Article 2Pilot Products1. For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following descriptions:(a) Designation: Anhydrous milk fatMilk fat content: 99,5 per cent by weight(b) Designation: ButterMilk fat content: 80 per cent by weightPackaging:In packages normally used in the trade, of a net content by weight of not less than 25 kg or 50 lbs, as appropriate.Terms of sale:F.o.b. from the exporting country or free-at-frontier exporting country. By derogation from this provision, reference points are designated for the countries total in Annex II(a) (16). The Committee established in pursuance of Article VII:2(a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PricesLevel and observance of minimum prices 1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.2. (a) The minimum price levels set out in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, 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 of the present Article applicable at the date of entry into force of this Protocol are fixed at:(i) US $ 1 100 (17)per metric ton for the anhydrous milk fat defined in Article 2 of this Protocol.(ii) US $ 925 (18) per metric ton for the butter defined in Article 2 of this Protocol.3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. 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) of the present Article and the dairy support levels in the major producing participants.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 Protocol for the products specified in Article 2 of this Protocol according to the following provisions:Milk fat content:If the milk fat content of the product defined in Article 1 of the present Protocol differs from the milk fat content of the pilot products as defined in Article 2 of the present Protocol 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 established for the pilot products defined in Article 2 of the present Protocol.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 kg or 50 lbs., as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.Terms of sale:If sold on terms other than f.o.b. from the exporting country or free-at-frontier exporting country (19), the minimum prices shall be calculated on the basis of the minimum f.o.b. prices specified in paragraph 2(b) of this Article, plus the real and justified costs of the services provided, if the terms of the sale include credit this shall be charged for at
on a priority basis the normal commercial requirements of developing importing participants, especially those used for food-related development purposes and welfare purposes.Article 6Cooperation of Importing Participants1. Participants which import products covered by Article 1 of this Protocol undertake in particular:(a) to cooperate in implementing the minimum price objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum price;(b) without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;(c) to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum price threaten the operation of this Protocol.PART THREE Article 7Derogations1. Upon request by a participant, the Committee shall have the authority to grant derogations from the provisions of Article 3, paragraphs 1 to 4 of this Protocol in order to remedy difficulties which observance of minimum prices could cause certain participants. The Committee shall pronounce on such a request within thirty days from the date of the request.2. The provisions of Article 3:1 to 4 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. Participants exporting such cheese shall notify the GATT secretariat in advance of their intention to do so. Participants shall also notify the Committee quarterly of all sales of cheese effected under the provisions of this paragraph, specifying in respect of each transaction, the quantities, prices and destinations involved.Article 8Emergency Action1 Any participant, which considers that its interests are seriously endangered by a country not bound by this Protocol, 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 participant concerned are likely to materially prejudiced, that participant may take unilateral action to safeguard its position, on the condition that any other participants 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 be requested to call a special meeting of the Committee at the earliest possible moment.(1) In this Arrangement and in the Protocols annexed thereto, the term 'country' is deemed to include the European Economic Community.(2) This preambular provision applies only among participants that are Contracting Parties to the GATT.(3) It is confirmed that the term 'matter' in this paragraph includes any matter which is covered by multilateral agreements negotiated within the framework of the Multilateral Trade Negotiations, in particular those bearing on export and import measures. It is further confirmed that the provisions of Article IV:5 and this footnote are without prejudice to the rights and obligations of the parties to such agreements.(4) The terms 'acceptance' or 'accepted' as used in this Article include the completion of any domestic procedures necessary to implement the provisions of this Arrangement.(5) For the purpose of this Arrangement, the term 'government' is deemed to include the competent authorities of the European Economic Community.(6) This provision applies only among participants that are Contracting Parties to the GATT.(7) Derived from the manufacture of butter and anhydrous milk fat.(8) Annex I (1) is not reproduced.(9) US $ 600 per metric ton since 1 October 1981.(10) US $ 830 per metric ton since 5 June 1985.(11) US $ 600 per metric ton since 1 October 1981.(12) As defined in Article 2.1(c) of this Procotol.(13) See Annex 1(b), 'Schedule of price differentials according to milk fat content'. (Annex 1 (b) is not reproduced).(14) See Article 2.(15) See Annex I(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 nad their processes and control measures inserted in the Register. In this case, exporters world inform the Committee of their intention to ship unaltered skimmed-milk powder and or buttermilk powder for animal feed purposes to those importers which have their processes and control measures registered. (Annex I (c) is not reproduced).(16) Annex II(a) is not reproduced.(17) US $ 1 200 per metric ton since 5 June 1985.(18) US $ 1 000 per metric ton since 5 June 1985.(19) See Article 2.(20) Annex III(a) is not reproduced.(21) US $ 1 000 per metric ton since 1 October information arising from the operation of the Protocols covered by Article VI of this Arrangement, and any other information available to it;(b) review the functioning of this Arrangement.2. If after an evaluation of the world market situation and outlook referred to in paragraph 1(a) of this Article, 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 solution for consideration by governments.3. Depending on whether the Council considers that the situation defined in paragraph 2 of this Article is temporary or more durable, the measures referred to in paragraph 2 of this Article 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 of this Article, 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 participant may raise before the Council any matter affecting this Arrangement inter alia for the same purposes provided for in paragraph 2 of this Article. Each participant shall promptly afford adequate opportunity for consultation regarding such matter (3) affecting this Arrangement.6. If the matter affects the application of the specific provisions of the Protocols annexed to this Arrangement, any participant which considers that its trade interests are being seriously threatened and which is unable to reach a mutually satisfactory solution with the other participant or participants concerned, may request the Chairman of the Committee for the relevant Protocol established under Article VII:2(a) of this Arrangement, 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 for the relevant Protocol, meet wihin a period of not more than fifteen days to consider the matter with a view to facilitating a satisfactory solution.Article VFood Aid and Transactions other than Normal Commercial Transactions1. The participants 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 Arrangement, to furnish, within the limits of their possibilities, dairy products to developing countries by way of food aid. Participants 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. Participants should also give, if possible, prior notification to the Council of any proposed amendments to the notified programme. It would be 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 to developing countries, exports destined for relief purposes or welfare purposes in developing countries, and other transactions which are not normal commercial transactions shall be effected in accordance with the FAO 'Principles of Surplus Disposal and Consultative Obligations'. Consequently the Council shall cooperate closely with the 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 Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade.PART TWO SPECIFIC PROVISIONS Article VIProtocols1. Without prejudice to the provisions of Articles I to V of this Arrangement, the products listed below shall be subject to the provisions of the Protocols annexed to this Arrangement:Annex I- Protocol Regarding Certain Milk PowdersMilk powder and cream powder, excluding whey powderAnnex II- Protocol Regarding Milk FatMilk fatAnnex III- Protocol Regarding Certain CheesesCertain cheesesPART THREE Article VIIAdministration of the Arrangement1. International Dairy Products Council(a) An International Dairy Products Council shall be established within the framework of the GATT. The Council shall comprise representatives of all participants to the Arrangement and shall carry out all the functions which are necessary to implement the provisions of the Arrangement. The Council shall be serviced by the GATT secretariat. The Council shall establish its own rules of INTERNATIONAL DAIRY ARRANGEMENT PREAMBLE Recognizing the importance of milk and dairy products to the economy of many countries (1) in terms of production, trade and consumption;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 concerning the Multilateral Trade Negotiations;Determined to respect the principles and objectives of the General Agreement on Tariffs and Trade (hereinafter referred to as 'General Agreement' or 'GATT') (2) and, in carrying out the aims of this Arrangement, effectively to implement the principles and objectives agreed upon in the said Tokyo Declaration;The participants to the present Arrangement have, through their representatives, agreed as follows:PART ONE GENERAL PROVISIONS Article IObjectivesThe objectives of this Arrangement shall be, in accordance with the principles and objectives agreed upon in the Tokyo Declaration of Ministers dated 14 September 1973 concerning the Multilateral Trade Negotiations,- 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.Article IIProducts Coverage1. This Arrangement applies to the dairy products sector. For the purpose of this Arrangement, the term 'dairy products' is deemed to include the following products, as defined in the Customs Cooperation Council Nomenclature:CCCN(a) Milk and cream, fresh, not concentrated or sweetened04.01(b) Milk and cream, preserved, concentrated or sweetened04.02(c) Butter04.03(d) Cheese and curd04.04(e) Caseinex 35.012. The International Dairy Products Council established in terms of Article VII: 1(a) of this Arrangement (hereinafter referred to as the Council) may decide that the Arrangement is to apply to other products in which dairy products referred to in paragraph 1 of this Article have been incorporated if it deems their inclusion necessary for the implementation of the objectives and provisions of this Arrangement.Article IIIInformation1. The participants agree to provide regularly and promptly to the Council the information required to permit it 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. Participating developing countries shall furnish the information available to them. In order that these participants may improve their data collection mechanisms, developed participants, and any developing participants able to do so, shall consider sympathetically any request to them for technical assistance.3. The information that the participants undertake to provide pursuant to paragraph 1 of this Article, 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 of this Arrangement, and any other information deemed necessary by the Council. Participants 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 participant 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.Note: It is understood that under the provisions of this Article, the Council instructs the secretariat to 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.Article IVFunctions of the International Dairy Products Council and Cooperation between the Participants to this Arrangement1. 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 participants in accordance with Article III of this Arrangement, information arising from the operation of the Protocols covered by Article VI of this Arrangement, and any other information available to it;(b) review the functioning of this Arrangement.2. If after an evaluation of the world market situation and outlook referred to in paragraph 1(a) of this (a) (8). The Committee established in pursuance of Article VII: 2 (a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.Prompt payment against documents.Article 3Minimum PricesLevel and observance of minimum prices1. Participants undertake to take the steps necessary to ensure that the export prices of the products defined in Article 2 of this Protocol shall not be less than the minimum prices applicable under the present Protocol. If the products are exported in the form of goods in which they have been incorporated, participants shall take the steps necessary to avoid the circumvention of the price provisions of this Protocol.2. (a) The minimum price levels set in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, 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 of the present Article applicable at the date of entry into force of this Protocol are fixed at:(i) US $ 425 (9) per metric ton for the skimmed-milk powder defined in Article 2 of this Protocol.(ii) US $ 725 (10) per metric ton for the whole milk powder defined in Article 2 of this Protocol.(iii) US $ 425 (11) per metric ton for the buttermilk powder defined in Article 2 of this Protocol.3. (a) The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.(b) The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by products, 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) of the present Article and the dairy support levels in the major producing participants.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 Protocol for the products specified in Article 2 of this Protocol according to the following provisions:Milk fat content:If the milk fat content of the milk powders described in Article 1 of the present Protocol excluding buttermilk powder (12) differs from the milk fat content of the pilot products as defined in Article 2.1(a) and (b) of the present Protocol, then for each full percentage point of milk fat as from 2 per cent, there shall be an upward adjustment of the minimum price in proportion to the difference between the minimum prices established for the pilot products defined in Article 2.1(a) and (b) of the present Protocol (13).Packaging:If the products are offered otherwise than in packages normally used in the trade, of a net content by weight less than 25 kg or 50 lbs, as appropriate, the minimum prices shall be adjusted so as to reflect the difference in the cost of packaging from the type of package specified above.Terms of sale:If sold on terms other than f.o.b. from the exporting country or free-at-frontier exporting country (14), the minimum prices shall be calculated on the basis of the minimum f.o.b. prices specified in paragraph 2 (b) of this Article, 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 country concerned.Exports and imports of skimmed-milk powder and buttermilk powder for purposes of animal feed 5. Dy derogation from the provisions of paragraphs 1 to 4 of this Article participants 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 Protocol for these products. Participants may make use of this possibility only to the extent that they subject the products exported or imported 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