11957E044

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ARTICLE 44

1 . IN SO FAR AS PROGRESSIVE ABOLITION OF CUSTOMS DUTIES AND QUANTITATIVE RESTRICTIONS BETWEEN MEMBER STATES MAY RESULT IN PRICES LIKELY TO JEOPARDISE THE ATTAINMENT OF THE OBJECTIVES SET OUT IN ARTICLE 39 , EACH MEMBER STATE SHALL , DURING THE TRANSITIONAL PERIOD , BE ENTITLED TO APPLY TO PARTICULAR PRODUCTS , IN A NON-DISCRIMINATORY MANNER AND IN SUBSTITUTION FOR QUOTAS AND TO SUCH AN EXTENT AS SHALL NOT IMPEDE THE EXPANSION OF THE VOLUME OF TRADE PROVIDED FOR IN ARTICLE 45 ( 2 ) , A SYSTEM OF MINIMUM PRICES BELOW WHICH IMPORTS MAY BE EITHER :

- TEMPORARILY SUSPENDED OR REDUCED ; OR

- ALLOWED , BUT SUBJECTED TO THE CONDITION THAT THEY ARE MADE AT A PRICE HIGHER THAN THE MINIMUM PRICE FOR THE PRODUCT CONCERNED .

IN THE LATTER CASE THE MINIMUM PRICES SHALL NOT INCLUDE CUSTOMS DUTIES .

2 . MINIMUM PRICES SHALL NEITHER CAUSE A REDUCTION OF THE TRADE EXISTING BETWEEN MEMBER STATES WHEN THIS TREATY ENTERS INTO FORCE NOR FORM AN OBSTACLE TO PROGRESSIVE EXPANSION OF THIS TRADE . MINIMUM PRICES SHALL NOT BE APPLIED SO AS TO FORM AN OBSTACLE TO THE DEVELOPMENT OF A NATURAL PREFERENCE BETWEEN MEMBER STATES .

3 . AS SOON AS THIS TREATY ENTERS INTO FORCE THE COUNCIL SHALL , ON A PROPOSAL FROM THE COMMISSION , DETERMINE OBJECTIVE CRITERIA FOR THE ESTABLISHMENT OF MINIMUM PRICE SYSTEMS AND FOR THE FIXING OF SUCH PRICES .

THESE CRITERIA SHALL IN PARTICULAR TAKE ACCOUNT OF THE AVERAGE NATIONAL PRODUCTION COSTS IN THE MEMBER STATE APPLYING THE MINIMUM PRICE , OF THE POSITION OF THE VARIOUS UNDERTAKINGS CONCERNED IN RELATION TO SUCH AVERAGE PRODUCTION COSTS , AND OF THE NEED TO PROMOTE BOTH THE PROGRESSIVE IMPROVEMENT OF AGRICULTURAL PRACTICE AND THE ADJUSTMENTS AND SPECIALISATION NEEDED WITHIN THE COMMON MARKET .

THE COMMISSION SHALL FURTHER PROPOSE A PROCEDURE FOR REVISING THESE CRITERIA IN ORDER TO ALLOW FOR AND SPEED UP TECHNICAL PROGRESS AND TO APPROXIMATE PRICES PROGRESSIVELY WITHIN THE COMMON MARKET .

THESE CRITERIA AND THE PROCEDURE FOR REVISING THEM SHALL BE DETERMINED BY THE COUNCIL ACTING UNANIMOUSLY WITHIN THREE YEARS OF THE ENTRY INTO FORCE OF THIS TREATY .

4 . UNTIL THE DECISION OF THE COUNCIL TAKES EFFECT , MEMBER STATES MAY FIX MINIMUM PRICES ON CONDITION THAT THESE ARE COMMUNICATED BEFOREHAND TO THE COMMISSION AND TO THE OTHER MEMBER STATES SO THAT THEY MAY SUBMIT THEIR COMMENTS .

ONCE THE COUNCIL HAS TAKEN ITS DECISION , MEMBER STATES SHALL FIX MINIMUM PRICES ON THE BASIS OF THE CRITERIA DETERMINED AS ABOVE .

THE COUNCIL MAY , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , RECTIFY ANY DECISIONS TAKEN BY MEMBER STATES WHICH DO NOT CONFORM TO THE CRITERIA DEFINED ABOVE .

5 . IF IT DOES NOT PROVE POSSIBLE TO DETERMINE THE SAID OBJECTIVE CRITERIA FOR CERTAIN PRODUCTS BY THE BEGINNING OF THE THIRD STAGE , THE COUNCIL MAY , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , VARY THE MINIMUM PRICES APPLIED TO THESE PRODUCTS .

6 . AT THE END OF THE TRANSITIONAL PERIOD , A TABLE OF MINIMUM PRICES STILL IN FORCE SHALL BE DRAWN UP . THE COUNCIL SHALL , ACTING ON A PROPOSAL FROM THE COMMISSION AND BY A MAJORITY OF NINE VOTES IN ACCORDANCE WITH THE WEIGHTING LAID DOWN IN THE FIRST SUBPARAGRAPH OF ARTICLE 148 ( 2 ) , DETERMINE THE SYSTEM TO BE APPLIED WITHIN THE FRAMEWORK OF THE COMMON AGRICULTURAL POLICY .