These quotas shall be abolished by the end of the transitional period at the latest.  During that period, they shall be progressively abolished in accordance with the  following provisions.

Article 33

1. One year after the entry into force of this Treaty, each Member State shall convert  any bilateral quotas open to any other Member States into global quotas open  without discrimination to all other Member States.

On the same date, Member States shall increase the aggregate of the global quotas so  established in such a manner as to bring about an increase of not less than 20% in  their total value as compared with the preceding year. The global quota for each  product, however, shall be increased by not less than 10%.

The quotas shall be increased annually in accordance with the same rules and in the  same proportions in relation to the preceding year.

The fourth increase shall take place at the end of the fourth year after the entry into  force of this Treaty; the fifth, one year after the beginning of the second stage.

2. Where, in the case of a product which has not been liberalized, the global quota  does not amount to 3% of the national production of the State concerned, a quota  equal to not less than 3% of such national production shall be introduced not later  than one year after the entry into force of this Treaty. This quota shall be raised to  4% at the end of the second year, and to 5% at the end of the third. Thereafter, the  Member State concerned shall increase the quota by not less than 15% annually.

Where there is no such national production, the Commission shall take a decision  establishing an appropriate quota.

3. At the end of the 10th year, each quota shall be equal to not less than 20% of the  national production.

4. If the Commission finds by means of a decision that during two successive years  the imports of any product have been below the level of the quota opened, this global  quota shall not be taken into account in calculating the total value of the global  quotas. In such case, the Member State shall abolish quota restrictions on the product  concerned.

5. In the case of quotas representing more than 20% of the national production of the  product concerned, the Council may, acting by a qualified majority on a proposal  from the Commission, reduce the minimum percentage of 10% laid down in  paragraph 1. This alteration shall not, however, affect the obligation to increase the  total value of global quotas by 20% annually.

6. Member States which have exceeded their obligations as regards the degree of  liberalization attained in pursuance of the decisions of the Council of the  Organization for European Economic Cooperation of 14 January 1955 shall be  entitled, when calculating the annual total increase of 20% provided for in paragraph  1, to take into account the amount of imports liberalized by autonomous action. Such  calculation shall be submitted to the Commission for its prior approval.

<16>