1. The minimum prices ... shall be fixed each year not later than 31 October ... They may be varied for each product according to the countries of destination and the conditions of production and of marketing on the one hand, and to the sizes and other characteristics of he product on the other hand, and shall be determined with particular reference to: ... price trends on international markets during the three years preceding the year in which the minimum prices are fixed.
2. Until 30 June 1978 the minimum prices referred to in paragraph 1 shall be those specified in Annex IV. The prices for the period beginning 1 July 1978 shall not be lower than those specified in the said Annex, as updated by exchange of letters between the Contracting Parties in order to take account of the trend of costs for the products in question.
