# EUR-Lex - 52013PC0575 - EN

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# 52013PC0575

**Proposal for a COUNCIL DECISION establishing the position to be taken by the European Union within the General Council of the World Trade Organization on the request for extending the WTO waiver on additional autonomous trade preferences granted by the European Union to the Republic of Moldova /* COM/2013/0575 final - 2013/0276 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The objective of this proposal is to establish the position to be
taken by the European Union within the General Council of the World Trade
Organization (WTO). The Council is hereby requested to grant authorisation to
the Commission to request an extension of the WTO waiver on autonomous trade
preferences granted by the European Union to Moldova and thus allow the
European Union to join a consensus on this waiver request in accordance with Article
IX of the WTO Agreement.

On 21 January 2008, the Council adopted the
Regulation (EC) No 55/2008 introducing Autonomous Trade Preferences for the Republic of Moldova. With this Regulation, the EU fulfilled its commitment in the context of the European Neighbourhood Policy
Action Plan (ENP Action Plan) for Moldova. The Plan, agreed in 2005, called on
the EU to consider granting Moldova improved access to the EU market which
would support the development of Moldovan economy through increased export
performance, provided that Moldova substantially improves its system of
controls and certification of origin of goods.

To permit the EU to provide preferential
treatment for imports originating in the Republic of Moldova without being
required to extend the same preferential treatment to the like products of any
other WTO Member, a waiver was granted by the WTO General Council to the
European Union, temporarily suspending certain WTO commitments to the extent
necessary to fulfil the above objective.

On 15 May
2008, in accordance with the Decision-Making Procedures under Articles IX and
XII of the WTO Agreement, the WTO General Council decided, in document
WT/L/722 to waive the provisions of paragraph 1 of Article I and the provisions
of Article XIII of the GATT 1994 from 1 March 2008 until
31 December 2013 to the extent necessary to permit the European Union
to accord duty-free or preferential treatment to products originating in
Moldova, including certain agricultural products for which limited concessions
are given as defined in the Annex to this Decision, without being required to
extend the same duty-free or preferential treatment to like products of any
other WTO Member.

The Council Regulation (EC) No 55/2008 was amended by the Regulation (EU) No 581/2011
of the European Parliament and of the Council extending the application of the
autonomous trade preferences granted to the Republic of Moldova until 31
December 2015. Such an extension proved necessary as an advanced preferential
trade relationship between the EU and Moldova in the context of the European
Partnership has not yet been effectively established. Considering the above,
the Commission requests the Council’s authorisation to submit to the WTO, on
behalf of the European Union, a request to extend the current waiver until 31
December 2015.

2.           LEGAL ELEMENTS OF THE
PROPOSAL

Article 218(9) of the Treaty on the functioning of the European
Union (TFEU) provides that, when a decision having legal effect needs to be
taken in a body set up by an international agreement, the Council, on a
proposal from the Commission, should adopt a Decision establishing the position
to be adopted on the Union’s behalf. The granting of a waiver on additional
autonomous trade preferences granted by the European Union to the Republic of
Moldova falls under this provision as the decision is taken in a body set up by
an international agreement (the WTO General Council or Ministerial Conference)
affecting the rights and obligations of the EU.

2013/0276 (NLE)

Proposal for a

COUNCIL DECISION

establishing the position to be taken by
the European Union within the General Council of the World Trade Organization
on the request for extending the WTO waiver on additional autonomous trade
preferences granted by the European Union to the Republic of Moldova

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207(4), in
conjunction with Article 218(9) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Article IX of the
Marrakesh Agreement establishing the World Trade Organisation (the “WTO”
Agreement”) sets out the procedures for the granting of waivers concerning the
Multilateral Trade Agreements in WTO Agreement Annexes 1A or 1B or 1C and their
annexes.

(2)       Council
Regulation (EC) No 55/2008 of 21 January 2008 introducing autonomous trade
preferences for the Republic of Moldova[1]
was amended by the Regulation (EU) 581/2011 of the European Parliament and of
the Council inter alia to extend the autonomous trade preferences
granted to the Republic of Moldova until 31 December 2015[2]. The Regulation provides free
access to the Union market of all products originating in the Republic of Moldova, except certain agricultural products listed in Annex I of the Regulation.
The products listed in Annex I of the Regulation benefit from limited
concessions in the form of exemption from customs duties within the limit of
tariff quotas or reduction of customs duties.

(3)       In
the absence of a waiver from the European Union's
obligations under paragraph 1 of Article I of the General Agreement on Tariffs
and Trade 1994 (GATT 1994) and Article XIII GATT 1994, to the extent necessary,
the treatment provided by the autonomous trade preferences would need to be
extended to all other Members of the World Trade Organization (WTO).

(4)       It is in the interest of
the European Union to request an extension of the WTO waiver on autonomous
trade preferences granted by the European Union to the Republic of Moldova pursuant to paragraph 3 of Article IX of the Marrakesh Agreement establishing the World
Trade Organization.

(5)       The European Union will submit
such a request to the WTO. The WTO General Council is to deliberate on 9
October 2013.

(6)       It is appropriate,
therefore, to establish the position to be taken by the European Union within
the WTO General Council concerning this request,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken by the European
Union within the General Council of the World Trade Organization is to ask for
an extension of the WTO waiver on autonomous trade preferences granted by the
European Union to the Republic of Moldova until 31 December 2015.

This position shall be
expressed by the European Commission.

Article 2

This Decision shall enter into force on the
day of its adoption.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 20, 24.1.2008, p. 1.

[2]               OJ L 165, 24.6.2011, p. 5.