# EUR-Lex - 52013PC0720 - EN

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# 52013PC0720

**Proposal for a COUNCIL DECISION establishing the position to be taken by the European Union within the Ministerial Conference of the World Trade Organization on the accession of the Republic of Yemen to the WTO /* COM/2013/0720 final - 2013/0342 (NLE) */**

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EXPLANATORY MEMORANDUM

I. INTRODUCTION

Members of the World Trade Organization
(WTO) and the Republic of Yemen have reached the concluding stage of an
agreement on the terms for the accession of Yemen to the organization. This
comes after 13 years of negotiations, which began when Yemen submitted its application to join the WTO in 2000. Yemen’s request for accession has
been examined in accordance with the guidelines set out by the WTO General
Council on the accession of least-developed countries (LDC) and there must now
be a Council Decision approving the terms of Yemen’s accession, before the EU
can formally support that approval in the WTO.

A summary of the terms of the accession is
set out below.

II. SUMMARY OF TERMS OF YEMEN’S WTO ACCESSION BY SECTOR

Schedule of commitments

Goods

The average final bound rate (FBR) in the
accession schedule of Yemen is 22.2 %.

The average FBR is slightly higher at 26.2%
for agriculture products than the 20.1% observed for industrial goods. Tariff
peaks are also higher in agriculture (100% maximum in some agriculture products
versus 40% maximum observed in industrial goods).

Yemen will
implement the FBRs as from the date of accession.

These average
levels for tariffs are quite reasonable considering the LDC status of Yemen as well as the small size and vulnerability of its economy. Past EU practice in
relation to LDCs has been to accept these tariff levels as reasonable for
economies of comparable size.

Industrial Goods

– 
The average FBR for non-agriculture products is
20.1%.

– 
The highest averages of around 27% are observed
in furniture and footwear.

– 
The lowest, around 10%, relates to Information
Technology (IT) products.

– 
The highest tariff peaks are 40% (cement and
certain processed fish) and 43% (most of fisheries and processed fisheries
products).

Agricultural goods

– 
The average FBR for agriculture products is
26.2%.

– 
The highest tariff peaks in agriculture are in
tobacco and coffee at 100%.

Services

Yemen's schedule of
specific commitments in services is satisfactory considering its LDC status.
Yemen will undertake market access and national treatment commitments in a
broad range of services sectors, including professional, computer and other
business services, communication services (courier services and telecommunications),
construction, distribution, private educational, environmental, financial
(insurance and banking), private health related services, tourism and transport
services (maritime and rail transport).

Protocol commitments

In the final, multilateral stage of the
accession process, WTO Members collectively sought to ensure the basic
compatibility of Yemen’s trade laws and institutions with WTO rules and
agreements, setting these out in the Protocol of accession and Working Party
Report.

Transitional periods were requested in a
number of fields; the following are of particular interest to the EU:

Trading rights: Yemen confirmed that it would grant any natural or legal person of
a WTO Member, regardless of physical presence or investment in Yemen, the right to be the importer of record of any product allowed to be
imported into Yemen no later than 31 December 2014. Yemen's laws and regulations relating to all fees, charges and
taxes levied in connection with such trade, will conform fully with its WTO
obligations.

Pursuant to the same timelines, Yemen will grant trading rights in a non-discriminatory
and non-discretionary manner in conformity with the WTO Agreements. Any
requirements for commercial registration or application for trading rights will
be for customs and fiscal purposes only, and would not require investment in Yemen.

Other duties and charges: Yemen committed to bind other duties and
charges within the meaning of Article II:1(b) of the GATT 1994
at a rate of 0.25 per cent At the latest 4 years
after accession, the bound rate for these other duties
and charges would be 0 as provided for in Yemen’s Goods Schedule.

Fees and charges for services rendered: the requirement that certificates of origin and invoices of
imports into Yemen be endorsed or notarized by Yemeni
Consulates abroad will be terminated no later than 1
January 2017.

Customs valuation: Yemen’s
legislation and implementing regulations will be in conformity with the Customs
Valuation Agreement by the date of accession. Yemen will progressively implement
the Agreement in accordance with an Action Plan set out in the Working Party
report and will fully apply the WTO provisions
concerning customs valuation, including the WTO Agreement on the implementation
of Article VII of the GATT 1994 and Annex I (Interpretative notes) on 31 December 2016. Yemen confirmed that during the transition
period, Yemen would ensure that its regulations under legislation in place and
additional regulations implemented during the transition concerning customs
valuation would be applied on a non-discriminatory basis to all imports.

Sanitary and phytosanitary measures
(SPS): Yemen will benefit from a transition period till
31 December 2016 for full implementation of the SPS Agreement, as set
out in an action plan included in the working party
report.

Technical Barriers to Trade (TBT): Yemen will fully implement the Agreement
on Technical Barriers to Trade by 31 December 2016. An action plan is set out
in the working party report.

Trade-related intellectual property
rights (TRIPS): The full
implementation of the TRIPS Agreement will be effective by the end of 2016
(except for patent protection of pharmaceuticals covered by the Decision on
TRIPS and Public Health (WT/L/641)).

III. RECOMMENDATION

In submitting the terms of Accession of the
 Republic of Yemen to the WTO for approval by the Council, the Commission
considers these terms as representing a balanced and ambitious package of
market opening commitments, which will bring substantial benefits to Yemen and its WTO trading partners alike.

2013/0342 (NLE)

Proposal for a

COUNCIL DECISION

establishing the position to be taken by
the European Union within the Ministerial Conference of the World Trade
Organization on the accession of the Republic of Yemen to the WTO

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 91, 100(2) and the
first subparagraph of Article 207(4), in conjunction with Article 218(9)
thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       On
12 April 2000 the Government of the Republic of Yemen applied for accession to the Marrakesh Agreement
establishing the World Trade Organization (WTO), pursuant to Article XII of
that Agreement.

(2)       A Working Party on the accession of the Republic of Yemen was
established on 17 and 19 July 2000 in order to reach agreement on terms of accession acceptable to the Republic of Yemen and all WTO Members.

(3)       The Commission, on behalf
of the Union, has negotiated a comprehensive series of market opening
commitments on the part of the Republic of Yemen which satisfy the Union's requests.

(4)       These commitments are now
embodied in the Protocol of Accession of the Republic of Yemen to the WTO.

(5)       Accession to the WTO is
expected to make a positive and lasting contribution to the process of economic
reform and sustainable development in the Republic of Yemen.

(6)       The Protocol of Accession
should therefore be approved.

(7)       Article XII of the
Agreement establishing the WTO provides that the terms of accession are to be
agreed between the acceding Member and the WTO, and that the Ministerial
Conference of the WTO approves the terms of accession on the WTO side.

(8)       Accordingly, it is
necessary to establish the position to be taken by the Union within the
Ministerial Conference,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken by the European
Union within the Ministerial Conference of the World Trade Organization on the
accession of the Republic of Yemen to the WTO is to approve the accession.

Article 2

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

Done at Brussels,

For
the Council

The
President