# EUR-Lex - 52012PC0646 - EN

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# 52012PC0646

**Proposal for a COUNCIL DECISION establishing the European Union position within the General Council of the World Trade Organization on the accession of the Republic of Tajikistan to the World Trade Organization /* COM/2012/0646 final - 2012/0308 (NLE) */**

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EXPLANATORY MEMORANDUM

I. INTRODUCTION

Members of the World Trade Organization
(WTO) and the Republic of Tajikistan have reached the concluding stage of an
agreement on the terms for the accession of the Republic of Tajikistan to the
organization. This comes after 11 years of negotiations, which began when the
Republic of Tajikistan submitted its application to join the WTO in 2001.

A Council Decision approving the terms of
accession of the Republic of Tajikistan is required 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 WTO ACCESSION OF
THE REPUBLIC OF TAJIKISTAN BY SECTOR

Schedule of commitments

The average final bound rate (FBR) in the
accession schedule of Tajikistan is 7.5 %.

The average FBR is slightly higher at 8.6%
for agriculture products than the 7% observed for industrial goods.

Tajikistan will implement the FBRs in 5
years from the date of accession.

These average
levels for tariffs are quite reasonable considering the small size and
landlocked character of Tajikistan's economy. Past EU practice has been to
accept as reasonable these tariff levels for comparable-sized economies.

Industrial Goods

–
The average FBR for non-agriculture products is
7%.

–
The highest final bound tariffs are observed in
footwear, with 20% average and peaks of 30%, and textiles with 10% average and
peaks of 30%

–
Tajilistan is joining the Information Technology
Agreement (ITA) Agreement and consequently phasing out its ITA tariffs in 5
years time.

Agricultural goods

–
The average FBR for agriculture products is
8.6%.

–
The highest tariff peaks in agriculture are
quite reasonable: in fresh tomatoes at 23% and in some other various fresh
vegetables, cheese and tobacco at or slightly above 15%.

Services

Tajikistan's schedule of specific
commitments in services is very satisfactory considering the size of this
country's economy. Tajikistan will undertake substantial market access and
national treatment commitments in a broad range of services sectors, including
professional, computer, R&D, rental/leasing and other business services,
communication services (courier services and telecommunications), construction,
distribution, private educational services, environmental, financial (insurance
and banking), health, tourism, recreational and transport services.

Protocol commitments

In the final, multilateral stage of the
accession process, WTO Members collectively sought to ensure the basic
compatibility of Tajikistan's trade laws and institutions with WTO rules and
agreements, setting these out in the Protocol of accession and Working Party
Report. The following issues are of particular interest to the EU:

State Ownership, Privatisation and
State-trading entities

From the date of accession, State-trading
enterprises (including State-owned and State-controlled enterprises,
enterprises with special or exclusive privileges, and unitary enterprises) in
Tajikistan will make any purchases or sales, which were not for the
Government's own use or consumption, solely in accordance with commercial
considerations. Tajikistan further confirmed that these State trading
enterprises will afford the enterprises of other Members adequate opportunity,
in accordance with customary business practice, to compete for participation in
purchases from or sales to Tajikistan's State enterprises. Any restrictions on
exports of materials to ensure essential quantities of such materials to a
domestic processing industry will not operate to increase the exports of, or
the protection of, such domestic industry.

Trading rights

From the date of accession, Tajikistan will
grant any natural or legal person, regardless of physical presence or
investment in Tajikistan, the right to be the importer of record of any product
allowed to be imported into Tajikistan, at any level of distribution. Full
rights to import and to export will be granted in a non-discriminatory and
non-discretionary manner from the date of accession, and any requirements for
commercial registration or application for the right to import or to export will
be for customs and fiscal purposes only, will not require investment in
Tajikistan nor confer the right to distribute there, and will not constitute a
barrier to trade.

Information Technology Agreement (ITA)

The Republic of Tajikistan has submitted
its ITA Schedule to the ITA Committee for verification, in accordance with ITA
procedures, in order to enable the Republic of Tajikistan to join the ITA when
it becomes a WTO Member.

Customs valuation

From the date of accession, Tajikistan will
apply its customs valuation laws, regulations and practices, including those to
prevent undervaluation of goods, in conformity with the WTO Agreement,
including Article I of the GATT 1994, the WTO Agreement on Implementation of
Article VII of GATT 1994 and Annex I (Interpretative Notes).

Export duties

Tajikistan undertook comprehensive
commitments limiting export duties.

Government Procurement Agreement

Tajikistan confirmed willingness to accede
to the WTO Agreement on Government Procurement. Tajikistan will become an
observer to the Agreement upon accession, and submit an application for
membership with a coverage offer within one year after accession to the WTO.

Trade in Civil aircraft

Tajikistan will become a signatory to the
WTO Agreement on Trade in Civil Aircraft upon accession.

III. RECOMMENDATION

In submitting the terms of Accession of the
Republic of Tajikistan 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 Tajikistan
and its WTO trading partners alike.

2012/0308 (NLE)

Proposal for a

COUNCIL DECISION

establishing the European Union position
within the General Council of the World Trade Organization on the accession of
the Republic of Tajikistan to the World Trade Organization

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
207(4), in conjunction with Article 218(9) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       On
29 May 2001 the Government of the Republic of
Tajikistan 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 Tajikistan was
established on 18 July 2001 in order to reach agreement on terms of accession
acceptable to the Republic of Tajikistan 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 Tajikistan which satisfy the Union's
requests.

(4)       These commitments are now
embodied in the Protocol of Accession of the Republic of Tajikistan 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 Tajikistan.

(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. Article
IV.2 of the Agreement establishing the WTO provides that in the intervals
between meetings of the Ministerial Conference, its functions shall be
conducted by the General Council.

(8)       Accordingly, it is
necessary to establish the position to be taken by the Union within the General
Council of the WTO on the accession of Tajikistan
to the WTO,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken by the European
Union within the General Council of the World Trade Organization on the accession of the Republic of Tajikistan 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