# EUR-Lex - 52011PC0871 - EN

*|*

# 52011PC0871

**Proposal for a COUNCIL DECISION establishing the position to be taken by the European Union within the Ministerial Conference of the World Trade Organization (WTO) as regards a request for granting a waiver in order to give preferential treatment to services and service suppliers of Least-Developed Countries /* COM/2011/0871 final - 2011/0426 (NLE) */**

			*

			*

EXPLANATORY MEMORANDUM

1.           OBJECTIVE OF THE PROPOSAL

The objective of this proposal is to allow
the European Union to join a consensus in the World Trade Organization (WTO) on
the adoption of a waiver[1]
by the WTO Ministerial Conference. The proposal provides that the Council
authorises the Commission to take a position on behalf of the European Union
within the WTO to join a consensus as regards a request under Article IX of the
WTO Agreement for granting preferential treatment to
services and service suppliers of Least-Developed Countries.

2.           LEGAL BASIS OF PROPOSAL

Article 218(9) of the Treaty on the Functioning
of the European Union (TFEU) provides that when a Decision having legal effects
needs to be taken in a body set up by an international agreement, the Council,
on a proposal from the Commission or the High Representative of the Union for
Foreign Affairs and Security Policy, shall adopt a Decision establishing the
position to be adopted on the Union’s behalf. The granting of a waiver falls
under this provision as the Decision is taken in a body set up by an
international agreement (the WTO Ministerial Conference) affecting the rights
and obligations of the EU.

The envisaged waiver relates to obligations
under the General Agreement on Trade in Services and concerns all service
sectors, including transport services. Therefore, the proposed Decision falls
within the scope of Articles 91, 100 and 207(4), first subparagraph, of the
TFEU.

3.           SCOPE OF THE PROPOSAL

The Commission will be authorised to take a
position on behalf of the European Union to support a request for a waiver from
Article II:1 of the General Agreement on Trade in Services (GATS) to grant
preferential treatment to services and service
suppliers of Least-Developed Countries without according the same treatment to like services and service
suppliers of all other WTO Members.

Consistent with Article 218(10), the
European Parliament will be immediately and fully informed.

2011/0426 (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 (WTO) as regards a request for granting a waiver in order to give
preferential treatment to services and service suppliers of Least-Developed
Countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard
to the Treaty on the Functioning of the European Union, and in particular of Articles
91, 100 and 207(4), first subparagraph, 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 Organization (the “WTO
Agreement”) sets out the procedures for the granting of waivers concerning the
Multilateral Trade Agreements in Annexes 1A or 1B or 1C to the WTO Agreement
and their annexes.

(2)
            A waiver has been requested whereby
WTO Members would be enabled to grant preferential treatment to services and
service suppliers of Least-Developed Countries without according the same
treatment to like services and service suppliers of all other WTO Members (Cite
relevant WTO doc in a footnote) by exceptionally derogating from the obligation
under Article II:1 of the General Agreement on Trade in Services.

(3)
            It is in the interest of the
European Union to give its support to that request for a waiver and thus to conclude a part of the Doha Development Agenda
negotiations on services which is of special interest to Least-Developed Country
Members.

HAS ADOPTED THIS DECISION:

Article 1

The position of the European Union within
the Ministerial Conference of the World Trade Organization shall be to support
the request under Article IX:3
of the Marrakesh Agreement establishing the World Trade Organization for a waiver enabling WTO Members to grant preferential treatment to
services and service suppliers of Least-Developed Countries.

Article 2

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

Done at Brussels,

For
the Council

The
President

[1]               Waivers are permissions granted by the WTO General
Council/Ministerial Conference to derogate temporarily from certain WTO obligations
which are otherwise applicable.