Proposal for a COUNCIL DECISION On the signature of a Euro-Mediterranean Association Agreement between the European Communities and its Member States and the Arab Republic of Egypt on behalf of the European Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The attached proposals constitute the legal instruments for the signature and conclusion of a Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part:

(i) Proposal for a Council Decision for the signature of the Agreement;

(ii) Proposal for a Council and Commission Decision for the conclusion of the Agreement.

2. Egypt's relations with the European Community are presently covered by the Co-operation Agreement signed in Brussels on 18 January 1977, as modified by subsequent protocols The EU-Egypt Co-operation Council agreed to a series of exploratory talks for a new Agreement and these began in 1994. The Council adopted its negotiating directives in December 1994 and the Commission formally launched the negotiations in January 1995. Progress was extremely slow with no less than ten revision draft texts produced during the four and a half years of negotiations.

3. Following considerable pressure from the EC and the Presidency on the Egyptian side to make progress, a final package was agreed by both negotiators following two intensive negotiating rounds in June 1999. This package was endorsed by the GAC of 21st June 1999. The EC at that point considered the negotiations to be closed and expressed itself ready to initial the final draft.

4. The Egyptian side also considered negotiations to be closed but delayed initialling for 18 months because of problems in finding a consensus in cabinet. During this period there was a ministerial visit to Brussels to present a formal request for clarification on a range of issues and such clarifications were duly given. The Egyptian side finally expressed themselves ready to proceed on 22nd January 2001 and the final draft was initialled by both sides in Brussels on 26th January 2001.

5. The proposed Association Agreement between the EU and Egypt will open a new era in bilateral relations and will consolidate the Euro-Mediterranean partnership launched by the 1995 Barcelona Declaration. It will contribute to peace and security in the region and will stimulate trade and economic relations between Egypt the EU and between Egypt and its Mediterranean partners.

6. The new EU/Egypt Association Agreement will be one of a series of broadly similar agreements between the EU and the countries of the region. Inspired by the 1995 Barcelona Declaration it forms the basis of a new Euro-Mediterranean Partnership covering security, economic, and social relations.

7. The Association Agreement focuses on the following main elements:

-A political, economic, social, and cultural dialogue with Egypt;

-provisions for enhanced regional co-operation, including the creation of a regional Euro-Mediterranean free trade area;

-the establishment of a free-trade area between the European Community and Egypt with improved concessions on agricultural products and the elimination of tariffs on industrial products within 12-15 years after the entry into force of the Agreement;

-provisions on the movement of persons, on the rights of establishment and supply of services; and on payments, competition and the movement of capital;

-provisions for economic and financial co-operation in a wide range of fields;

-provision for the establishment of an Association Council to supervise the implementation of the agreement, and of an Association Committee.

-The Association Council shall take measures to promote co-operation between the European Parliament and the Egyptian People's Assembly.

8. Having initialled the texts of the proposed agreement, the Commission requests the Council to formally approve the results of the negotiations and to engage the procedures required for the signature of this agreement. The Commission also presents its proposal for a decision to allow the Council and the Commission to proceed to the conclusion of the Agreement once it has been signed.

9. The procedures for the signature and the conclusion of the Agreement are different for the European Communities: (European Community, and European Coal and Steel Community):

a) as regards signature, the first indent, first sentence of Article 300 (2) of the EC Treaty provides for a separate Council Decision concerning the signing of the Agreement on behalf of the European Community; a similar act is not required under the ECSC Treaty

b) as regards conclusion of the Agreement:

-The Council concludes the Agreement on behalf of the European Community, after having received the assent of the European Parliament, by virtue of Article 310 of the Treaty;

-The Commission concludes the Agreement on behalf of the European Coal and Steel Community, by virtue of Article 95 of the ECSC Treaty, with the unanimous assent of the Council and following consultation of the Consultative Committee.

10. In line with the above the Commission requests the Council to:

(i) decide on the signature of the Agreement on behalf of the European Community

(ii) conclude the Agreement on behalf of the EC and give its assent and approval for conclusion by the ECSC.

The Agreement will only enter into force following ratification by all Member States.

Proposal for a COUNCIL DECISION On the signature of a Euro-Mediterranean Association Agreement between the European Communities and its Member States and the Arab Republic of Egypt on behalf of the European Community

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with the first sentence of the first sub paragraph of Article 300 (2) thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C ...

Whereas:

(1) Negotiations with the Arab Republic of Egypt of the Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, have been completed;

(2) Subject to its conclusion at a later date, the Agreement should therefore be signed on behalf of the European Community;

HAS DECIDED AS FOLLOWS:

Sole Article

Subject to its conclusion at a later date, the President of the Council is hereby authorised to designate the persons empowered to sign, on behalf of the European Community, the Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt of the other part.

Done at Brussels,

For the Council

The President