Proposal for a COUNCIL REGULATION adopting autonomous measures concerning the importation of fish and fishery products originating in Malta

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 4 April 2001, the Council authorised the Commission to undertake negotiations on behalf of the Community with Malta, in order to further liberalise reciprocal trade in fish and fishery products.

Malta has already eliminated all import duties (and similar financial instruments, with the exception of VAT) on fish and fishery imports from the Community. The Community has a large trade surplus vis-à-vis Malta in the fisheries sector and the major Maltese export interest is linked to sea bass and sea bream, farmed entirely from raw materials imported from the Community.

Negotiations with Malta were held on 23 April. The two parties agreed on a model for simple, gradual and reciprocal tariff concessions, whose details have been recorded in the Agreed Minutes signed by each head of delegation. The main commitments made by the Community as a result of the conclusion of the negotiations are as follows:

As regards sea bass, sea bream and gilt-head seabream, it was agreed that the Community would establish a tariff quota common for these species. The tariff quota, based on the traditional trade, will be 1500 tonnes at 7.5% at the entry into force of the agreement. It will be increased to 1750 tonnes at 0% one year after the entry into force of the agreement and eliminated two years after the entry into force of the agreement.

As regards the tariff duties applied to all other fish and fishery products, as covered by the definition set out in Regulation (EC) No 104/2000, a one-third reduction will be applied from the date of entry into force of the agreement. The following year a further reduction of one third will be applied. Two years after the entry into force of the agreement, full free trade of all fish and fishery products will be applied.

A Protocol laying down the new trade arrangements for certain fish and fishery products has to be added to the Association Agreement between the Community and Malta. Pending the completion of internal procedures required for the entry into force of the additional Protocol, it is proposed that, through a Council Regulation, the Community adopts autonomous measures enabling the concessions made to Malta to apply as early as 1 January 2002. A swift implementation of the agreement is desirable in order to introduce the gradual liberalisation of trade in fish and fishery products and to give a positive political sign to Malta in the context of the accession process.

The adoption of the proposed autonomous measures will bring forward the effective starting date for the gradual liberalisation of trade in fish and fishery products between the Community and Malta. It is therefore necessary to ensure that this circumstance is taken into account at the time when the new Additional Protocol to the Association Agreement enters into force. For this purpose, the Commission will propose the conclusion of an interpretative Exchange of Letters with Malta.

In light of the above, the Council is requested to adopt the attached Regulation implementing, on an autonomous basis, the concessions agreed between the Community and Malta.

2001/0259 (ACC)

Proposal for a COUNCIL REGULATION adopting autonomous measures concerning the importation of fish and fishery products originating in Malta

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Agreement establishing an association between the European Economic Community and Malta [1] provides for certain concessions for fish and fishery products originating in Malta.

[1] OJ L 61, 14.3.1971, p. 3

(2) Council Regulation (EC) No 3010/95 totally or partially suspending the customs duties applicable to certain products falling within Chapters 1 to 24 of the Combined Nomenclature originating in Malta [2], also provides for certain tariff concessions for fish and fishery products originating in Malta.

[2] OJ L 314, 28.12.95, p. 1. Regulation as last amended by Council Regulation (EC) No 779/98 (OJ L 113, 15.4.1998, p.1).

(3) In accordance with the directives issued by the Council on 4 April 2001, negotiations with Malta on a new Additional Protocol to the Association Agreement were concluded on 23 April 2001.

(4) The new Additional Protocol, based on Article 2 of the Association Agreement, provides for concessions on fish and fishery products.

(5) A swift implementation of the agreement forms an essential part of the results of the negotiations for the conclusion of a new Additional Protocol to the Association Agreement with Malta.

(6) Malta already applies zero-duties for imports of fish and fishery products originating in the Community.

(7) It is therefore appropriate for the Community to adopt autonomous measures bringing forward in time the application of the concessions to Malta provided for in the new Additional Protocol to the Association Agreement.

(8) As far as the management of tariff quotas is concerned, it is appropriate to follow the chronological order of dates of acceptance of customs declarations in accordance with Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code [3].

[3] OJ L 253 , 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 993/2001 (L 141, 28.5.2001, p. 1)

HAS ADOPTED THIS REGULATION:

Article 1

1 The arrangements for the importation into the Community of fish and fishery products originating in Malta, as set out in Articles 2 and 3 below, shall modify those set out in Annex I to the Agreement establishing an association between the European Economic Community and Malta, and shall replace those set out for fish and fishery products in the Annex to Regulation (EC) No 3010/95.

2 From the date of entry into force of the new Additional Protocol to the Association Agreement with Malta, the concessions provided therein shall apply taking account of the implementation measures already adopted by both Parties, in a reciprocal manner, in advance of that date. Accordingly, on the date of entry into force of the Additional Protocol, its provisions shall replace and supersede the relevant provisions of the present Regulation.

Article 2

As from 1 January 2002, the Community shall apply a one-third reduction of the tariff duties for fish and fishery products, as defined in Article 1 of Council Regulation (EC) No 104/2000 [4], other than those mentioned in Article 3.

[4] OJ L 17, 21.1.2000, p.22.

As from 1 January 2003, the Community shall apply a further one-third reduction of the tariff duties as they were at the time at which this Regulation became applicable.

As from 1 January 2004, the Community shall eliminate the tariff duties on all fish and fishery products, including those products mentioned in Article 3.

Article 3

From 1 January until 31 December 2002, a single Community tariff quota with order number 09.1461 shall be opened for a quota volume of 1500 tonnes at a duty rate of 7,5% (ad valorem) for sea bass (Dicentrarchus labrax) falling under CN subheading 0302 69 94, sea bream (Dentex dentex and Pagellus spp.) falling under CN subheading 0302 69 61 and gilt-head seabream (Sparus aurata) falling under CN subheading 0302 69 95, originating in Malta.

From 1 January until 31 December 2003, for the same products originating in Malta, a Community tariff quota with order number 09.1461 shall be opened for a quota volume of 1750 tonnes at a duty rate of 0%.

For quantities imported into the Community above the tariff quota, the provisions of Article 2 shall apply.

Article 4

The tariff quota referred to in Article 3 shall be managed by the Commission in accordance with Articles 308a and 308b of Regulation (EC) No 2454/93.

Article 5

The calculation of the reductions mentioned in Article 2 shall be carried out using common mathematical principles.

In particular, the following rules shall apply:

(a) all the figures which have 50 or less after the decimal point shall be rounded down to the nearest whole number;

(b) all the figures which have more than 50 after the decimal point shall be rounded up to the nearest whole number;

(c) all the tariffs below 2% shall automatically be fixed at 0%

Article 6

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities.

It shall apply from 1 January 2002.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, [...]

For the Council

The President

[...]

FINANCIAL STATEMENT

1. Title of operation

Proposal to adopt autonomous measures bringing forward in time the application of the provisions of an Additional Protocol to the Association Agreement with Malta laying down the trade arrangements for fish and fishery products. Reciprocal concessions have been agreed and will be implemented over a period of two years, leading to full liberalisation of trade in the products concerned.

2. Budget heading(s) involved

Chapter 12, Article 120

3. Legal basis

Article 133 of the Treaty establishing the European Community

4. Description of operation

4.1 General objective

Full trade liberalisation in fish and fishery products in preparation for accession of Malta to the European Community.

5. Classification of expenditure or revenue

5.1 Type of revenue involved

Import duties

6. Type of expenditure or revenue

- The proposed operation will cause a reduction in import duties levied on fish and fishery products originating in Malta.

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

Only a few products are imported from Malta, the following table gives the imports in 1998, 1999 and 2000 and the average duties paid.

The estimated average duty level for fresh and chilled fish is 12% and the estimated average duty level for canned fish is 24%.

>TABLE POSITION>

Import duties levied in 1999 showed an increase of approximately 25% over 1998; duties in 2000 showed a decrease of 2% over 1999. A decrease in production of fresh and chilled fish (sea bass and sea bream) is awaited in 2001 and 2002, but it seems that the canned fish imports could be the same as in 2000. In consequence Year 2002 could be similar to year 1999 for fresh fish but similar to 2000 for canned fish, and a reasonable increase of 20% could affect both sectors in year 2003.

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

>TABLE POSITION>