TEXT PROPOSED BY THE COMMISSION AMENDMENT

Amendment 1

Proposal for a regulation Citation 2 a (new)

Having regard to the request of 18 November 2010 for a WTO waiver for additional autonomous trade preferences granted by the European Union to Pakistan,

Amendment 2

Proposal for a regulation Recital 1

(1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 2004. One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. (1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 2004. One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. Respect for human rights, including core labour rights, and democratic principles are also an essential element of that Agreement.

Amendment 3

Proposal for a regulation Recital 3

(3) Humanitarian aid is of course the primary instrument in this kind of situation and the Union has been at the forefront in this field since the beginning of the emergency. (3) Humanitarian aid is of course the primary instrument in this kind of situation and the Union has been at the forefront in this field since the beginning of the emergency pledging in excess of EUR 415 million in emergency aid to Pakistan .

Amendment 4

Proposal for a regulation Recital 4

(4) It will be important to use all available means to support Pakistan's recovery from this emergency and progress towards future development. (4) It will be important to use all available means to support Pakistan's recovery from this emergency , including the proposed exceptional trade measures to boost Pakistan's exports in order to contribute to its future economic development while ensuring that consistency and coherence is maintained at all levels with a view to developing a sustainable long-term strategy .

Amendment 5

Proposal for a regulation Recital 4 a (new)

(4a) The severity of this natural disaster demands an immediate and substantial response, which would take into account the geostrategic importance of Pakistan’s partnership with the Union, mainly through Pakistan's key role in the fight against terrorism, while contributing to the overall development, security and stability of the region.

Amendment 6

Proposal for a regulation Recital 4 b (new)

(4b) The effects of the autonomous trade preferences should be able to be measured concretely in terms of job creation, poverty eradication and the sustainable development of Pakistan's working population and poor.

Amendment 7

Proposal for a regulation Recital 6

(6) In particular, the European Council underlined its firm commitment to grant exclusively to Pakistan increased market access to the Union through the immediate and time limited reduction of duties on key imports from Pakistan. (6) In particular, the European Council underlined its firm commitment to grant exclusively to Pakistan increased market access to the Union through the exceptional, immediate and time limited reduction of duties on key imports from Pakistan. On receipt of this mandate, the Commission proposed a package identifying 75 tariff lines specific to Pakistan's core export sectors in those areas worst hit by the floods, asserting that an increase in Pakistani exports to the Union of EUR 100 million or more a year would provide real, substantial and worthwhile assistance to the region.

Amendment 8

Proposal for a regulation Recital 6 a (new)

(6a) Pakistan's trade with the Union is mainly composed of textiles and clothing products which according to the Commission accounted for 73.7 % of Pakistani exports to the Union in 2009, but also ethanol and leather, which are sensitive industrial products in certain Member States where jobs in the industry have already been heavily impacted by the global recession and the industries are struggling to adapt to a new global trading environment.

Amendment 9

Proposal for a regulation Recital 6 b (new)

(6b) The textiles sector is of key importance to the Pakistani economy, accounting for 8.5 % of GDP and employing 38 % of the labour force about half of whom are women.

Amendment 10

Proposal for a regulation Recital 7

(7) It is therefore appropriate to extend autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan. The provision of these trade preferences would not cause any meaningful adverse effects on the domestic market of the Union and would not affect negatively least developed Members of the World Trade Organisation (WTO). (7) Given the hardship being suffered by the Pakistani people due to the devastating floods it is therefore appropriate to extend exceptional autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan. The provision of these trade preferences should only cause limited adverse effects on the domestic market of the Union and should not affect negatively least developed Members of the World Trade Organisation (WTO).

Amendment 11

Proposal for a regulation Recital 7 a (new)

(7a) Theses measures are proposed as part of an exceptional package, in response to the specific situation in Pakistan. They should not constitute a precedent for the Union's trade policy with other countries.

Amendment 12

Proposal for a regulation Recital 8 a (new)

(8a) The granting of autonomous trade preferences is linked to respect for the fundamental principles of democracy and human rights.

Amendment 13

Proposal for a regulation Recital 9

(9) Entitlement to benefit from the autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures. (9) Entitlement to benefit from the exceptional autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods or a serious deterioration in respect for the fundamental principles of democracy and human rights in Pakistan, including core labour rights, should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures.

Amendment 14

Proposal for a regulation Recital 10 a (new)

(10a) The granting of these preferences is also conditional on Pakistan abstaining from maintaining, introducing or increasing duties or charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by this Regulation destined for the territory of the Union, from the date of the entry into force of this Regulation.

Amendment 15

Proposal for a regulation Recital 10 b (new)

(10b) It is necessary to provide for the reintroduction of Common Customs Tariff duties for any products causing, or threatening to cause, serious difficulties to a Union producer of like or directly competing products, as determined by an investigation carried out by the Commission.

Amendment 16

Proposal for a regulation Recital 10 c (new)

(10c) In order to ensure effective monitoring of the trends of imports of products covered by this Regulation as far in advance as possible it is necessary to establish customs surveillance on imports covered by this Regulation. On the basis of this monitoring a quarterly report on the application and implementation of this Regulation should be submitted.

Amendment 17

Proposal for a regulation Recital 10 d (new)

(10d) The autonomous trade preferences granted to Pakistan should be subject to an annual impact assessment, conducted by the Commission and presented to Parliament and the Council, which allows for adjustments to be made based on the actual volume of imports and the possible repercussions for the sectors specifically concerned by this Regulation.

Amendment 18

Proposal for a regulation Recital 12

(12) Given the urgency of the situation in Pakistan, the Regulation should apply as of 1 January 2011, provided that the WTO has approved the request from the Union for the waiver from its obligations under GATT Articles I and XIII. (12) Given the urgency of the situation in Pakistan, the Regulation should apply as soon as the WTO has approved the request from the Union for the waiver from its obligations under GATT Articles I and XIII.

Amendment 19

Proposal for a regulation Recital 13

(13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended to limit the duration of the trade preferences until 31 December 2013 . (13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended to limit the duration of the trade preferences to one year from the entry into force of those measures .

Amendment 20

Proposal for a regulation Recital 14

(14) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (2). (14) In order to ensure uniform conditions for the implementation of this Regulation concerning temporary suspension, surveillance and safeguard measures implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No. 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers (3).

Amendment 21

Proposal for a regulation Recital 15

(15) Amendments to the Combined Nomenclature may not give rise to any substantive changes to the nature of the autonomous trade preferences. The Commission should therefore be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union for the purpose of making necessary amendments and technical adaptations to the list of goods for which the autonomous trade preference applies, (15) The advisory procedure should be used for the adoption of surveillance and provisional safeguard measures in order to take into account the effects of these measures and their sequential logic in relation to the adoption of definitive safeguard measures. The same applies with regard to the suspension of preferences when the conditions for entitlement to the preferential arrangements are not fulfilled since the Commission is thereby only acting upon factual evidence and is not required to use political discretion.

Amendment 22

Proposal for a regulation Recital 15 a (new)

(15a) In order to make the necessary technical adaptations to the list of goods for which the autonomous trade preferences apply and to introduce tariff rate quotas where volumes of imports covered by this Regulation increase beyond certain levels the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending Annex I and Annex II to reflect changes in the combined nomenclature and to introduce new quotas. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.

Amendment 23

Proposal for a regulation Article 2 – paragraph 1 – point c a (new)

(ca) Pakistan abstaining from maintaining, introducing or increasing duties or charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by this Regulation destined for the territory of the Union;

Amendment 24

Proposal for a regulation Article 2 – paragraph 1 – point c b (new)

(cb) compliance with Article XI GATT 1994 and its interpretative notes. To this end Pakistan shall abstain from adopting or maintaining any prohibition or restriction on the export, or sale for export, of any materials primarily used in the production of any of the products included in Annex I and II;

Amendment 25

Proposal for a regulation Article 2 – paragraph 1 – point c c (new)

(cc) Pakistan abstaining from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect for imports originating in the Union or from increasing existing levels of duties or charges or from introducing any other restrictions.

Amendment 26

Proposal for a regulation Article 2 – paragraph 1 a (new)

1a. Without prejudice to the conditions set out in paragraph 1, entitlement to benefit from the preferential arrangements introduced by Article 1 is subject to respect for human rights, including core labour rights, and the fundamental principles of democracy by Pakistan. If Pakistan adopts measures restricting human rights and workers’ rights, gender equality or religious rights or if it provides terrorist organisations of any kind with backing or support, the Commission shall immediately propose to repeal this Regulation.

Amendment 27

Proposal for a regulation Article 3 a (new)

Article 3a Urgent introduction of tariff quotas 1. Where imports of a product included in Annex I originating from Pakistan increase, in volume, by 20 % or more, as compared to the same period of 2010, the Commission shall be empowered to subject the imports of that product to a tariff rate quota and as a matter of urgency amend Annex I and Annex II by means of a delegated act. The procedure provided for in Article 7a shall apply to delegated acts adopted pursuant to this Article. 2. The data provided by the customs surveillance referred to in Article 9b shall be the basis for introducing the tariff rate quota under this Article. 3. The tariff rate quota shall take the form of a duty free quota limited to the level of imports of such product as compared to the same period of 2010 plus 20 %. Upon the entry into force of the delegated act, imports in excess of that tariff rate quota shall be subject to most-favoured nation or other applicable duties.

Amendment 28

Proposal for a regulation Article 4

Amendment of the Annexes Technical adjustments to the Annexes

The Commission may adopt delegated acts in accordance with Article 5 for the purpose of amending the Annexes in order to introduce amendments and technical adjustments necessary following amendments to the Combined Nomenclature codes and to the TARIC subdivisions. The Commission shall be empowered to adopt delegated acts in accordance with Article 5 for the purpose of amending the Annexes in order to introduce technical adjustments made necessary following amendments both to the Combined Nomenclature codes and to the TARIC subdivisions.

In each case, the power conferred on the Commission in the first paragraph shall not go so far as to allow it to introduce additional products not included in the lists in Annexes I and II of this Regulation.

Amendment 29

Proposal for a regulation Article 5

Exercise of the delegation Exercise of the delegation

1. The power to adopt the delegated acts referred to in Article 4 shall be conferred on the Commission for an indeterminate period of time. 1. The power to adopt the delegated acts referred to in Articles 3a and 4 shall be conferred on the Commission subject to the conditions laid down in this Article.

2. The delegation of power referred to in Articles 3a and 4 shall be conferred on the Commission for the duration of this Regulation.

3. The delegation of power referred to in Articles 3a and 4 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

2. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

3. The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in Articles 6 and 7. 5. A delegated act adopted pursuant to Article 4 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

If this amendment is adopted, Articles 6 and 7 shall be deleted.

Amendment 30

Proposal for a regulation Article 7 a (new)

Article 7a Urgency procedure 1. Delegated acts adopted under the urgency procedure shall enter into force without delay and apply as long as no objection is expressed in accordance with paragraph 2. The notification of the act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure. 2. The European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 5. In such a case, the Commission shall repeal the act without delay following the notification of the decision to object by the European Parliament or the Council.

Amendment 31

Proposal for a regulation Article 8

Committee procedure Committee procedure

1. The Commission shall be assisted by the Customs Code Committee. 1. The Commission shall be assisted by the Customs Code Committee. That committee shall be a committee with the meaning of Regulation (EU) No 182/2011.

1a. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month. 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Amendment 32

Proposal for a regulation Article 9 – paragraph 2

2. The measures referred to in paragraph 1 shall be adopted in accordance with the procedure referred to in Article 8. 2. The measures referred to in paragraph 1 shall be adopted in accordance with the advisory procedure referred to in Article 8(1a).

Amendment 33

Proposal for a regulation Article 9 a (new)

Article 9a Safeguard measures 1. Where a product included in Annex I or II originating in Pakistan is imported on terms which cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products, Common Customs Tariff duties on that product may be reintroduced at any time (hereinafter referred to as a "safeguard measure"). 2. At the request of a Member State, any legal person or any association not having legal personality acting on behalf of the Union industry, or on the Commission’s own initiative, the Commission shall take a formal decision to initiate an investigation within one month. Where the Commission decides to initiate an investigation, it shall publish a notice in the Official Journal of the European Union announcing the investigation. The notice shall provide a summary of the information received and state that any relevant information should be sent to the Commission. It shall specify the period, which shall not exceed one month from the date of publication of the notice, within which interested parties may make their views known in writing. 3. The Commission shall seek all information it deems necessary and may verify the information received with Pakistan and any other relevant source. It may be assisted by officials of the Member State on whose territory verification might be sought, if that Member State so requests. 4. In examining whether there are serious difficulties, the Commission shall take account, inter alia, of the following factors concerning Union producers where this information is available: — market share, — production, — stocks, — production capacity, — capacity utilisation, — employment, — imports, — prices. 5. The investigation shall be completed forthwith, but not later than four months after the publication of the notice referred to in paragraph 2. The Commission may, in exceptional circumstances, extend this period by a further maximum period of one month. 6. Provisional safeguard measures may be adopted by the Commission by means of implementing acts in critical circumstances where a delay would cause damage which would be difficult to repair, pursuant to a preliminary determination on the basis of the factors laid down in paragraph 4 which establishes that there is sufficient evidence that imports of a product covered by this Regulation have increased as the result of the suspension of customs duties under this Regulation, and such imports cause serious difficulties, or threat thereof, to the Union industry. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 8(1a).Provisional measures shall not apply for more than 200 days. 7. The Commission shall decide whether to impose definitive safeguard in accordance with the examination procedure referred to in Article 8(2).

Amendment 34

Proposal for a regulation Article 9 b (new)

Article 9b Surveillance measures 1. Where the trend in imports of one of the products included in Annex I originating in Pakistan is such that it could lead to one of the situations referred to in Article 9a(1) the Commission may decide to subject the imports of that product to prior Union surveillance. 2. Surveillance measures shall be adopted by the Commission in accordance with the advisory procedure referred to in Article 8(1a). 3. Surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid at the end of the second six-month period. 4. This surveillance shall provide for updated and timely data, in volume and value. These data shall be immediately made available to Member-States, the European Parliament and economic operators

Amendment 35

Proposal for a regulation Article 10 – paragraph 2

2. It shall apply from 1 January 2011 provided that the tariff preferences provided for in this Regulation are permitted by a waiver granted by the World Trade Organization. In case the World Trade Organization grants such a waiver after 1 January 2011, it shall apply from such later date on which the waiver takes effect. 2. This Regulation is subject to a waiver being granted by the World Trade Organization allowing the tariff preferences provided for therein and therefore it shall apply from the date on which the waiver takes effect.

Amendment 36

Proposal for a regulation Article 10 – paragraph 3

3. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date on which the waiver is granted by the World Trade Organization. If after 1 January 2011 the date specified shall be the date from which the tariff preferences apply pursuant to the second sentence of paragraph 2. 3. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date on which the waiver is granted by the World Trade Organization.

Amendment 38

Proposal for a regulation Article 10 – paragraph 4