Proposal for a COUNCIL DECISION on the position to be taken by the Community in the Association Council established by the Agreement between the European Communities and their Member States, of the one part, and Romania, of the other part, concerning the improvements of the trade arrangements for processed agricultural products provided for in Protocol 3 of the Europe Agreement between the European Community and Romania

(presented by the Commission)

EXPLANATORY MEMORANDUM

Under the terms of Article 20 of the Europe Agreement between the European Communities and their Member States, of the one part, and Romania, of the other part, approved by the Decision of the Council and of the Commission (94/907/CECA, CE, Euratom) of 19 December 1994 [1], Protocol 3 lays down the trade arrangements for processed agricultural products listed therein. Protocol 3 was amended by the Protocol adapting the trade aspects of the Europe Agreement [2].

[1] OJ L 357, 31.12.1994, p. 1.

[2] OJ L 301, 11.11.1998, p. 1.

In October 2002, Council directives authorised the Commission to enter into negotiations with Romania with a view to improving the trade arrangement for processed agricultural products in preparation for accession.

On 18 May 2004, the two parties have reached a draft agreement, which envisages complete liberalisation of trade, duty free quotas or a reduction of import duties. For some of the imports outside of the quotas, the current trade provisions as laid down in the existing Protocol 3 will continue to apply.

Processed Agricultural Products, not covered by Annex I to the Treaty will not be eligible for export refunds under Commission Regulation (EC) No 1520/2000 of 13 July 2000 laying down common detailed rules for the application of the system of granting export refunds on certain agricultural products exported in the form of goods, not covered by Annex I to the Treaty, and the criteria for fixing the amounts of such refunds [3].

[3] OJ L 177, 15.7.2000, p. 1. Regulation as last amended by Regulation (EC) No 740/2003 (OJ L 106, 29.4.2003, p. 12)

The Association Council can decide on the extension of the list of PAPs under Protocol 3, amendments of the duties and increases or abolition of the tariff quotas.

Therefore, the Council is invited to adopt the proposal for a Council Decision on the position to be taken by the Community in the Association Council with the aim to implement the results of the negotiations which will lead to the improvement of certain trade arrangements under Protocol 3.

2004/0210 (ACC)

Proposal for a COUNCIL DECISION on the position to be taken by the Community in the Association Council established by the Agreement between the European Communities and their Member States, of the one part, and Romania, of the other part, concerning the improvements of the trade arrangements for processed agricultural products provided for in Protocol 3 of the Europe Agreement between the European Community and Romania

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the second subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission, [4]

[4] OJ C [...] [...], p. [...]

Whereas:

(1) The Europe Agreement [5] establishes an association between the European Communities and their Member States, of the one part, and Romania, of the other part. Its Protocol 3 establishes the trade arrangements for processed agricultural products.

[5] OJ L357, 31.12.1994, p. 1.

(2) New trade improvements have recently been negotiated which aim to improve economic convergence in preparation for accession and lay down concessions in the form of either complete liberalisation of trade for certain processed agricultural products, reduction of duties or tariff quotas. For certain imports outside of the quotas the current trade provisions continue to apply.

(3) Under Protocol 3, the Association Council shall decide on any amendment of the duties mentioned in the annexes to this Agreement and on the increase or abolition of tariff quotas.

(4) The Association Council also decides that the duties applied may be reduced in response to reductions resulting from mutual concessions relating to processed agricultural products.

(5) Commission Regulation No 2271/2003 [6] opened for the year 2004 tariff quotas on imports into the Community of certain goods originating in Romania. Only quantities for the tariff quotas with Order No 09.5435, Order No 09.5437 and Order No 09.5443 should continue to apply for the year 2004.

[6] OJ L 336, 23.12.2003, p. 29.

(6) 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 [7] provide the procedures for managing the tariff quotas to be used in chronological order of the dates of the customs declarations. These procedures should be applicable for imports under the tariff Association Council Decision.

[7] OJ L 253, 11.10.1993, p. 1, as last amended by Regulation (EC) No 2286/2003 (OJ L 343, 31.12.2003, p. 1).

HAS DECIDED AS FOLLOWS:

Article 1

The position to be taken by the Community in the Association Council established by the Association Agreement concerning bilateral trade of processed agricultural products, shall be based on a draft Decision of the Association Council attached as Annex to this Decision.

Article 2

The quantities for the tariff quotas under Order No 09.5435 and Order No 09.5437 and Order No 09.5443 opened under Regulation (EC) No. 2271/2003, and put in free circulation from 1 January to [... 2004], shall be fully counted against the quantities provided in the corresponding tariff quotas set out in Appendix III of the Association Council Decision.

Article 3

The tariff quotas set out in Appendix III of the Decision of the Association Council shall be managed by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93.

Done at Brussels, [...]

For the Council

The President

ANNEX

Draft EC-Romania ASSOCIATION COUNCIL DECISION No... /2004 concerning the improvement of the trade arrangements for processed agricultural products provided in Protocol 3 of the Europe Agreement

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, and in particular Article 1(2) of Protocol 3 thereto,

Whereas:

(1) Protocol 3 lays down the trade arrangements for processed agricultural products between the Community and Romania. Protocol 3 has last been amended by the Protocol adapting the trade aspects of the European Agreement [8].

[8] OJ L 301, 11.11.1998, p. 3.

(2) New trade improvements have recently been negotiated to facilitate economic convergence in preparation for accession and lay down concessions in the form of complete liberalisation of trade for certain processed agricultural products, reduced duties or tariff quotas for others.

(3) Under the second indent of Article 1 (2) of Protocol 3 the Association Council decides that the duties applied may be reduced in response to reductions resulting from mutual concessions relating to processed agricultural products.

(4) On certain processed agricultural products covered by Protocol 3 but not listed in this Decision or for which the opened quotas are exhausted the existing trade provisions laid down by Protocol 3 should continue to apply.

(5) For processed agricultural products not covered by Annex I to the Treaty no export refunds should be granted under Commission Regulation (EC) No 1520/2000 of 13 July 2000 laying down common detailed rules for the application of the system of granting export refunds on certain agricultural products exported in the form of goods not covered by Annex I to the Treaty, and the criteria for fixing the amount of such refunds [9].

[9] OJ L 177, 15.7.2000, p. 1. Regulation as last amended by Regulation (EC) No 740/2003 (OJ L 106, 29.4.2003, p. 12).

(6) For goods originating in Romania and exported to the Community no export refunds should be granted.

(7) The annual quotas provided for in Appendix III and Appendix IV to this Decision should be opened under the conditions specified in these Appendixes.

HAS DECIDED AS FOLLOWS:

Article 1

From [ ... 2004], the customs duties set out in Appendix I are applicable to the importation into the Community of goods originating in Romania listed in that Appendix.

From [ ... 2004], the customs duties set out in Appendix II are applicable to the importation into Romania of goods originating in the Community listed in that Appendix.

Article 2

Processed agricultural products not listed in Annex I to the Treaty originating in the Community and exported to Romania shall not be eligible for export refunds granted under Commission Regulation (EC) No 1520/2000.

Processed agricultural products not listed in Annex I to the Treaty originating in Romania and exported to the Community shall not be eligible for export refunds in Romania.

Article 3

The tariff quotas referred to in Appendix III and Appendix IV shall be open from [... to 31 December 2004] and the following years under the conditions laid down therein.

The quantities of goods subject to tariff quotas opened under Commission Regulation (EC) N°2271/2003 under Order No 09.5435 and Order No 09.5437 and Order No 09.5443, and put in free circulation from 1 January to [...2004], shall be fully counted against the quantities provided in the corresponding tariff quotas set out for products with the CN code ex 1902, with the CN code 1904 1010 and 1904 2091 and CN code 2105 00 10 in Appendix III.

Article 4

For processed agricultural products, which are not covered by Appendix I, II, III and IV or for which the quotas set out in Appendix III and IV are exhausted, the provisions laid down in Protocol 3 shall continue to apply, unless otherwise specified.

Article5

This decision shall enter into force on the first day of the month following the notification by both parties on the completion of the internal ratification procedures.

Done at Brussels, [...]

For the Association Council

The President

Appendix I - Import duties applicable upon imports into the Community of goods originating in Romania

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* EA/EAR = Agricultural Component / Reduced agricultural components (calculated in accordance with the basic amounts set out in Protocol 3 to the Agreement). Such agricultural components and reduced agricultural components are subject to the maximum duty laid down in the common customs tariff, if any.

Appendix II - Import duties applicable upon imports into Romania of goods originating in the Community

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Appendix III - Quotas and duties applicable upon import into the Community of goods originating in Romania

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* For quantities in excess of quota, the duty set out in Appendix I will apply.

** For the quota of 200 tons opened from 1.01.06 to 31.12.06, the duty within the quota will be 0.

Appendix IV - Tariff Quotas applicable upon imports into Romania of goods originating in the Community

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* For quantities in excess of quota, the duty set out in Appendix II will apply.

** In 2004, the duty within quota is 41.3%

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