Proposal for a COUNCIL DECISION on a Community position within the EU-Mexico Joint Council concerning the tariff treatment of certain products listed in Annex 1 and 2 of Decision 2/2000 of the EU-Mexico Joint Council.

(presented by the Commission)

EXPLANATORY MEMORANDUM

Decision 2/2000 of the EU-Mexico Joint Council, establishing the liberalization of trade between the EU and Mexico, lays down in Articles 4 to 10 the rules for elimination of customs duties between the parties. However, Article 3(5) allows the parties to reduce customs duties more rapidly than provided for in Articles 4 to 10 and establishes that a Decision by the Joint Council is the legal basis to do so.

The request to proceed to an immediate elimination on duties for certain industrial products first came from Mexico with the exception of codes 8702 to 8706 (motor cars) which were requested by the EU, to achieve parity of treatment with Mexican NAFTA partners.. The products involved are used by domestic industry and not domestically produced (in some cases, the Mexican industry is mainly constituted by EU companies). They have requested in exchange the elimination of EU duties on products on a reciprocal basis (products already liberalised in Mexico or included in the present exercise).

The products involved on both sides are listed in Annexes I and II of the enclosed Joint Council Decision.

The proposal is very advantageous for the EU. This is because, for industrial products, the EU will in any case eliminate all tariffs by 1 January 2003 while Mexico will only complete its liberalisation in 2007 and has therefore much more room for reduction. The EU duties which it is hereby proposed to eliminate range between 1.1 and 3.3%. The Mexican duties to be eliminated vary between 2.2 and 8%. Imports of the products affected by this proposal were 659 MioEUR in the first year of operation of the FTA, of which 644 MioEUR were cars; exports were above 1 billion EUR (estimates from Mexican figures), of which 852 MioEUR of cars, in the same period.

The 133 Committee has been consulted on a preliminary basis and has given its agreement.

The enclosed proposal is therefore submitted for approval.

2002/0054 (ACC)

Proposal for a COUNCIL DECISION on a Community position within the EU-Mexico Joint Council concerning the tariff treatment of certain products listed in Annex 1 and 2 of Decision 2/2000 of the EU-Mexico Joint Council.

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,

HAS DECIDED AS FOLLOWS:

Sole Article

To adopt, as a Community position within the EU-Mexico Joint Council, the annexed draft decision.

Done at Brussels, [...]

For the Council

The PresidentProposal for a

ANNEX

DECISION OF THE EUROPEAN UNION - MEXICO JOINT COUNCIL

No..../2002

of [date]

Accelerating the elimination of customs duties of certain products listed in Annexes I and II of Decision 2/2000 of the EU-Mexico Joint Council

THE JOINT COUNCIL,

Having regard to the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part, signed in Brussels on 8 December 1997;

Having regard to Decision 2/2000 of the EU-Mexico Joint Council of 23 March 2000 (hereinafter "Decision 2/2000") and in particular Article 3 paragraph 5 thereof;

Whereas:

(1) Article 3 paragraph 5 of Decision 2/2000 gives the Joint Council the capacity to accelerate the reduction of customs duties more rapidly than is provided for in Articles 4 to 10, or otherwise improve the conditions of access under such Articles;

(2) A Decision by the Joint Council to accelerate the elimination of a custom duty or otherwise improve conditions of access shall supersede the terms established in Articles 4 to 10 for the product concerned,

HAS DECIDED AS FOLLOWS:

Article 1

The Parties shall accelerate the elimination of customs duties applicable to certain originating products contained in Annexes I and II of Decision 2/2000, as provided for in Articles 2 to 5 of this Decision.

Article 2

Mexico shall accelerate the elimination of customs duties for originating goods of the European Community as established in Annex 1.

Article 3

The European Community shall accelerate the elimination of customs duties for originating goods of Mexico as established in Annex 2.

Article 4

This Decision by the Joint Council shall supersede the terms established in Articles 4 to 10 of Decision 2/2000 for the product concerned.

Article 5

This Decision shall enter into force on ______.

Done at [...]

For the Joint Council

ANNEX 1

Tariff items in which Mexico accelerates the elimination of customs duties for originating goods of the European Community

a) Products for which Mexico eliminates customs duties for originating goods of the European Community at the date of entry into force of this Decision [1]

[1] (The word "Unicamente" indicates that the description refers only to the modality of the good being accelerated within the tariff item, It is equivalent to an "ex out" in WTO terminology.)

TARIFF ITEM - INDICATIVE DESCRIPTION

2909.50.04 // Eugenol o isoeugenol, excepto en grado farmacéutico.

2922.50.17 // Clorhidrato de 1-isopropilamino-3-(1-naftoxi)-propan-2-ol

2923.10.99 // Los demás.

2924.29.13 // N-Acetil-p-aminofenol

3002.10.99 // Unicamente: medicamento a base de etanercept

3002.10.99 // Unicamente: medicamento a base de basiliximab

3002.90.99 // Unicamente: toxina botulinica tipo "A"

3003.90.99 // Unicamente: medicamento a granel a base de vitamina E 50%

3004.20.99 // Unicamente: medicamento a base de fosfato sódico de dexametasona y sulfato de neomicina

3004.20.99 // Unicamente: Antiséptico glucocorticoide y antiinflamatorio de uso oftálmico con principio activo fluorometolona y sulfato de neomicina

3004.20.99 // Unicamente: medicamento a base de ertapenem sódico

3004.39.99 // Unicamente: medicamento a base de estradiol

3004.39.99 // Unicamente: medicamento a base de gestodeno y etinil estradiol

3004.39.99 // Unicamente: medicamento a base de levonorgestrel y etinilestradiol

3004.39.99 // Unicamente: medicamento a base de estrógenos conjugados

3004.40.99 // Unicamente: medicamento a base de tropisetron

3004.50.99 // Unicamente: medicamento a base de fitomenadiona

3004.90.99 // Unicamente: medicamento a base de Clorhidrato de Moxifloxacino (tabletas y Solución inyectable)

3004.90.99 // Unicamente: medicamento a base de Atenolol-nifedipina (cápsulas)

3004.90.99 // Unicamente: medicamento a base de isosorbide dinitrato (cápsulas)

3004.90.99 // Unicamente: medicamento a base de Glucomannano (cápsulas)

3004.90.99 // Unicamente: medicamento a base de rufloxacino mononitrato (tabletas)

3004.90.99 // Unicamente: medicamento a base de clorhidrato de Dorzolamida y Maleato de Timolol.

3004.90.99 // Unicamente: medicamento a base de fosfato sódico de Dexametasona.

3004.90.99 // Unicamente: medicamento a base de Losartán Potásico e Hidroclorotiazida

3004.90.99 // Unicamente: medicamento a base de Maleato de Timolol.

3004.90.99 // Unicamente: medicamento a base de Cardidopa y Levodopa

3004.90.99 // Unicamente: medicamento a base de benseramida y levodopa

3004.90.99 // Unicamente: medicamento a base de moxifloxacino

3004.90.99 // Unicamente: medicamento a base de ácido pamidrónico

3004.90.99 // Unicamente: medicamento a base de isradipino

3004.90.99 // Unicamente: medicamento a base de valsartan

3004.90.99 // Unicamente: medicamento a base de rivastigmina

3004.90.99 // Unicamente: medicamento a base de letrozol

3004.90.99 // Unicamente: medicamento a base de formoterol

3004.90.99 // Unicamente: medicamento a base de terbinafina

3004.90.99 // Unicamente: medicamento a base de fluvastatina

3004.90.99 // Unicamente: medicamento a base de nicotina

3004.90.99 // Unicamente: medicamento a base de nitroglicerina

3004.90.99 // Unicamente: medicamento a base de quinagolida

3004.90.99 // Unicamente: medicamento a base de tizanidina

3004.90.99 // Unicamente: medicamento a base de amiprenavir

3004.90.99 // Unicamente: medicamento oftálmico a base de aceite de silicona

3004.90.99 // Unicamente: medicamento oftálmico a base de perfluorodecalina

3004.90.99 // Unicamente: medicamento a base de tirofiban clorhidrato

3004.90.99 // Unicamente: medicamento a base de losartán potásico

3004.90.99 // Unicamente: medicamento a base de simvastatina

3004.90.99 // Unicamente: medicamento a base de acitretino

3004.90.99 // Unicamente: medicamento a base de carvedilol

3004.90.99 // Unicamente: medicamento a base de filgastrim

3004.90.99 // Unicamente: medicamento a base de flunitrazepam

3004.90.99 // Unicamente: medicamento a base de mesilato de nelfinavir

3004.90.99 // Unicamente: medicamento a base de tolcapone

3004.90.99 // Unicamente: medicamento a base de benzoato de rizatriptán

3004.90.99 // Unicamente: medicamento a base de tenoxicam

3004.90.99 // Unicamente: Antiglaucomatos o anthipertensivo ocular con principio activo clorhidrato de levobunolol y alcohol polivinílico

3004.90.99 // Unicamente: Alternativa terapéutica para mantenimiento de midriasis transoperatoria de extracción de catarata extracapsular con principio activo flurbiprofeno sódico

3004.90.99 // Unicamente: Solución de uso oftálmico para conjuntivitis infecciosa, úlceras corneales e infecciones oculares con principio activo de ofloxacina

3004.90.99 // Unicamente: Subtilisina a microangular tabletas para limpieza de lentes de contacto

3004.90.99 // Unicamente: medicamento a base de lamivudina y zidovudina (tabletas)

3004.90.99 // Unicamente: medicamento a base de abacavir (tabletas)

3004.90.99 // Unicamente: medicamento a base de lamivudina (tabletas)

3004.90.99 // Unicamente: medicamentos a base de abacavir, lamivudina y zidovudina (tabletas)

3302.90.99 // Los demás

3822.00.99 // Unicamente: Medicamento oftálmico a base de tira de papel filtro whatman prueba para evaluar la cantidad de lagrima producida en el ojo humano

3822.00.99 // Unicamente: Reactivo para detección de embarazo en tira reactiva, contenida en un estuche o dispositivo de plástico para su venta en farmacias presentación prueba individual

3907.91.02 // 2,2,4-Trimetil-1,2-dihidro-quinolina polimerizada.

8426.91.02 // Grúas con acondicionamiento hidráulico de brazos articulados o rígidos con capacidad hasta 9.9 toneladas a un radio de 1 m.

8426.91.04 // Grúas con brazo (aguilón) articulado, de acondicionamiento hidráulico con capacidad superior a 9.9 toneladas a un radio de 1 m.

8506.10.01 // Secas, utilizadas en audífonos, para sordera.

8506.10.02 // Secas, rectangulares, cuyas medidas en milímetros sean: longitud de 40 a 55, ancho de 22 a 28 y espesor de 12 a 18, excepto lo comprendido en las fracciones 8506.10.01 y 04

8506.10.03 // Secas, cilíndricas, cuyo diámetro sea mayor de 12 sin exceder de 39 mm. Con longitud de 45 a 65 mm, excepto lo comprendido en las fracciones 8506.10.01 y 04

8506.10.04 // Alcalinas, excepto lo comprendido en las fracciones 8506.10.01,02 y 03.

8506.10.99 // Los demás

8506.30.01 // Secas, utilizadas en audífonos, para sordera.

8506.30.02 // Secas, rectangulares, cuyas medidas en milímetros sean: longitud de 40 a 55, ancho de 22 a 28 y espesor de 12 a 18, excepto lo comprendido en las fracciones 8506.30.01 y 04

8506.30.03 // Secas, cilíndricas, cuyo diámetro sea mayor de 12 sin exceder de 39 mm. Con longitud de 45 a 65 mm, excepto lo comprendido en las fracciones 8506.30.01 y 04

8506.30.04 // Alcalinas, excepto lo comprendido en las fracciones 8506.30.01,02 y 03

8506.30.99 // Los demás

8506.40.01 // Secas, utilizadas en audífonos, para sordera.

8506.40.02 // Secas, rectangulares, cuyas medidas en milímetros sean: longitud de 40 a 55, ancho de 22 a 28 y espesor de 12 a 18, excepto lo comprendido en las fracciones 8506.40.01 y 04

8506.40.03 // Secas, cilíndricas, cuyo diámetro sea mayor de 12 sin exceder de 39 mm, con longitud de 45 a 65 mm, excepto lo comprendido en las fracciones 8506.40.01 y 04

8506.40.04 // Alcalinas, excepto lo comprendido en las fracciones 8506.40.01, 02 y 03

8506.40.99 // Los demás

8506.50.01 // Secas, utilizadas en audífonos, para sordera.

8506.50.02 // Secas, rectangulares, cuyas medidas en milímetros sean: longitud de 40 a 55, ancho de 22 a 28 y espesor de 12 a 18, excepto lo comprendido en las fracciones 8506.50.01 y 04

8506.50.03 // Secas, cilíndricas, cuyo diámetro sea mayor de 12 sin exceder de 39 mm, con longitud de 45 a 65 mm, excepto lo comprendido en las fracciones 8506.50.01 y 04

8506.50.04 // Alcalinas, excepto lo comprendido en las fracciones 8506.50.01, 02 y 03

8506.50.99 // Los demás

8506.60.01 // De aire,cinc.

8506.80.01 // Secas, utilizadas en audífonos, para sordera.

8506.80.02 // Secas, rectangulares, cuyas medidas en milímetros sean: longitud de 40 a 55, ancho de 22 a 28 y espesor de 12 a 18k excepto lo comprendido en las fracciones 8506.80.01 y 04

8506.80.03 // Secas, cilíndricas, cuyo diámetro sea mayor de 12 sin exceder de 39 mm, con longitud de 45 a 65 mm, excepto lo comprendido en las fracciones 8506.80.01 y 04

8506.80.04 // Alcalinas, excepto lo comprendido en las fracciones 8506.80.01,02 y 03.

8506.80.99 // Los demás

8506.90.01 // Partes

8703.10.01 // Con motor eléctrico

8703.10.02 // Vehículos especiales para el transporte de personas en terreno de golf

8703.10.03 // Motociclos de cuatro ruedas (cuadrimotos) o de tres ruedas equipados con diferencial y reversa

* Subject to correlation to 2002 HS nomenclature

b) Mexico eliminates the customs duties within the automotive quota established in Section "C", paragraph 2.1 of Annex II (Tariff Elimination Schedule of Mexico) for originating goods of the European Community at the date of entry into force of this Decision.

ANNEX 2

Tariff items in which the European Community accelerates the elimination of customs duties for originating goods of Mexico

Products for which the European Community eliminates customs duties for originating goods of Mexico at the date of entry into force of this Decision:

Ex 2905.19.00 // Metal alcoholates

2915.31.00 // Ethyl acetate

2915.32.00 // Vinyl acetate

2916.12.10 // Methyl acrylate

2922.50.00 // Amino-alcohol-phenols, amino-acid-phenols and other amino-compounds with oxygen function

8712.00.10 // Bicycles and other cycles (including delivery tricycles), not motorised, without ball bearings.

8712.00.30 // Bycicles

8712.00.80 // Other

Ex 8702 - with a weight less then 8864 kg. // Motor vehicles for the transport of ten or more persons, including the driver

8703 // Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars

Ex 8704 - with a weight less than 8864 kg. // Motor vehicles for the transport of goods

8706 // Chassis fitted with engines, for the motor vehicles of headings Nos 8701 to 8705

>TABLE POSITION>