Proposal for a COUNCIL DECISION On the signature of an Interim Agreement on trade and trade related matters between the European Community, of the one part, and the Republic of Lebanon, of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The attached proposals constitute the legal instruments for the signature and conclusion of an Interim Agreement between the European Community, of the one part, and the Republic of Lebanon, of the other part:

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

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

2. Lebanon's relations with the European Community are presently covered by the Co-operation Agreement signed in Brussels on 3 May 1977 (entered into force 1st November 1978), as modified by subsequent protocols. The Council adopted its negotiating directives and the Commission formally launched the negotiations for an Association Agreement in 1995. Progress was slow, with five rounds of negotiations held in five years. The pace of negotiations intensified in October 2000 after the election of a new Government in Lebanon, culminating in the tenth and final formal round in June 2001, followed by a series of technical discussions, leading to conclusion of the negotiations in December 2001. The text was initialled by the Commission and by the Government of Lebanon in Brussels on 10 January 2002.

3. Pending ratification by all Parliaments of the Association Agreement, the Commission is proposing to conclude an Interim Agreement to allow the trade and trade-related contents of the Association Agreement to enter into force upon signature. The conclusion of the Interim Agreement is conditional on the signature of the Association Agreement, which is planned to take place in Valencia on 22 April 2002. In order to save time and have the Interim Agreement in force as soon as possible, the two procedures have been launched in parallel.

4. The Interim Agreement partly replaces trade and trade-related provisions of the Co-operation Agreement of 1977. It will allow for the start of the twelve year transitional period upon entry into force. The Interim Agreement will be replaced by the Association Agreement upon completion of the Parliamentary ratification procedure and its entry into force. Progress on the transitional period achieved under the Interim Agreement will be transferred to the Association Agreement.

5. The Interim Agreement will provide for:

- the progressive establishment of a free-trade area between the European Community and Lebanon over a maximum period of twelve years, in conformity with the rules of the WTO;

- for industrial products, the preferential regime accorded to Lebanon exports to the Community under the Co-operation Agreement is reconfirmed. Reciprocally, Lebanon will liberalise its import regime for Community products so that tariffs are reduced to zero by the end of the twelve year transition period after entry into force of the Agreement;

- for processed agricultural products, specific reciprocal concessions are foreseen;

- agricultural products from Lebanon to the Community will be liberalised, except for a list of sensitive products for which specific concessions are granted. Products from the Community will enter Lebanon on a concessional basis. New reciprocal tariff concessions will be examined by both sides five years after entry into force of the Agreement;

- provisions on competition and intellectual property protection.

6. The Commission, having proceeded to the initialling of the proposed Interim Agreement, requests the Council to approve the results of the negotiations, and to engage the procedures aimed at the conclusion of this Agreement on the basis of the attached proposal.

7. In line with the above, the Commission requests the Council to conclude the Interim Agreement on behalf of the EC.

2002/0096 (ACC)

Proposal for a COUNCIL DECISION On the signature of an Interim Agreement on trade and trade related matters between the European Community, of the one part, and the Republic of Lebanon, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Whereas:

(1) Pending the entry into force of the Euro-Mediterranean Association Agreement between the European Community and their Member States, of the one part, and the Republic of Lebanon, of the other part, signed on behalf of the European Community, in [Valencia] on [22 April] 2002, it is necessary to sign the Interim Agreement on trade and trade-related matters between the European Community and the Republic of Lebanon;

(2) The Interim Agreement initialled on [...] 2002 should therefore by 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 person(s) empowered to sign, on behalf of the European Community, the Interim Agreement between the European Community, of the one part, and the Republic of Lebanon, of the other part.

Done at Brussels,

For the Council

The President