Proposal for a COUNCIL DECISION extending the period of application of Decision 82/530/EEC authorising the United Kingdom to permit the Isle of Man authorities to apply a system of special import licences to sheepmeat and beef and veal

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Isle of Man is situated in the middle of the Irish Sea. It is not part of the United Kingdom but is a British Crown dependency. It has a large degree of self-government but external affairs are the concern of the UK government.

The Treaty applies to the Isle of Man to the extent necessary to ensure the implementation of the arrangements set out in the Treaty of Accession. Those arrangements are laid out in Protocol 3 of that Treaty.

The broad effect is that whilst the Island is required by Council Regulation (EEC) No 706/73 to apply Community rules concerning trade in agricultural products it neither contributes to, nor is eligible to receive any benefits from Community funds.

This proposed Council Decision has been drawn up with the aim of extending the authorisation of the Isle of Man authorities to restrict the imports of beef and sheepmeat so that the indigenous production is not disturbed. This covers imports from Member States or third countries. Council Decision 82/530/EEC of 19 July 1982 as prolonged by Council Decisions No 84/363/EEC, 88/504/EEC, 91/657/EEC, 95/589/EC and 96/90/EC granted this authorisation up to 31 December 2000.

Having examined the economic and technical data relating to beef and sheepmeat production and importation in the Isle of Man the Commission has reached the conclusion that Council Decision 82/530/EEC has aided the Manx authorities to maintain meat supplies to the island and at the same time to offer a measure of income protection to the Islands producers. The Commission therefore proposes that the Council Decision be retained and made applicable up to 31 December 2005.

This proposal does not entail any financial consequences for the Community.

Proposal for a COUNCIL DECISION extending the period of application of Decision 82/530/EEC authorising the United Kingdom to permit the Isle of Man authorities to apply a system of special import licences to sheepmeat and beef and veal

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Protocol 3 to the 1972 Act of Accession, and in particular Article 1 (2) and the second subparagraph of Article 5 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) Community rules concerning trade with third countries in agricultural products subject to a common organisation of the market apply to the Isle of Man in accordance with Article 1 (2) of Protocol 3 to the Act of Accession and with Council Regulation (EEC) No 706/73 of 12 March 1973 concerning the Community arrangements applicable to the Channel Islands and the Isle of Man for trade in agricultural products [1].

[1] OJ L 68, 15.3.1973, p. 1. Regulation amended by Regulation (EEC) n° 1174/86 (OJ L 167, 24.4.1986, p. 1).

(2) Livestock production is a traditional activity in the Isle of Man and plays a central part in the Island's agriculture.

(3) Prior to the introduction of the common organisation of the market in sheepmeat and goatmeat within the Community, the Isle of Man, as part of its local market organisation, applied certain mechanisms to control imports of sheepmeat into the Island in order to ensure that the need to supply the requirements of the trade could be met whilst avoiding distortions in the pattern of sheep production and, indirectly, in cattle production on the Island and in its own agricultural support system.

(4) In the context of the trade arrangements with certain third countries pursuant to the common organisation of the market which applied to the Isle of Man, subject to the Community provisions which governed the relationship between the Island and the Community, it was desirable to permit the Island authorities to apply certain measures in order to protect its own production and the working of its own agricultural support system.

(5) Therefore, by Council Decision 82/530/EEC [2], the United Kingdom was authorised to permit the Isle of Man Government to apply a system of special licences for imports of sheepmeat and beef and veal originating in third countries and in Member States of the Community, without prejudice to the measures concerning trade with third countries provided for by Council Regulations (EC) No 1254/1999 of 17 May 1999, on the common organisation of the market in beef and veal [3], and (EC) No 2467/98 of 3 November 1998 on the common organisation of the market in sheepmeat and goatmeat [4]. This authorisation was granted for a period ending on 31 December 2000.

[2] OJ L 234, 9.8.1982, p. 7. Decision as last amended by Decision 96/90/EC (OJ L 21, 27.1.1996, p. 67).

[3] OJ L 160, 26.6.1999, p. 21.

[4] OJ L 312, 20.11.1998, p. 1.

(6) Under the Agreement on Agriculture concluded in the framework of the Uruguay Round of multilateral trade negotiations [5], the Community has replaced the special trade arrangements with third countries on imports of products in the sheep and beef sector by a system of 0 tariff quotas. However, it is desirable in the light of experience gained during the application of Decision 82/530/EEC to extend the system of special import licences for a further period with the possibility of further reviewing the situation before the end of that period and without prejudice to the international obligations of the Community. Article 2 of Decision 82/530/EEC should therefore be amended accordingly.

[5] OJ L 336, 23.12.1994, p. 22.

HAS ADOPTED THIS DECISION:

Article 1

Article 2 of Decision 82/530/EEC is hereby replaced by the following:

"Article 2

This Decision shall apply until 31 December 2005.

Before 1 July 2005 the Commission shall present to the Council a report on the application of the system, together with any proposals for the retention of, or amendment to, this Decision."

Article 2

This Decision is addressed to the United Kingdom of Great Britain and Northern Island.

Done at Brussels,

For the Council

The President